When it comes to business growth, the most pressing problems include a scarcity of funding and a shortage of human capital.
The solution? A sound relationship between the chief financial officer (CFO) and the chief human resources officer (CHRO). But CFOs and CHROs don’t always have their goals aligned: Their perspectives can be vastly different at times and one of these executive’s initiatives may limit the reach of the other’s.
Although CFOs and CHROs don’t always see eye to eye, getting them on the same page and working together is critical to eliminate inefficiencies, work toward goals and achieve business success.
Create a powerful partnership between both of these key players with these three steps:
1. Engage everyone in strategic planning.
The first step is to get CFOs and CHROs involved in the planning process. However, in some companies, finances tend to take precedence over talent. In a recent report sponsored by Visier and released by Harvard Business Review Analytic Services (HBR-AS), 44 percent of the 323 CEOs surveyed said that their workforce planning was driven by finance and did not take talent availability into consideration.
If workforce planning is strictly focused on budget, however, companies risk missing out on top talent. Involving CHROs in the goal-setting process can create strategies that balance both finance and HR concerns.
Today, more and more CEOs are recognizing this fact, acknowledging the importance of incorporating HR’s perspective. In fact, a July CareerBuilder survey of 88 leaders at companies with revenues of at least $50 million found that 65 percent of those CEOs thought that HR opinions carried increasingly more weight with senior management. What’s more, 73 percent said their own HR leaders had provided data they had incorporated into their overall business strategy.
Takeaway: Allow CHROs to actively contribute when setting goals and creating strategies, and take their opinions as seriously as those of CFOs. Although CHROs are focused on human capital, their input improves the bottom line, too. The Careerbuilder survey found that 57 percent of respondents said HR executives could show ways to increase efficiencies and cut costs by better using the company’s human capital.
Click here to read the rest.