Bringing Finance and HR together through data and analytics
A new study by Oracle claims that long standing cultural habits and a ‘short-term’ mindset are the main barriers preventing further collaboration between finance and HR teams.
The study exploring HR and Analytics includes an analysis of over 1,500 finance, HR and other business professionals worldwide. The report suggests that in order to really harness the value of data and to ensure companies can continue to evolve in a rapidly changing talent market, HR professionals need to take a different approach with analytics technology and enhance collaboration with their finance teams.
HR and Finance teams deliver different, yet crucial skill sets for a business. Traditionally, the two teams do not work closely, but industry leaders at Oracle believe this needs to change in order for companies to maintain a competitive lead within today’s progressive market and talent industry. Donald Anderson, the Director of Organisation & Talent Development at Oracle believes the main step to remove traditional barriers between HR and Finance teams is to create a collaborative mindset, using the right skills and expertise to collect and measure data which can be used to make critical business decisions. This alone would lead to considerable benefits for a business and its level of performance.
With the continued launch of innovative technology, rising recruitment costs and a surge in demand for new skills, today’s global talent industry is more competitive than ever and businesses need to ensure they remain competitive within this market, HR teams need to consider their overall approach towards analytics, skills and integration with finance to create a competitive lead.
According to results from the Oracle study:-
-Over 90% of Finance and HR professionals intend to prioritise data-driven collaboration this year.
-In order to harness data value, HR and Finance teams will need to develop new skills. The survey results showed that just under 50% of members are unable to use analytics properly to measure outcomes and over 80% are not equipped to understand predictive data for determining future plans.
Within the study, Oracle explains that Finance and HR professionals are exploring emerging technologies which can support business performance, in particular, Artificial Intelligence. Results show that around a quarter of respondents currently use AI to identify specific ‘at-risk’ talent and develop their talent pipeline. Few businesses are using AI to forecast overall performance or to search for the best talent. According to the report, over 70% of the respondents intend to use AI to forecast high performing candidates and select the ideal match candidates with CV/resume analysis. Other AI measures highlighted by respondents include shaping their talent pipeline, identifying at-risk employees and supporting interactions between chatbots and employees.
Emerging technologies, analytics and AI are creating a range of opportunities for HR teams to analyse important insights and make informed decisions that can create that competitive advantage. With more HR professionals planning to invest and focus on AI over the next year, it will likely mean businesses will be competing on a new scale to search for the best talent.