The CFO position is incredibly diverse and constantly changing. Traditionally, the CFO wears hats in accounting and strategy, but has seen a recent increase in time spent within the HR and IT departments. The increased influence in HR and IT comes with a myriad of new concepts the CFO needs to learn and take responsibility for. According to Robert Half Management Resources, CFOs have reported a 21% increase in time spent in HR and a 19% increase in time spent in IT. Within HR, these new responsibilities include compliance, compensation, benefits plans, and recruiting. Within IT, the CFO must help increase efficiencies by implementing best-in-class software that assists the organization in growth and development.
How can the CFO best assist HR and IT?
HR departments deal with an abundance of different tasks on a daily basis. Between recruiting, onboarding, training, and more, HR is at capacity in a today’s competitive talent war. Additionally, HR now manages a myriad of workforce analytics that can help organizations become more strategic by reducing turnover, increasing productivity, and decreasing labor costs. When the CFO cultivates a relationship with HR to understand these current issues, it enables cross-departmental collaboration that can aid in the development of strategies to improve problem areas.
In addition to the day-to-day issues that HR manages, the HR department must also utilize and maintain advanced software to keep track of each part of the employee lifecycle. These HRIS platforms can be complex to use, especially if the system is not configurable to meet the unique needs of your organization or your industry. For example, in the health and human services industry it’s critical to track complicated job codes, cost center information, and complex credential management to ensure that your organization is always compliant.
Not only will solving these technology issues increase HR efficiencies, there will also be a profound impact on the IT department, as they will no longer have to assist HR with their software and reporting needs. Developing a comprehensive understanding of the HR function and today’s complex market will transform the CFO into a champion of HR and accelerate the relationship between the Finance and HR departments, which has been historically tense.