A chief financial officer walks into a room full of HR and benefits leaders… what sounds like the start of a joke was my reality at the
At the conference, I had the opportunity to attend sessions exploring the latest innovations in employee benefits, the biggest challenges facing benefits leaders, and
As the "token CFO" in the room, I'm acutely aware of the unique dynamic between finance and benefits teams. While both functions aim to support employees and
Yes, finance is focused on numbers and benefits leaders are focused on people, but these priorities aren't mutually exclusive. In fact, when aligned, they can create powerful outcomes for both the business and its employees.
As CFO of Imagine360, a leading alternative health plan supporting over 1,000 self-funded employers nationwide, I've seen firsthand how strong collaboration between finance and HR can transform benefits strategies. At Imagine360, we manage benefits for our own 1,500 employees while also supporting clients who've achieved remarkable results — some have held premiums flat for nearly a decade, while others have reinvested savings into life-saving benefits. These successes all stem from a shared commitment between finance and HR.
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With healthcare costs
1. Assign value to every new benefit
Benefits leaders are often the first to hear employee requests and discover emerging offerings, whether it's a new mental health resource, tuition reimbursement program, or wellness initiative. While CFOs genuinely want to support programs that enhance employee well-being, every organization operates within financial constraints. That's why it's essential to assess each proposed benefit not only for its appeal, but for its strategic value to the business.
Contrary to popular belief, CFOs are not solely focused on financial return. We are equally invested in initiatives that strengthen morale, reinforce company culture, and improve employee well-being, as long as they align with broader business goals and are backed by clear rationale.
- Make the case with data: Show how the benefit supports key metrics like retention, recruitment, productivity and engagement. Connect it to organizational priorities such as talent strategy or growth initiatives.
- Present a cost-benefit analysis: Collaborate with finance to compare projected costs against potential savings or other benefits, such as reduced turnover or improved health outcomes. CFOs appreciate proposals that demonstrate thoughtful planning and measurable impact.
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2. Negotiate give and take with intention
Benefits decisions are rarely straightforward additions. Every new offering carries a cost and affects operating expenses. Strong partnerships between CFOs and benefits leaders are built on a shared understanding of business priorities, and a willingness to compromise. By embracing a collaborative mindset, both teams can shape a benefits strategy that is attractive to employees and sustainable for the organization.
- Prioritize strategically: Work together to rank current and proposed benefits. If budget constraints are a concern, consider scaling back or removing underutilized but costly programs to make room for higher-impact offerings.
- Show a complete list of options: Present a clear menu of options with associated costs and expected outcomes. Transparency helps CFOs make informed decisions and ensures that each benefit aligns with broader organizational goals.
3. Understand the underlying business
For benefits leaders, the ability to speak the specific language of your business is a potent skill. Effective collaboration with CFOs requires understanding of the context in which financial decisions are made. When benefits leaders demonstrate a grasp of the business environment, CFOs are more likely to view them as strategic partners, not just a cost center.
- Learn the financial landscape: Familiarize yourself with the company's financial statements, budgets and long-term strategic plans. This includes a better understanding of top spending for the company.
- Stay aware of economic pressures: Consider how the current market is financially impacting your industry. Considering healthcare spending is one of the top expenses for a company, understanding the volatility of healthcare costs is imperative. Also, understanding what the company cannot do because of increasing healthcare costs is an imperative for CHROs and benefit leaders.
4. Use data to drive smarter decisions
Data-driven decision-making is central to effective CFO leadership, and benefits leaders can strengthen their proposals by leveraging both internal and external benchmarks. These insights help demonstrate performance, identify opportunities and guide strategic choices. Importantly, benchmarking should be treated as an ongoing process, not a one-time exercise.
- Benchmark externally: Compare your company's benefits to those offered by industry peers. This helps identify gaps, highlight strengths and uncover opportunities for differentiation.
- Benchmark internally: Analyze your own employee population to understand which benefits are truly being used and valued. This includes asking your current carrier for detailed utilization reports and data. If they are unable to deliver, it might be time to find a new carrier. Reviewing claims data and utilization trends can reveal what's working and where adjustments may be needed.
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5. Incorporate the employee voice into every decision
The purpose of any benefits program is to support the workforce, and benefits leaders are uniquely positioned to keep employees at the center of the conversation. While CFOs rely on data and financial models, they also value hearing what employees truly think and feel. By sharing real stories and feedback, benefits leaders can advocate for programs that deliver meaningful impact.
- Gather employee insights: Use surveys, focus groups, or direct conversations to understand what employees genuinely value in their benefits. Are they seeking more affordable options, better mental health support, or new kinds of benefits?
- Tailor offerings to real needs: Use employee feedback to shape benefits that reflect the diverse needs of your workforce. This not only improves satisfaction but also builds trust by showing that leadership is listening and responding.
Maximizing employee benefits is a collaborative journey that requires open communication, transparency and mutual respect. Benefits leaders bring deep insight into the needs and aspirations of employees. CFOs contribute the financial and strategic perspective necessary for sustainable growth. When these two functions work together, the result is a benefits strategy that supports both the business and the people who power it.
The strongest organizations are those where finance and HR unite to invest in their workforce. With rising healthcare costs and evolving employee expectations, now is the time to build that partnership, and deliver benefits that truly make a difference.
