3 Reasons CFOs Should Care About Employee Benefits
3 Reasons CFOs Should Care About Employee Benefits

3 Reasons CFOs Should Care About Employee Benefits

If you think the realm of employee benefits is strictly HR’s domain, it’s time to change your thinking. Labor costs, including employee benefits, is often the largest expense of any organization and should be closely watched by both HR and finance.

More financial leaders are taking an interest in human resources and starting to expand their influence outside the traditional areas of accounting. A recent Robert Half survey showed CFOs are more likely to expand their reach into HR more than any other department.

39% of CFOs said their role expanded into HR the most
Source: Robert Half

If you’re hands-off when it comes to employee benefits, it’s time to get his/her attention. Here are three reasons why a CFO should care:

  1. A Healthy Workforce = Increased Productivity
  2. As a CFO, it should be a top priority to protect your organization’s biggest asset by building a healthier workforce. You want employees who are alert, engaged and able to produce, and not distracted by pain, illness and endless doctor’s appointments. Keep in mind: benefits don’t necessarily require an out-of-pocket expense. For some employees, a flexible schedule or the option to work from home occasionally can help alleviate stress. Or, consider offering financial wellbeing courses or onsite meditation instruction.

    With a healthier workforce you should see a reduction in:
    • Sick days
    • Health insurance costs
    • Workplace accidents
    • Elevated health risks (high blood pressure, high cholesterol, etc.)
    • Presenteeism (when someone is physically at work, but not really working)
    At the same time, see an improvement in:
    • Employee retention
    • Team morale
    • Corporate image
    • Employee engagement

  3. Spending Money on Benefits can Save Money in the Long Run
  4. Employees shouldn’t be treated as an expense that negatively impacts the bottom line. Instead, organizations need to invest in their workforce so both the employee and the company can grow together.

    True, healthcare costs continue to rise and undoubtedly benefits are starting to consume a larger portion of your budget. But employers who analyzed the financial impacts of their wellness programs found up to a $3 decrease in their overall healthcare costs for every dollar spent.1

    Trying to save a nickel with a sub-par benefits plan can come back to haunt you. Employees today expect first-class benefits or else they’ll go looking elsewhere. Turnover is a real expense—if you want to attract and retain your industry’s top talent, be sure to offer a competitive benefits plan that appeals to multigenerational workers.

  5. A CFO’s Unique Perspective
  6. No one understands the financial expectations and limitations of an organization’s budget better than the CFO. Which puts you in a unique position to discuss plan options with a benefits broker.

    More than likely, a you’ll know exactly what the company’s financial objectives are as well as its risk tolerance whereas an HR leader may not. Working as a partner with HR, you’ll have an opportunity to run cost-benefit analysis with a broker before a benefits plan is selected. This strategic advantage will help maximize your ROI with employee benefits and overall wellbeing.

Keep Benefits Stress-Free

Whatever benefits plans you choose, it’s important to have an efficient and educational process to introduce them to your workforce. Paycor’s benefits solution can help you simplify and automate the open enrollment process, help your employees understand their benefits options with decision-support tools and provide real-time analytics so you can maximize the value of your benefits program.

1. International Foundation of Employee Benefit Plans


Paycor guided hr software tour

More to Discover

2020 Report: The Future of HR

2020 Report: The Future of HR

The landscape of HR is shifting from everyday HR functions to strategic HR initiatives like recruiting, people & labor cost management and more. To gauge the present and future of HR, Paycor interviewed more than 500 leaders of medium and small businesses.In this trends report you’ll learn: Where the best HR & business leaders plan to invest the most money Why CFOs are losing faith in HR’s ability to work with data (and what you can do) Which 2020 compliance regulations are keeping leaders up at night and what you should do to mitigate risk Why 48% of business leaders believe many core HR functions will be automated by 2022 And more!

How to Build Irresistible Benefits Packages for Employees

How to Build Irresistible Benefits Packages for Employees

Employee Benefits Packages: Foundational to Workplace Satisfaction While a competitive salary is an essential part of attracting top talent, in today’s hot hiring market, the employee benefits package is just as important.More than ever before, employees are being offered robust and interesting job benefits as organizations strive to keep pace with the shifting culture of work today. Historically, offering health insurance and a 401k were the expected aspects of a benefits package. Today, employees are being offered benefits packages that include generous vacation policies and flexible working arrangements.In this article, we’ll share the most important aspects of an employee benefits package. You’ll learn what to offer in order to fully...

Is Unlimited PTO a Good Idea?

Is Unlimited PTO a Good Idea?

If you’re debating whether or not to offer unlimited paid time off to your workforce, there are a few pros and cons to keep in mind.For starters, it is becoming more prevalent. The number of jobs on Indeed that advertise unlimited PTO increased 178% between 2015 and 2019. But still, only 1%-2% of companies in the U.S. offer unlimited vacation and most of those companies are in the tech industry (ex. Hubspot, Netflix, Roku), according to Society for Human Resource Management. Why Do Companies Offer Unlimited PTO? Offering unlimited vacation is an innovative tactic for recruiting talent. Afterall, who hasn’t daydreamed of taking off work whenever the mood suits? In fact, the 2019 MetLife Employee Benefit Trends Survey revealed that 72% of...

2019 HR & Compliance Web Summit: Executive Summary

2019 HR & Compliance Web Summit: Executive Summary

With 20,000+ registrations, this was Paycor’s biggest and best web summit yet!Industry experts like Jennifer McClure offered actionable insights and advice on all things HR, from self-care for the HR pro to in-the-news compliance issues. If you missed the live webinars you can watch them on our on-demand webinar page.In the meantime, here’s a quick overview of each session. 5 Steps to Become a Strategic HR Leader | Speaker: Lori Kleiman In today’s business environment only 20% of HR professionals interact with the executive suite. Lori Kleiman says it’s time to stop waiting for your gold embroidered invitation and finally take your seat on the leadership team. Ready to become a strategic HR leader? Follow this 5 step plan: Engage...