HR challenges are keeping CFOs up at night
It’s not always all about the Benjamins for CFOs (well… it is in a roundabout way). A good CFO is also concerned with a lot of the same things HR is. Human resources pressures don’t solely have an impact on that team, they also have an unmistakable ripple effect on your clients’ CFOs and their companies as a whole. In fact, according to the Duke CFO magazine Global Business Outlook survey (U.S. First Quarter, 2018), five of the top six challenges CFOs say they’re facing can be directly tied to the human resources department:
- Difficulty attracting/retaining qualified employees 45%
- Cost of benefits 33%
- Regulatory requirements 31%
- Government policies 31%
- Data security 30%
- Employee productivity 24%
At Paycor, we found that 75% of successful, high-functioning HR teams focus on six "pillars” of HR: Recruiting, Benefits, Labor Costs, Compliance, People Management, and Employee Experience.
Unfortunately, we also found that 66% of CFOs perceive that their HR departments have an “average” or “worse than average” impact on the organization. That’s a problem because HR is responsible for managing employees, an organization’s greatest asset and greatest compliance risk. These days, CFOs are shouldering the pretty big burden of helping their organizations make smart decisions when it comes to their people. Compliance is a big piece of that puzzle.
Your clients’ human capital propels business success. And success is, of course, linked to the talents and abilities of their employees. With the economic recovery we’ve seen over the past several years – and because employment is at an 18-year low making finding top talent a huge challenge – CFOs are taking a closer look at their human capital to maximize their existing resources. So, finding and retaining top talent is no longer just the worry of human resources professionals; CFOs say it is a continual – and increasing – concern.
What’s the Problem?
More than 60% of recruiters expect to hire more people in 2018 than they did in 2017, and 42% of employers are worried they won’t be able to find enough talent . That’s a whole lot of recruiting in the foreseeable future and a whole lot of compliance to keep up with right at the start of the employee lifecycle.
If your clients are managing their HR with disparate systems that don’t share data, or worse, by using manual spreadsheets, there’s no way they can possibly have a solid grasp on forecasting their labor costs, employee classifications, and overtime costs.
Without an automated, all-in-one HR software system, they’re not only throwing money down the drain, they’re also setting their companies up for some pretty stiff fines (and potential legal woes) for being out of compliance.
What’s the Solution?
As their adviser, it’s important that you help your clients understand why it’s so vital to the success of their businesses that they make accurate, automated HR practices a top priority. Finding the best talent is going to continue being a challenge for the foreseeable future. And, as laws and regulations change on a seemingly daily basis, the compliance landscape is getting more difficult to navigate. They need your wisdom.
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