When you like to move towards self-management, at a certain point your finances have to become transparent. This can be a difficult process, certainly because salaries are a part of these finances. One of the dangers is that when giving this information, everybody can have an opinion about where the money is going. But the counterpart is: everybody can have an opinion about where the money is going, and that can give you some new valuable insights.
We say: be positive and experiment with it. Here is a small guide about how you can make this experiment smaller.
When you start opening up the finances for everybody in the organization. Start by dividing them into categories. This will make it easier for everyone to understand and it won’t feel too personal. Even when you don’t want to start with the figures themselves, start with percentages. Where do you spend your money on?
A good way to find a way to divide your finances is to ask your employees what they like to see. This will directly make the first step towards transparency something you are doing together. The categories can differ from the branch you are in. Also, when you are in a branch where the main financial flow is in assets and not in people, do not use the percentage, because this will make the percentage for your other categories very small.
For example, divide your finances in:
To make the next step, start to categorize the categories. For employees, it can be interesting what costs there exactly are. This can be a real eyeopener for you people.
This will help you towards full transparency or self-managed salaries.
More understanding of how the organization works
More transparency in finances
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