When HR Isn’t HR: How Finance, Operations, and Owners Can Be Involved in People Processes

In the traditional sense, Human Resources (HR) is seen as the department solely responsible for managing people processes within an organization. However, as companies grow and evolve, it’s become clear that HR isn’t the only department that needs to be involved in these processes. Finance, operations, company owners, and even other departments are playing increasingly critical roles in ensuring that people processes are not only efficient but also aligned with the company’s overall goals.

Finance: The Guardians of the Budget

Finance teams have a vested interest in HR processes, particularly when it comes to budgeting and financial planning. Compensation, benefits, and hiring costs all have significant impacts on a company’s bottom line. By involving finance in people processes, organizations can ensure that:

• Compensation Packages Are Sustainable: Finance can provide insights into what the company can afford, helping HR craft compensation packages that are competitive yet sustainable.

• Benefits Are Cost-Effective: Finance can work with HR to analyze the ROI of various benefit offerings, ensuring the company is getting the best value for its investment.

• Hiring Plans Align with Financial Goals: By coordinating with finance, HR can make sure that hiring plans are in sync with the company’s financial projections and budgets.

Operations: The Process Innovators

Operations teams are experts in efficiency and process improvement, making them invaluable partners in refining HR processes. By involving operations in people processes, companies can:

• Streamline Onboarding: Operations can help identify bottlenecks in the onboarding process and implement solutions that reduce time-to-productivity for new hires.

• Improve Employee Workflow: Operations can work with HR to ensure that job roles and responsibilities are clearly defined, minimizing confusion and improving overall workflow efficiency.

• Enhance Workplace Safety: Operations teams are often responsible for workplace safety. By collaborating with HR, they can ensure that safety protocols are integrated into the company’s culture and training programs.

Company Owners and Executives: The Visionaries

Company owners and executives set the tone and direction for the entire organization. Their involvement in people processes is crucial for aligning HR initiatives with the company’s broader strategic goals. When owners and executives are actively involved, they can:

• Drive Cultural Change: Executives can lead by example, reinforcing the company’s values and culture through their actions and decisions.

• Prioritize Strategic Hiring: Owners can work with HR to ensure that hiring practices are aligned with the company’s long-term vision and growth plans.

• Ensure Employee Engagement: By being directly involved in people processes, executives can ensure that employee engagement initiatives are given the attention and resources they need to succeed.

Cross-Departmental Collaboration: The Collective Effort

Beyond finance, operations, and ownership, other departments also play a role in people processes. For example:

• IT Can Improve HR Tech: IT teams can collaborate with HR to implement and maintain HR technologies, such as payroll systems, HRIS, and performance management tools.

• Marketing Can Enhance Employer Branding: Marketing teams can work with HR to develop and promote the company’s employer brand, helping to attract top talent.

• Sales Can Influence Incentives: Sales teams can provide insights into the types of incentives that would motivate employees, helping HR design effective reward programs.

The Benefits of a Holistic Approach

When HR processes are siloed within the HR department, companies risk missing out on valuable insights and opportunities for improvement. By involving finance, operations, owners, and other departments in people processes, organizations can:

• Enhance Decision-Making: Cross-functional collaboration leads to more informed and balanced decision-making, as different perspectives are considered.

• Improve Employee Satisfaction: When departments work together, they can create more cohesive and effective HR processes that better meet the needs of employees.

• Boost Organizational Efficiency: Streamlined processes and aligned goals lead to greater efficiency and productivity across the organization.

Final Thoughts

HR may be the primary department responsible for managing people processes, but it’s far from the only one that should be involved. By engaging finance, operations, company owners, and other departments in these processes, organizations can create a more holistic and effective approach to managing their most valuable asset: their people. In today’s dynamic business environment, collaboration across departments isn’t just beneficial — it’s essential for long-term success.