Convergence of HR and Finance: A Better Operating Model
The greatest asset of any company is its people and they drive the success and growth of organization to a larger extent. Workforce’s value is more worthy and heavier than any physical asset. Nowadays, the organization expects the finance department to take a more active and effective role in constructing the business plans and it demands a substantial understanding of the human resource. Furthermore, it demands a collaboration of both departments namely, HR and finance for an integrated and result-oriented corporate environment. This article will discuss how the convergence of these both wings create a better operating model in any business.
The human resource and finance department are the primary sides of the coin called business and assimilation of them is decisive. Experts have found out many logical backgrounds behind this convergence and they are explained below:
Finance and HR interact on 34 touch points
There are 34 touch points where both finance and HR interact with each other. If we make any change in the HR policy, it has a mutual influence on the finance too. Therefore, the productive relation between the both is necessary. Starting from new talent acquisition till project management, both these departments work in tandem with each other towards a unified work culture. A smooth and productive relationship can be achieved between the both with a complete suite. Moreover, with this we can achieve higher automation level to build new skills.
An exceptional partnership on Cloud
When we recruit a new employee, we assign the employee a manager, a cost center, and a role. If we have two separate HR and finance departments, these processes can be tedious and lengthy. In this background, a consolidated system can make the whole system smooth and easy by eradicating the double data entry method. Both Deskera ERP and Deskera HRMS together ensure a better data integration on a cloud platform.
Easy access to avant-garde technology
A convergent HR and finance system is more adaptive in acquiring latest technology, machine learning, and artificial intelligence. Together they embrace greater agility when it comes to market challenges and opportunities. It is also suitable for the millennial generation who have grown up with the latest technologies.
When you have a unified platform for both HR and finance, data acquisition becomes easy as you don’t need to use two separate systems. An integrated system gives you more interesting insight into the company’s workforce cost. You can slice the entire cost to personal levels which can give you a more detailed overview of the workforce cost’s division.
The right integration of both HR and finance saves time and allows people to spend more time in planning the perfect business strategies with an impeccable workforce. Beyond a temporary goal, such integration helps to set a strongly defined business vision for the future. We can go for full conversion or specific synchronization of certain fields between the both. It can vary from business to business and thus effective research and investigation are required before taking such groundbreaking decision.