I’m on a mailing list called “Leadership Success Strategies” by Rick Houcek. He puts out some interesting thought pieces and I felt this one was exceptionally well written and thought-out and on topic. money works
Do Your Employees Have Any Idea ‘How The Money Works’In Your Business? He raises and then answers the age old question of the why and how of your businesses basic cash flow, and how much everyone “should” get paid.
As Mr. Houcek points out, people have no idea. They have no idea whether they know the total sales, gross profit or even net profit. They have no idea how much the business owner gets, and where most of the money goes.
They don’t understand risk and reward. And again, as Mr. Houcek clearly points out, “…people who are not ill-intended… they just have no idea how the money works in a business. “
Read this piece and try it in your company, I’m sure you’ll explain to many why their notion of what the CEO gets paid, what they get paid, what their fellow employees get paid is on or off the mark.