Artificial Intelligence (AI) has emerged as a cornerstone for contemporary businesses, revolutionizing operations by automating mundane tasks and delivering profound insights into workforce dynamics. By harnessing the power of AI, leaders can significantly streamline a multitude of strategic activities, optimizing both efficiency and effectiveness in managing talent. This transformative technology enables organizations to not only enhance their operational processes but also gain valuable foresight into employee trends, fostering a more engaged and productive workforce.

AI Has Arrived. Are You Ready?

As companies have raced to adopt AI technology, revenue growth in industries well-positioned to integrate AI has nearly quadrupled since 2022. Research shows that industries with greater AI integration experience three times higher revenue growth per employee. Today, leaders such as Chief Human Resources Officers (CHROs), Chief People Officers (CPOs), and other People leaders will play a crucial role in ensuring the effective and ethical implementation of AI within their organizations.

Why are HR leaders crucial to adopting AI effectively?

Human Resources leaders play a pivotal role in shaping the landscape of an organization’s most treasured asset—its people. Their unique perspective on the intricate needs and dynamics of the workforce enables them to serve as invaluable partners in the seamless integration of cutting-edge technology into People practices.

With a deep understanding of organizational culture, talent development, and employee engagement, they are ideally positioned to act as key facilitators. They harness the power of artificial intelligence to streamline processes while ensuring that ethical standards are upheld and inclusivity is championed. By adeptly balancing innovation with a commitment to their workforce, HR leaders drive not only operational efficiency but also foster an environment where all employees feel valued and empowered.

How are today’s leaders utilizing AI?

• Streamlining Functions: Numerous leaders are employing AI for managing employee records, processing payroll, recruitment, performance management, and onboarding, with intentions to expand its usage in the future.
• Enhancing Onboarding: AI chatbots can enhance onboarding by providing personalized support, ensuring new employees receive guided assistance. This technology also allows staff to concentrate on more complex tasks.
• Learning and Development: Intelligent algorithms create personalized learning experiences that address the unique needs of each employee, enhancing skill development and opportunities for career advancement.
• Employee Monitoring and Analytics: AI technology now plays a role in monitoring employee productivity and engagement, providing valuable insights including detecting signs of burnout or misconduct and optimizing workflows.
• Risk Management:  More than 60% of financial firms view AI as a top priority for managing risks and ensuring compliance. This technology can assist companies in keeping up with labor laws and regulatory changes.

When using any technology designed for the storage of business information, it is imperative to establish comprehensive cybersecurity protocols. These measures are essential not only for safeguarding sensitive personal employee data but also for fostering a sense of trust and security among staff members. By prioritizing robust defenses against cyber threats, organizations can ensure that their commitment to protecting employees’ privacy is unwavering and transparent.

 

Learn more about our HR capabilities. 

 

 

 

In today’s rapidly evolving healthcare landscape, the ability to recruit and retain top talent, as well as build transformational leadership teams, has never been more critical. A dynamic CEO is pivotal to an organization’s success, guiding the mission to deliver outstanding patient care and prioritizing the health and well-being of the communities served, including the workforce that provides the care. This role involves not only addressing immediate challenges but also formulating long-term strategies that foster sustainable growth and create enduring value. Identifying the right healthcare CEO is not merely a decision; it is a significant investment in the organization’s future. The search process often diverges from that of other industries due to the unique complexities and nuances inherent in healthcare.

What Makes Healthcare CEO Searches Unique?

One of the distinguishing features of healthcare CEO searches is collaboration with community-based boards. These boards often consist of volunteers who may lack extensive experience in healthcare leadership. However, as users of the healthcare system themselves, they often have strong opinions about what qualities they want in the next CEO. As experts in healthcare executive search, we know how to navigate these dynamics by listening to the board’s perspective while guiding them to focus on what the organization truly needs in a leader.

Healthcare is a mission-driven industry, which means CEOs must be more than just strong operators; they need to be passionate about service and strategic impact. The best leaders are those who deeply connect with the organization’s mission and recognize the importance of community. Brad Veal, a partner in the Healthcare Practice, noted, “Patient populations are invested in the CEO’s identity, unlike in other industries where community connection is less relevant. Healthcare encompasses all stages of life, from birth to death.” A healthcare CEO’s influence extends beyond the walls of the hospital or health system, having a direct and lasting impact on the lives of the people their organization serves at every stage of life.

How has the profile of the CEO changed over the past 5-10 years?

