Welcome to the latest entry in a multi-part series exploring the gap between HR and finance leaders. This is part of an extensive examination of our latest report, "Aligning HR and Finance to Improve Business Outcomes."
With the very first post in the sequence, we spent time exploring the gap in communication that has come to define HR and finance leaders. Most of these issues come from two very different sets of perspective, with the former focused on managing the people and the latter more engaged with the "technical" aspects of running a business. In the follow-up, we explore more of this divide between HR and finance, and how technology plays a vital role. Namely, as finance has continually relied on tech to improve efficiency and functionality, HR has only just recently embraced these powerful workplace solutions.
In the third part of this report analysis, we're looking at finance and how the perspective this department brings to the table impacts both operations and the role of HR.
An eye on the future
There is a misperception that finance somehow supports HR, that this department provides the kind of resources and solutions that help HR engage in its more people-centric line of work. But finance leaders want their HR counterparts to be involved in the process and to set aside resources to reach company-wide goals. Many finance leaders would happily spend money for this kind of assurance and to know that HR can understand and plan for the future through the prism of solid business fundamentals.
• 92 percent of finance leaders believe that increased spending can help HR improve its business outcomes.
The HCM shift
Of course, it's not always easy for HR leaders to simply adopt a new set of operational guidelines. But that's where the ongoing shift in the HCM market comes in handy. Better business outcomes are just one primary benefit when talent management is handled almost exclusively by a single vendor. From our own findings, there are several important trends that indicate finance leaders' newly-acquired preference for a unified-platform solution. Some of these trends include recent acquisitions and mergers within the HCM market, which point to a wide-scale consolidation effect, and HCM platforms relying on third-party vendors and apps, another way to streamline workflow. For many finance leaders, outsourcing HR is the only practical decision to make a business run efficiently.
• 86 percent of finance leaders want HR and payroll handled via a single vendor.
• 75 percent of the same pool indicated HR functions should be outsourced over adding internal staff.
The proper pillars
For finance departments everywhere, outsourcing isn't just about a one-size-fits-all approach. Through our ongoing work into the HR-finance divide, we've noted that there are a few key sectors in which finance has collectively marked as being the most important. Finance's dream vendor is one that can effectively mitigate risk, as this is bad not only for business but for a greater sense of morale. Equally important is generating the ideal employee experience. Satisfied workers are more engaged and better at their jobs. It's these employees that are able to provide an exemplary customer service, and that form of engagement is crucial.
• 90 percent of finance leaders indicated that customer service support is critical to an effective outsourced vendor.
• 83 percent believe addressing compliance and bolstering HR data security is much more crucial.
• 82 percent of finance leaders explained a premium employee experience is of the utmost importance.
Stay tuned each week as we discuss a different segment of the report.
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