1. ARE WE OVERSPENDING ON LABOR?
CFOs are hyper-focused on their biggest
expense, labor costs. HR can be invaluable here,
if you have an accurate and complete picture
of your labor costs. Armed with the right data,
you can identify turnover and overtime trends
and get ahead of issues before they
2. ARE WE ACCURATELY CAPTURING AND
RECORDING TIME WORKED?
The average hourly employee “steals” anywhere
from 50 minutes to 4. 5 hours per week by
showing up late, leaving early, etc. ( 1) HR can
champion a time management solution that
accurately tracks and manages hours, eliminates
duplication errors and reduces payroll losses.
Saving just a few minutes per employee per day
can deliver the kind of tangible results your CFO
3. ARE WE UNDERUTILIZING OUR WORKFORCE?
Many of the so-called “soft” skills HR brings to
the table (think employee engagement, career
pathing and building a company culture) actually
have a “hard,” bottom-line component. If you’re
not tapping into the full spectrum of talent in your
company, you’re leaving money on the table.
4. ARE WE LOOKING AT OUR
LABOR COSTS IN SILOS?
The rise of the gig economy is having an impact
on estimating labor costs. If you’re not adding
non-employee (freelancers, contract workers,
consultants) and contingent labor into the labor
cost equation, your numbers will be way of.
When your labor costs are siloed, you run the risk
of potentially misclassifying employees and non-employees. To prevent costly mistakes, lead the
charge and fnd a system that can automate your
pay to help ensure labor compliance.
Do CFOs Think HR Impacts the Bottom Line?
It all depends on you.
To demonstrate HR’s value, think like a CFO.
( 1) American Payroll Association, 2017
Are you surprised to know that sixty-one percent of CFOs don’t believe HR impacts the
bottom line? We were, too. In late 2018, Paycor surveyed more than 700 CEOs, CFOs and HR
leaders about how they manage people. We uncovered quite a few unexpected insights, but
nothing surprised us more than this. We know that HR does in fact impact the bottom line,
but if your CFO doesn’t, you can help correct that misperception by learning to think about
HR in fnancial terms. To get started, ask yourself these four questions.
These are just a few areas to consider to get started. The most important takeaway is to
remember that it’s up to you to demonstrate the critical value HR brings to your organization.
For more insights, download the full report at