As experts in healthcare executive search, we have witnessed a remarkable transformation in the role of the CEO over the last five years. The landscape of the healthcare industry has undergone profound changes, prompting a re-evaluation of traditional leadership models. “The past five years have been nothing short of transformative,” explains Jami Herzberg, Healthcare Practice Partner. “Leaders are now faced with navigating an increasing level of ambiguity, making rapid decisions in the face of uncertainty, and relying more heavily on strategic delegation than ever before.” This shift has elevated the demands on executives, requiring them to adapt swiftly to an evolving environment while maintaining a clear vision and direction for their organizations.

A significant shift in expectations is emerging, emphasizing the urgent need for innovation within organizations. Boards are increasingly seeking leaders who not only possess a deep understanding of digital transformation but also have a strong grasp of artificial intelligence and its applications. These leaders must be adept at enhancing operational efficiency while continually prioritizing financial sustainability as a core tenet. In this dynamic landscape, the modern healthcare CEO must embody a dual role: they must be both a visionary thinker and a pragmatic executor. Such leaders are required to navigate the complexities of the industry with agility, all while maintaining a steadfast connection to the organization’s overarching mission and values.

What are some of the challenges that organizations may face when hiring a CEO?

In the ever-evolving environment of healthcare, the pursuit of the ideal CEO presents a unique set of challenges, many of which originate from the very hiring team: the board of directors. Often, these board members are distanced from the everyday operations of the organization, creating a barrier to recognizing deeper, systemic issues that may have been obscured by previous leadership. This disconnect can lead to a lack of insight into the organization’s true needs, particularly as political pressures add layers of complexity, diverting focus from the critical needs of the institution.

In recent years, there has been a notable shift in the priorities of boards, with cultural fit emerging as a pivotal element in their decision-making process. This shift has resulted in a growing inclination to consider internal candidates who possess an intimate understanding of the organization’s values and dynamics. Today’s boards are increasingly on the lookout for visionary CEOs capable of steering significant transformations—whether cultural, operational, or financial—tailored to the organization’s most urgent challenges.

Moreover, there is a prevailing tendency to seek a successor who closely resembles the outgoing CEO. While this might seem like a prudent approach, it often creates a limited candidate pool and risks overlooking what the organization truly requires moving forward. Rather than replicating past successes, boards should embrace an expansive view, seeking leaders who bring fresh perspectives and ideas to navigate the complexities of a rapidly changing healthcare environment.

What advice would you give to healthcare organizations that are looking for their next CEO, and why hire an executive search firm?

For board members of a healthcare organization, the responsibility of hiring a CEO stands as one of the most pivotal duties they undertake. Recognizing that many boards may lack extensive technical or operational expertise, it becomes crucial to enlist specialized knowledge to guide the search for the right leader.

Buffkin / Baker offers a unique partnership combined with profound industry insight that internal HR teams and board members may not possess. As seasoned experts in healthcare executive search, we don’t merely identify candidates; we immerse ourselves as collaborative partners in the process. We carefully look at the specific needs of each organization and adjust the role to match those needs and create a search strategy that fits.

Our Healthcare Practice team is focused on understanding current hiring trends and market changes. With a significant wave of baby boomers poised to retire in 2025 and 2026, we are on the brink of an unprecedented surge in retirement. Susan O’Hare, our Practice Leader, has observed not only the emerging need for succession planning at the CEO level but also a troubling trend of regional roles disappearing and leadership positions consolidating responsibilities. This situation highlights the urgent need for forward-thinking innovators who can cultivate partnerships that benefit the organization.

Today, more than ever, CEOs must be genuine leaders who are present in their organizations. They need to focus not only on operational efficiency but also on creating an environment that allows their direct reports to achieve both departmental and organizational goals. Trusting the workforce is essential; the workload is too much for any one person, and building trust is the key to retaining experienced and exceptional talent. CEOs who micromanage and fail to foster trust and loyalty often find themselves losing talented healthcare professionals who seek better opportunities elsewhere. Many boards overlook this issue, and it is a relatively new concept in healthcare leadership. We are here to provide guidance and support in this area.

Buffkin / Baker distinguishes itself as a boutique firm with a holistic approach to healthcare, spanning academic institutions, providers, associations, venture capital, and private equity perspectives. We pride ourselves on being dedicated search consultants equipped with extensive industry knowledge. Our mission goes beyond simply filling a vacancy; we excel at determining the needs of our clients while simultaneously understanding the core needs of the organization, ultimately delivering a leader poised for success.

