Great organizational resilience starts with a great team | Unit4
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Great organizational resilience starts with a great team

from  March 21, 2022 | 3 min read

Dealing with unpredictable operating environments requires your organization to stay ahead of business risks and embrace opportunities quickly. To do that, you need to build great teams – especially as competition to attract top talent grows.

In the opinion of Ventana Research’s Robert Kugel, doing this requires the formation of a new strategic partnership – between HR and Finance.

In his latest Ventana Viewpoint brief, he discusses how HR and Finance must work together to ensure the organization’s strategic objectives can be met, and technology is a key element in facilitating this collaboration. Simultaneously allowing the organization to address people issues, increase productivity, and make more efficient use of resources within existing financial constraints and objectives.

Here are our top 3 takeaways:

1: HR and Finance must face the challenge together

Attracting the best talent is a non-negotiable element of success. But it isn’t easy – especially as no organization has an unlimited hiring budget. To balance the cost imperative and the talent imperative, HR teams need to:

  1. Understand resource needs across their organization, understand how they’re changing, and anticipate them by proactively seeking out individuals with the skill profiles needed to support each team and each project.
  2. Have the benchmarking data they need to ensure job offers are competitive.
  3. Have a clear view of compensation budgets to ensure the retention of top talent while still meeting financial objectives.

This level of insight – and the capacity to act on it in pursuit of building a great team – is only possible through the conscious collaboration of HR and Finance teams.

2: Turnover hurts turnover

Finance has just as much of a need as HR to turn its mind to talent management. People turnover is more than just an annoyance – it costs money via the direct expense incurred in hiring, the indirect expenses incurred in training, and the often forgotten “cost of lost productivity”. What’s more, a dip to productivity can also damage an organization’s competitiveness in the market or its ability to deliver services.

This is all especially true when turnover affects roles involving scarce or strategically important skills. Ensuring that talent stays with the organization once it joins is just as much the in the responsibility and interests of Finance as HR – and finance must play an important role in ensuring that total rewards and investments in employees are both market competitive and having the impact required to keep engagement and retention high.

3: Technology plays a key role in facilitating collaboration

Finance and HR can collaborate on multiple fronts to ensure organizational objectives. For example, FP&A teams can help to establish rolling headcount forecasts along with expected changes to compensation across both individuals and teams, giving HR departments a long view of hiring needs.

HR can use HCM technology to proactively identify barriers to a good employee experience, and put real numbers on their potential effects on productivity and turnover. This is particularly important in a world where people expect a much greater degree of flexibility and career growth advocacy.

Want to know more?

To learn how your HR and Finance teams can work together to put together teams that can compete in an increasingly volatile operating environment while still allowing your organization to meet its key financial objectives, check out Ventana Research’s full Viewpoint here.