Why Your Finance Team Should Work Closely With HR
Finance and HR are no longer separate silos. Discover why aligning these two teams is essential for cost control, talent retention, and international growth—especially in markets like Mexico.
The Old Divide Between HR and Finance No Longer Works
For years, HR and Finance departments operated in separate lanes—HR handled people, Finance managed money. But in today’s landscape, especially for international companies managing global teams, this separation creates blind spots and inefficiencies.
What if your payroll forecasts don’t reflect actual hiring plans? What if benefit costs are underestimated? Or worse—what if compliance gaps go unnoticed?
It’s time to align Finance and HR, and here’s why
1. Payroll Is Both a People and Finance Function
Payroll is where HR and Finance intersect most directly, and yet it’s often mismanaged due to poor collaboration.
- Finance needs accurate payroll projections.
- HR needs timely budget approvals to hire or retain talent.
- Both need to stay compliant with local tax and labor laws.
In countries like Mexico, where payroll includes complex components like IMSS, INFONAVIT, and ISR, even a small miscalculation can lead to penalties or talent dissatisfaction. Learn more about Mexican payroll obligations here.
2. Better Budgeting and Strategic Workforce Planning
Finance looks at cost efficiency, while HR looks at human capital needs. When these views are aligned:
- Headcount planning becomes more accurate.
- Companies can predict turnover and plan for rehiring costs.
- Budget allocations reflect real hiring trends rather than outdated models.
A joint HR-Finance strategy is essential for international companies looking to grow in new markets, especially when using an Employer of Record in Mexico.
3. Compliance Is a Shared Responsibility
Tax withholdings, benefit contributions, and overtime payments require cross-department oversight.
In Mexico, your payroll must comply with:
- SAT (Tax Authority)
- IMSS (Social Security)
- INFONAVIT (Housing Fund)
- REPSE (Outsourcing registry, if applicable)
Read more about REPSE and labor compliance in Mexico.
If HR processes are updated without Finance, or vice versa, you risk being out of compliance.
4. Aligning on ROI of Talent Investments
Your talent is your most expensive and valuable asset. But how often do Finance and HR measure its return on investment together?
By working as partners, both departments can:
- Track hiring cost vs performance outcomes
- Identify overlap in benefit spend
- Optimize compensation strategies across geographies
An aligned approach also ensures that expansion plans (like hiring in LATAM) are financially viable and legally sound.
5. The EOR Bridge Between HR and Finance
An Employer of Record (EOR) acts as a unifying structure between HR and Finance, especially when entering new markets like Mexico.
Here’s how:
✅ Payroll Accuracy
The EOR handles salary disbursements, tax compliance, and benefits, removing guesswork from both departments.
✅ Cost Forecasting
Provides real-time reports on payroll costs, allowing Finance to make strategic decisions based on workforce data.
✅ Risk Mitigation
Keeps both HR and Finance up-to-date with changing labor laws and tax requirements.
✅ Strategic Expansion
Supports both hiring and budgeting for international growth—without setting up a legal entity.
Break Down the Silos, Build Strategic Advantage
The collaboration between HR and Finance isn’t just “nice to have”—it’s essential for managing costs, maintaining compliance, and making data-informed decisions about your workforce.
For international companies expanding into Mexico or LATAM, an EOR like Global Touch helps bridge this gap—ensuring both departments are aligned, empowered, and ready to scale.
