Fractional CFO and HR director: coordinate responsibilities
Budget, recruitment, payroll: shared decisions, distinct responsibilities. How to organise the dialogue between finance and HR.
Founding partner, CFO and investor
Remember in 30 seconds
The CFO sheds light on the financial means; the HR director supports the organisation and its teams. Their coordination rests on shared data, responsibilities and meetings. Using the same firm for both does not, in itself, guarantee savings or seamless integration.
Who does what between the CFO and the HR director?
The Fractional CFO monitors financial balances, prepares forecasts and informs investment decisions. The external HR director works on organisation, recruitment, HR practices and support for managers. The business owner keeps their employer decisions and strategic choices.
The sharing of responsibilities must be explicit: who prepares the options, who validates, who executes and who controls? A joint meeting does not replace this distribution. Specialised legal or payroll matters are handled with the appropriate professionals.
Example of joint work: preparing for recruitment
Imagine an SME planning to expand its sales team. This is a teaching example, not a client engagement.
- The director and manager specify the operational need and the expected results.
- The CFO reviews the full cost, revenue assumptions and the effect on cash flow.
- The HR director helps define the role, criteria, selection process and integration conditions.
- The manager arbitrates the schedule and the budget, then the team monitors the implementation.
The budget is not enough to decide on recruitment: the manager's ability to welcome and support the person also counts. Conversely, an operational need must be compared with the available means. The recruitment and integration may be subject to a specific scope.
Distinguish between HR coordination, payroll production and financial control
Data on absences, remuneration and staff movements must circulate between authorised people. The production of payslips, control of variables, validation and accounting are distinct stages.
Define a timetable, a list of responsibilities and how exceptions are handled. An interface between two systems does not remove the need for human checks. The HR director's engagement does not automatically include producing payslips: the provider, the countries covered and the commitments must be identified.
See how organise payroll and its controls and choose the payroll tools depending on the responsibilities retained.
Compare budgets with equivalent scope
Two quotes are only comparable if the work, time, skills and availability are comparable. Separate the CFO's fees from those of the HR engagement, payroll services and specialist advice. Then add the internal resources you will need.
A saving has to be calculated for your organisation over a defined period. It cannot be inferred from a generic percentage. See the CFO rates for the Finance scope and request a detailed HR proposal for the work concerned.
Should the same firm be chosen for both functions?
A single firm can make things easier if the contacts, tools and responsibilities are genuinely coordinated. Separate providers can work just as well within a clear framework. What matters is the quality of the set-up, not the supplier's label.
The HR department can be set up independently of Finance. The part-time is suitable for regular use with internal relays; a lasting daily presence can justify an internal position. An isolated task may be the responsibility of a specialised service provider.
To prepare for an exchange, describe your team, your current stakeholders, the decisions to be made and the coordination difficulties. Describe your organisational need.
