Struggling to get C-suite buy-in for initiatives? Feel like HR projects are never prioritized?

Development in recruiting, personnel management, and data analysis are common skills to gain early in your career. However, to get to the next stage in your career, it will take a unique set of skills you likely won’t learn on the job.

To step into bigger roles like HRBP (human resources business partner), Director, or CHRO, HR Managers need to develop an understanding of how their business functions to convince leadership to buy into their initiatives. Understanding basic business financial logic is critical for HR Managers who want to advance into more strategic and business-oriented roles.

To be successful, CHROs need to first establish trust and credibility with their CEO. The fastest way to do that is to speak their language.

CEOs are focused on the numbers and business’ financial results. To win the CEO’s respect and trust, CHROs need to quickly demonstrate that they not only understand their CEO’s priorities but also speak the language of business finance. HR Managers who demonstrate a facility with business finance are often the ones who get into the room—and stay there.

Personnel makes up the largest portion of fixed costs. Compensation, benefits, and recruiting costs take up a significant portion of a company’s expenses. From a CEO’s perspective, HR represents a cost center. How much are your new programs going to cost? How can we upskill instead of re-hire? How can we pick a cheap healthcare plan? That’s why CHROs need to make a compelling case early—and often—about the cost-effectiveness of their programs.

Korn Ferry’s CHRO Survey Insights for 2025 says 69% of CHROs are under pressure to grow and expand. With strong financial skills, CHROs can build forecasts of workforce needs based around business cycles and any plans for growth or scaling. Combined with financial acumen, the ability to assess and read people analytics gives HR a competitive advantage.

Partnering with executives to align talent strategies with larger business objectives, CHROs can build trust with leadership. Once that trust is established, CHROs can leverage their financial acumen to get executive buy-in for the programs they think are most important for the business.

For example, say a CHRO wants to start a management training program for new managers. Odds are, the CEO will not give their “yes” to this proposal based solely on anecdotes about high-performers who left because of poor management or low retention metrics. The best way to get buy-in?

Show them the cost.

If a CHRO can explain the financial cost of high turnover and low retention—what it literally costs the organization in dollars—executives are more likely to listen.

Learn Rippling’s formula that outlines the costs to psychological safety issues, in this guide:

The chances of getting CEO approval on a $250,000-per-year new manager training program are much higher if the CEO discovers that they’re losing $1 million a year because inexperienced managers cause high employee churn.

Now, the training program isn’t just another cost—it’s saving the company $750,000 a year.

Then, CHROs have to demonstrate the plan’s effectiveness: how can they provide measurable, tangible results?

By positioning HR as more than a cost center, CHROs can get buy-in and show how they regularly create value for the business. By understanding business finance and quantifying the savings created, CHROs can get their plans for less popular topics approved.

Financial literacy is also important for managing compliance risks. When a new labor law goes into effect, CHROs will be called upon to provide estimates of its financial impact. To do this effectively, they’ll need to have a solid grasp on the financial fundamentals of their business so they can accurately assess impact and make recommendations.

During mergers and acquisitions, CHROs can be called upon to provide not only cultural integration, but also guidance on the new headcount. They’ll need to have a clear grasp on the new business’ objectives and identify departmental overlap so they can make informed financial decisions.

For ambitious HR Managers hoping to become a CHRO, one of the best ways to plan for success is to build financial literacy skills. HR Managers who want to get promoted should consider taking a course or collaborating more closely with their finance and accounting team to gain a better understanding of finance terminology, their business’ objectives, and how to create value as an HR leader.

Looking for financial literacy courses?

• EY offers a short course with practical advice and real-world applications.
• Wharton offers a 9-12-month program that’s best for those looking to invest time and resources.
• There are a number of offerings on Coursera, including:
  • this course on the fundamentals of financial analysis
  • this course on financial analysis

For HR Managers who are wondering how they can get to the next level, gaining financial literacy skills is a wise investment.

When HR Managers better communicate with the C-suite, activate buy-in for their initiatives, and understand the financial levers that drive their company, they can position themselves as trusted leaders and business partners.

—

The information contained in this site is provided for informational purposes only, and should not be construed as legal advice on any subject matter.