The future of work is already here, and if your workforce strategy still looks like it did five years ago, you’re already behind. AI, automation, and an unpredictable labour market are reshaping the way companies hire, retain, and optimise their workforce. While HR may be in charge, CFOs and finance leaders are at the centre of this transformation. Why? Because workforce planning in 2025 goes beyond just headcount. It’s about financial agility, cost optimisation, and long-term profitability.
So, what’s the strategy? Let’s break it down.
1. Workforce Costs Are Rising—And CFOs Need to Get Ahead of It
Between inflation, shifting employee expectations, and the rising cost of skilled labour, workforce expenses are eating up a bigger slice of the budget. Finance teams need to forecast labour costs with greater precision while ensuring workforce spending aligns with business goals.
What You Should Do:
- Scenario modelling: Run multiple labour cost scenarios, factoring in economic downturns, wage inflation, and potential automation savings.
- Tightly integrate workforce planning with FP&A: Headcount planning isn’t an HR-only function anymore. Finance needs a seat at the table from day one.
- Leverage AI for cost analysis: AI-powered FP&A tools can predict how salary trends, benefits costs, and workforce shifts will impact long-term financial health.
2. The Rise of a Flexible, Agile Workforce Model
The 9-to-5, office-based workforce is a relic. In 2025, companies will thrive with a mix of full-time employees, contingent workers, and AI-driven automation. A modern workforce strategy directly impacts financial outcomes and long-term stability.
Why It Matters for CFOs?
- Labour cost flexibility: Full-time salaries and benefits are fixed costs, while contingent labour offers variable cost structures.
- Faster scalability: Hiring surges and contractions are easier to manage with an agile workforce.
- Risk mitigation: A diverse workforce model reduces over-reliance on a single talent pool or geographic region.
Action Plan:
- Balance FTEs with contractors and automation: Identify roles where gig talent or AI can be more cost-effective.
- Reevaluate benefits and compensation models: Is your pay structure optimised for both retention and financial sustainability?
- Adopt workforce analytics tools: Real-time insights can help finance teams adjust workforce investments proactively.
3. Workforce Planning Meets Financial Forecasting
The old way: Finance teams adjust budgets based on HR’s hiring plans.
The new way: Finance and HR collaborate on data-driven, financially viable workforce strategies that align with long-term business goals.
How to Make It Work:
- Unify workforce planning with financial forecasting: Treat workforce expenses like any other financial asset—model risks, project ROI, and optimise spending.
- Identify workforce KPIs that matter to finance: Labor cost per revenue, productivity per employee, and retention vs. hiring costs. These metrics should drive hiring decisions.
- Leverage predictive analytics: AI-powered tools can model turnover rates, salary trends, and workforce needs based on real-time business data.
4. AI and Automation: The Workforce CFOs Can’t Ignore
AI isn’t replacing your workforce, but it’s changing the way companies operate. The real financial win? Reallocating human capital to higher-value roles while automating repetitive tasks.
Key Financial Considerations:
- Where can AI reduce labour costs without sacrificing productivity?
- What’s the investment-to-savings ratio for AI-driven workforce automation?
- How do AI-powered financial tools enhance workforce forecasting?
Next Steps:
- Assess automation opportunities: Identify functions where AI can drive cost savings (think payroll, compliance, and customer service).
- Invest in AI up-skilling: Retooling your existing workforce is often more cost-effective than replacing them.
- Monitor AI’s financial impact: Track productivity gains and cost savings to justify future investments.
5. Up-skilling vs. Hiring: The Financial Equation
Hiring is expensive. Retention is cheaper. Up-skilling your workforce is often the most cost-effective strategy, but only if done right.
What Finance Leaders Should Consider:
- Cost Comparison: external hiring vs. internal training
- The long-term ROI of workforce development programs
- How talent shortages impact financial performance
Pro Tip:
- Tie learning & development budgets to financial outcomes: Measure the impact of up-skilling on employee retention, productivity, and bottom-line growth.
The CFO’s Role in Workforce Planning 2025
CFOs are no longer just the “numbers people”. They’re strategic workforce architects. By aligning workforce planning with financial forecasting, AI-driven insights, and a more flexible talent model, finance leaders can turn talent strategy into a competitive advantage.
Workforce planning in 2025 is more than managing costs. CFOs need to have a mindset that it’s about making smarter, more profitable workforce investments. And that’s a financial strategy no CFO can afford to ignore.
Take Workforce Planning to the Next Level
The right financial planning tools can help CFOs stay ahead of workforce challenges. Workday Adaptive Planning offers real-time workforce analytics, scenario modelling, and AI-driven insights to help finance leaders make faster, data-driven decisions. Ready to optimise your workforce strategy
