The financial valuation of a company can be more than just a good management practice necessary for its development and image.
Based on our experience, we present here some advantages of a company valuation for its employees:
1. Profit sharing
- If the company achieves its operational objectives, it can distribute exceptional bonuses or performance-based bonuses to its employees. It is in this regard that a portion of the profits, revealed by the positive valuation, can be redistributed to employees.
2. Salary increases
- A positive financial valuation of the company promotes and allows for a reassessment of salaries; it is a way to encourage and retain talent.
3. Improvement of social benefits, participation
- Company valuation can influence the improvement of working conditions, for example: flexible hours or work from home, retirement plans, insurance, etc.
- A company valuation over several consecutive fiscal years allows its executives to implement an employee share participation plan.
4. Career opportunities
- With a valuation that takes its development into account, the company opens new career opportunities for its employees. This means more positions of responsibility with ambitious and stimulating projects, and also increased job security.
- A financially healthy company is better able to resist economic crises and thus protects its employees’ jobs.
5. Work environment and company culture
- A company’s growth strengthens team spirit and encourages a positive work environment and creativity with more initiatives and motivation.
In summary, a positive company valuation is advantageous for the company itself. It also offers many benefits to employees, whether through immediate financial gains, increased career prospects, a general improvement in working conditions, and even participation.
