Employers are doing a poor job of disclosing financial performance to workers
- Most U.S. workers (75%) care about how well their company is performing but don't know enough about the true state of business affairs, according to a new study from Kimble Applications. Only 23% of workers queried have insight into their employer's financial performance. Poll results are based on a Google Consumer Survey of more than 1,500 full-time employees ages 18 and older.
- The report shows that workers don't know their company's earnings (65%), profit and financial forecasts (70%) or size by headcount (74%). Workers said they would raise their performance if they knew how well the company was doing. When the company does share information on its performance with workers, however, nearly half of respondents (46%) don't believe the information is accurate.
- Millennials (22%) in the survey would consider working for an organization that didn't have a positive business forecast to move ahead in their careers, while only 16% of workers 55 and older felt the same way.
Trust and transparency are at the core of employee engagement. A key takeaway from the survey is that most employees are interested in their company's business and financial outlook, want truthful and timely information about the company and are willing to work harder to help it succeed.
HR can set the tone for a transparent, engaging work environment, with managers and supervisors building trust within organizations through open, honest communication. A 2017 Edelman Trust Barometer report found that workers who trust their managers tend trust their organization's leadership. A Willis Towers Watson study released in June showed that less than half of workers had confidence in their organizations' senior leadership.
In a tight labor market, employers don't want to isolate workers, who clearly want to feel engaged and a part of the company's success. Millennials, in particular, will leave if dissatisfied on the job or if a better opportunity arises for advancing their careers. Naturally, replacing departing employees is costly.