January, 2018

How an HCM Can Help CFOs Increase Efficiency

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HOW AN HCM CAN HELP CFOS INCREASE EFFICIENCY

CFOs have a lot on their plates. Managing a company’s entire financial strategy, understanding accounting trends, and reporting data in an actionable format is par for the course. We understand the importance of efficiency in a role that relies heavily on numbers, statistics, and hard data to make the best and most financially strategic decisions for a company.

In our two-part blog series on increasing efficiency for CFOs, we will look at how human capital management (HCM) technology can help CFOs streamline their processes, particularly with reporting. In part one, we will identify the efficiency challenges CFOs face when their data is not easily accessible and how an HCM system can resolve these issues.

WHAT COMPANIES LACK WHEN AN HCM IS MISSING

In a recent article about why CFOs need more efficient reporting, the case is made that successful companies do not develop efficiency organically. It takes hard work, the right tools, and collaboration among like-minded people working toward a common goal. And tools like a unified HCM platform bolster these efforts to create a stronger and more strategic organization.

According to a recent PWC study, the average organization is using 3-4 separate systems to manage their HR and finance processes. When companies have their data spread across multiple platforms and those systems are neither integrated nor unified, pulling accurate data from one system to the next becomes increasingly difficult. In fact, research shows that while 85% of CFOs claim they have direct access to the data needed to generate reports, they have to go through several time-consuming steps first.

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85% of CFOs claim they have direct access to the data needed to generate reports, but they have to go through several time-consuming steps first.

Why This is a Problem:

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CFOs waste their time on administrative tasks - they need quick access to data to make informed decisions.

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The chance of errors is greatly increased - syncing data from multiple systems is not foolproof.

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Errors resulting from inaccurate data transfers could be detrimental and costly for a company - fines and penalties can result for noncompliance or miscalculations.

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Employee turnover information is not easily accessible - CFOs are misinformed about employee retention costs and trends.

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Why Use a Human Capital Management System

HCM systems unify HR and finance data to streamline organizational processes. A great example is using analytics dashboards for instant access to key information. Rather than financial teams and CFOs spending only 17% of their time on strategy when using inferior reporting tools, they can devote more attention to producing beneficial tactics with an HCM that offers dashboard metrics at their fingertips.

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Financial teams and CFOs spend only 17% of their time on strategy when using inferior reporting tools.

As a direct result of implementing an HCM system, companies will also increase engagement among employees, and thereby, profitability. Research shows that only about 32% of employees in the U.S. are engaged in their work. But when accurate data is used to build more effective strategies, companies will see lower turnover rates among those employees who enjoy what they’re doing. This promotes a positive work environment and decreases the turnover costs.

The Benefits of an HCM:

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Quick-access dashboard analytics increase efficiency for CFOs and financial teams so they can spend more time implementing strategies.

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Data accessed from a single platform is more accurate - discrepancies between multiple HR and finance systems are eliminated.

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Communication is improved because company-wide visibility is increased.

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Profit leaks are more quickly identified, corrected, and avoided and the return on investment (ROI) is maximized.

Still Not Convinced?

Hopefully after reading this piece, the benefits of an HCM are clear. But if the information provided still hasn’t convinced you an HCM is a more efficient solution to your HR and financial needs, we’re sure our guide to help CFOs put an end to profit leaks will do the trick.

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Stayed tuned for our Part two of this series, How CFOs Can Achieve More Efficient Reporting, in which we will outline the steps you should take to achieve the streamlined reporting you crave.