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.
Survey respondents came from a variety of industries and geographies, and all were from companies with US$100 million of revenues or larger.
“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.”
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.
- 95 percent of HR and finance professionals plan to make data-driven collaboration a priority in 2019
- To act on data in a meaningful way, HR and finance teams will need to acquire new skills. The survey found that 49 percent cannot currently use analytics to forecast outcomes and 81 percent are unable to determine future actions based on predictive data.
According to the study, HR and finance professionals are looking to emerging technologies like Artificial Intelligence (AI) to help drive business results:
- While a quarter (25 percent) of survey respondents are primarily using AI to identify at-risk talent and model their talent pipeline (22 percent), they are rarely using AI to forecast performance (18 percent) or find top talent (15 percent).
- Over the next year, 71 percent of survey respondents plan to use AI to predict high performing candidates in recruitment and source best-fit candidates with resume analysis (70 percent).
- Other AI priorities for survey respondents include modeling their talent pipeline (58 percent), flagging at-risk employees through attrition modeling (52 percent) and supporting employee interactions with chatbots (38 percent).
“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.”
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