More Private Companies Sharing Financial Info with Staff
An increasing proportion of private companies are providing updates on financial performance internally with employees, according to a new survey.
The survey, by Robert Half Management Resources, found that 56 percent of CFOs polled said their organization provides at least some employees with regular updates on financial performance, up 32 percentage points from a similar survey in 2012.
CFOs also were asked about how interested they think employees are in hearing about their company's financial performance. Eighteen percent said employees were very interested, 51 percent said they were somewhat interested, 21 percent said they were not too interested and 9 percent said they were not at all interested.
“Professionals want to work for organizations that are open with staff about the health of the business,” said Robert Half Management Resources executive director Tim Hird in a statement. “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.”
Companies that are thinking of going public should pay special attention to keeping employees informed ahead of the IPO, he suggested. They should discuss any opportunities and challenges facing the organization as it grows, ask for ideas to help the company meet its goals, and talk with employees about how their work can prepare the business for the pre- and post-IPO stages.