Human Resources and Finance are often perceived as two opposite ends of an organization. They have different languages and dealings. HR understands the language of people and finance deals with numbers. Human resources is the division of a business that is charged with finding, screening, recruiting, and training job applicants and maximizing employee productivity and protecting the company from any issues that may arise within the workforce. On the other hand finance is the divisionthat deals with howcorporationsdeal with funding sources, capital structuring, and investment decisions. That being said it is accepted that these two are very apart from each other and have nothing in common.
Both the divisions have common organizational goals so it is important to work together and understand each other’s role for the business to be a successful. They should cooperate with each other and does not underestimate each other’s role in the organization.
Dynamics of finance and HR relationship
Business results are measured in numbers where finance plays a major role in identifying the numbers analyzing them and making decisions. HR has no role respect to numbers. It is concerned with keeping the employees happy and maintaining the worklife balance. But this doesn’t mean that business results are not affected by HR part of the organization
Lets imagine a situation where the employees of the organization are not content. Productivity of any employee also depends on the employee well being. If the employee is happy and satisfied with his job then his productivity will increase and this will be shown in his efficiency and business results. So it can be said that HR indirectly affects the business results being an important part of the organization.
HR and finance analytics
HR function spends money on recruiting a candidate and fixing the compensation process. But the finance function is opposite such that it focuses on saving the money and investing to achieve higher return in the future. It can perceived that both HR and finance focuses on achieving higher return by investing today at optimum sources but their approach is different.
HR invests by recruiting a right candidate for the right job having right skills which will benefit the business in the long run. Finance invests in the market to achieve the required returns in the future. To conclude HR invests in people and finance invests in money.
Financial analytics is a concept in which helps in decision makingby analyzing the data and numbers. It helps the finance managers to forecast about the future. A new concept has also emerged in HR domain which is called as HR analytics. HR analyticsis the process of collecting and analyzingHuman Resourcedata in order to improve an organization'sworkforceperformance.
HR and finance in one basket
From a career point of view HR and finance does not go together and is considered as an odd combination to go for. But having a CombinationofHR and Finance you get to begoodwith numbers andgoodwith people. Also the career options are large, you get to be recognized in the work place because you can manage both the worlds. It will also be easier for you in managing employees as well as fund allocation.
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