We combine the resources of a large firm yet retain the agility of a smaller one, allowing us to adjust our strategies as needed to ensure search success. Healthcare CEOs are positioned to make life-altering decisions, and our objective is to find a leader who not only fits today’s needs but also has the vision and skills to guide the organization into the next decade.

by Jackson Ross, Partner

Private equity (PE) investment in healthcare has experienced significant growth over the last decade, driven by aging populations, increasing healthcare expenditures, and ample capital availability. However, investing in founder-led healthcare companies poses unique challenges for private equity firms. These challenges stem from cultural differences, operational maturity, regulatory complexities, and the deep personal nature of founder-run businesses.

Cultural Misalignment and Founder Reluctance

One of the most significant challenges in private equity is the potential for cultural misalignment between the investor and the founder. Founders typically build their businesses with a long-term, mission-driven mindset, often prioritizing patient outcomes, professional autonomy, and organizational culture over profitability. In contrast, private equity firms usually operate on a defined investment horizon—typically five years—focused on EBITDA growth, scalability, and eventual exit strategies. This fundamental difference in priorities can lead to tension created during strategic decision-making, particularly when financial optimization appears to compromise patient care or employee satisfaction. 

Additionally, founders may be apprehensive about losing control. Many founder-led healthcare businesses have never taken external capital, so partnering with a financial investor is a significant and often emotional step. Founders might resist giving up strategic influence, especially if they believe doing so could undermine the organization’s integrity or original mission.

Operational and Management Gaps

Founder-led companies often lack operational maturity. While founders may have deep industry expertise and a strong vision, these companies frequently do not have sophisticated systems, processes, and professional management structures that private equity firms expect. Common deficiencies can include underdeveloped financial reporting, limited data analytics, informal governance, and a general absence of scalable infrastructure.

These shortcomings create significant execution risks for private equity firms. Significant resources and time may be needed to professionalize the business—hiring experienced management, implementing enterprise systems, and establishing robust compliance protocols. The transition from a founder-led organization to one that operates at an institutional level must be managed carefully to prevent disruptions in business performance and to avoid alienating existing staff.

Valuation and Deal Structuring

Valuing founder-led healthcare companies can be quite challenging. Founders often have high expectations for their company’s value, particularly if the business has experienced organic growth and has remained profitable. Their valuation may be emotionally influenced and may not reflect market comparable or private equity return thresholds.

Additionally, structuring a deal that aligns incentives can be complex. Common strategies include earnouts, equity rollovers, and performance-based bonuses, which are designed to keep founders engaged after the investment. However, these structures must be carefully tailored to balance risk-sharing while maintaining founder motivation and minimizing potential disputes related to performance metrics.

Integration and Exit Considerations

Integrating a founder-led business into a larger private equity platform can be a complex process. Founders are often central to customer relationships, staff morale, and clinical quality, making their continued involvement critical. However, preparing the business for a future exit—whether through strategic sale or IPO—requires reducing its dependency on the founder and creating more standardized operations.

Building a strong leadership team, standardizing operations, and implementing scalable practices are long-term tasks that must be initiated early. Mismanaging the transition from founder leadership or failing to institutionalize key knowledge can jeopardize the investment strategy and diminish potential exit multiples.

Conclusion

Private equity investment into founder-led healthcare companies offers significant opportunities but is laden with unique challenges. Achieving success in this space relies on mutual respect, a clear alignment of vision, and a thoughtful approach to integrating operations and culture. It is essential to replace the leadership team promptly, with the founder’s support, to facilitate this transition. Often, investment from private equity can prompt the founder to either step aside or transition to a board position. Firms that can effectively navigate these complexities while preserving the core strengths of founder-led businesses are in the best position to create sustainable value in the ever-changing healthcare sector.

 

by Evan Wescott, Principal

Executive search is often evocative of the highest decision-makers in an organization: CEOs, CFOs, Presidents, and Board Members. There’s an aspect of elitism that permeates the understanding of our work and sometimes unnecessarily pigeonholes client expectations of our capabilities.

Over the past four years, we’ve seen a consistent representation of “director-level” projects as a substantial portion of our search workload. There is a general trend away from exclusively operating at the highest levels of an organization and reapplying our same methods and techniques to bring in talent at other levels of a company.

What is a director-level position?

Naming conventions vary from business to business and sector to sector, but generally speaking, a director generally sits at the cusp between managers (who have a handful of direct reports) and vice presidents (who have broader functional or domain responsibility). Directors generally operate as leaders of a “team of teams” to coordinate more granular movements or initiatives.

