As an “on demand CFO” I work with a lot of small companies across various industries. When talking with business owners and CEOs they often struggle with whether to present financial information to all employees and then how much financial information.
A recent Blog by Kevin Daum “10 things Really amazing employees do” ( http://www.inc.com/kevin-daum/10-things-really-amazing-employees-do.html) highlights the importance of financial awareness of employees and the positive impact it can have on the success of a small business.
1. Enthusiastically Learn All Aspects of Business
They understand they’re part of something bigger and more worthwhile than just their job. They look to learn other areas of the business and be fluent in finance and management so they’ll positively impact multiple areas of the company.
What you can do: Invest in material and seminars on business basics like accounting, marketing, and management so all employees have easy access to learn and grow.
2. Steward the Company
They treat the company as if it were theirs. They look to make prudent decisions about expenses and opportunities with the long-term future of the company in mind. They easily assess risk vs. reward, selflessly when making decisions.
What you can do: Be transparent in your business. The more you share your financials and philosophy, the easier it is for employees to make the right decisions.
I always recommend to CEOs and business owners that when you are finished with your strategic business plan and have your annual operating budget completed share it with the company and your employees. Make sure everyone understands the goals including financial at least at a high level for the upcoming year. Then monthly communicate with employees the performance of company as compared to the operating budget and highlight those areas, product lines or divisions that are performing well and those that need more attention. Make sure it is done in a positive manner and welcome input from management and employees.