3 reasons why HR and finance should collaborate
IT’S NO secret that digital transformation is happening and dramatically affecting the pace of business, both externally with customers, vendors and partners, but also internally with regard to employees. Businesses are realizing that they have to quickly adapt to meet these evolving demands and have started modernizing core functions like HR and finance. However, simply updating technologies or implementing new ones won’t achieve the results that today’s business environments require. The true value of making a digital transition comes from the insights and collaboration that these technologies enable once they are integrated. A holistic view into two mission-critical business functions, HR and finance, can significantly empower organizations to better manage continuous change throughout its entire organization, lowering overall cost while continuing to stay competitive.
The need for closer collaboration between finance and HR departments has never been more critical. Finance provides the forward-looking guidance that management needs to gain advantage from the next market opportunity. HR functions play a critical role in making sure that the organization has the talent it needs to execute on digital strategies, and create a future-ready culture. To be successful in today’s fast-paced market, HR and finance should be collaborating, and the following are three reasons why.
Share a Common Goal
HR and finance functions both equip businesses to succeed in a digitized and extremely competitive marketplace. Organizations often pair these two functions when moving into the cloud, given their shared stakes in areas like budgeting and workforce planning. Finance has become the co-pilot to the business, providing the forward-looking guidance management needs to capitalize on the next market opportunity. HR plays an essential role in ensuring that the business has the talent it needs to execute on digital strategies, and create a change-ready culture. Businesses are acknowledging that collaboration between the two has now become a necessity. According to the survey, “Finance and HR: The Cloud’s New Power Partnership”, 46 percent of respondents from finance and HR say that their collaboration has increased significantly after deploying cross-functional collaboration. Cloud technology serves as a starting point, ensuring that companies can successfully adapt to, and compete in, the fast-paced digital economy.
Save Time and Money with the Cloud
The wonderful benefit of an enlightened digital enterprise, aside from making better decisions and optimizing all assets, is that less money is spent on things that don’t advance the agenda of the company or empower employees or customers,and more is spent on core business strengths.A single, unified cloud-based ERP and HCM system provides new insights into how change impacts budgets, forecasts, talent, resource allocation, and much more. Cloud-based solutions offer the integrated, holistic view that helps streamline HR and finance business processes, automate time-consuming manual tasks in both HR and finance and frees up valuable resources to allow for more strategic, forward-thinking approaches that better align with key business KPIs and goals.In a recent survey, 41 percent of C-level executives reported a significant benefit of cloud deployment is the ability to re-prioritize their time so they can work on more revenue-generating projects and new product development developments.
Act as a Role Model
Starting the digital transformation with a unified HR and finance system not only has direct business benefits, but can also serve as a blueprint for how other areas of business can also benefit from a unified, integrated approach. HR and finance can provide an initial foothold, providing companies with enough insight to envision the benefits of implementing a unified system across all back-office functions. The cloud’s ability to deliver real-time access to information via self-service mechanisms empowers employees across the business, strengthening decision-making, boosting agility, and minimizing the need for IT intervention. The cloud is critical for growth-minded companies looking for an edge in a crowded marketplace. In a recent study of 700 C-level executives and finance, HR, and IT managers, 35 percent plan to create a shared finance and HR function within a year, noting closer finance and HR collaboration in the cloud as a strategic necessity, promoting operational excellence and accelerating innovation. This serves as a strategic weapon that allows companies to adapt to changes and understand the impact of technologies that their employees are using everyday. The cloud’s breakthrough potential takes time to emerge, however, when a company takes a deliberate and managed approach to forging as seamless a transition as possible.
The need for collaboration between HR and finance is more relevant now than ever before and companies that want to compete should pay attention. Digital transformation is driving this change at an alarmingly fast rate and the ones who come out on top are those who are truly investing in the future of their business. Organizations must take the time to consider the benefits of integrating HR and finance functions into one cloud and how doing so will significantly impact the existing and future business goals.
— The writer is Vice President HCM Transformation and Thought Leadership Oracle.