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Collaboration of HR and Finance helps in driving better business decisions

By HR Tech Outlook | Friday, July 12, 2019

Collaboration of HR and Finance helps in driving better business decisionsThe businesses are now focusing on active internal collaboration to achieve greater success while using new technology like AI to make better decisions for the organizations.

FREMONT, CA: The global talent is evolving at a rapid speed with new generations entering the workforce and emerging technology driving growth across every industry. To remain in the competitive market, businesses need active internal collaboration and improved efficiencies. One of the best areas to initiate the partnership is with human resource (HR) and finance.

Business heads are looking for HR and finance collaboration to deliver insights that drive better decision making for the organization. According to a study from Oracle, the collaboration between HR and finance teams face the biggest barriers, such as a short-term mindset and entrenched cultural habits. The primary step to overcome the obstacles and bring HR and finance teams together is having a collaborative mindset with the right skills that help in gathering and analyzing data which is used for making impactful business decisions.

Both the departments, HR and finance, bring different, yet complementary skills to the decision-making process. As per the study, which included 1,510 HR, finance and business professionals, it was found that HR teams need to rethink analytics technology, processes, and skills to improve collaboration with finance to successfully unlock the value from data and help the organizations adapt to the evolving nature of the global talent market.

Due to the evolution of new technologies, rising costs of recruitment, and increasing demand for new skills, the global talent market is becoming more competitive than ever.  Around, 95 percent of HR and finance professionals are planning to make data-driven collaboration a priority in 2019. The study also shows that currently, 49 percent cannot use analytics to forecast outcomes, while 81 percent are unable to decide future actions based on predictive data.

To overcome the issue, HR and finance professionals are moving to new technology like artificial intelligence (AI) that helps in driving better business results. Also, organizations are using AI for different purposes like for identifying risk talent, modeling their talent pipeline, forecasting the performance, enhancing employee interactions with chatbots, and so on.  In further years, organizations plan to use AI to anticipate high performing candidates in recruitment and source best-fit candidates with resume analysis.

Thus, analytics and AI provide opportunities for HR to exploit meaningful insights to make better decisions. Down the line, the businesses will compete on an entirely new level to find the right talent as more and more HR professionals are planning to invest heavily in AI.

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