This is a summary of an article published in Human Resources Magazine New Zealand, Autumn 2025
At first glance, HR and Finance may seem like they operate in completely different worlds.
One focuses on people, culture, and engagement, while the other prioritises numbers, spreadsheets, and cost control.
But as I explored in my recent Human Resources Magazine New Zealand article, organisations can achieve incredible results when these two critical functions collaborate effectively.
The Challenge of Strategic Influence
Both HR and Finance functions often struggle with similar challenges:
- Being seen as primarily operational rather than strategic
- Fighting for a seat at the table in important decisions
- Lacking time for strategic thinking due to operational demands
- Speaking different languages (ROI vs. engagement; margins vs. culture)
Yet, both departments have valuable insights that, when combined, can significantly enhance organisational performance.
Four Key Areas for HR-Finance Collaboration
In my article, I outlined four critical areas where HR and Finance can align to build strategic influence:
1. Understanding the organisation
Developing a shared understanding of what drives value in your organisation and aligning people and financial strategies accordingly.
2. Talking a common language
Moving beyond basic metrics like headcount to focus on more meaningful questions like “What’s the impact of our workforce on performance?” and “How does headcount affect service levels or revenue growth?”
3. Providing insights that matter
Creating actionable insights by connecting HR metrics to financial outcomes. For example, linking employee turnover with replacement costs or demonstrating how wellbeing programs improve productivity and financial performance.
4. Improving end-to-end processes
Collaborating to streamline cross-functional processes like resource forecasting, creating efficiencies that free up time for strategic work.
Breaking Down Silos
When HR and Finance collaborate, they can create shared dashboards that combine powerful metrics such as:
- Revenue per employee alongside engagement scores
- Training investment measured against productivity
- Employee retention measured against the cost to hire
These integrated insights help the leadership team make better strategic decisions that balance people and financial considerations.
HR can increase its strategic influence by understanding how the organisations creates value and translating HR initiatives into that language. Similarly, Finance benefits from connecting numbers to the people and processes behind them.
The Way Forward
HR and Finance aren’t opposites but two sides of the same coin. Together, they can unlock important insights, streamline processes, and create environments where both people and organisations thrive.Want to learn more about how HR and Finance can build strategic influence together?
Read my full article in Human Resources Magazine New Zealand.
Matthew Needham is an accountant and former CFO who consults and speaks on improving organizational performance. He helps leaders without a finance background confidently engage in financial discussions, enabling better decisions that drive improved performance. For more information, visit matthewneedham.co.