Directors also generally sit in the middle of the tactical-strategic continuum. Unlike the highest-level executives, who deeply consider strategic priorities but can typically delegate tactical details, directors sit at the bleeding edge of ideation and implementation. These leaders get a “hand on the ball” regarding business strategy, taking time to process and understand the broad, organization-wide mandates being passed down while processing the implementation details and ultimately bringing the plan to life.

Last, directors tend to lean into a domain-specific skill or knowledge base that keeps them focused on a particular niche. It can be useful to have a director with a depth of knowledge within a subfunction (e.g., a Director of Compensation reporting to a Vice President of Human Resources) that can offload the cognitive load of nuance, especially as the world and economy increasingly require specialization.

What are the benefits of hiring a director?

We often provide search services for director-level searches for a variety of reasons:

• The growth of an organization requires a single person to help coordinate a team-of-teams situation.
• An existing director has left, and a company or organization has no meaningful way or reason to let the gap in reporting persist.
• A unique business case or vertical requires a leader to coordinate a specialist initiative (e.g., targeted talent acquisition, business development, or supply chain leaders.)

Whatever the case may be, if there are no suitable managers or team members ready to step into this position, companies are forced to look elsewhere for leadership talent.

An added benefit of placing a leader at this level is the ability to grow this individual over time. A “junior leader” has time to grow and evolve, often helping to shape the business and people they are leading. They become excellent assets and candidates for succession over time. In theory, a director becomes a vice president, then an executive! Three leaders for the price of one.

What are the challenges?

Executive searches around directors are not without their challenges, including a few common ones: 

• Inexperience with Recruitment Processes: Directors are generally promoted into their current positions, and experience with recruiters can be limited. Partnering with an executive search firm may feel daunting or drawn-out given the various stakeholders in decision-making.
• Difficulties Relocating: If a search becomes national, or even regional, it can often be difficult to make a compelling case for relocation for a sitting director. They might be waiting for a VP-level title for their next role and prefer to “wait it out” before taking the effort to uproot and move a family.
• Misaligned Client Expectations: An executive team sometimes expects a great deal from a director (as they should!), but sometimes these professionals are just now stepping into broader leadership roles. Directors can have more gaps and weaknesses due to a lack of experience.

How Do We Overcome These Challenges?

• Service-Oriented Processes: Creating a relentlessly positive experience is very attractive to junior leadership. They get the chance to hone their interview presence, executive persona, and career narrative against real-life scenarios, and most welcome the opportunity to do so with a small, boutique firm that places a premium on direct, human engagement.
• Understanding and Creating Broader Alignment: A better understanding of “where the puck is headed” for a potential candidate’s career can help to overcome inertia for many candidate objections, including relocation. Combined with a seamless candidate experience, emphasizing career goals helps candidates see alternative (and appealing) growth trajectories.
• Having a Growth Plan: Interviews should serve as both validation and assessment; candidates who bring all the right pieces to solve the pressing problems still likely have room to grow. By incorporating those items into a candidate’s growth plan once they transition over, the company follows through on a commitment to continue that leader’s growth, making them sticky and long-lasting at a given placement.

How do you know you need an executive search firm to find your next director?

Ask yourself the following questions:

• Do I need specialist, domain experience when evaluating leaders driving a use case in a functional subspecialty?
• Does our current organizational growth require additional support around leadership hiring?
• Have we never hired for this role before? Do we want guidance on how to bring in the right talent?

If the answer to any of the following is “yes,” contact us so we can explore a search solution tailored to your business and leadership needs.

Remote work, once a niche arrangement, has transformed into a mainstream component of the workforce, especially following its surge in prevalence during the year of 2020 due to the COVID-19 pandemic. Over the past five years, as the world has begun to recover, employers have gradually reintroduced their employees to the office environment, a transition that has yielded mixed outcomes. Industry giants such as Amazon, AT&T, Boeing, Dell, and Walmart have mandated that select staff return to the office five days a week, a move that reflects a growing preference for in-person collaboration. Yet, amid this push for full-time office attendance, a substantial number of employees yearn for the flexibility to either work remotely or embrace a hybrid model that offers the best of both worlds.

David Alexander, Consumer Practice Leader, states, “As an executive recruiter navigating a diverse array of industries, I see both sides of this issue. Many employers believe that on-site work fosters company culture, enhances collaborative teamwork, and bolsters employee engagement. On the other hand, employees working remotely often feel they are more productive and enjoy a significantly improved quality of life by sidestepping the grind of daily commutes.”

What are the pros and cons of remote work?

