Forums
Benchmark data about finance department
General Forum
Benchmark data about finance department
Discuss workforce management, performance management, retention, communication, motivation, contributing to business results and other topics.
Hello everyone,
I am currently trying to obtain some benchmark data for finance staff to employee ratios. I am looking for the method of communication (paper-based, computer...) and the different f
0
Cat:Topic ForumsForum:ForumId53
Cat:Topic ForumsForum:ForumId53Discussion:DiscussionId36911
Forums » Topic Forums » General Forum » Benchmark data about finance department
|
Benchmark data about finance department
posted at 2/21/2011 4:27 PM EST
|
Posts: 6
First: 2/21/2011 Last: 3/8/2011 |
Hello everyone,
I am currently trying to obtain some benchmark data for finance staff to employee ratios. I am looking for the method of communication (paper-based, computer...) and the different functions and their ratios in the finance department as well. Do you know any survey or where I could find published numbers to this topic? If not, would you mind sharing this data from your company with me? Thanks in advance, the Intern |
|
|
Benchmark data about finance department
posted at 2/22/2011 3:35 AM EST
|
|
Posts: 2442
First: 2/12/2000 Last: 9/14/2011 |
Hello "Intern"
I do not believe that you will find any consistency on size of Finance Departments across companies. You can make average ratios but the variance of each company to the mean will not be insignificant. The major variables are Size of Company, Global Breath of Company, Industry, Locale of Headquarters, and most importantly what each company defines as finance. For example in 50% of the companies payroll is part of finance. In the other 50% it is part of HR. Also do not assume that Finance functions are all located in one geographical spot. They will be scattered. Exactly what school are you in that you are doing this paper for? |
|
|
Benchmark data about finance department
posted at 2/22/2011 3:50 AM EST
|
|
Posts: 544
First: 9/27/2004 Last: 9/13/2011 |
There is no easy way to do this. Try to find about 10 other companies that have similar profiles to the one you are working for and then start making phone calls and requesting benchmarking interviews.
When you ask for benchmarking data, you will be expected to share yours so make sure you have permission for what you can disclose. As you contact others, ask them if they can recommend other benchmarking resources. There may be some vendors compile this information or that will compile it but it's expensive. |
|
|
Benchmark data about finance department
posted at 2/22/2011 6:02 AM EST
|
|
Posts: 2146
First: 2/15/2006 Last: 9/14/2011 |
I agree that there will be little consistency and that the same job title at two different companies could be doing completely different tasks.
Like someone else pointed out, Payroll is one of the functions that is sometimes under Finance and other times under HR. Actually sometimes HR is also under Finance. And then there are some positions that do some financial pieces, but also do other work. Like our locations do their own collections work. Also the type of business will make a huge difference. I agree with the path of finding some companies that are like the company you are doing work for --- otherwise you will be getting data that is truly meaningless. I forget whether you mention this or not, but one place to be VERY careful is that you should NOT ask them to share any pay/compensation/benefits data. It could be seen as colluding/wage setting which is illegal under the Sherman Act. That's why most companies use a 3rd party vendor for compensation studies -- they are anonymous and arm's length/third party which protects the employer wanting market information. |
|
|
Benchmark data about finance department
posted at 2/22/2011 9:33 AM EST
|
|
Posts: 45
First: 1/13/2011 Last: 4/14/2011 |
Any study showing some sort of benchmark based upon a functions FTE count vs the organizations fte count is fundamentally flawed.
Too much depends upon the type of business, what duties the organization and function truly perform, what is and isn't outsourced, available technology, etc. I would look closely at the organization and after answering the variables I already stated ask the following: 1. Is the work getting done? If not, why not. 2. Is the work getting done in the required time frame? If not, why not? If the answer is yes to any of the above then staffing isn't an issue. If it is NO, staffing may still not be an issue. I would suggest mapping out the work process (six sigma style) and seeing where the breakdowns are occurring (you can also use this to determine if the work is getting done too fast meaning you have too much staff). Once you determine that you can determine if the issue is staffing, technology, poor process or even training. I would never use a headcount ratio study for anything as I find them relatively worthless. |
|
|
Benchmark data about finance department
posted at 2/22/2011 3:13 PM EST
|
|
Posts: 6
First: 2/21/2011 Last: 3/8/2011 |
Wow, first of all thanks a lot for the fast replies!
This month I started an internship with a company doing customer services, more precisly I am in ,kind of, an internal consulting department. Since I have just graduated from school, I lack knowledge in some area. So this is my first task I have to do and it is not just about the information, but also, I assume, whether I am able to research difficult topics in general. I should find this data from multinational companies. You are right, I should search more specified, but it is so difficult to find ANY data about this topic. Nevertheless we are a global service company with about 20.000 employees and the finance department is centralized (in every country). If someone can help me, I'll share more detailed data with him (that's the problem, no company wants this stuff easily available in the internet). Thanks again for your help, the Intern |
|
|
Benchmark data about finance department
posted at 2/23/2011 4:01 AM EST
|
|
Posts: 544
First: 9/27/2004 Last: 9/13/2011 |
Well I'm glad this is an internship, learn what you can but when you're done look for a company that understands metrics. People that think in terms of "staffing rations" as global concepts, especially for something as multifaceted as finances, are dangerously misinformed. |
|
|
Benchmark data about finance department
posted at 2/23/2011 6:15 AM EST
|
|
Posts: 2442
First: 2/12/2000 Last: 9/14/2011 |
The best place I know of that you might be able to garner some data on finance staffing metrics for companies your size would be from the companies that assist with Outsourcing and Shared Services.
I would to their websites and look for free "whitepapers" and other analyses on staffing. A partial list of companies I would suggest include Hackett, Equaterra, Scottmadden, EY and Deloitte. They have lots of metrics on Finance Staffing. |
|
|
Benchmark data about finance department
posted at 2/23/2011 5:12 PM EST
|
|
Posts: 6
First: 2/21/2011 Last: 3/8/2011 |
Mmh, I heard that my task is useless from different sources now...anyway thanks for your help
I wrote most of them an email and hope to get a few answers. The thing I am most concerned about is the kind of financial transactions. To me it doesn't seem to be a confidential topic, nevertheless I can not find any data about this, not even for money...any ideas? Thanks again, the Intern |
Forums » Topic Forums » General Forum » Benchmark data about finance department
