What's Happening?
HR leaders are increasingly focusing on strengthening their relationship with CFOs to improve business performance. This collaboration is essential as both HR and finance teams face pressure to achieve
more with limited resources. According to a report by Pleo, 68% of European finance professionals feel heightened pressure, while 50% of HR leaders cite excessive workload as a major stressor. During a recent HR Lunchtime Debate, experts discussed the importance of building trust, using data as a shared language, and aligning strategies to benefit employees and the bottom line. Elizabeth Nyawade, Chief of People and Culture for Surrey and Sussex Healthcare NHS Trust, emphasized the need for trust between HR and finance, as financial changes directly impact day-to-day operations. Sophie Hurcombe, Vice President of People for Lattice, highlighted the importance of shared goals and understanding between HR and finance teams. Chris Roebuck, an international HR speaker, noted that misalignment often stems from a lack of communication, and rapport can unlock effective communication.
Why It's Important?
The collaboration between HR leaders and CFOs is crucial for aligning people strategies with financial decisions, ultimately enhancing business performance. By leveraging data, HR can present credible business cases that resonate with CFOs, who are typically number-driven. This data-driven approach helps build trust and facilitates easier decision-making. As businesses adopt new technologies, HR must align with business security goals to ensure successful implementation. The partnership between HR and finance is vital for steering major investments, such as headcount planning, and ensuring equity and fairness in ongoing strategies. This collaboration not only strengthens organizational goals but also supports employee well-being and satisfaction.
What's Next?
As HR and finance leaders continue to collaborate, they are likely to adopt new technologies that enhance data sharing and decision-making processes. This could lead to more integrated strategies that align HR initiatives with financial objectives, ultimately benefiting employees and the organization. The ongoing dialogue between HR and finance teams will likely focus on building trust and credibility through data, ensuring that future business cases are supported by solid evidence. Additionally, HR leaders may seek to influence finance decisions more actively, emphasizing the importance of people as a major investment within the company.
Beyond the Headlines
The collaboration between HR and finance teams highlights the growing importance of data-driven decision-making in modern organizations. As businesses face increasing pressure to perform with limited resources, the integration of HR and finance strategies can lead to more efficient operations and improved employee satisfaction. This partnership also underscores the need for trust and communication between different departments, fostering a culture of collaboration and shared goals. By aligning people strategies with financial objectives, organizations can create a more cohesive and effective approach to achieving their business goals.
