HR and Finance: A Vital Relationship

There is nothing funnier than watching my financial friends search high and low for the last few cents to ensure their books balance to the penny. Get me in the ball park and I am more than happy to call it a day. I laugh, but I do so with the utmost respect.

My route to Human Resources (HR) was not typical. I came to HR with a biology degree and 10 years military service as an Army Officer. I did not have any monthly financial reports to read, salary budgets to set or benefit costs to calculate. I could plan the logistical support for a military convoy moving across Germany but did not have experience valuing or presenting human resource program proposals.

Many of my skills from the military transferred easily to the private sector. Terminology, culture, and ways of doing business did not. I was a one-person Human Resource department learning business jargon, making sense out of a new culture and building upon the credibility I brought by learning absolutely everything I could about how a for-profit business operated.

I quickly realized that I needed to understand how the other half lived. I knew what a 3% salary increase would cost and the Chief Financial Officer (CFO) identified where the money would come from. I knew how to design a competitive benefits package and the CFO knew the ins and outs of the local benefits business. I knew what needed to be done and the CFO was a sounding board, ally, and resource in helping me to get things done.

I reported to the CFO and to say I learned a lot from him, simply would not capture the value of the relationship. I am very fortunate to continue to have positive relationships with the financial leaders I work with.

Human Resources and Finance are two very different departments; each brings a unique, yet equally valuable, view of the organization. Unfortunately, collaboration between Human Resources and Finance is not the norm. In many cases, the working relationship between Human Resources and Finance is neutral at best and that is unfortunate for Human Resources, Finance and the entire organization.

The relationship between Human Resources and Finance is a vital business relationship and one well worth the effort.

Guest Post: Remembering the Humans in Human Resources

During the holidays, many things happen. Our lives get a couple of nice breaks and we have a brief moment to reflect on just what it is we are doing out there in the world. HR can be a tough, yet rewarding job. It all depends on how you look at things. Some people in the company love you; others can’t stand you at all. Sometimes, HR reps just seem to get a bad rap because of the fact that they have to enforce rules and be the bearer of bad news.

If it’s your kind of thing, you get used to it after a while. For the most part, people do their jobs and you do a lot of paperwork. Here and there, you may have to deal with some tougher issues, like cutting benefits, laying people off, and even terminations. This is what we have trained for.

Recently, I overheard a group of young people at a coffee shop talking about human resources. Naturally, my ears perked up. One thought it was a very disgusting term, taking all humanity away from employees and referring to them as simply resources. Another thought that it was an appropriate term and that his friend was being unreasonable.

This little conversation got me thinking about the term, though. I realized that perception is a big part of the equation, and that different people are going to care more, less, or not at all about what’s going on in HR. That doesn’t mean that we have to let the people become just mere resources either.

It is definitely a balancing act when working in HR. You can’t get too attached to anyone because it could affect your objectivity. However, you can still look at the situations you encounter in HR for their humanity and try to understand people’s reactions when you encounter them. This is something that could bridge the seeming gap that exists in some companies between HR and the employees, ultimately creating a more effective office culture.

This post was contributed by Holly McCarthy, who writes on the subject of online MBA programs. She invites your feedback at hollymccarthy12 at gmail dot com