A recent Pew Research Survey has shed light on these dynamics, revealing that employees who have adopted a hybrid scheduling approach report meaningful improvements in balancing their professional responsibilities and personal lives. More than 60% of respondents feel that their flexible arrangements have enabled them to meet deadlines and complete the work more efficiently. However, this is not without drawbacks; nearly half of these workers express that, at times, working from home has diminished their ability to forge connections with their colleagues, leading to feelings of isolation.

For employers, the advantages of allowing remote or hybrid work arrangements are manifold. These practices can significantly lower operational costs, grant access to a broader talent pool, and enhance employee retention. In fact, a remarkable 76% of workers assert that having flexibility in their work arrangements profoundly influences their decision to remain with an employer. Moreover, the necessity for reduced office space further alleviates financial burdens. The infusion of flexibility and autonomy fosters greater employee satisfaction, while the elimination or reduction of commuting times not only enhances productivity but also uplifts morale.

Yet, employers face considerable challenges in this new landscape. As companies hire remote talent, they are compelled to navigate the complexities of compliance with varied laws and regulations across different jurisdictions. Additionally, disparities in remote compensation can arise, leading to inequities in salaries for similar roles, dependent on local market conditions.

The potential for remote workers to experience feelings of isolation poses another significant concern. Such isolation can result in diminished productivity, a weakened company culture, and challenges in employee retention. Fostering a cohesive environment for remote employees requires intentional efforts. While empowering employees to direct their own workdays can be beneficial for both the employee and employer, it can also present challenges.

What is the balance?

Achieving balance in the workplace entails crafting an environment that encourages optimal collaboration while addressing the diverse needs of individuals.    It involves exploring and designing methods that allow every person—regardless of their work location—to contribute their best selves.

“There isn’t a definitive right or wrong answer to this complex issue, but both employers and employees must recognize the inherent trade-offs,” David Alexander observes. He cautions, “Employers who do not offer remote or hybrid work options may inadvertently limit their ability to attract and retain top talent, especially in cases where relocation poses a challenge. Meanwhile, employees who insist on working exclusively from home should be mindful that they may be curtailing their opportunities for career advancement and professional growth.”

While no single solution guarantees the perfect balance between remote work and in-office presence, it is essential to create a framework that respects individual preferences while simultaneously driving business success. This delicate alignment is key to nurturing both employee satisfaction and organizational productivity.

 

 

When a company experiences an ownership change, particularly through an acquisition by a private equity firm, strong HR and People leadership becomes essential. These transitions present a unique set of challenges that require expert guidance to navigate successfully.

Many organizations view HR functions such as hiring, performance management, employee compensation, and terminations—as simply having a baseline of operational impact. As a result, they may deprioritize changes to the HR team/structure/intent during a private equity transaction.  However, adding a truly strategic and business-first HR leader can elevate the impact of the function effectiveness by ensuring that the people strategy is aligned with the business strategy launched by new PE ownership.

They conduct comprehensive talent assessments to answer critical questions:

• Do we have the right people in the right places? Are they equipped with the right skills—not just for today, but for tomorrow’s challenges?  If not, how do we get there?
• Are performance development, measurement, and compensation practices structured to drive the desired performance, both in specific areas of the business and overall?
• Does the business have an engaged and productive workforce with the growth mindset essential for the accelerated performance PE investors demand?

During ownership transitions, the executive team – and often whole company – faces significant pressure and new operating models.  Effective HR leaders work with the executive team, both collectively and individually, to create a cohesive, high-performing unit. They facilitate productive dialogue, mediate conflicts, and help create shared objectives that transcend (but still include) individuals’ interests. This cohesion at the top-level cascades throughout the organization, fostering alignment and purpose during transformative times.

Retention is critical during transitions, making effective succession planning and career development essential. Strategic HR leaders establish clear career ladders and advancement opportunities to reassure valuable employees that their futures remain bright despite ownership changes. These structured development paths not only retain top talent but also maintain engagement during transition periods across the enterprise when motivation might otherwise waver.

The internal communication strategy during transitions is crucial. HR leaders will collaborate with the leadership team to develop comprehensive communication plans that maintain transparency while managing sensitive information appropriately. Facilitating regular and honest updates from all company leaders helps prevent rumors and speculation that can damage morale.

The difference between successful private equity acquisitions and failed ones often lies in the ability to harness the talent and potential of everyone in the organization.  Strong HR leadership can transform potential disruption into opportunity, helping companies navigate transitions with the right talent, aligned leadership, clear succession pathways, and an engaged team — positioning the organization for the sustainable growth that private equity investors demand.

by Jim May, Associate Partner

In today’s business landscape, the performance of HR and finance is more interconnected than ever. Therefore, it is essential for the Chief Human Resources Officer (CHRO) and the Chief Financial Officer (CFO) to prioritize building a strategic and mutually beneficial alliance.

