Figuring out the right level of transparency to have with employees about agency finances. How much should they know in order to motivate them and how much is too much?

Transparency of Agency Finances With Your Team

Jack asked:

{1:35}  “I like the idea of bonuses based on profitability. How much info should I share with my team? Do they need to know everyone else’s salary/wages so they can monitor project budgets, costs, profits, etc.?”

The short answer is you shouldn’t share everyone’s salaries as they don’t need to know this information. A great way to create a process for bonuses leading by my personal experience would be to create a budget with the project managers as a buffer and provide bonus opportunities for completing the project under the budgeted time.

{3:47}  “How much financial info should I share, and how much is too much?”

This is a great question and completely depends on where these employees are in the business. Everyone wants to contribute and feel like they are making a difference within an agency and we personally shared top line agency finances to show the impact of work within the agency.

Sharing salaries can create conflict if they differ which can depend on many different aspects leading to employees within the agency feeling undervalued.

{6:59}  “Will employees get resentful knowing how much the CEO/Owner make?”

Not necessarily. From personal experience, we shared with our employees our salaries but withheld distributions and dividends that come with the perks of being an agency owner like tax relief and credits. This is what I would recommend doing for your own agency.

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Become a Better Owner

Sharing your agency finances and perfecting processes can help elevate not only your business but improve you as an agency owner. This doesn’t mean that this is the end of your struggles but I can help you get through all of it.

From my own experiences, I can give you advice on recognising new client opportunities to different ways of building authority to improve your agency. If you are having issues with growing your agency, I can show you how performance based pricing can be the best pricing strategy for your business as well as the three questions you need to ask yourself to sell more!

Learn all about my career and different experiences as well as lots of tips, tricks and insights by checking out my blogs that cover a wide variety of topics.

Make sure to check out my Ask Swenk series and more of my videos on my Youtube channel. There you will find advice from myself and other agency experts.