Businesses are currently in the midst of geopolitical instability, shifting priorities while trying to harness accelerating advancements in technology. Organisational growth hinges on more than just operational efficiency.
Talent strategy has emerged as a true business differentiator, and the alignment between HR and finance has never been more critical. Yet, many business leaders are still operating in silos with outdated divisions between these two functions, limiting their collective potential.
To succeed, CFOs must embrace a more strategic, hands-on role in supporting HR and talent initiatives, stepping well beyond traditional budget oversight.
Breaking down silos
SAP Concur’s latest CFO Insights report reveals a pressing challenge – organisational silos continue to hinder momentum and cost businesses money. While 57% of finance and 59% of IT leaders cite conflicting departmental priorities as the main barrier to cross-functional collaboration, 62% of HR leaders point to insufficient data sharing and transparency. These differing diagnoses are telling, not only of entrenched disconnection but also of the opportunities that lie in better collaboration.
The solution is not necessarily about more funding for HR. Rather, HR teams are calling for deeper engagement from finance in areas where their expertise can add real value: workforce planning, scenario modelling, and developing metrics to measure the impact of HR programmes. Yet, only 40% of finance leaders currently see talent retention and acquisition as ‘essential’ to growth – it’s a striking disconnect considering how pivotal these factors are in securing long-term competitiveness.
HR’s strategic shift and what it means for finance
85% percent of HR leaders who participated in our survey, rank employee experience as a top priority, but just over half (54%) feel adequately resourced to deliver on it. This isn’t a cry for unchecked spending, but a call for strategic partnership. As talent becomes one of the most important levers for competitive advantage, finance leaders have an opportunity – indeed, a responsibility – to move from gatekeepers of costs to enablers of organisational resilience.
Traditionally, HR has been the custodian of people and culture, while finance has maintained the bottom line. This separation, once functional, is now a liability. Skills development, engagement, and retention aren’t just HR issues – they’re business imperatives. When HR and finance collaborate on people strategy, business strategy becomes more robust, agile, and effective.
CFOs who understand this can aid in shaping workforce strategy, ensure resources are properly allocated, and acquire tools that allow for predictive insight rather than reactive fixes. In doing so, they elevate their own function from operational to strategic and become indispensable allies to the board and C-suite.
Simple moves, significant impact
Importantly, this kind of strategic collaboration doesn’t require a complete structural overhaul. Stats from SAP Concur’s research highlights clear, actionable ways forward: for example, 62% of HR leaders prioritise the creation of cross-functional working groups. These allow for real time knowledge sharing, greater transparency, and faster response to emerging challenges. By contrast, finance (58%) and IT (59%) lean towards implementing flexible budgets as the primary enabler of collaboration.
There’s a lesson here: finance needs to listen more closely to what HR actually needs. It’s not just about budget approvals, it’s about participation in decision making, scenario planning, and metric design. When finance becomes embedded in HR’s strategic processes, both functions perform better.
For example, our research states nearly one-third of HR leaders (31%) specifically seek finance’s support in developing impact driven KPIs for HR initiatives. These could include metrics around employee engagement, attrition, or learning and development effectiveness. With finance’s analytical rigour, such metrics become not only more robust but also more influential in broader organisational planning.
From tactics to transformation
The shift towards collaborative, insight-led partnership is more than a trend, but a strategic necessity. Organisations that continue to treat HR as a siloed function miss the opportunity to integrate people strategy into the core of business strategy. CFOs, in particular, are uniquely placed to champion this shift. With access to a wide lens across organisational performance, they can ensure that workforce initiatives are not only well funded but also aligned to business goals and measurable outcomes.
This isn’t to say the finance function must lose its discipline around spend. On the contrary, finance can provide the analytical clarity and strategic oversight that ensures HR programmes deliver return on investment. The collaboration should be built on mutual accountability, shared objectives, and a shared understanding of what success looks like, from both a people and a performance perspective.
A call to action for finance leaders
As we move further into a landscape defined by automation, hybrid work, and shifting employee expectations, people strategy is business strategy. Finance leaders who fail to recognise this risk being left behind, while those who step forward can play a pivotal role in shaping the future of work within their organisations.
Now is the time for finance to redefine its role, not just as a controller of costs, but as a catalyst for growth through people. Whether through joint working groups, aligned KPIs, or scenario modelling support, small strategic moves can yield huge results.
Talent is critical for future growth, and by collaborating, HR and finance together can ensure their organisation is ready to thrive in whatever comes next.
Cassie Petrie has been with SAP Concur for 10 years in both customer facing roles and management. Cassie has experience leading customer acquisition teams, most recently stepping into the Managing Director role for SMB EMEA.
The team is focused on digital efficiency with the aim to provide the best customer experience, combining technology and teams for maximum client success. You can find Cassie walking, working or negotiating with her children. Cassie's volunteer days are spent in schools with the aim to bring awareness of software careers to young women.
