Part 2 in a series describing how measuring a company’s spend on people (from salaries and benefits to training, recruitment, bonuses, and more) can support decision making that is focused on bottom-line profitability from ROI to EBITDA. This post discusses Training and Development as an example and emphasizes that while CHROs can powerfully determine which programs and people are achieving the KPIs and goals set, CFOs can begin to identify opportunities to better align cost/benefit for the organization and optimize dollars invested and resulting return in the training process; promoting an authentic and synergistic partnership between Finance and HR...

By understanding how SCM logic can be applied to HR programs, CFOs can identify areas to improve efficiencies and financial performance. In recent years, CFOs have been asked to take on increasing responsibility for improving financial efficiencies in the organization. Given that people costs are often a company’s single largest line item expense, realizing small improvements in efficiencies of HR processes can drive large accretive impact to the bottom line. By applying SCM rigor, combined with data analytics techniques, the nature and quality of data can help to inform activities and decision-making.