Why TA and Finance Must Partner

Recruiting affects finances. Each hire adds payroll, equipment, and space costs. Unfilled roles slow growth. Hence, TA and Finance must partner.

Finance manages costs; TA brings in talent to meet goals. Misalignment causes issues—like hiring freezes or missed targets.

Partnership ensures smooth planning, hiring, and budgeting.

Here are 7 simple ways that TA and Finance can collaborate.

1. Headcount Planning

Done yearly, refreshed quarterly.
Steps:

Departments request roles with justification.

Finance sets budget based on revenue.

Teams reconcile needs vs. affordability.

Final plan lists approved roles by quarter.

TA adds value:

Shares market salary data.

Flags unrealistic goals (e.g., 50 engineers in Q4).

Advises on timing (e.g., hire in Q2 for Q3 start).

2. Staying Aligned

Plans change. Hence, TA and Finance must partner actively.

Revenue dips? Finance may freeze hiring. TA pauses sourcing and updates candidates.

Growth spikes? Finance adds roles. TA scales up.

Meet monthly to review hiring vs. plan. Adjust budgets or timelines.

Use shared dashboards to track open roles, status, and salaries.

Align definitions—Finance may count headcount from offer; HR from start date. Use tools like OneModel to reconcile.

Case Studies: TA and Finance Partnership

GE historically was known for rigorous workforce planning where finance and HR jointly reviewed every department’s headcount and productivity.

This ensured every hire had a justified ROI. Meta in 2022-23 had over-hired and then had to do layoffs. Public reports indicated a misalignment between optimistic growth assumptions and actual business. This is a lesson on keeping hiring plans closely tied to real business indicators.

Companies have learned to be more agile: e.g., Google slowed hiring in sync with economic signals; their TA and finance teams likely modelled various outcomes and decided to ease up on recruiting to avoid overshooting.

3. Recruiting Budget

TA and Finance must partner to plan recruiting costs: ads, agencies, events, tools, and recruiter headcount.
Use data:

Hiring volume × cost-per-hire = budget.

Adjust mid-year if hiring changes.

Example: 500 hires × $4K = $2M budget + ATS investment.

4. Scenario Planning

Finance models best/worst cases. TA should prepare flex plans.

More budget? TA hires faster.

Recession? TA shifts to internal mobility or process work.

Discuss scenarios early to avoid surprises.

5. Communicate Constraints

If TA needs recruiters, inform Finance on-time.

Finance may fund contractors or agencies.

If offers exceed budget, show market data.

Example: Budget $100K, market $120K—adjust or reduce headcount.

6. Strategic Workforce Planning

Top firms plan continuously.

TA gives weekly forecasts.

Finance projects payroll.

Use tools like Visier or Anaplan.

TA should access and use these tools too.

7. Build Mutual Understanding

HR speaks roles; Finance speaks money.
Bridge the gap:

Invite Finance to talent strategy meetings.

Attend budget meetings.

Share wins: “Early hires boosted revenue by $X.”

Acknowledge savings: “Efficient hiring saved $Y.”

In conclusion, TA and Finance must partner. Finance sets goals. TA hires the people to reach them. Aligned headcount planning delivers the right people at the right cost.