The CHRO and CFO have become crucial partners at the core of every successful organization. Companies face the challenges of attracting and retaining talent, enhancing business value, and managing budgets. This partnership is not just beneficial—it’s a competitive advantage.

Whether it involves aligning talent investments with business objectives or navigating economic uncertainties, building a strong working relationship between Human Resources and Finance leaders is increasingly important.

3 Reasons the CHRO-CFO Partnership is Critical 

Traditionally, the roles of the CHRO and CFO operated in silos, with finance focusing on costs and HR concentrating on people. As the influence of the CHRO has increased within the C-suite, the importance of their partnership has grown.

The CEO/CHRO/CFO Triad: A Strategic ‘Three-legged Stool’

More and more, CEOs are turning to the combined insights of their CHRO and CFO to shape organizational strategy. These two roles are among the executive team members most likely to maintain a broad perspective across the enterprise. While functions like marketing, IT, and legal often operate in isolation, HR and finance leaders manage people and budget processes that necessitate collaboration and cross-functional insights.

“I’ve had many CEOs tell me that their ‘three-legged stool’ of leadership consists of themselves, their CHRO, and CFO,” Tom Wilson, Partner and Technology/Digital Practice Leader. “It’s a good complementary team because you don’t want the organization to over-focus on either the finance or talent aspects of the business.”  

This leadership triad enables businesses to align workforce planning with financial strategy, creating a more agile organization that can effectively respond to internal and external challenges.

CHRO Influence on the Rise

Chief Human Resources Officers have gained significant influence over organizational strategy, a trend that has been accelerated by the pandemic. According to LinkedIn, the CHRO role is one of the fastest-growing positions in the C-suite. Fortune reports that 13% of HR executives at S&P 1500. companies were among the top five highest-paid C-suite positions in 2022 (up from 0.5% in 1992).  

A PwC survey reveals that 60% of CEOs consider their CHRO to be a crucial strategic partner in decision-making, second only to the CFO. This increasing alignment highlights a growing recognition that effective talent management goes beyond just managing people; it plays a vital role in ensuring the company’s future competitiveness and sustainability.

Talent as a Strategic Priority

Talent is usually a company’s largest investment, with workforce costs accounting for the biggest overall expense, comprising 70% of total expenditures. These costs include not only salaries and benefits but also expenses related to recruitment, training, and employee retention. Given these figures, it’s essential to manage people-related expenses as strategically as other business investments.

When the CHRO and CFO work together, they can effectively manage the organization’s most significant asset while also controlling its largest expense.

HR and Finance Leaders are Linked by Key Processes 

The chance for HR and finance to collaborate starts with key organizational processes that intersect their areas of responsibility.

Strategic Hiring and Workforce Management

Hiring a CHRO often requires significant input from the CFO, particularly when planning for future workforce needs.  Beth Ann Namey, a Partner, explains that “The CFO is often involved at some point in the CHRO recruiting process, occasionally from the very beginning.” This involvement is especially important when hiring a CHRO for a public company, as “the CFO typically seeks a strategic business partner, rather than someone who merely administers the HR systems, processes, and records.” 

Once the CHRO is in place, effective strategic workforce management necessitates collaboration between the HR and finance departments. This collaboration is essential to align the organization’s talent requirements with its financial capabilities. A strong partnership between HR and finance is crucial for the budgeting process, forecasting skill needs, and managing operational processes.

Payroll and Compensation

Payroll is an area that requires close collaboration between finance and HR. Although payroll often falls under the finance department in many organizations, HR plays a crucial role in providing the data needed for compensation models. Aligning these two functions is essential for the company to stay competitive in attracting and retaining talent while avoiding budget overruns.

Success Story: A CHRO and CFO Join Forces in a Fast-Growth Startup 

We found a compelling example of a partnership between a Chief Human Resources Officer and a Chief Financial Officer in our work with a fast-growing startup. In this case, the CFO and the HR leader, both tech-savvy, collaborated to create a workforce planning process that closely aligned with the company’s financial forecasting. Since the company is data-driven, it’s essential for them to anticipate future talent needs in advance to remain competitive in their industry.

This collaboration resulted in a workforce planning system that not only supports the company’s rapid growth goals but also adheres to the financial parameters established by leadership. As a result, the company has been able to maintain a competitive edge in talent acquisition, successfully recruiting top tech talent and leaders while managing costs effectively. This approach has provided clarity within the organization regarding where to add or relocate talent, thus avoiding costly hiring campaigns that do not align with the company’s overall objectives.

