Do you share the financial status of your company with all employees? Assuming you are a private company and are not required to disclose your financial information – do you believe it is important to keep all employees “in the know?” A survey was completed by Robert Half Resources that found the following:
76% – No, we don’t share financial information with employees
17% – Yes, we share financial information with select employees
7% – Yes, we share financial information with all employees
Robert Half suggests that if you are able to find a few basic metrics that are easily understood by the majority, that this would give staff a much better understanding of the challenges businesses face and give them a taste of the course of business.
Think about how you could use this information, involve your team members and motivate them to improve metrics, reward them for metrics achieved and continually encourage involvement to improve the numbers. Look at how you could build more comradely!
A couple of notes to be aware of. Robert Half explains that you want to ensure when you provide this information, that you provide context. Let employees know how their work contributes to the bottom line – show how it can impact it in a positive way and a negative way.
When there is bad news ensure this gets communicated too! If you don’t do this, employees will not have a taste of reality and it may also breed rumours.
By ensuring that your staff are involved in the financials, showing how their contributions impact the bottom line, you are involving them in the process. Involve them also in cost cutting measures and ways your business brings in money. Remember to reward them for new ideas and cost saving measures.
Some information for this article was taken from: http://hr.blr.com/HR-news/HR-Administration/Communication/3-reasons-to-update-employees-on-financial-perform/?source=RSA&effort=4