Synchronizing HR Strategy: Bridging the Gap between Business and HR 

Did you know that up to 70% of a company’s budget is headcount-related costs?  

That’s why one key aspect of driving growth and impacting business outcomes is the collaboration between HR and Finance.  Overall, HR-Finance collaboration is vital as it combines the expertise of both departments, enabling a comprehensive understanding of the financial implications of HR decisions. This synergy ensures effective resource management, aligns HR strategy with business objectives, and enhances the overall financial health and performance of the organization.  

Often, HR and Finance departments seem to speak different languages, with HR focusing on people and Finance speaking of numbers and profits. However, when HR professionals understand and speak the language of business, they can demonstrate the value of their decisions in financial terms and work together with Finance for success. 

For example, instead of simply stating that training is an important investment, HR can explain how investing in training could save thousands and boost revenues. This approach brings HR closer to the company’s goals and fosters a robust partnership between the two departments. The importance of good communication and collaboration between HR and Finance at the leadership level cannot be overstated, as it helps overcome longstanding barriers that impact the synchronization of these functions. 

Tips for Fostering Strong Partnerships and Communication between HR and Finance:

1. Align goals and objectives: Ensure that both departments have a clear understanding of the organization’s goals and objectives and work together to align their efforts accordingly. 
2. Share data and insights: Regularly share relevant data and insights between the departments to foster a data-driven approach and empower informed decision-making.
3. Embrace storytelling: Combine questions, data, and visuals to tell a compelling narrative. Tailor HR insights into a language understandable by finance and management.
4. Link your argumentation to business impact: Establish cost-benefit ROI metrics, demonstrating the direct impact of HR decisions on financial outcomes. Translate HR initiatives into proving value for finance executives. 

Moving from the specifics of how HR and Finance should collaborate to the bigger picture of teamwork among leaders, it’s clear that the problems with working together extend beyond just these two departments. While it’s crucial for HR and Finance to collaborate well, the issues they face aren’t unique. Making sure all leaders work together smoothly is essential for the organization to grow. Therefore, our attention now turns towards harnessing technological solutions to enhance collaboration across the entire leadership team.