Risks When There’s a Gap in HR-Finance Leader Alignment 

When the CFO and CHRO aren’t on the same page, the organization can face significant operational challenges.  

• No alignment: A company experienced challenges due to separate budgeting and hiring processes. Without proper alignment, financial resources were allocated without considering essential talent needs. As a result, the firm faced unfilled positions and operational inefficiencies.
• Over-emphasis on operations: In another company, operations were prioritized over people, leading to several issues. This approach resulted in high employee turnover and uncompetitive salaries. When talent is considered less important than other business priorities, a company may face high attrition rates, low morale, and challenges in attracting top talent.

Why Do the CHRO and CFO Need Each Other?  

Human capital costs usually represent a company’s largest expense, making the CHRO-CFO partnership essential for managing this significant investment.

When financial and talent strategies are not aligned, companies miss out on opportunities for growth, cost savings, and enhanced productivity. For instance, entering new markets requires not only financial resources but also the right talent to achieve success. Without a strategic workforce plan developed through collaboration across functions, individual business units may waste resources on recruiting, hiring, and firing employees, all while failing to align their efforts with the company’s long-term goals.

Today, the best CHROs are as HR performance- and business-minded as they are people-focused.  

Similarly, CFOs must aim to develop a deeper understanding of how investments in talent can impact the bottom line. 

Summing It Up: 3 Key Steps for a CHRO and CFO Partnership

1. Understand Each Other’s Role 

The CHRO needs to have a strong understanding of financial metrics and how they connect to the company’s overall business strategy. With the increasing reliance on artificial intelligence in human resources, as well as HR technology and analytics, HR leaders must adopt a more data-driven approach. This expertise will enhance their collaboration with the CFO.

Similarly, the CFO should recognize how investing in talent can lead to long-term financial success. Their career advancement will be more significant if they focus not only on numbers but also gain insights into the human aspects of the business.

2. Lean Into Workforce Planning

Workforce planning should be a strategic, iterative process where HR and finance constantly collaborate to prepare for growth and contraction. This requires long-term thinking and decision-making backed by data. 

If HR and finance are well-synced in planning, the organization is prepared for growth, or if necessary for cutting back; changes are anticipated.  

3. During Growth Phases, Put Critical Priority on Alignment

In fast-growing companies, such as startups, alignment between HR and finance becomes even more critical. 

For example, in one financial technology company, the Head of Total Rewards reports directly to the CFO while also having a dotted-line relationship with the CHRO. This structure recognizes that managing labor costs—an important factor in the company’s expansion plans—is done strategically.

Conclusion 

The Chief Human Resources Officer and Chief Financial Officer can benefit significantly from forming a strategic partnership that aligns their HR and finance strategies. This collaboration has become essential for driving long-term success.

If your organization is looking for a CHRO or CFO, our executive search experts can assist you in identifying and recruiting a leader who not only understands these dynamics but also meets your company’s unique needs. A well-matched CHRO-CFO team can effectively manage both human and financial capital, propelling your business forward.

Whether your organization is a new startup with 50 to 100 employees—now hiring your first People leader—or a “tech unicorn” company with over 500 employees experiencing rapid growth in preparation for an IPO, Buffkin / Baker offers specialized C-suite and HR consulting services tailored for startups. We partner with startups and unicorn companies on C-suite, board, and HR executive searches.

With over 25 years of expertise working with more than 400 venture-funded startups, we can help you find your first Head of People, transition that role to Chief People Officer, and build out HR teams with other essential HR positions. Additionally, we provide interim People and HR leaders while conducting your search.  Our HR consultants are well-equipped to assist startups in expanding their C-suite and senior leadership teams as they navigate various stages of development.

We have supported companies in almost every hot technology sector by ensuring they have the right executive talent and leadership. We also offer venture capital investment and advisory services to many.

Within the technology sector, we have collaborated with over 50% of the leading companies in the following areas: Internet, e-commerce, Ad Tech, EdTech, construction technology, Health Tech, and social media. As HR consultants for startups, we can help you:

• Perform needs analysis and strategic planning
• Translate business plans into HR plans
• Define leadership roles and job descriptions
• Manage and support the executive team through their first People and HR hire
• And much more

Unsure about what you truly need at this stage of your organization’s growth? Reach out to us, and we’ll work together to determine the right strategy for you.  

