Too siloed? Report calls for greater collaboration between HR, finance and IT

Should there be increased collaboration between HR, IT, and finance departments to maximize growth opportunities?

While it sounds like a logical approach, organizational silos that are “spreading like a weed” are hindering growth momentum and costing businesses money, according to a report.

New data from the SAP Concur shows how differently HR, IT and finance leaders see even the root cause of this issue: Finance and IT cite conflicting departmental priorities (58% and 57% respectively while HR cites insufficient data sharing and transparency (75%)

Cross-departmental disagreements continue when it comes to finding a cure to siloed work, says SAP. More than half of finance leaders (50%) and IT (67%) prioritise implementing flexible budgets for collaborative projects. 

HR leaders' number one priority, however, is to create cross-functional working groups ( 58%).

Talent retention and acquisition as growth drivers

The SAP report also reveals differences in opinion when it comes to how talent retention and acquisition are valued as growth drivers:

• While finance leaders recognise the significance of finance talent retention and acquisition, only 23% see them as ‘essential’ factors to growth. They feel it’s important, but other challenges, such as manual processes, cost management, growing complexity of financial forecasting and budgeting, and adoption of technology/ digital transformation, require more attention.
• HR leaders see collaboration with finance as an essential element of a successful recruitment and retention strategy - for instance, 75% want their finance partner to provide them with financial insights to support workforce planning.

In addition, almost half of HR leaders (50%) identified the need for finance to asset in developing metrics to better measure the impact of HR initiatives and 50% want increased budget allocations.

The report Action for Growth is based on a survey of 350 CFOs and senior finance leaders, along with 115 HR leaders and 115 IT leaders, in Australia, Brazil, Canada, Germany, Japan, Mexico, the United Kingdom and the United States, between December 2024 and January 2025.

Collaborating on cybersecurity

The findings also show there’s a big push for cybersecurity this year. Fifty-nine percent of finance leaders plan to increase their cybersecurity budgets in response to growing threats, according to our survey.

But there could be an opportunity for finance leaders to liaise with CISOs and other C-suite peers over cybersecurity and data privacy issues, including weighing benefits against the costs, risk management, and crisis response plans, says the report: "Across finance, HR, and IT leaders, our survey shows a fairly even split on whether cybersecurity should be driven by IT alone, or by IT and finance working together."

Nearly six in 10 (59 per cent) of finance leaders plan to increase their cybersecurity budgets in response to escalating digital threats, the SAP Concur report found.

And growth initiatives are expected to continue, even alongside increased cybersecurity spending.

Over the past two years, more than a quarter (27 per cent) of CFOs have taken on greater responsibilities in cybersecurity. However, only 20 per cent of finance heads intend to strengthen collaboration with their Chief Information Security Officer (CISO), compared to 42 per cent of IT leaders who support deeper partnerships.

“One stumbling block could be disagreement or confusion over which executives should be responsible for driving protection against increased cybersecurity threats,” reads part of the report titled Action for Growth - Strategies for CFOs to navigate economic uncertainty and accelerate growth.

“Across finance, HR, and IT leaders, our survey shows a fairly even split on whether cybersecurity should be driven by IT alone, or by IT and finance working together. Despite this divergence, most finance leaders are adamant growth plans will proceed as planned, or that they will adapt plans to align with cybersecurity measures. Far fewer will slow down to enhance security measures.”

Cyber threats once again topped the list of concerns for Canadian businesses, according to a previous report.

CFOs focused on ESG

The number of companies seeking to profit from sustainability efforts has also increased, according to the report.

Specifically, 48 per cent of the CFOs surveyed are now prioritizing sustainability and environmental, social, and governance (ESG) initiatives to drive business growth—up from 30 per cent in 2024, according to a report by SAP Concur.

“In 2025, many finance heads will promote ESG reporting as a way to boost revenue by attracting investors, increasing customer loyalty, enhancing brand reputation, and helping open new customer segments or markets,” reads part of the report.

However, Canada ranks in the bottom half of countries surveyed in SAP Concur’s study.

Overall, 87 per cent of finance leaders indicated they are increasing their investments in ESG.

Among the 13 per cent who are not increasing ESG investment, the most commonly cited barriers include lack of return on investment (ROI), low cultural alignment, and a shortage of internal expertise.

Nearly three in 10 (29 per cent) of IT leaders said they want to collaborate more closely with finance teams on sustainability and ESG initiatives.

ESG is a crucial consideration for employment among young workers, according to a previous report.