What opportunites for partnership between HR and Finance ? [Infographic]

A few months ago, the good folks at Towers Watson produced a decent infographic on the partnership opportunities between HR and Finance. Unfortunately, they’re not offering an “embed” function so if you want to see it, you’ll have to click here. You can download a PDF if you really like it 😉

There are numerous areas where Finance and HR agree they can work together even more. And many of them have to do with Rewards/C&B !

Both functions agree that their collaboration helps to ensure the following 3 major outcomes :

  • ensuring the right rewards to drive the right behaviours
  • improving ROI on rewards spending
  • creating alignment with financial and talent goals.

Interestingly, it seems HR will be driving this increased collaboration in the future (70% in HR think they will collaborate more with Finance, while “only” 49% of Finance say the same).

The topics will mostly target pay for performance, with two of the main areas of concerted work being to become more focused on linking rewards to company and individual performance.

I find it interesting that finally, HR and Finance don’t seem to perceive one another as “frenemies” in the workplace, but acknowledge that they need to collaborate in order to help the organisation achieve its goals. One step that showcases the maturity, and ensuing increased credibility that HR has acquired in the past few years !

See the infographic here.

Download the more detailed report that inspired it here. Good reading !

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Comments

  1. John Nichols says:

    Since back in the 80s we ran a discussion group attended by HR and Tax, especially for international companies, with the same objectives.

    • Great idea ! HR and Tax have a lot in common especially when it comes to expanding in new countries (with or without Permanent Establishment), managing international assignees, and tax-optimisation of employee packages and benefits wherever possible.

  2. The problem is that financial people come to reward purely from a cost perspective not from what will motivate someone to go that bit further. This is why HR needs to work harder at the relationship but once you convince them they are in most cases totally behind you.

    • I agree Tom, HR and Finance don’t always have the same primary objective. However once HR can prove the value of its programs, then as you say, Finance becomess a very committed partner – and that’s when the synergies really bring the most value.
      Thanks for your comment !

  3. Finance people consider they are businessmen, but they do not necessarily consider HR as businessmen as well. Worse, some of the HR professionals lack business literacy and focus too much on what’s happening “inside” the organization. I believe these create a boundary of the collaboration between HR and Finance. However, I think HR people gradually realize the importance of knowing the business they work for. That’s partly why more HR expect the collaboration with Finance. We will sooner or later prove the value of those talent programs, and the Finance people will realize the real impact of HR.

    • Exactly ! I find it interesting that HR people want more collaboration with Finance, it shows that the funtion is aware it needs to broaden its horizons in order to bring as much value to the business as possible. Thanks for commenting Ellie !

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