Finance and HR are two critical departments for any company. The role of HR is to manage the people who work for the company, while the part of Finance is to manage the money that comes in and goes out. While these two roles may seem very different, they are closely related. For a company to succeed, both Finance and HR must collaborate and work together.
Finance and HR collaboration can help HR be more strategic about HR services. HR can manage HR activities in a more proactive, integrated, efficient, relevant to the business strategy, and ultimately better for the company’s bottom line. Companies can use HR outsourcing services with who finance has a well-established relationships. This allows HR to take advantage of volume discounts when they are available. HR should also collaborate with Finance on evaluating what types of HR services are most beneficial to the company financially.
HR can leverage HR services providers with whom Finance has relationships. HR should use HR service providers that enhance its financial bottom line rather than detract from it. When HR and finance work together on HR services, they can create policies designed to better achieve organizational goals. This allows employees to focus their energy more fully on helping the organization be successful.
HR Professionals as Strategic Business Partners
Business owners everywhere especially in Dubai are coping with the economic doldrums. Profit margins are shrinking, cash flow is tight, and resources are scarce – not only in terms of money but also in terms of time.
HR outsourcing services are emerging to help companies cope with the changing landscape of today’s workforce. HR Professionals are increasingly being viewed as strategic business partners who can help maintain a company’s competitive edge by working with other departments in ways that generate revenue through improved process efficiencies, reduced costs, increased revenues, and cross-selling opportunities.
Companies in UAE are looking for ways to get more value out of their HR investments, and outsourcing HR functions is one way to make this happen. But working with an outsourced HR partner, or hiring someone into your organization that can act as a business partner, requires you to view them differently – as strategic partners who can help your firm grow its profitability.
Read also: HR Solutions Dubai: A Simple Guide
Critical Role of HR Service in Dubai Providers in HR Process Improvement and Efficiency
HR services providers have a Critical Role to Play in HR Process Improvement and Efficiency In recent years; companies have become more and more conscious of how the HR function within the organization is a strategic partner in helping generate revenue for the company. Yet, many companies still fail to invest in their HR processes as part of their business strategy.
As such, one key area that could benefit from better attention and investment is ‘HR Process Improvement.’ This refers to any process within HR – whether it be related to hiring or managing talent – where mistakes can lead to high costs down the line. It’s easy for Senior Executives involved with budgeting to underestimate these costs since they tend not to feel directly impacted by them day-to-day. Human Resource processes are often seen as low priority when it comes to budget – the focus is typically on operational costs, as opposed to those that would only come up once every three years.
Loss of Human Capital Time
Poor hiring decisions have a direct impact on any organization’s bottom line. The two factors that contribute most significantly to these high costs are loss of human capital resulting from bad hiring decisions and time wasted due to inefficient processes.
HR services providers can help organizations identify their HR process improvement needs by performing a comprehensive audit on the current state of these processes. The most common areas that need improvement include:
- Hiring Process
- Skills Mapping Talent Management
Finance and HR: Many companies, especially those that are more cost-conscious, may experience trouble justifying the expense of investing in Human Resource processes. This is where Finance and HR professionals can play an important role.
By engaging with their counterparts within Finance to present them with concrete numbers about the costs associated with inefficient HR processes, HR outsourcing providers can help demonstrate why they are essential to improving organizational efficiency and maximization of return on investment. When these high costs are identified, it becomes easier for HR leaders to justify the need for change within their organizations.
Finance should have a thorough understanding of what HR performs daily and its overall position. Finance can then figure out how to put their procedures and data into effect. While making financial decisions especially those which reflect in company’s profitability for long term, it is always best to consult with the Finance and HR department. Finance will obtain critical information into research and development, resolution, and other company operations by leveraging HR functions. A corporation will struggle to compete in today’s market if HR and finance do not communicate freely and provide each other with knowledge and precise ongoing data.
Looking for efficient HR outsourcing services in UAE?
We at Payroll Middle East have complete HR and financial assistance in today’s ever-changing environment. The advantages are numerous, including increased output, customer happiness, and profit. If you have a business in Dubai and need assistance with HR services, please call us today and book a free consultation session with us now!