This one is surely a no-brainer, but the harsh truth is, so few companies act in an open and honest way with their employees. The mistake these businesses make with their lack of transparency is only contributing towards fostering a workforce who feel unstable, disengaged and devoid of purpose.
All too frequently I hear stories of internal opacity within organisations, particularly during waves of significant change and uncertainty, but is this uncertainty even necessary? I spoke to someone recently whose employer had recently started firing people, but not actually firing them - basically telling them to find a new job, hand their notice in and leave. Employees aren't stupid (funnily enough!). As much as a manager would like to think their teams don't talk, of course they do! Anyone would be naive to think that colleagues don't discuss work-related issues among themselves.
Businesses trying to lay people off in 'ethical' ways to cover their backs on the unfair dismissal front is hardly good for morale is it? Employees within an organisation can sense tension, and they can sense when something's not right. Transparency demonstrates trust which furthermore increases loyalty and isn't that what everyone wants for their organisations? You're not going to get it as per the example above that's for sure!
The more an employee understands the 'bigger picture' of the organisation, the more they understand the weight of the impact that they can have on it. Everyone is after their own divine sense of purpose. This can only be a huge win for productivity and business results in the long run. What you do by not sharing the image of your organisation with your people, is actually just an example mass alienation. If an employee can't see past their daily tasks as a reason for their role within your organisation, how can you expect them to achieve YOUR overall vision? You can't go for goal if you don't know what and where the goal is can you?
Employees value knowledge. It encourages trust and that is so important. The connection between an employee and their organisation is not unlike a romantic relationship. With mutual trust it works. It's harmonious. It's walks in the park. It's candlelit dinners. If one person doesn't trust the other, it's unlikely to succeed. It's a battlefield of emotions. Up and down. A NIGHTMARE.
If employees are informed about financial information and how they fit into the bigger picture of an organisation, they will feel a great sense of loyalty, engagement and purpose with their work. That's according to Adam Walsh, Business Director of The Right Fuelcard Company, who believes that sharing financial information with employees can engender greater loyalty.