In today’s business world, the role of Chief Financial Officer (CFO) is no longer limited to only the financial aspects of a business. The role has evolved into a hybrid jack-of-trades with influence stretching across several departments.
A CFO is largely responsible for the growth and transformation of a business through:
- Allocating budget and resources
- Developing and executing strategy
- Adopting and implementing new technologies
- Managing “big picture” projects
- Coordinating departmental collaboration
- Ensuring data security and cyber readiness
How Can CFOs Partner with HR and Payroll?
As a CFO, aligning with HR can lead to greater benefits for a company. While payroll is certainly a natural fit for a CFO’s background, HR is often a newer territory—and one where new CFOs need a bit more guidance.
More than one in four CFOs said they have become more involved in company operations and HR in recent years (source: Robert Half Management Resources)
By harmonizing your company’s financial strategy (CFO) with your people strategy (HR), CFOs can ensure your business is put in the best position to grow into an increasingly competitive future. That means working with HR to build a competitive compensation and benefits package, all the while creating long-term strategies to develop and retain well-performing employees.
Here are a few reasons why the bond between CFO and HR is so important.
While finances are clearly important to a business, it is said that people are actually a company’s greatest asset. A CFO with people-skills who can work closely with HR will always have an advantage as they work to solve issues throughout the company. As the saying goes, two heads are better than one.
How can people-focused CFOs work to solve office problems?
- Observe the issue in question
- Review how peers work experiencing the issue
- Communicate directly with those affected by the problem
- Allocate resources to improving productivity
- Develop strategies and policies to fix the problem
Better understanding of employees and their roles
Ideally, employees are paid based on how important their role is to the company combined with their performance in the job. To determine the value (i.e. salary) of each position, CFOs should work closely with HR to determine need(s), outline responsibilities, and invest in recruiting and onboarding the right people.
43% of small and medium-sized organizations fail to track costs associated with recruiting, hiring, and onboarding new employees (source: Launchways)
By reviewing these factors, combined with performance, training cost, industry standards, and predicted future success, a CFO can better determine where salaries are being misallocated and what jobs deserve more investment.
Relying on technology
Many aspects of a business can be complicated, especially when it comes to HR and finances. Things like payroll and benefits are very detailed and timely—and demand accuracy. Thankfully, HR and payroll software have alleviated most of the concerns, compliance pressures, and time issues related to these tasks.
With a greater knowledge of your company’s finances and its people, a CFO with close connection to HR is in the best position to choose the HR technology to meet your company’s specific needs. Oftentimes, the right technology simplifies and unifies pre-existing systems with new needs.
How Can HR Software Simplify a CFO’s Job?
Technology has helped spur this evolution by transitioning the CFO role from custodian of finances and past transactions to chief officer overseeing planning and future growth opportunities.
Technology is now readily available to help make a CFO’s job easier by:
- Improving processes company-wide
- Overcoming hurdles
- Guiding the business towards growth
Nearly three-quarters of CFOs say they have seen an ROI on the digital tools they have recently implemented (source: Datis)
Human Resources software not only helps identify priorities, it can also organize your to-do list. This makes it more manageable, while also providing the tools to enact change. Here’s how HR technology can help make a CFO’s job easier and more efficient:
The challenge is not collecting data. But rather, knowing what to do with the information. Technology can also help CFOs turn real-time data into actionable insights.
- Enabling process improvements
- Ensuring compliance
- Boosting both employee and customer satisfaction
With the right data, data-supported decisions can be used to improve nearly every aspect of the employee and customer experience. Not only that, but it will help make better-informed predictions about your company’s future.
SEE THIS IN ACTION: How collecting and utilizing the right employee review data can elevate your Performance Management process
Driven by technology, process standardization and task automation enable CFOs to better improve the work of multiple departments across the company. Real-time analysis allows CFOs to better shape, optimize, and predict your business’ future.
73% of CFOs strongly agree that their organization is using digital tools to help streamline and automate operations (source: Datis)
A big part of process building is developing a cross-functional and collaborative team. As they collect a broader variety of skills and improve communication, cross-trained employees have a better understanding of overall processes. This eliminates the need for frequent check-ins or updates. It’s also easier to anticipate when special circumstances will affect turnaround time.
READ MORE: Learn how to utilize a Learning Management System to cross-train employees
A CFOs ultimate goal is to drive top line growth. Growth requires agility and innovation, as well data-backed insights to ensure profitability and sustainability. When armed with technology, CFOs are in a position to become an agent of change for their organization.
70% of CFOs say the best way to drive improvement is through technology (source: Workiva)
HR technology delivers the real-time data and improved processes needed to create:
- New, agile business models
- Improved departmental processes
- How to fund new technology and process
- Ensure safety and regulatory compliance
- Pursue new avenues of growth and diversification
- Recruit and onboard new employees setup for more success
- Retain and reward talent through performance management
HR technology like Netchex operates via the cloud. Cloud storage is the most convenient and efficient method of storing data. Cloud-based HR systems help your business store infinite data points across your company into a singular software system. In simplest terms, it provides better, safer, and faster software that is easier for your company to use.
61% of organizations cite cloud optimization as a top priority and optimized their budget with cloud costs in 2021 (source: Flexera)
Cloud-based HR software has an ever-growing list of benefits, including:
- Easy and convenient use
- Increased data security and recovery
- More cost-effective requiring no physical space
- Multiple users with up-to-date data
- Lifetime storage that is scalable with growth
- Mobile and remote work access
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