Recruitment Obstacles

Accounting and Human Resources are two very separate areas in many companies. Even though they can share certain tasks or projects together, these departments are perfectly defined in many places. However, now that HR professionals are getting more involved in different areas, specializations seem essential nowadays. HR Managers ​​can't look the other way, and they should gain new abilities, starting with accounting knowledge.

According to Trudy Brunot, Human Resources Managers should start training in:

Fiscal Oversight

HR managers develop and control departmental budgets for payroll, benefits, recruiting and training. An accounting background prepares them to regard budgeted items such as staffing, incentives and performance evaluation regarding their cost and dollar benefit to the organization. When accompanied by and based upon payback analysis, HR budget requests give senior management the information to decide how to allocate available funds. Exposure to accounting also helps an HR manager appreciate corporate cash flow in the budgeting process.

Developing Proposals

When an HR manager wants to introduce a policy, service or program, he needs approval. The belief that the new activity will solve a problem is not enough; the cost must be justified. The HR manager must anticipate senior management’s questions to sell his proposal. If he has studied accounting, he will be able to demonstrate the viability of his idea in dollar terms.

Return on Investment

Chief executives want to know that their decision to spend money will make money for the organization. An accounting class will teach an HR manager how to perform a break-even analysis and calculate return on investment to demonstrate the cost-effectiveness of HR initiatives. The HR manager should be able to write proposals that show management how an investment in HR can increase productivity and improve profitability. Without this ability, HR professionals will be unable to convince management of the merits of their plans, particularly regarding software and systems projects.

Performance Measurement

Accounting helps an HR manager grow comfortable with crunching numbers and interpreting performance measurements related to inventory, customer satisfaction, sales and quality control. More importantly, the HR manager trained in accounting can look beyond his department to identify troubling trends that might be HR-related. Accounting and staff management work in tandem. A sales decline in a retail store, for example, may indicate the need to revise staffing levels, hire loss-prevention personnel, develop training programs and introduce employee incentives.

Do you think HR Managers should be trained in Accounting? Tell us what you think in the comments section below.  


Did you find this article useful?