How To Share Financial Information With Employees

Sharing this information will show employees the direct financial result of their collective efforts. Not doing so will create an information vacuum producing false rumors and hurting morale.

Just about every contractor has been faced with this conundrum: because you have to charge X-number of hundred dollars per hour to cover salaries, benefits, trucks, the shop, inventory, workers comp, training, etc., etc., the service techs think most of that money is pure profit and that you're short-changing them. So how do you educate them about where the money goes in a contracting firm? Consultant Barry Moltz has some advice on American Express Open Forum:

"To get your employees to fully commit to your company, at some point, you'll have to disclose some level of financial information. Sharing this information will show employees the direct financial result of their collective efforts. Not doing so will create an information vacuum producing false rumors and hurting morale. I'm not saying you should directly email financial statements to your employees. Instead, follow this path ..."

Read the full article:  "Money Talks: How To Share Financial Information With Employees" 

 

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