There is a lack of communication and collaboration between HR and finance teams which may be exacerbating the UK’s productivity puzzle.
Research conducted by OrgVue, found that only 40 per cent of people in HR and finance have a collaborative relationship. Despite, 84 per cent of business leaders saying that better collaboration between finance and HR would improve their ability to plan and execute their strategy.
OrgVue believes as long as there is a disconnection between the two departments, the UK’s low productivity will remain an issue.
EY, a global leader in assurance, tax, transaction and advisory services said:
There is a powerful link between a business’ performance and the extent to which its HR and finance leaders collaborate.
OrgVue believes what makes the two departments ideal for collaboration is that “finance teams have large amounts of data on workforce costs or sales, while HR teams are more likely to collect information on an employee’s well-being, relationships with other colleagues and skills sets.”
A separate report conducted by OrgVue found that if companies deployed human capital effectively, the business could create a 50 per cent productivity increase at the UK’s largest companies. This was shown to translate to an overall increase in the gross domestic product (GDP) of £10.4 billion.
Rupert Morrison, CEO of OrgVue, said:
Organisations used to be simple structures, but now they’re hugely complex. You can either ignore that and put your head in the sand, or tackle the complexity head on.
Businesses will need to move even faster and be more dynamic in the future than they are right now. That’s why having the agility to capitalise on opportunities by deploying your talent quickly and effectively is absolutely crucial. Right now, the vast majority of businesses have very little data on their people. What’s needed is an overall picture of skills and competencies, the work, and the organisation’s objectives to create a well functioning model that’s driven by data and delivered by humans.
In order to gather this research, OrgVue commissioned the Centre for Business and Economics (CEBR) to ask the opinions of 800 UK employees.