HR leaders are advised to focus on business value when pitching new benefits to CFOs.

(SeaPRwire) –   Good morning!

If HR departments hope to secure a CFO’s approval for a new wellness initiative, simply aiming to “increase employee happiness” is generally insufficient.

Finance executives require a comprehensive business case that details the associated costs, what the program replaces, and the expected return on investment. This is the core advice from BambooHR CFO Justin Judd to HR leaders preparing their proposals. While a satisfied workforce is a commendable objective, he notes that it cannot stand alone as a justification.

“The essential component that must accompany your request is a solid business case,” Judd explains.

HR leaders can establish greater credibility with the finance department by demonstrating an understanding of fiscal tradeoffs. Instead of merely requesting additional funding for wellness, Judd suggests that HR identify underperforming existing initiatives, propose areas for budget cuts, and clearly articulate why a new program warrants capital allocation.

This requires looking past the initial price tag. CFOs are looking for quantifiable results, such as whether a program can enhance employee well-being, decrease absenteeism, reduce healthcare costs, increase productivity, or improve talent acquisition and retention.

Equally vital, according to Judd, is demonstrating confidence that the workforce will actively utilize the benefit. If the projected adoption rate is uncertain, approval is unlikely.

“You must have a plan that carries through to full implementation, along with established checkpoints to verify that it is consistently delivering value,” he says.

At BambooHR, one initiative that proved successful is the “Paid Paid Vacation” program, which provides staff with a $2,000 annual stipend for vacation costs during their time off. To participate, employees simply post about their travels on Slack.

Judd notes that he is already seeing a return on this investment, particularly because it serves as a differentiator in a competitive hiring landscape. Furthermore, he points out that exhausted employees are less efficient, whereas those who take genuine time away typically perform better upon their return.

For Judd, this is the ultimate indicator of success: if a wellness benefit is effective, it must also provide tangible value to the business.

P.S. We are interested in learning about your talent management and hiring goals for the coming year. Please take this short survey to provide your input. All responses are anonymous and will be reported only in aggregate. We appreciate your time.

Kristin Stoller
Editorial Director, Live Media
kristin.stoller@.com