It’s no surprise that Human Resources and Finance departments don’t always agree on key business needs. HR focuses on hiring top candidates and fostering a positive work environment, while finance centers around planning, accounting for, and controlling the entire organization’s monetary exchanges. The departments speak two very different languages: one well-versed in people, the other well-versed in quantifiable assets. Despite these differences, finance and HR have overlapping goals and must work together to meet corporate goals.
HR directly affects the present and future financial success of a company by supporting employee satisfaction and building a strong corporate culture. Lower turnover benefits finance as it means additional money to grow the business and allocate toward profitable ventures. In turn, finance directly affects the HR organization through budget restrictions that change the staffing and compensation landscape. Given the need for these department to work together internally, what are the benefits of a unified Human Capital Management (HCM) and Financial Management platform in the cloud?
1. Real-Time Cross-Departmental Collaboration
One of the most obvious benefits of a unified HCM and financial management platform is the ability to have real-time collaboration across departments. According to Aberdeen Group, organizations with unified HR and financial data are 3.2 times as likely to have real-time collaboration across departments and divisions. With a unified HCM and financial management platform, managers can accurately predict future workforce needs, costs, and hiring rates.
For example, many recruiters react to hiring needs as soon as they are identified rather than planning in advance, resulting in a longer time to fill roles and lower quality of hire, which could mean increased labor costs. With visibility into workforce planning, HR, recruiting, talent management, accounting, analytics, transactions, and audit, you’ll have a complete view of your business landscape and be able to plan for the future together.
2. A More Nimble Organization
Small businesses, government entities, universities, corporations, and nonprofits alike all need real-time, accurate business data to make decisions. With this insight comes a more complete view of trends happening inside of the company, leading to a nimble and flexible organization that can pursue new companywide initiatives, innovate like never before, and adapt to shocks in the marketplace. This level of organizational agility allows for quick and accurate demand planning and forecasting on a regular basis.
3. Lower Total Cost of Ownership
Aside from cross-departmental collaboration and a more agile business, integrating finance and HR often leads to a lower total cost of ownership. The fewer disparate systems and platforms for business information, the fewer bills and membership fees to maintain them. Additionally, information in different platforms is often outdated and presented in dissimilar ways. When data is standardized in one location, redundant processes are eliminated and managers can use their time more efficiently for corporate planning. The result is a lower total cost for the software and a high-performance workplace!
4. Organizational Compliance
From internal actions to complicated external state requirements, monitoring compliance is a must for every organization. Increasing government and corporate regulations force businesses to take prompt action, and with one HCM and financial management platform, the ability to monitor regulatory compliance on an ongoing basis becomes seamless. In fact, Aberdeen Group shows that organizations with unified HR and financial data are 2.4 times as likely to be able to comply with regulations. For example, when laws such as the Affordable Care Act are passed, cloud-based HCM and finance platforms roll out new features that make the compliance process intuitive, including the ability to send information directly to the IRS.
Thanks to the rise of cloud technology, today’s organizations can unify their HR and financial data in a single, accessible platform. These businesses can achieve greater collaboration across departments, a more nimble organization, a lower total cost of ownership, and essential business compliance. When your HR and finance departments work together, your organization is better-equipped to drive greater insights and business value.
For more information on the cloud-based HCM and Financial Management solutions we offer, click below:
