Not a Member? Get access to HR news and resources that you can trust.
Change can be scary, but deploying new HR software doesn't have to be.
Is your employee handbook ready for the New Year? With SHRM’s Employee Handbook Builder get peace of mind that your handbook is up-to-date.
Get the HR education you need without travel expenses or time out of the office.
We don’t just visit a city, we take it over. Join the HR community in NOLA -- June 18-21, 2017.
HR executives and their finance counterparts agree on many people- and performance-related issues, including the need to better measure and improve the return on investment (ROI) of employee pay and benefits, according to a survey by consultancy Towers Watson.
As reported inDriving Performance through HR and Finance Collaboration, the top areas of joint activity were setting annual budgets for reward programs, determining changes to reward programs and setting reward strategy.
However, there was far less collaboration in areas likely to become more important in the future, including setting an overall workforce strategy and talent management.
Room for Improvement
ROI for reward programs is an area where greater collaboration could lead to improvement. According to the survey:
Both respondent groups identified the same top reward priorities for the next three years, all of which are aimed at improving their ROI for reward programs. These priorities are:
A Towers Watson commentary on the findings noted that the survey “also revealed some interesting disconnects between HR and finance.” For example:
“Finance executives are less likely than HR execs to view executive incentive programs as appropriately structured to discourage excessive risk-taking. Almost three-quarters (74 percent) of the HR executives believe their executive incentives effectively discourage excessive risk-taking, compared to only 58 percent of the finance executives surveyed, possibly reflecting HR leaders’ deeper appreciation for the behavioral implications of incentives or maybe finance leaders’ greater sensitivity to the risk implications.”
“As the economy improves, companies are putting more emphasis on ways to enhance financial performance,” said Emmett Seaborn, a senior consultant at Towers Watson. “While the HR and finance functions have traditionally worked independently, both groups recognize that it’s their employees who ultimately add value and help drive performance, and that for these workforce programs to succeed, they will need to collaborate more in the future.”
The survey was conducted in February 2013 with 122 HR executives and 218 finance executives at U.S. and global organizations. Participating companies ranged in size from 1,000 to more than 25,000 employees and represented a broad range of industries.
Stephen Miller, CEBS, is an online editor/manager for SHRM.
You have successfully saved this page as a bookmark.
Please confirm that you want to proceed with deleting bookmark.
You have successfully removed bookmark.
Please log in as a SHRM member before saving bookmarks.
Your session has expired. Please log in again before saving bookmarks.
Please purchase a SHRM membership before saving bookmarks.
An error has occurred
Recommended for you
Choose from dozens of free webcasts on the most timely HR topics.
SHRM’s HR Vendor Directory contains over 3,200 companies