Decoding HR Outsourcing for the Finance Leader
Business goals are standard across any department in an organization. But perceptions about business drivers are fluid. HR departments believe people are the greatest asset to any organization, whereas financial managers take a more straightforward approach and put their faith in money.
The handshake between both departments has to be strong for an optimal functioning of any organization.
The finance leader’s conundrum
There are times of friction between departments when it comes time to gauging the profitability of actions and decisions, as HR departments find it tougher to assign a dollar value to the ROI on their programs.
This disconnect however, can easily be bridged with a mutual understanding of each others’ modus operandi. For example, finance managers can learn to see beyond ROI and work to understand the impact of the human element in business.
Even the numbers support HR Outsourcing
HR functions range from recruitment to payroll to training. Outsourcing certain tasks can compensate for the pronounced workload, thereby boosting efficiency.
Here’s why you should look at outsourcing as a benefit rather than a cost to your organization:
- Employee engagement investment improve customer service and revenue by 6%
- In-house HR administrations cost 18% more than outsourcing
- Cloud based HR Outsourcing moves costs from CapEx to OpEx
- CFOs are becoming increasingly involved in decisions about payroll and outsourcing
- Outsourcing Payroll removes hassle of making regular payments to employees, tax and social authorities.
The final word
The HR department must involve finance leaders from an early stage in the decision making process when looking for a suitable outsourcing partner. This is important because at the end of the day the finance departments foot the bills, and more so because it will give them a glimpse into a people powered department. It’s also an excellent time to bring everyone to the table and ensure business objectives remain in sync.
In conjunction, HR should also learn the value of leveraging people data to create a more engaged, invested and productive workforce.