Workforce planning is primarily a human resources task, right? Yes and no. While the HR department will still take the lead on strategic workforce planning, the critical task has become an interdepartmental responsibility. As a controller or CFO, you can help improve workforce planning while ensuring that the company’s talent needs are met. Here’s how.
How Controllers and CFOs Enhance Workforce Planning
You and your finance team can help the human resources department build a better, more impactful workforce plan. To improve workforce planning, your department should:
Implement Workforce Analytics for Budgeting
Workforce analytics gives HR a glimpse into what your company’s top competitors are doing in terms of compensation and benefits. Integrating workforce analytics also allows the finance department to better understand various costs within the organization, such as salary trends and overtime expenses.
Creating better budgets through workforce analytics can lead to cost savings without reducing headcounts. Additionally, finance can help HR forecast salary adjustments and merit increases accurately. Rewarding top performers with well-deserved pay raises and salary increases will boost retention and morale.
Workforce analytics also plays a critical role in optimizing hiring strategies. HR can use these insights to focus on key areas of need while preventing unnecessary payroll expenses.
Collaborate With HR to Revise Compensation Models
Your organization can balance financial needs with the desire to offer competitive pay by:
- Offering performance-based incentives
- Implementing a variable pay structure
- Integrating flexible work arrangements that reduce office-related costs
There aren’t any one-size-fits-all approaches here. Work with your human resources department to discuss which compensation models are practical based on the industry the company operates within and any relevant compliance regulations. The best compensation models minimize unnecessary waste while making the company a more appealing destination for job seekers.
Explore Modern Benefits Packages
Healthcare and retirement benefits remain top priorities for job seekers. However, the emerging generation of workers also cares about perks that are designed to promote their overall well-being and create a sense of work-life balance.
Talk to HR leaders to discuss their plans for modernizing the company’s benefits offerings. Help them set realistic goals and examine the budget to identify cost-effective strategies for attracting younger employees.
The finance department can also negotiate with vendors and local businesses to obtain favorable benefits offerings. For instance, if your HR department proposes offering a gym membership to all employees, finance could negotiate a bulk discount with a fitness chain in your area.
Optimize Workforce Allocation
By collaborating with human resources, your finance team can analyze workforce productivity and make adjustments to staffing levels. Strategies include:
- Using predictive analytics to anticipate hiring needs based on business growth
- Cross-training employees to reduce dependency on external hires
- Implementing workforce-sharing strategies across departments to maximize efficiency
Improving workforce allocation can free up capital to improve benefits offerings and introduce incentive-based pay programs.
The Benefits of a Collaborative Approach
As of last year, the U.S. talent shortage reached 70%. This means that seven out of 10 employers are struggling to find suitable candidates to fill job vacancies. In light of the current talent shortage, your company’s HR department will need to get creative to attract top applicants. All of those strategies are going to require some level of financial support.
The finance team can work with HR to free up additional resources for recruitment and retention. Additionally, your department can help human resources do the following:
Enhance Benefits Management
Benefits are a major expense, but they also contribute to employee retention. Your finance team can collaborate with HR to determine the return on investment of various benefits offerings.
Additionally, your departments can work together to secure better rates from benefits providers, reducing total costs for both the company and its employees. Another strategy involves implementing wellness programs that reduce long-term healthcare costs.
Attract and Retain Talent
High turnover rates can have a huge impact on the company’s financial performance. Investing in employee satisfaction can reduce hiring and training costs while mitigating turnover.
Through collaborations with human resources, your finance department can conduct regular surveys to identify areas for improvement. Together, your teams can also identify and implement competitive learning and development programs.
Fill Key Vacancies
The cost of unfilled vacancies can be astronomical. Working with HR during workforce planning can reveal new opportunities to attract and retain talented individuals who will be valuable assets to the organization.
Turn Finance Into a Strategic Asset
Collaborating with human resources to engage in strategic workforce planning is a prime example of how CFOs and controllers can provide critical support to other departments.
The modern finance department no longer focuses on crunching numbers. Your financial team can and should function as a strategic partner that guides C-suite decision-making and assists other departments as they strive to achieve big-picture organizational goals.
