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MENLO PARK, Calif., Dec. 7, 2016 /PRNewswire/ -- As recently as four years ago, most privately held companies didn't readily share financial information with internal staff, but research from Robert Half Management Resources shows the tide has turned. Fifty-six percent of CFOs interviewed said their organization provides at least some employees with regular updates on financial performance, up 32 percentage points from a 2012 survey.
View an infographic with the survey results.
CFOs at private companies were asked, "Does your company provide employees with regular updates on the company's quarterly and annual financial performance?" Their responses:
|
2016 |
2012 |
|
|
Yes, we share financial information with all employees |
25% |
7% |
|
Yes, we share financial information with select employees |
31% |
17% |
|
No, we don't share financial information with employees |
43% |
76% |
|
99%* |
100% |
|
* Responses do not total 100 percent due to rounding. |
CFOs also were asked, "How interested do you think employees are in hearing about your company's financial performance?" Their responses:
|
Very interested |
18% |
|
Somewhat interested |
51% |
|
Not too interested |
21% |
|
Not at all interested |
9% |
|
Don't know |
1% |
|
100% |
"Professionals want to work for organizations that are open with staff about the health of the business," said Tim Hird, executive director of Robert Half Management Resources. "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."
Hird added that companies contemplating going public should pay special attention to keeping employees informed. "Discuss opportunities and challenges facing the organization as it grows, and invite ideas to help the firm meet its goals," he said. "Talk with employees about how their work can prepare the business for the pre- and post-IPO stages."
Robert Half Management Resources offers tips for sharing insights on financial performance with staff:
- Determine what to share. Get a sense of what people want to know and what management is comfortable disclosing. There's no universal template, but peers outside the company and experienced consultants can shed light on best practices at other firms.
- Come up with – and stick to – a schedule. Let staff members know when they can expect to receive updates. Avoid skipping these discussions if the news is bad, which could alienate workers and lead them to draw their own conclusions.
- Connect the dots. Show employees how their work affects the bottom line. This will enable them to better align their projects and ideas to the company's objectives.
- Remember it's not just what you say but how you say it. Don't simply provide numbers; explain what they mean. Make managers available to answer questions and address concerns their teams may have.
About the Research
The survey was developed by Robert Half Management Resources and conducted by an independent research firm. It is based on telephone interviews with more than 2,100 private-company CFOs from a stratified random sample of companies in more than 20 of the largest U.S. metropolitan areas.
About Robert Half Management Resources
Robert Half Management Resources is the premier provider of senior-level finance, accounting and business systems professionals to supplement companies' project and interim staffing needs. The company has more than 140 locations worldwide and offers assistance to business leaders and consultants at roberthalf.com/management-resources and on its blog at roberthalf.com/management-resources/blog.
SOURCE Robert Half Management Resources