Where Do You Fit In Your Company's Financials?

Here's a simplified, hypothetical version of a Profit and Loss Statement (don't worry if you don't know all the terms...just look to see where the item "employee wages" falls):

OK, there's more to the full financial statement, but the point is if you are someone else's employee, their goal generally is to pay you as little as possible.

And how do companies typically do that?

Well, unfortunately built into the culture of most companies is to make employees feel good enough about the work they're doing that they won't quit, but not so good that they think they're worth enough to justify an increase in the "Employee Wages" expense item. After all that would reduce the bottom line, which would cause the shareholders of the company to complain to the board of directors, who in turn would "discuss" it with the officers (President, Vice President, Secretary, Treasurer, etc.).

How far will companies go to devalue their employees to keep their expenses down? Further than you might think.

I know of one consultant to top executives who said that almost invariably companies that implement systems to reward employees for the value they add to the companies will want to figure out a way to "cook the books" so the figures they show the employees "don't look so good". I was actually stunned to hear that, but this is as straight from the horses mouth as it gets.

"Where Do You Fit In Your Company's Financials?"
© 2002 LearnFastEarnFast.Com, Inc