Bold Questions. Unfiltered Answers.
- What does it truly mean to think like business leaders and speak the language of CFOs?
- How can HR leaders develop commercial acumen without having relevant qualification like MBA?
- In what ways can HR directly influence revenue and margins in the business?
- How should CHROs approach business metrics like CAC, LTV, and EBIDTA?
- What have you learned about balancing empathy with economics?
Mic-drop Moment
“HR is not Human Resources. It’s about being ‘Human’ and ‘Resourceful.’” – Aparna Chetan
Yes. As Aparna Chetan boldly made this statement, HR professionals could feel the complete mindset shift. She says, Human Resources (HR) is more about being resourceful with employees’ talent and skills rather than using them as a disposable asset of your organization.
If you want to promote empathy at work, be human but don’t forget to be resourceful with your people. Her expertise says hiring new talent might cost you 300 times more than retaining and upskilling your existing talent. And that’s why it’s more important to launch upskilling and grooming programs than rushing to hire.
Read this insightful blog and talk P&L talks in the boardroom like a pro.
No Prep. Only Perspectives.
- HR’s biggest blind spot when it comes to business?
Overlooking the direct link between talent acquisition and financial performance. - One financial concept every CHRO must master.
ROI. - People-first or business first?
Keep the business up with the people-centric approach. - One overused HR KPI?
Employee engagement score without context on impact - Do you think CHROs today are ready to handle the P&L?
Yes, far more ready than where we were.
Empathy at Work: Food for Thought
1. What does it mean to be a P&L-ready CHRO?
To be a P&L-ready CHRO is to be fluent in finance terms, like EBITDA, accrual, hiring cost, and Capex to understand what goes on with the balance sheet and how one factor influences the other.
A CHRO with a mastery in balance sheet knows:
- How to navigate challenging financial talks in the boardroom?
- How to make business decisions people-favorable without making losses?
- How to create and implement revenue increasing strategies in the absence of CFOs?
- How to have an eye on activities and expenses that might decrease your business worth in the marketplace?
2. Why is P&L fluency becoming essential for HR leaders?
The next goal for HR leaders is to gain a seat in the boardroom and be more of a business enabler than a people manager. It’s an urgency to not have only empathy at work but deep knowledge of how the finances flow in business operations.
Since P&L knowledge gives HR leaders an edge over the traditional role of just a recruiter, their presence becomes more powerful. Also, it is crucial to understand what CFO says and what do they mean, if they say they are losing business.
If you ask, why is it essential? Here you go.
- It helps HR leaders understand the boardroom and economic perspective to run a business, which goes beyond just managing people.
- It positions HR as more than just a side function, like a strategic partner, e.g. HRBP who knows the terminology of operating a successful business.
- It develops a vision to foresee challenges in business operations and growth because they are well-rounded with two main components of an organization—people and profits.
3. How can CHROs influence business decisions without losing sight of people-first values?
By being a CHRO first and a CFO second.
Acting like a CFO doesn’t mean you exploit human beings as employees and save costs to show more business impact on the sheets. It’s about making decisions that ensure employees’ well-being and business decisions that are impactful, kind, and people centric.
The best method to get the answer to how to be a CFO, is to connect your people-focused initiatives to the bottom line and make it certain that an investment is directly or indirectly driving value back to the business.