Question

how can CFO and CHRO benefit one another in an organization? what benefits can one get from one another and how can one better one another?

Answer 1

In an organization, CFO is responsible for efficient allocation, procurement and management of funds to deliver the organizational objectives, whereas the CHRO focuses upon the human resource needs of the organization and takes initiatives to bring people who can achieve the organizational goals. Here, CFO & CHRO complement each other. The CFO allocates funds that can be spent upon the total human resources of the organization and CHRO prepares the different components of HR management plans that fit in the budgetary allocation of the funds. Besides, it is the CHRO that brings people who can work to achieve the objectives that is planned by the CFO when he or she allocates the fund. So, CFO helps by the allocation of funds to the HR and CHRO helps by bringing the competent people to deliver good work and organizational goals are achieved. So, CFO & CHRO benefit from each other.

CHRO gets the following benefits from the CFO:

1. Timely allocation of funds for the HR

2. Favorable consideration of the compensation plan, T&D expenses

3. Regular revisions of the budgetary allocation to bring top talent on board

CFO gets following benefits from the CHRO:

1. Funds well spent to achieve the organizational goals

2. Efficient utilization of funds

3. Bring top talents that maximize the revenue to the organization

4. Increase shareholders’ wealth

One can better another by putting feedback to one another. The CFO can give feedback about the performance of the people hired by the HR function, revenue generation and the other financial performance metrics. CHRO can give feedback about the labor market conditions, new laws and the industry trends. It will make the CFO to rethink the funding strategy to the HR functions. So, CFO & CHRO can improve each other.