Cross-functional collaboration has been a buzzword for years, and for good reason. Within large organizations, knowledge of how other departments operate and the expertise resident in those areas provide valuable input into decisions that ultimately impact the entire organization and its workforce.
One of the most crucial areas for genuinely game-changing collaboration lies at the intersection of HR and Finance. While their priorities may not often seem to converge, their respective decisions have considerable impact on each other's activities as well as a common set of business objectives. Making financial decisions without regard to workforce needs poses risks to ensuring the right number and type of people skills to deliver the strategic agenda. Developing an employee value proposition and reward programs without regard to financial pressures can threaten a company's underlying cost structure and competitiveness among peer organizations.
To learn more about how and where HR and Finance can partner more effectively, Towers Watson recently completed a new survey, Driving Performance Through HR and Finance Collaboration.
Our study found that given their common issues — reducing labor costs, sustaining or enhancing productivity, keeping the talent pipeline full — both short- and long-term success hinges on a strong HR/Finance partnership. Working together on key business issues allows a company's executive team to view its challenges more holistically, and to address both its people-related needs and its financial constraints in a way that minimizes business risk and supports the organization's strategic growth goals.
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