Both HR and finance work for the organization’s benefits that’s the main reason it is important for HR to know about Finance. Moreover, both the departments look for better employee performance which in turn helps to make profits for the company. Every company has HR, Finance, Marketing, and sales department. As marketing and sales are linked with each other the same way HR and Finance is also interlinked. It is important for HR professionals to know about the business language that is finance. The main job of the HR professionals is hiring, training, maintaining and improving relationships and terminating employees. All this incurs a cost that the finance department looks into.
Finance and HR Works Together
Earlier organizations gave all the money related work to its finance department and all the work related to human resource to the HR department. But with the changing time both the departments work together. That is to say that the HR department also deals with finance when recruiting new employees. Moreover, when preparing laws for the company the department must prepare laws that will lead to profits for the company. Therefore, all these processes require data analysis that in turn is the work of Finance. On the contrary, the finance department looks for making profits for the company through human capital.
Profit Must Be The Main Motive Of Finance And HR Department
As the HR department makes the salary of the employees the finance department sanctions it. The finance managers all look into the bonus and the increments that the employees need to be given. When both the departments work together this leads to benefits for the company on the whole. Moreover, it is important that there is no communication gap between the two departments. And free flow of information needs to be there that is to say neither of the department must hide files or information related to the employees, their salary, profits, loss and more. Hence, both departments must understand that the company works with employees. If employees are happy working in an organization this will lead to overall profits for the employee and the organization.
Changes Need to be Accepted
With the changing time, there are changes made in the working of the HR and the finance departments. Today it is not that HR departments deal with only recruitment and finance with money. There are changes in the working system of every department in an organization. The changes are for good and the managers and the working professionals must accept the changes to be as dynamic as any other department. With tension, no professional can succeed be it HR managers or the Finance managers. Working together is the best thing they can do for achieving the company`s ultimate goal that is making profits.
Conclusion
Every department needs recognition for their work. Cost-cutting, effective use of capital, making good use of the capital must be the main motive of both the HR and the finance departments. If these two departments work together this will be possible. Therefore, the ultimate goal of the organization must be in the heads of both the departments.