Buffkin/Baker offers a key feature in our human resources consulting and advisory services by providing part-time and full-time interim HR consultants. These professionals can serve as temporary Chief Human Resources Officers (CHROs) or Heads of HR/People within client organizations. Our HR contractors are fully screened and vetted, ensuring they are experienced interim executives. They possess the specific expertise and skills needed to quickly integrate into new organizations, add value, and become productive from day one.

A short-term or interim executive is an experienced professional who temporarily steps in to offer stability, leadership, and guidance during periods of change. There has been a notable increase in the demand for interim executives, with estimates suggesting that it has doubled since 2022.

When hiring an interim HR consultant, it’s essential to select someone who can seamlessly integrate into your organization, grasp your culture and expectations, understand your software and programs, and provide immediate leadership consulting and support—without any learning curve or delays. At Buffkin/Baker, we work with candidates whom we have known for many years and have established trusting relationships with. Many of our HR consultants join us after retiring from full-time careers and continue to work with us for the next 10-20 years, focusing on leadership consulting, interim executive roles, and staffing.

We use the same executive search process and methodologies that we utilize in our executive recruiting practice to determine our clients’ needs and to screen and match HR contractors to our clients.  

Why Choose Us?

We understand the changing needs of today’s workforce and are committed to helping our clients create environments that promote talent development. Experience the difference a skilled and dedicated team of executive recruiters can make in your search for HR leaders. Let Buffkin / Baker help you in finding and retaining the talent required to stay competitive in today’s market.

The competition for talent is intensifying due to increasing globalization and a persistently tight labor market, with numerous organizations competing for the same scarce top talent. In this competitive landscape, Talent Acquisition executives play a vital role in enabling organizations to effectively recruit the talent necessary for success and growth.

Today’s workforce seeks more than just strong compensation and total rewards; they desire inclusive and diverse environments where their contributions are recognized, their voices are valued, and their career development is supported. Companies that can offer these attributes are more likely to attract and retain top talent, thereby gaining a competitive advantage in the market.

A Talent Acquisition executive plays a crucial leadership role in driving strategic initiatives to identify, attract, and secure top talent for an organization. They oversee the talent acquisition team, formulate effective recruitment strategies, and deploy best practices throughout the hiring process. This position demands a deep understanding of the company’s long-term workforce requirements, the ability to leverage various sourcing channels, and the skill to cultivate relationships with prospective candidates.

Talent Acquisition executives play a pivotal role in ensuring that organizations attract and retain top talent by effectively managing candidate pipelines, conducting high-level interviews, and negotiating job offers. Their strategic vision and market insights are essential for driving organizational success through the development of a strong and capable workforce.

Recruiting Talent Acquisition Executives: Our Track Record and Deep Expertise

At Buffkin/ Baker, we excel in identifying exceptional Talent Acquisition leaders capable of advancing strategic initiatives. Our thorough executive search process enables organizations to recruit TA leaders who align perfectly with their needs, fostering the development of strong, cohesive teams that drive long-term success and innovation.

Are you a Talent Acquisition Professional?

At Buffkin / Baker, we recognize the distinct challenges and pressures that Talent Acquisition leaders encounter in a competitive landscape. We collaborate closely with the TA department to enhance your recruitment strategies and support you in reaching your strategic hiring objectives.

Here’s how we can assist you:

• Collaborative Strategy Development: We partner with you to create a customized recruitment strategy that aligns with your organization’s vision and staffing requirements. Our expertise in executive search enables us to identify the specific skills and qualities you desire in top-tier candidates.
• Extensive Network: Our expansive network of industry leaders provides you with access to a diverse pool of highly qualified candidates. We utilize our connections to source and attract talent that may otherwise be difficult to reach.
• Streamlined Hiring Process: We manage the entire hiring process, from sourcing and screening to conducting thorough interviews and negotiating offers. This allows you to concentrate on your core responsibilities while we manage the complexities of executive recruitment.
• Market Insights and Trends: Stay ahead of the competition with our insights into market trends and talent availability, ensuring you remain informed about industry developments.
• Confidentiality: Our professional approach ensures that all interactions and candidate searches are conducted with the highest level of discretion, safeguarding your organization’s reputation and strategic interests.
• Candidate Care: recognizing that we are operating as an extension of your organization’s talent brand, we deliver exceptional candidate experience that enhances our network and allows us to deliver candidates to you that other organizations might not have access to.

Why Choose Us

We recognize the dynamic demands of the contemporary workforce and are dedicated to assisting our clients in cultivating environments that foster talent development. Experience the impact that a highly skilled and committed team of executive recruiters can have on your next search for a Talent Acquisition leader. Allow us to support you in attracting and retaining the talent necessary to maintain a competitive edge in today’s market.T