The overall performance of a company depends on the ability of its key departments to collaborate effectively. The Administrative and Financial Department (DAF) and the Human Resources Department (HRD) represent two essential pillars, but are often perceived as opposed due to their divergent priorities. Immediate profitability for the DAF and long-term vision for the HR department can hinder their cooperation. However, fluid collaboration is essential to control crucial issues, such as the absenteeism rate which, in 2023, would still reach 5.17%. This article highlights five essential steps that can transform this dynamic, thus making it possible to take advantage of the complementarity between the DAF and the HR department.
Understand the operating differences between DAF and HRD
The first step to establishing effective synergy is to understand the specifics of each function. Although CFO and HR share a common performance objective, their approaches differ. The DAF focuses on cost management and optimization of results, with indicators such as cash flow or profit margins. On the other hand, HR focuses on talent development and corporate culture, hence a longer-term vision.
Distinct but complementary priorities
Differences in priorities between CFO and HR can create tensions. While the CFO is in a hurry to achieve rapid results, as illustrated by its quarterly objectives, the HR department invests in initiatives that take time to bear fruit, such as skills development. This can harm a shared vision. Thus, an open dialogue is essential to establish a mutual understanding of the issues linked to the two functions.
Obstacles to collaboration
Despite objectives aligned on paper, several obstacles can slow down cooperation. The language used by each management differs; the DAF favors financial indicators while the HR department discusses employee engagement or corporate culture. Additionally, misalignment of time horizons can lead to misunderstandings. According to a PwC study, only 34% of CFOs say they fully understand the priorities of HR managers, while 40% of HR managers say they lack information on the expectations of financial departments. These gaps must be filled to strengthen cooperation.
Establish clear and regular communication
Clear communication is a key factor in fostering successful collaboration. It is essential that CFOs and HR directors share sufficient information to align their objectives. This can result in the organization of monthly or quarterly meetings, structured around key data. Here, transparency and formalization of exchanges constitute the foundations of a relationship of trust.
Establish regular points of contact
Set up regular meetings makes it possible to assess the evolution of common priorities. According to ANDRH, 63% of HR managers consider these meetings to be a major lever for improving collaboration. By sharing financial indicators, recruitment trends or absenteeism rates, the two managements can anticipate possible conflicts, which promotes a constructive dynamic.
Adopt collaborative tools
The use of project management platforms can facilitate exchanges between CFO and HR department. These collaborative tools make it possible to visualize the priorities of each department and ensure real-time monitoring of joint projects, thus strengthening cohesion between them. Furthermore, this helps each department to better understand the constraints and objectives of the other.
Develop joint projects around the company’s strategic priorities
Once communication is well established, it is essential to collaborate on joint projects. This makes it possible to transform existing differences into productive complementarities. Working together on initiatives that ensure both cost reduction and employee well-being is essential, particularly when it comes to human resources management.
Optimize human resources costs
Human resources represent a significant budget item. By collaborating to optimize costs related to employees, while preserving their well-being, DAF and HRD are taking on a strategic challenge. This requires transmit cost analyzes linked to turnover and absenteeism, by considering solutions such as improving the quality of life at work or talent retention initiatives.
Measuring the return on investment of training programs
CFOs can also play a key role in measuring the ROI of training programs. By quantifying the impacts on performance and productivity, they can see the effectiveness of their investments while strengthening team engagement. This allows HR to direct its initiatives in a relevant and strategic manner.
Integrate employee expectations as a common performance lever
Taking into account employees’ expectations allows CFOs and HR managers to transform CSR initiatives into strategic levers. By collaborating on the measurement of extra-financial performance, CFOs can assess the economic impact of CSR programs while guaranteeing employee engagement identified by HR departments. This alignment is essential for the sustainability of projects in this framework.
Shared CSR strategy
Building a joint strategy to maximize the impact of CSR initiatives will require close cooperation. The CFOs will ensure the measurement of results, while the HR managers will mobilize the teams around the set objectives. This will also improve the employer brand and help provide a positive experience for all employees.
Develop a joint strategy for teleworking
Teleworking is an area where CFO and HR can join forces. Analyze the financial impacts linked to this practice will make it possible to evaluate the savings made and identify the investments necessary to equip employees. At the same time, HR managers must ensure that teleworking remains satisfactory for employees by applying systems promoting commitment and good management of managerial practices.
Promote skills development for lasting collaboration
To guarantee the sustainability of the collaboration between CFO and HRD, it is crucial that the two functions develop their respective skills together. This involves cross-training and knowledge exchanges, allowing each department to understand the other’s framework while integrating performance measurement tools.
Train CFOs in human skills
It would be beneficial to train CFOs in relational skills so that they can better interact with their human resources counterparts. This will help them integrate social dynamics, while strengthening their role in talent management. As such, leadership and communication skills are essential.
Raise awareness among HR managers about data analysis
HR managers can improve their decision-making by becoming familiar with the analysis of financial data. This will allow them to design strategies aligned with economic objectives. Common performance evaluation tools will help each department identify their contribution to collective success.
Establish common indicators of success
It is essential to create shared dashboards showing common indicators. By monitoring metrics such as turnover rate or return on investment on training initiatives, CFOs and HR managers will strengthen their collaboration. This will allow them to make informed decisions based on reliable data.
Track the impact of transformation projects
Finally, each strategic initiative must be evaluated using financial and human criteria. This will not only ensure better governance but also show how both managements can work together to demonstrate the added value of their actions.