Yes, it sounds ridiculous. I mean really – *who* looks forward to budgeting?
For most of us the answer is: “Not me, not ever.” So how can a process that is as dreaded as a dentist appointment or tax season actually improve employee engagement? At the core – it’s about having your voice be heard. Think of budgeting as the ultimate employee suggestion box.
Using a decentralized model, where individual managers are responsible for submitting a budget for their department, budgeting becomes a collaborative process. Managers submit their ideas for the best use of the organization’s funds, articulate their rationale, and explain how it moves the strategic agenda forward. And surprisingly, research shows that this simple process – of having the opportunity to promote and justify ideas in a collaborative budgeting model – actually increases employee engagement. Employees are more likely to feel as if they have been “heard”, feel respected and have increased satisfaction – and here’s the kicker: even if their final budget is cut.
At XLerant we’re big advocates for collaborative budgeting, mostly because we feel it gives you the most accurate final numbers and get the best thinking from the experts (your employees) to ensure you are executing against strategy. In fact, we’re so passionate about employee engagement we built our tagline around it: Engage. Empower. Achieve. So as you might suspect, we have a lot of resources on the subject – to learn more please check out our page dedicated to employee engagement strategies for finance professionals.
*If you are the person who looks forward to budgeting, please email us– we want to know why, and we invite you to write a guest blog!