Leadership: What should employees know about the company’s finances?
You’re the owner or senior manager of a small- to medium-sized privately-held business. One day, an employee asks you:
- What are our annual revenues?
- What are our gross profits?
- What are our operating profits?
- How much does the owner take out?
Oops. Are you ready for this? Do you have a company policy regarding financial disclosure? This month, I’ll explain the pros and cons, and then leave the decision up to you. Among our TEC members, the pendulum swings from one end to the other on this issue. Here are some examples: