In the past, the HR and Finance departments have been the biggest enemies in a company. But only recently they have understood each other’s importance and started working together in unity. Companies have seen their biggest downfall when both the departments were not in unity. They suffered in efficiency, customer satisfaction and also deficient employees’ morale. There are a series of works that these two departments can work together on. Before understanding that it is necessary to understand how these two departments can work together without having any conflicts.
High-level Understanding
In the past miscommunication and misconceptions have resulted in huge losses. It is, therefore, necessary for both the departments to understand each other’s roles and objectives. HR’s main role and objective is to hire good and efficient employees for the company that gives the desired results. The finance department looks after the financial resources of the company. Understanding each other’s roles and objectives through proper collaboration can prove beneficial for the company.
Acknowledging Past and Current Issues
The HR and Finance department can progress toward working together only if they acknowledge that the issues persist and are communicated. Some issues that can create problems if not acknowledged are:
- Hiring new employees by the HR or terminating a few and not immediately informing the finance department.
- Finance department planning for some budget cuts and not discussing the same with the HR department.
- Non-sharing of data by finance department with the HR department regarding spending projections. This may result in the hiring of inefficient employees due to lack of information of spending targets.
Appoint Representatives to Meet Regularly
Both departments can appoint their representatives to meet each other regularly for discussing the changes and needs in their respective departments. Knowledge of changes in the other’s department will help them to assist each other when needed.
Develop a Collaborative Initiative
An initiative by both the department of rewarding for exemplary work can boost the morale and also increase the customer satisfaction. Both the department can also collaborate in recruiting, where the finance department can assist the HR team in focusing on precise staffing whereas, HR department can assist in meeting financial objectives of the company by hiring efficient employees for the same.
Share Financial Data and Analytics with the HR Department
HR departments can offer competitive salaries and benefits packages to their recruits if they have ample knowledge of the financial data. They can thus hire better employees at competitive rates to meet the company’s objectives effectively and efficiently. such employees can take the company a notch higher than its rivals.
Conclusion
Not just HR and Finance but all the departments in a company must work in harmony and with collaboration for meeting the company’s goal. Such wise decisions can take the company to a higher level. Such efforts shall also increase the transparency in company and therefore result in effective planning and decision-making. A collaboration between the HR and the finance department is therefore a step forward for the better future of the companies.
