Should a company disclose it's true financial position to staff?

[Etini]

Businesses like operating in shrouded secrecy when it comes to staff knowing it's true financial position. Most business owners feel threatened exposing their financial position to staff. They feel if the staff know that the company or business is in a bad financial situation, it would generate panic. On the other hand, if staff gets to know that the company is in a strong financial position, it would make them to start asking for pay rise. But realistically speaking, is there any benefits for a company to lay bare it's true financial position to it's staff?

When the staff of a business organisation know the true financial position of the business, it would eliminate the assumption that they are being underpaid if they truly are not underpaid. It is very common for staff to assume that the company is making so much money and paying them very little which might not be entirely true. That mis assumption would lead to disloyalty to the business or company. It can make the staff to start stealing from the company. But when a business allows the staff to know the true financial position of the business, they trust the leadership of the business more and are more loyal to the business.

Would you share the true financial position of your business with your staff?

 

[King bell]

Businesses sometimes share money-related details with their workers. This choice is a big deal and needs to be thought through well. Good things about this can be clear communication, building trust, making sure everyone is working toward the same targets, getting employees more involved, teaching them, growing a feeling of ownership among them, and making them mindful of expenses. Difficulties in doing this involve keeping things secret, staying competitive, following laws and rules, being careful about who gets what information, the risk that people might get the wrong idea, how it could affect team spirit, and deciding on how often and in what way to share the info.

 

[Augusta]

Well, some people do not want any of this from their staff. They don't want the staff of a business organisation know their true financial position of the business. But I don't think it is good to open this to staff. Though I know it might eliminate the assumption that they are being underpaid if they truly are underpaid. But I still think that this part of the business should be nobody business aside the owner of the business and others that are important.