CFO + CHRO: The Alliance That Builds Resilience
- Aaron Lim
- Oct 26, 2025
- 4 min read
Updated: Jan 6
“52% of Finance Leaders have limited or no collaboration with their CHRO.”— Ernst & Young (EY), 2020
Surprised?
Let’s rewind to 2020. A year many of us will never forget.
The world shut down. Borders closed. Businesses crumbled almost overnight.
Back then, I was leading HR for a hospitality group. Overnight, hotel occupancies fell to single digits.
I still remember one Sunday when our team was swarmed with last-minute local bookings. Check-ins and check-outs everywhere, but hardly anyone left to clean the rooms. Travel restrictions had stranded many of our housekeeping staff overseas, and the remaining few were already working overtime.
We were desperate for help. So, a few of us from the corporate team rolled up our sleeves to assist. It took us 45 minutes for one room. Eventually, the housekeeping team politely suggested we stick to stripping bedsheets and pillow cases only 😅
It was humbling, and unforgettable.
A few days later, I found myself in a boardroom with the CFO.
Her spreadsheets were open, her tone firm:
“Cashflow’s collapsing. Should we shut down floors? Freeze hiring? Cut headcount?”
She wasn’t wrong. Payroll was indeed the largest variable expense we could control.
But across the table, I saw another story - employees who were also parents, spouses, and breadwinners.
If we let them go now, we wouldn’t just lose payroll. We'd lose culture, service, and loyalty.
That day, it felt like we were speaking two different languages: Finance spoke survival, and HR spoke humanity.
The CFO + CHRO Alliance
Today, the alliance between Finance and HR is more critical than ever.
Economic uncertainty. Digital acceleration. Workforce disruption. These are not challenges that Finance or HR can solve alone.
It’s like an orchestra: Finance plays the percussion (strong and steady). HR plays the strings (soft and melodic). Alone, they sound incomplete. Together, they create resilience.
“41% of companies with strong CFO–CHRO collaboration achieved EBITDA growth exceeding 10%, compared to just 14% without it.” - Ernst & Young (EY)
In other words, 1 + 1 = 2.2+.
3 Lessons from the CFO–CHRO Alliance
1. Shared Language
I once had this exchange with a Finance leader:
“Operating cashflow is down 12%, you know?”
I replied: “Employee engagement is down 20%, you know?”
We were both right, but we weren't talking to each other.
So we built a shared language.
In one company, this meant adopting a 4-day workweek - reducing payroll pressure while giving employees more rest and family time. It became both a financial and human solution.
In another context, it meant creating a single operational dashboard where people and performance metrics lived side by side - payroll cost, revenue per EFTE, turnover rate, even service response time.
Finance could finally see the people impact. HR could finally see the business impact.
It’s like two countries trading in different currencies. Without an exchange rate, there’s no trade. Without a shared language, there’s no trust. Shared language IS that exchange rate.
2. Shared Foresight
Foresight is the ability to see the storm before it hits.
In one organisation, Finance and HR faced a challenge: How do we hire critical talent faster and smarter, without inflating costs?
Together, we turned to technology and data. We streamlined multiple systems, introduced transparent cost tracking, and upskilled teams to use AI-driven tools for hiring and talent management. The results:
Recruitment costs dropped by more than half.
Hiring speed improved by several days.
Leaders could now see in real time how workforce trends affected the bottom line.
Those few days shaved off the hiring cycle might not sound like much, but for a business where people deliver essential services, it meant real-world impact.
It wasn’t technology that made it work - it was foresight. When Finance and HR share foresight, they stop reacting and start shaping the outcome.
3. Shared Courage
Let’s be honest. The hardest decisions are never easy.
Do you cut costs? Do you retrain? Or do you reinvest when others are pulling back?
Courage isn't done without fear. It’s choosing action despite knowing the uncertainties.
I’ve seen moments when Finance and HR had to make lightning-fast, high-stakes calls together - where hesitation could have cost much more than money.
And I’ve seen the opposite kind of courage too: the courage to reverse a decision.
Once, we launched a big business pivot - poured energy, marketing spend, and manpower into it, only to realise within weeks that the effort didn’t justify the return.
So, we made the call to switch back. Fast. Two weeks, total reset. No finger-pointing, no ego, just teamwork and execution.
Sometimes, shared courage isn’t about saying “yes.” It’s about having the conviction to say “no,” together.
The Real Villains (and Heroes)
The villains in our organisations are not people. They are forces:
Misalignment.
Fear.
Silos between departments.
Decisions delayed because no one speaks the same language.
Opportunities missed because no one had the courage to ask or act.
Villains thrive when we stay in our comfort zones. Heroes are born when we build alliances. The true heroes are not individuals, but partnerships:
Shared language defeats miscommunication.
Shared foresight defeats uncertainty.
Shared courage defeats fear.
Alone we are good. Together, we can be unstoppable.
Final Thought
Think back to your own organisation.
Where are the silos?
Where are decisions delayed because perspectives aren’t shared?
Where are opportunities slipping away because courage is missing?
Don’t wait for crisis to decide the future for you - Build your alliances.
Because the partnerships you forge today will define the resilience and impact of tomorrow.
And like two rivers converging, the alliance between Finance and HR creates a current strong enough to move mountains - and withstand any storm.
Aaron Lim - People & Culture Leader | Exploring the intersection of Business, Behaviour and Resilience | Helping leaders build alliances that turn uncertainty into strength.
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