You're in a meeting pitching the business case for an employee experience platform, the tension is so thick it can be cut with a knife, and your CFO just uttered the dreaded words, "It's a no from me." 😰 Harsh but expected, because we all know how hard it is to convince a CFO to allocate funds for new initiatives even if you’ve prepared the pitch of a lifetime.
But don't worry! By understanding the objections your CFO might raise to back up their "no," you can be prepared to refute them and turn that "no" into a resounding "yes."
In this blog, we'll delve into the art of persuading your CFO to invest in an employee experience platform. We'll uncover the three most common objections they might have and arm you with effective strategies to resolve them. Just as you are committed to improving your workplace, your CFO is dedicated to ensuring that every dollar spent delivers maximum impact.
We'll also provide you with two invaluable tips to keep in mind when making your case. By focusing on risk reduction and speaking the language of metrics and ROI, you can shift the conversation from mere possibilities to essential necessities.
3 objections your CFO might have and how to resolve them
Your CFO will likely challenge and question your proposals, as it’s their job to ensure the budget is allocated effectively. While you focus on improving internal communication and the overall employee experience, they prioritize financial impact. To help you navigate this, we’ve identified the 3 most common objections from CFOs and provided strategies to address them.
Objection 1: Even with a strong business case, the app might not be adopted due to “budget constraints” or shifting priorities within the company
Why the CFO might object
Sometimes, even if the budget technically exists, CFOs may cite "budget constraints" as a reason to delay or deny a new investment. This can happen when there are other competing priorities or a reluctance to reallocate funds from existing projects. Essentially, the issue is not the absence of budget, but rather the CFO's strategic decision on how to best utilize available resources.
How to respond
- Align the platform’s benefits with the company’s strategic goals.
- Show how the employee experience platform supports broader initiatives such as employee engagement, operational efficiency, and customer satisfaction.
- Emphasize how improving the employee experience can lead to better service, increased customer loyalty, and ultimately higher revenue.
- Present data on the hidden costs of not adopting the platform, such as decreased productivity, higher turnover rates, and poor employee morale.
- Highlight how these issues can undermine other strategic initiatives and result in greater long-term expenses.
When you frame the platform as not just a beneficial tool but a necessary investment to avoid larger problems, you can make a compelling case that reallocating funds now will pay off significantly in the future.
Objection 2: The upfront cost of developing and implementing an employee experience platform may be significant
Why the CFO might object
The CFO's primary concern is managing the organization's financial resources effectively. A significant upfront investment can be seen as risky, especially if the immediate financial benefits are not clear. CFOs are tasked with ensuring that the company's finances are allocated efficiently, and large expenditures on new technologies can seem daunting without a clear and quick return on investment (ROI).
How to respond
- Highlight the long-term savings and productivity gains that the employee experience platform will bring. For example, a logistics company with 2,000 employees faced reduced productivity and efficiency due to two 15-minute stand-ups per month, leading to time waste. They switched to sending stand-up topics via an employee experience platform to small teams, who then discussed and answered questions in brief, focused sessions. This change cut meeting time in half and increased productivity by converting saved time into working hours.
- Provide detailed projections that show how the investment will pay for itself quickly. For instance, emphasize the reduction in turnover costs, improvements in employee productivity, and decreased recruitment expenses.
- Use data and case studies from similar organizations to illustrate these points.
- Explain how investing now will lead to significant savings and increased revenue in the future, ultimately making the initial investment a smart financial decision.
Objection 3: The CFO is skeptical about the tangible financial benefits and the employee experience platform's ability to deliver on its promises
Why the CFO might object
CFOs are often wary of investing in new technologies or platforms without concrete evidence of their effectiveness. They need to be assured that the proposed solution will deliver measurable financial benefits. This skepticism is rooted in a desire to avoid wasted resources on initiatives that do not yield the expected returns.
How to respond
- Share case studies from similar businesses that have successfully implemented an employee experience platform. Provide detailed examples of how these companies benefited financially from the platform.
- Suggest implementing a pilot program within your organization to demonstrate its effectiveness on a smaller scale before committing to a full rollout. This approach allows the CFO to see firsthand how the platform can deliver tangible results and reduces the perceived risk of investment.
2 tips to keep in mind when convincing your CFO
#1 Embrace the "dark side" - focus on risk reduction & put a price tag on the problem
Don't underestimate the power of focusing on the "dark side." People are naturally more motivated by avoiding loss than potential gain. To secure CFO buy-in for your employee experience platform, lead with the pain by highlighting the negative consequences of the current system.
For example, instead of simply saying you "want" a new platform for frontline workers, present a compelling problem statement such as the following:
“Current data show that our turnover rate is 30% per year, costing us $3 million annually. Our exit interviews indicate significant communication gaps between HQ and frontline employees, leading to inefficiencies and productivity loss. Many employees feel disconnected and isolated due to poor communication, which contributes to their perception that the organization does not value their contributions or provide opportunities for advancement. If we do not prioritize improving the employee experience now, these issues will continue to escalate, further undermining our profitability and growth. I’d like to share my ideas on how we can address this risk effectively.”
When framing the issue in terms of risk reduction and quantifiable losses, you'll shift the conversation from "maybe" to "must-have," paving the way for a successful buy-in for your employee experience platform.
#2 Always speak their language - metrics and ROI
While highlighting the app's functionalities is tempting, stakeholders truly care about the impact it has on the business. So, focus on translating those features into real, measurable benefits. To further amplify your case, you can use case studies or industry benchmarks to showcase how similar companies achieved success with employee experience platforms.
If you focus on the quantifiable benefits and the risk reduction a dedicated platform offers, you will break through the "we already have a tool for that" mentality your stakeholders have and pave the way for a more engaged and productive workforce. Take a look at the example below.
Reduced onboarding time and costs
A hospitality and retail company with 12,500 employees had an ad-hoc and "incomplete" onboarding process, according to employee surveys. They implemented an employee experience platform and used Journeys for onboarding and training new hires. This reduced the time to full proficiency by 18% and cut training costs by 20%. Future employee surveys will measure the impact.
Ready to quantify the benefits a dedicated employee experience platform can bring to your organization?
Plan a free demo with Speakap today and see the difference. We'll help you identify your specific internal communication challenges and tailor a solution that drives measurable results.
Speakap is an employee experience platform that delivers the quantifiable results leaders and stakeholders demand, but it goes beyond the numbers. It empowers you to build a thriving workplace environment where frontline employees feel valued, informed, and empowered to contribute their best.
Speakap empowers you to do your job even better.