From muffins to metrics: How HR and Finance can align (and the data to prove it)
Fresh insights from 2,650 finance decision-makers across Europe
It often starts with something small.
HR proposes an employee breakfast or asks for some onboarding merch.
Finance asks, “What’s the ROI on those muffins?”
Same team. Different metrics.
HR focuses on experience, culture, equity, and DEI&B.
Finance tracks ROI, cost, and risk.
But at the end of the day, both want the same thing: thriving people and a thriving business.
Believe it or not, every people programme has measurable business value; it’s just a matter of framing it in shared terms. So, what are those shared values and terms that can bring HR and Finance to the same page?
We’ve got three examples of how to align Finance and HR around outcomes that matter to both, supported by data that speaks everyone’s language. Let’s dive right in.
Alignment #1: Engagement programmes = higher output and retention
Culture programmes often get labelled as “soft”—think happy hours, birthday treats, and onboarding goodies. But don’t mistake fun for frivolous.
Finance leaders want to know: What's the return on investment?
Here’s the bottom line. Engaged people show up more frequently, produce higher-quality work, and stay longer. That translates directly to productivity gains and cost avoidance in absenteeism and attrition.
Show me the data
Engaged employees…
Do more work
Do better work
Feel better about work
- 70% increase in wellbeing
- 2x as likely to have a high intent to stay
When Finance and HR align on engagement strategies, it’s not about approving a budget for pastries. It’s about backing initiatives that yield measurable returns in efficiency, output, and retention.
Alignment #2: Fair performance reviews = lower risk and higher trust
From a financial perspective, performance reviews often receive attention during budget season or compensation cycles. However, structured and transparent reviews are about more than merit raises.
They’re also a tool for mitigating risk.
When people trust the review process, they stay longer. When pay practices feel equitable, engagement rises. And when trust is high? Business performance follows.
Show me the data
Trustworthy organisations…
Build employee confidence
- 34% of professionals believe their pay is equitable
- 79% of people who trust their employers are more motivated and less likely to leave
Drive retention
- Perceived inequity leads to a 15% lower intent to stay
- Trusted companies outperform peers by up to 400%
Therefore, what may appear to be an HR protocol is actually a smart business safeguard—one that reduces legal exposure, reputational risk, and the cost of employee turnover.
Alignment #3: A strong EVP = smarter hiring and less churn
You already know the cost of turnover. Replacing a single employee can cost up to 200% of their salary. Now multiply that by your headcount.
A strong EVP (Employer Value Proposition) does more than attract talent. It improves fit, lowers first-year churn, and speeds up ramp time, all of which help protect the bottom line.
Show me the data
Turnover drains budgets…
- Average turnover in the UK is 34%
- Replacing one person costs between 50%-200% of their salary
Here are the facts: A 100-person organisation that provides an average monthly salary of £3,000 could have annual turnover and replacement costs ranging from £612,000 to £2,448,000.
Retention is possible
- 42% of people who leave say their departure was preventable
Think of your EVP as a financial lever: Done right, it minimises waste in your recruiting funnel, optimises onboarding ROI, and reduces long-term churn.
Reframe the ROI, not the programme
Each of these examples highlights the same lesson: People programmes aren’t just HR initiatives. They’re strategic levers that impact the business outcomes Finance cares about.
When you reframe the conversation—cost versus value, risk versus resilience—the alignment between Finance and HR becomes clearer.
|
Alignment |
HR’s goal |
Business outcome |
Finance impact |
|
#1 |
Engagement |
Higher productivity and retention |
Lower absenteeism and turnover cost |
|
#2 |
Performance |
Greater fairness and trust |
Reduced legal/reputational risk |
|
#3 |
EVP |
Better-fit hires and lower churn |
Cost savings + faster productivity |
Finance and HR collaboration: A shared investment strategy
HR doesn’t need to justify its values—they need to connect them to outcomes.
Finance doesn’t need to love the programme—they need to understand the return.
When both teams align around goals and KPIs, they become true strategic partners.
The result? Better performance. Lower risk. Stronger returns. Something we can all sink our teeth into.
See how HiBob helps you turn people data into business impact so Finance and HR can build smarter strategies, together.
