Essay on sharing information with employees

Submitted By jeanNJN
Words: 369
Pages: 2

I believe it is a good idea to share information about financial information about the company only if for these reasons:

A common question amongst business owners is "how much information should we share with the employees?". In businesses with multiple principals, there is often disagreement about sharing the financial information. Some owners want to be transparent, so employees understand their decisions, but others are nervous that the information will be used against them. Transparency into the numbers can yield great results if it's done correctly (Kelly Totten).
1) Never share information on payroll and benefits. It's just not good sense to let everyone have this information. When you do share financial information, make sure this information is concealed. For example, if you only have one employee in sales and sales salary is on the income statement, you'll want to consolidate that account with others to keep the information confidential.

According to (Arnold Anderson), when employees understand how the money to pay their salaries is generated, it can help them appreciate how their job impacts the company's future. But not everyone at your company makes the same salary, and when you open up the books you are allowing lower-paid employees to see just how much is going out the door in compensation. If someone on your staff decides to do the math and determine the average salary in the company, and his salary falls well below that average, you may have a disgruntled employee on your hands who can cause a morale issue. The process of allowing employees to be involved in decisions regarding…