Tulosblogi
Jarmo Manninen & Muutosdraiveri Oy
Personnel remuneration and commitment
The aim of everything a company does must be to generate monetary value for the company in accordance with its objectives. This, of course, requires that the company is able to deliver products and services to its customers at a price that the customers are willing to pay for them. Every person in the company must be able to generate monetary value for the company at least as much as the costs they cause to the company. Preferably more. When a person generates monetary value for the company as much as the costs they cause to the company, then in my opinion the amount of salary paid to the person should be equated with that, or correlated. When a person is able to generate monetary value for the company more than the costs they cause to the company, then part of this monetary value exceeding the costs caused by the person belongs to the person as an incentive. In Finland, salary discussions are too focused on the salary increase demands defined by the trade unions. Trade unions do not pay salaries to the company's employees, but companies according to what the companies can afford to pay in salaries. In my opinion, this is not the core of the problem, but rather the fact that companies in Finland do not make the kind of profit they could make. This is because the financial management of companies in Finland is not at such a level that every person in the company is genuinely and fully responsible for the profit of their company and that every person is genuinely and fully involved in both making and developing the profit of their company. There is still a long way to go in Finland to achieve this goal. Incentives and commitment opportunities paid to company employees are excellent ways to help achieve the above goal.
Companies in Finland know how to use incentive payments to some extent, but not well enough or extensively enough. I have not met a single company in Finland that knows how to use the commitment opportunities of employees comprehensively and correctly. Excellent possibilities for committing employees in a company are:
1. Directed share issue to an individual.
2. Transaction between the company's owners and an individual.
3. Subscription and purchase price as debt.
4. Options.
Did the above make you think?
I encourage you to share this blog post of mine on social media. If you have any suggestions for the topics of the next blog posts, I will gladly accept them.
I hope that you were interested in this matter and that you can continue to be involved.
I have written four books on creating the conditions for the company's financial management, and they are available in well-stocked bookstores and online bookstores in Finland, for example from BoD (Books On Demand) at:
https://kirjakauppa.bod.fi/catalogsearch/result/?q=jarmo+manninen
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