January, 31, 2019
~ Global study examines how data and analytics can bring finance and HR teams together
A short-term mindset and entrenched cultural habits are the biggest barriers to collaboration between HR and finance teams according to a new study from Oracle. The study of 1,510 HR, finance and business professionals found that in order to successfully unlock the value from data and help their organizations adapt to the changing nature of the global talent market, HR teams need to rethink analytics technology, skills and processes to improve collaboration with finance and drive a competitive advantage.
“HR and finance departments bring different, yet complementary skills to the table. While they traditionally have not worked together closely, that needs to change in order for organizations to create a competitive advantage in today’s evolving market and talent economy,” said Donald Anderson, Director, Organization & Talent Development, Oracle. “The first step to overcoming traditional barriers and bringing HR and finance teams together is having a collaborative mindset with the right skillsets to both gather and analyze data so that it can be used to make impactful business decisions. That alone will deliver significant benefits to an organization’s performance.”
Having data is not the same as being able to use it effectively
The global talent market is more competitive than ever with the rise of new technologies, climbing costs of recruitment and increasing demand for new skills. To be successful in this rapidly changing market, HR teams need to rethink their approach to analytics, skills and collaboration to drive a competitive advantage.
It’s not about more technology, it’s about you
While data and analytics have proliferated HR and finance, the benefits are limited without effective collaboration and the ability to derive value. In order to reap the rewards, both departments must overcome short-termism, break through culture clashes and shrink the skillset gap.
HR and Finance leaders need one view of the truth
The majority (80 percent) of organizations believe HR and finance teams are already helping them make better data-driven decisions. But, their teams will need to acquire new skills, but with an increased focus on collaboration, organizations will be able to gain even bigger business benefits:
AI to Pave the Way to Greater Collaboration and Better Business Results
HR and finance professionals are looking to emerging technologies like artificial intelligence (AI) to help drive business results:
“The world of analytics and AI opens tremendous doors for HR to harness meaningful insights in order to make smarter decisions and create a talent advantage,” said Tom Davenport, Babson professor and analytics expert. “Seeing that so many HR professionals are planning to invest heavily in AI over the next year is promising. It means we’ll begin to see more strategic results and businesses competing on an entirely new level to find the right talent.”
This survey interviewed 1,510 HR, finance and business professionals in late 2018. The respondents came from a variety of industries and geographies, and all were from companies with US$100 million of revenues or larger.