Dive Brief:
- HR and the financial department typically share a symbiotic relationship. But the CHRO and CFO don't always see eye to eye – and that's a problem, according to Benefits Advisor.
- The article, which covers a recent summit about benefits in Washington D.C., notes that HR focuses on (or should focus on) the employees' best interests. The CFO, on the other hand, among his or her other duties, must ensure employers have the funds to both stay in business and maximize workforce output.
- These related, though different perspectives, make it difficult for HR, CFO and benefits brokers to communicate, Hugh O'Toole, a benefits consultant and founder of the Viability Advisory Group, told attendees at a recent 401(k) summit in Washington, D.C.
Dive Insight:
HR typically is about language, while CFOs almost always seek numbers. That difference can drive CHRO-CFO communications gap, especially when it comes to HR’s "great ideas," said O’Toole. “In a business world, if you don’t get the [CFO] on board, you can’t help the employees. When talking participant outcomes, HR [gets] it, but finance doesn’t."
O’Toole said he has repeatedly heard from CFOs at large employers that they are not responsible for an employee’s financial wellness. Instead, their primary job is to ensure the company doesn't crash and burn. As a result, employee stress is rising as they are asked to pay more for benefits, and HR must offset that trend to do its job.
The CHRO and CFO divide is an old story in HR, only made more complex by an intensely competitive job market and increased calls to lower costs, especially in employee healthcare. By analyzing numbers via metrics, HR and benefits brokers can collaborate to truly make their case to the CFO. Together, they can explain the impact not funding certain benefit programs will have down the road to both the employer’s and employee’s bottom line, O'Toole notes.