Bridging the gap: how CFOs and CHROs can build a more productive partnership

In today's complex business environment, collaboration between the Chief Financial Officer (CFO) and Chief Human Resources Officer (CHRO) is more critical than ever. However, Grant Thornton's May 2025 CFO survey reveals that fewer than half of CFOs report a strong working relationship with their HR counterparts, highlighting a significant disconnect at the top levels of many companies.

This lack of alignment can lead to misaligned goals, inefficient resource allocation and hindered strategic initiatives. To foster a more effective partnership, CFOs and CHROs should consider the following strategies:

Aligning key performance indicators (KPIs)

One of the primary barriers to a strong CFO-CHRO relationship is the absence of shared goals. When finance focuses solely on financial metrics like EBITDA, and HR concentrates on employee engagement or turnover rates, it creates silos. By developing integrated KPIs that reflect both financial performance and human capital metrics, businesses can ensure that both departments are working towards common objectives.  

Integrating technology systems

Inadequate technology integration is another significant hurdle. Disparate systems can lead to data inconsistencies and hinder collaboration. Investing in integrated platforms that allow seamless data sharing between finance and HR can facilitate better decision-making and strategic planning.

Establishing regular communication

Regular check-ins and collaborative meetings between CFOsand CHROs can build trust and ensure alignment on strategic initiatives. These interactions provide opportunities to discuss challenges, share insights, and coordinate efforts to drive organisational success.

Fostering mutual understanding

Building a productive relationship requires empathy and a willingness to understand each other's perspectives. CFOs should appreciate the strategic value of human capital, while CHROs should recognize the financial implications of HR initiatives. This mutual respect can lead to more informed decisions and a cohesive strategy.

Collaborating on talent strategy

With the evolving workforce landscape, CFOs and CHROs must work together to develop talent strategies that align with financial goals.This includes workforce planning, budgeting for talent development and assessing the ROI of HR programs. A collaborative approach ensures that talent initiatives support the organisation's financial objectives.

By addressing these areas, CFOs and CHROs can transform their relationship into a strategic alliance that drives organisational performance. As Grant Thornton's survey suggests, bridging this gap is essential for sustainable success.

You can read Grant Thornton's full report here: CFO survey May 2025.

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