TORONTO, ON--(Marketwired - September 23, 2015) - Nearly two-thirds of senior financial executives surveyed by the Canadian Financial Executives Research Foundation do not regularly employ HR analytics as a tool to help them better understand the costs associated with their organization's workforce.
Sixty-four percent of survey respondents said they either did not use HR analytics, or its use was sporadic, according to a new study released at a national breakfast seminar in Toronto today. The study, entitled Measuring HR: Moving Beyond Number Crunching, was prepared by the Canadian Financial Executives Research Foundation (CFERF), the research arm of Financial Executives International Canada (FEI Canada), and was sponsored by Ceridian Canada.
"Payroll and associated costs represent a large spend for most organizations, yet it is an area that financial executives have found to be difficult to measure. At the same time, it has become increasingly important to have HR data that is reliable and accurate," said Michael Conway, FEI Canada's President and CEO. "In addition, CFOs and other senior financial executives are deluged with data. The challenge is to take that data and glean useful insights from it in order to plan business strategy."
"There is a tremendous opportunity to increase collaboration between HR and Finance departments and alignment is key," said Lois Martin, CFO, Ceridian. "It is critical to leverage and draw insights from this data to improve an organization's bottom line."
When asked why they did not use HR analytics tools, financial executives expressed a lack of trust regarding the accuracy of the HR data. Only slightly more than one-third of survey respondents said they fully trusted the data received from their HR team in making business decisions. Another third stated they "somewhat" trusted the data. One respondent summed up the views of many study participants by stating: "Sometimes the data needs rework. HR people are not accountants, but they try their best." Building financial acumen within the HR area would help build confidence and trust in data received from the HR team.
This study comprises the results of an online survey of Canadian financial executives which took place in March, 2015. The report encompasses the insights and opinions of 107 respondents to the online survey as well as an subsequent executive research roundtable.
Click on the following: Measuring HR: Moving Beyond Number Crunching, to read the full 2015 study.
A previous research study undertaken jointly between CFERF and Ceridian focused on the various metrics and ratios commonly used and preferred by senior financial executives when analyzing HR costs. It also indicated that many top-level managers lack familiarity or experience with many HR measurement techniques, and thus tend to rely more heavily on corporate-wide ratios that compare overall payroll-related expenditures to aggregated figures, such as revenues, total cost and EBITDA.
About the Canadian Financial Executives Research Foundation
CFERF is the non-profit research institute of FEI Canada. The foundation's mandate is to advance the profession and practices of financial management through research. CFERF undertakes objective research projects relevant to the needs of Canada's senior financial executives in working toward the advancement of corporate efficiency in Canada. For more information, please visit feicanada.org.
About Financial Executives International Canada
FEI Canada is the all-industry professional membership association for senior financial executives. With 11 chapters across Canada, it provides professional development, thought leadership and advocacy services to its members. The association membership, which consists of chief financial officers, audit committee directors and senior executives in the finance, controller, treasury and taxation functions, represents a significant number of Canada's leading and most influential corporations. For more information, please visit feicanada.org. Follow FEI Canada on: Twitter, Facebook and LinkedIn.
Ceridian is a global human capital management technology company serving over 25 million users in more than 50 countries. Our offering includes the award winning, cloud-based Dayforce HCM, Global Solutions, Small Business Payroll, and LifeWorks Employee Assistance and Wellness programs. Ceridian. Makes Work Life Better™ For more information about Ceridian solutions call 1.877.237.4342 or visit www.ceridian.ca.
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