The following is a guest post from Isabelle Wang, CFO at Legion Technologies. Opinions are the author’s own.
A business’s success isn’t built solely on numbers; it’s built on people. The ability of CFOs to foster a meaningful partnership with chief human resources officers (CHROs) is essential to healthy operations. The landscape of leadership has evolved, and the most successful organizations are those that integrate financial insight with human capital expertise.
Traditionally, CFOs have been the “left-brain” leaders of the business world — deeply analytical, grounded in logic and focused on financial rigor and business outcomes. CHROs, conversely, have occupied the “right-brain” space, where empathy, culture and people-centric strategy reign. Just like the brain’s hemispheres, finance and human resources (HR) aren’t just parallel functions; they’re deeply interconnected, with shared objectives that directly influence a company’s bottom line.
By leveraging their strengths to address labor challenges collectively, finance and HR functions form a strong partnership that can help drive sustainable success across the organization.
Aligning financial strategy with the employee experience
Workforce investments aren’t merely expenses to be managed; they are strategic levers that can shape the future of the company. Employee-related expenses — including payroll, benefits and professional development programs — often represent over half of a company’s operating expenses. Given this, it’s critical CFOs and finance teams go beyond traditional metrics and deeply engage with HR to understand how investments in the employee experience translate to valuable returns in engagement, productivity, and retention.
HR has steadily shifted from a supporting function to a strategic partner. In fact, 85% of C-suite executives believe the term human resources is outdated, given the far-reaching business impact of people leaders.
Data can form a powerful bridge between the CFO and CHRO functions, allowing companies to evaluate workforce investments through a dual lens. CFOs are accustomed to leveraging data to guide decision making; it’s our core responsibility as the gatekeepers of their company’s finances. However, we need to work closely with the CHRO to integrate HR analytics into our financial frameworks. Data such as employee engagement metrics, turnover data, patterns in recruitment efficiency, and attendance trends can reveal valuable insight into the overall health of the business. This convergence of data enables us to make more informed and impactful decisions that align financial investments with improved employee outcomes.
Effective workforce management creates environments where employees feel engaged and supported. When employees are engaged, their contribution to the company transcends mere productivity. They become ambassadors of the company and brand, fostering a culture that drives business momentum.
Embracing the human element as a strategic asset
Employees are more than just numbers on a balance sheet. The way we treat people — through fair compensation, flexible work schedules and a positive work environment — isn’t just a human resources initiative; it’s a financial imperative and a fundamental driver of business success.
Recent research reinforces what many of us in leadership intuitively know: that people value flexibility, a positive work environment and a sense of purpose stemming from the personally fulfilling aspects of their jobs. By prioritizing these elements, companies will see the benefits reflected in the financial health of the business.
The measurable power of CFO-CHRO collaboration
A strong partnership between the finance and HR functions yields measurable benefits across the organization. Here are three key outcomes of this important collaboration:
- Enhanced productivity. Productivity is a straightforward path to a stronger bottom line, but it is not just simply about efficiency metrics; it’s about creating the conditions and environment where employees can thrive. A thriving workplace can save companies $322 billion annually in lost productivity and turnover. CFOs and CHROs should share responsibility in ensuring that employees have the right tools, resources, and cultural support to catalyze stronger employee performance across the board.
- Increased operational efficiency. CHROs and the greater HR teams can identify where roadblocks to business efficiency may be connected to the human experience. For example, in a company that largely employs hourly workers, a lack of schedule flexibility may be causing an excess of absences and call outs. By integrating HR insights with financial strategies, finance and HR can partner to drive change management, bringing in a modern workforce management solution that further engages employees. This synergy between finance and HR allows companies to address workforce challenges holistically, boosting both operational efficiency and employee satisfaction.
- Reduced turnover and improved retention. Employee turnover is expensive, ranging from 33% to 200% of an employee’s annual salary. Beyond baseline costs, such as the resources needed to hire new employees — sometimes at a higher rate of pay — and train them, turnover costs accrue from lost productivity, disruption of team cohesion and the time it takes for new hires to reach full productivity levels. Partnering with CHROs to improve employee engagement and create competitive benefits directly impacts financial stability and helps maintain a high-functioning workforce.
Integrating strategy and empathy for stronger leadership
The separation of “left-brained” and “right-brained” roles is becoming less relevant in today’s complex business environment. The most effective finance leaders are those who integrate analytical precision with empathy, balancing strategic planning with a deep understanding of human dynamics. This integration requires a proactive approach: building cross-functional relationships, breaking down organizational silos and leveraging insights from HR to make more well-rounded decisions.
The partnership between CFOs and CHROs is not just about aligning on the economics of initiatives but understanding that financial health and human connections are intertwined. As leaders, when we blend financial acumen with empathy and strategic thinking, we move from transactional management to transformational leadership.
Capital and people are not competing priorities but complementary elements that, when aligned, create a robust foundation for a high-performing and happy workforce. By committing to a shared vision where financial strategy and employee experience go hand-in-hand, CFOs and CHROs will empower their organizations to navigate complexity and seize opportunities for long-term success.
