How Will Accounting Make You a Better HR Manager?
August 29 2016 - Being a human resource manager requires you to have a number of skills. For starters, you need to be able to connect with people, perform thorough assessments on their characters and skills and of course make HR plans to meet the company's needs. Another important skill to have is accounting. There are a lot of ways knowledge in accounting can help you perform better as an HR manager.
Not every company can hire whoever they need (or want). Sometimes, you have to work with a tight budget and still meet the required key performance indexes as a whole. This is where knowledge in budgeting can really help you shine.
Courses, such as the ones available at www.iaseminars.com, can help develop your accounting skills for this purpose. The Management Accounting course, for example, takes you through a series of sessions that will develop your ability to plan and make effective budgeting formulas.
With better budgeting, you can decide who to recruit, which employees to promote and make downsizes whenever necessary. All of these tasks can be done with spending in mind, allowing you to have an even leaner team that performs really well.
Measure Return on Investment
Performance measurement is a key instrument in HR management. To take performance measurement a step further, you can combine the analysis with ROI analysis too. The cost of recruiting, developing and maintaining employees must help the company earn more at the end of the day. By calculating return on investment, you can now measure how effective the entire HR process of the company really is.
Knowing the ROI of HR activities will also help you make better decisions with the support of top-level management and the Board of Directors. You can present accurate data on how well the company performs from a HR standpoint. Suggesting the right moves to make - and getting those suggestions approved - will be very easy.
Another important reason why you need accounting skills to perform better as a HR manager is control. HR management is about micromanaging employees at every stage of their development process. You need to decide whether entry-level employees require further training or if early retirement packages are suitable for others.
You need to have control over the HR process and the control lies in numbers. To be able to make the right decisions, you need to understand forecasts, cost estimates, and other number-related data. With good accounting skills, getting the information, filtering the noise and getting to the best decision to make are much easier to do.
Let's not forget that accounting is a skill that anyone should have. The accounting courses available are suitable for almost everyone. Some, of course, are better for managers; there are even courses designed to give you the necessary set of skills to have as a manager. With all the benefits we just discussed in this article, it is clear that this is the one skill that you want to develop in order to succeed in a corporate environment.