In the past few years, private U.S. employers have become much more comfortable about sharing the organization’s finanical information with employees.
In 2016, more than half (56%) of CFOs said their organization provides at least some employees with regular updates on financial information, up from just 24% four years ago, says a new survey by Robert Half Management Resources of more than 2,000 CFOs. (infographic)
The sharp increase in book opening by employers is driven, in part, by recruiting and retention.
“Professionals want to work for organizations that are open with staff about the health of the business,” said Tim Hird, executive director of Robert Half Management Resources. “Though not a requirement for private companies, providing insights on financial performance instills in employees a sense of ownership, which often leads to improved employee engagement and productivity.”
Considering opening your books? Here are tips for sharing financial performance with staff:
- Determine what to share. Get a sense of what people want to know and what management is comfortable disclosing. There’s no universal template, but peers outside the company and experienced consultants can shed light on best practices at other firms.
- Come up with – and stick to – a schedule. Let staff members know when they can expect to receive updates. Avoid skipping these discussions if the news is bad, which could alienate workers and lead them to draw their own conclusions.
- Connect the dots. Show employees how their work affects the bottom line. This will enable them to better align their projects and ideas to the company’s objectives.
- Remember it’s not just what you say but how you say it. Don’t simply provide numbers; explain what they mean. Make managers available to answer questions and address concerns their teams may have.
THE SURVEY:
CFOs at private companies were asked, “Does your company provide employees with regular updates on the company’s quarterly and annual financial performance?” Their responses:
|
2016 |
2012 |
|
|
Yes, we share financial information with all employees |
25% |
7% |
|
Yes, we share financial information with select employees |
31% |
17% |
|
No, we don’t share financial information with employees |
43% |
76% |
|
99%* |
100% |
CFOs also were asked, “How interested do you think employees are in hearing about your company’s financial performance?” Their responses:
|
Very interested |
18% |
|
Somewhat interested |
51% |
|
Not too interested |
21% |
|
Not at all interested |
9% |
|
Don’t know |
1% |
|
100% |
