What every CFO needs to know about HR technology investments

Today’s CFOs face a unique balancing act. On one hand, they’re tasked with driving operational efficiency and controlling costs. On the other hand, they should ensure their organisations can attract and retain the right talent in an increasingly competitive market.

This dual challenge requires a modern approach to workforce management—one that transforms HR from a cost centre to a strategic enabler of long-term value.

Today’s CFO: looking beyond financial stewardship

According to research by Forrester, CFOs are considered the most risk-averse executive buyers, focusing on costs, operational metrics, and profitability. And with good reason. In an increasingly complex business environment, every investment should demonstrate clear value and contribute to long-term success.

Coupled with this focus on organisational efficiency is the critical role CFOs play in shaping their organisations’ futures. With automation streamlining traditional tasks like budgeting and forecasting, CFOs can focus on strategic initiatives, expanding their role beyond financial stewardship. Today’s CFO must balance fiscal discipline with investments in innovation and growth, all while navigating increasingly complex compliance and risk landscapes.

The CFO challenges of workforce management

The expanded role of the CFO and the complexity of the modern workforce present several multifaceted challenges:

The data dilemma

With organisations typically working across multiple systems, CFOs face challenges accessing accurate, reliable, and current data. Fragmented data across multiple systems can derail decision-making. Without a unified view, organisations struggle to identify inefficiencies or predict labour needs, impacting performance and risk.

The cost of non-compliance

In Australia alone, there are over 120 modern awards, with regulations continuously changing. The stakes for non-compliance are high, as the financial penalties and reputational damage can linger long after an issue is resolved. This reality makes robust HR technology infrastructure not just a nice-to-have, but a fundamental requirement for risk management. Staying compliant requires systems that can adapt in real time, support audits seamlessly, and help manage ongoing compliance across all operations.

Balancing costs and productivity

Today’s leaders must find ways to cut costs while minimising disruption and maintaining productivity. This becomes even more complex when organisations aren't effectively leveraging their data, limiting their ability to optimise revenue, profit margins, and strategic decision-making. The goal is to cut unnecessary expenses without undermining productivity or morale.

Manual, inefficient processes

When workforce data exists in silos, organisations face inefficiencies, higher administrative and compliance costs, and missed opportunities for data-driven insights. These inefficiencies can slow progress and prevent leaders from reallocating resources to higher-value initiatives. The time and effort spent managing fragmented systems represent a hidden, yet substantial, cost to the business.

Transforming workforce challenges into opportunities

Addressing these challenges requires innovative solutions and the tools to match. CFOs can use modern HR technology to tackle multiple levers of cost control and drive strategic growth by:

Creating a single source of truth

When HR systems are compatible with existing systems, organisations can create a single source of truth for workforce data. This doesn't just eliminate manual work. It enables more accurate and timely decision-making that can impact everything from scheduling to strategic planning.

Elevating the employee experience

Self-service tools allow employees to manage tasks like scheduling and leave requests with minimal external help, reducing administrative overheads, and allowing employees to take control. This contributes to retention, productivity gains, and better employee experience.

Driving strategic decisions with analytics

Advanced tracking metrics provide invaluable visibility into workforce utilisation. Leaders can understand where there's extra capacity, where hiring is needed, and where inefficiencies exist – all crucial insights for strategic workforce planning.

Maximising ROI on labour through strategic investments

Maximising ROI on labour requires CFOs to align HR technology investments with clear organisational goals. Success depends on selecting solutions that not only drive cost efficiency, but also enhance compliance, productivity, and long-term growth. Here’s what you need to consider for a strong ROI:

Strategic alignment

Any HR technology investment must clearly connect to organisational goals and provide quantifiable benefits. This includes the ability to scale with organisational growth, integrate seamlessly with existing systems, and provide meaningful insights that inform strategic decision-making. Try looking beyond immediate cost savings to understand how the technology will support your organisation's long-term objectives.

Compliance readiness

Evaluate the system's capacity to support audits and compliance. This isn't just about checking boxes – it's about creating a proactive risk management framework that helps protect your organisation. Does it capture the right data? Can it produce the necessary reports? Will it help implement the right controls to mitigate risk?

Operational efficiency

Efficiency isn’t just about cost-cutting; it’s about empowering teams to achieve more with less. Prioritise solutions that streamline processes, promote collaboration, and improve productivity.

The CFO as a strategic champion

Today’s workforce challenges require bold leadership. CFOs who embrace advanced HR technology position their organisations to thrive through change and uncertainty. By balancing cost efficiency with strategic workforce investment, they can drive lasting value and innovation.