Hai Guys,

As businesses grow and begin to add employees, the first HR-type activity needed is recruiting, of course. But, additionally, people must be paid and people need benefits. So, often, the first person holding part of an HR role is the person who pays the staff. And this person generally reports to finance and accounting. Just because this is how a small business usually grows, doesn’t make it the right path for your business to travel. It’s not.

Every organization needs checks and balances. HR reporting to finance ties the hands of the people most likely to advocate for effective people policies and organization development, your HR staff. HR reporting to finance moves your HR person one step further away from where organizational decision making is occurring. When HR reports to finance, policy decisions are likely to be primarily finance driven and often not people friendly.

So HR gurus what is your opinion on this matter…………..???

Should HR report to finance and accounting……………....????

From India, Calicut
Ash Mathew
Recruitments, Training`
Soical Compliance Auditing
Hr-manager, Trainer, Writer
Hr Functions
Andrew Rao
Head-hr & Admin
Manager Hr
Accounts & Audit
Hr Professional
Hr Manager
+1 Other


i feel there is no harm in HR reporting to finance and accounting , and I think the HR person who does not feel to report to finance people they might have inferiority complex, and also it is not a credibility that since HR recruits people he should make policy decisions, even a driver drives the MDs , VPs car, so can we allow the driver to make decisions??
and for your kind information can you give some example where the decision regarding policy is made by Finance People and even if it is made, can you show how it is not people friendly.
Explain with an example.

From India, Pune

STRICTLY no........WHY- COZ FINANCE PERSON DONT UNDERSTAND THE hr handle the HR you shuld be aware abt the HR ..u shuld think like a HR..u act like a HR....wat finance dept can do in HR ..?????and HR is not the recruitment only ..its is the big process man....a finance person can not do anything in HR.........he/she shuld have HR in his/her blood...they cant take a decision properly...I have seen some times companies are follwing the same coz of structure and environment of the comp..but its not the right way to find the 100% impact of the HR people.............Head hR shuld be report to top managemnt either Director or CEO......I hope your doubt is cleared now

From India, Pune

Ravi, when a policy is framed by a person who is reporting to finance dept do consider financial aspect and people oriented factors are left out. Its not the matter of reporting its related to better people policies and organization development.
Ravi there are many examples which varies from company to company.

From India, Calicut

awwwww seems you are too against it,,,,
by the way there are lots of policies,,, Finance Policies, HR Policies, Company Policies,
Finance Policies are made by Finance people
HR by HR n
Company by top mgmt, which in ur case you feel it should be HR, n not finance, it is not and it will not be the case, because a finance person can take more better than HR person in running a company,, Finance is more important than HR , because it gives food to company ,, and enables HR to give food to employees,,

From India, Pune

I do agree with your points Ravi. But a person who is reporting to a Finance and Admin Head there is a chance that what ever he see, is through financial aspects which i think is wrong.
From India, Calicut

Can you post example, lets do a case analysis,, lets look at all angles and see whether the policy made by finance people is really valid or invalid, we will look at from all angles, OK we need to research on this before confirming

From India, Pune
I dont think there is any harm if hr guy repeorts to finance/accounts.Actually it will easy thre job of hr regarding many statutory as well legal issues.My self is also handiling the hr of small sunit comporising 50 peoples along with accounts.

From India, Chandigarh

Dear Bipin,
There should be a co-ordinaton with Finance department..But Reporting to them is not a helthy practise coz HR is diffrent from Finance as you be somethings like payrolss and accounting may be similat but agian Policy Making, Recruitments,..etc these all are done by HR professionals..And there is no point in reporting to person who doesnt know head and tail of HR..
So let each department do there own set of work & the final reporting of all the gamets which is related to HR (Finance department, HR Officers,Front-Office Deprtment,etc) should be done to 1 person,,may be to HR Manager or individually to head of their each Departments..That wil be healthy as well as fair way of management
Rashmi Bhalerao

From India, Mumbai

Hey Ravi a Simple example….

I think in every company there is a policy regarding leave encasement. It depends up on a person who frames it. For Eg a person driven by finance background would frame that the leave of a person if he wish to en cash, then it have to be done with in the same year. But if it is framed by a person who wish to help his employee would frame it in another way so that his employee gets benefited. For Eg he can frame the policy that the leave can be encased by the employee within his the employment with that company.

The difference in both the cases would be that the employee would be benefited in second case. Because if he resigns the company after 4 or 5 years and en cash the leave he would get more in monetary terms coz his salary might have gone high due to his yearly increments or by promotion.

From India, Calicut

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