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Trends, Products, and Best Practices to Help You Create a Work Made Human Experience

Why You Need Better Collaboration Between Finance and HR (And How to Get It)

Guest Author
This is a syndicated post, view the original post here

By David Werner, Senior Director, ERP Product Marketing, Oracle

This blog is a second of a series on how organizations should approach HR and FInance. Read the first blog on why you should take a data approach to HR. 

When HR and Finance first moved to digital systems, each organization deployed their own solution. This approached worked well as each organization could analyze data faster and enjoy all of the benefits of a more automated system. Over time, however, they have found that separate systems have made it harder to work together on critical business processes that require close collaboration between the two organizations. Duplicate data and disconnected systems lead to errors, manual work, and process slowdowns that go beyond HR and Finance to negatively impact the entire business.

One solution, company-wide impact

Since HR and Finance share so many areas of intersection—also called “touchpoints”—many companies are seeing the value in having a single, unified system. A unified HR and Finance cloud offers easier automation and process streamlining—and the benefits extend far beyond the two teams. They include:

  • Increased information-sharing, which speeds decision-making and approval
  • Less time spent on manual data entry, which frees employees to do more valuable work
  • Deeper, more accurate insights for planning, which can help you make critical business, organization, and workforce decisions

With the increased emphasis on remote work, cloud has become more important than ever—not only to support remote and mobile access, but to also give employees a user experience that meets their needs.  

Read More: How A Combined ERP-HCM Solution Makes the CIO a More Strategic Business Partner

When HR and Finance work from a single source of data, both organizations benefit.

Better collaboration, better relationships

Better data and increased transparency can also help Finance and HR teams see the importance of collaborating on talent management. In fact, a report from the Massachusetts Institute of Technology (MIT) found that 79 percent of companies see more collaboration across HR, Finance, and IT when they move to the cloud. Here’s how relationships may improve:

HR teams move from cost center to partner. HR is often considered a necessary cost center. Suddenly, with a shared cloud system, Finance can see the return on investment of various talent development costs, while HR can better understand budget impact. This shared information helps HR shift away from being an area that simply costs the organization money to a true value center that delivers bottom-line benefits.

Finance becomes an ally. When Finance and HR speak the same language and work from a common data model, the role of the Finance team changes from simply being a financial gatekeeper to that of trusted advisor. Finance and HR teams can work together to identify opportunities to invest in the right people and to improve employee engagement and culture, which creates a stronger organization overall. 

IT teams are free to innovate. The benefits don’t just stop with HR and Finance teams. Cloud applications typically require less IT maintenance than on-premise or hosted solutions. When IT teams aren’t tied up with trouble-shooting and mundane work, they can work more strategically. Instead of the day-to-day focus of keeping systems running and fixing what’s not working correctly—now mostly handled by the cloud provider—the team can tackle bigger challenges, such as creating a 

new chatbot to answer employee questions or developing a mobile app to make a task more convenient. As more problems get solved, each department operates better.

The shared cloud system allows each team to do its best work, which can improve relationships while minimizing the potential for misunderstanding. Work is also more human-centered, and business moves faster with greater agility. When you invest in employees and give them the tools they need to succeed, everyone benefits. The employee experience is improved and teams can address and accomplish broader strategic initiatives. Few other operational changes deliver so many benefits in so many areas. 

Find out more about the transformative benefits of increased finance and HR collaboration.

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