Home February 2018 Real Issues. Real Answers. Sharing financial information

Real Issues. Real Answers. Sharing financial information

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Real Issues. Real Answers. Sharing financial information

“The management group of about 5-6 people see some financial information, since that is the most important way that we measure success. So this group needs to know whether we are doing well or not in this area. I generally do not share net profit margins, but focus on percentage changes from year to year.”

“Don’t know of a downside. Benefit is they get the real picture.”

“Basically just sales and margin amounts. As far as other financial issues, we do not divulge.”

“We share our information every quarter. It is beneficial to the employee because they see where the money goes and how much expenses really are. Since financials are tied to profit sharing, they really pay attention to that. We have had nothing but positive attitudes by sharing this information.”

“All costs, especially with the yard, so they can better understand how many more dollars we need to sell in order to cover the cost of the material they just damaged. Inventory turns with salespeople so they can understand there are carrying costs to overstock, but discounts in ordering larger quantities— which is why their feedback about our customers’ future needs is so important.”

“We share percentages of increase or decrease of each month-end, as well as margin change. We also reward our employees with a free lunch when we exceed overall sales from the same month the previous year.”

“We’re a small, two-person corporation, so all info is shared. Upside: we know how we’re doing at every moment in time. Downside: is the same answer (during a tough year)!”

“Salespeople have daily access to YTD & LYTD dollars and margins so they can gauge their performance. It also allows them to see how their sales numbers compare to their peers. The downside is those with bigger sales always feel they should be paid significantly more. Our inside salespeople, who are straight salary, also bicker about a sale when they talked to the customer first. The friendly competition turns to animosity and we must remind them the sale is the Company’s Sale, not their sale.”

“I only share the financials with managers. Benefit: they take ownership as their compensation is dependent on the company’s performance. Downside: the possibility for leaked information. We share the overall sales and margins with all of our sales force. Benefit: each knows where they stand. The bottom half push to move up while the top pushes to stay on top.”

“It’s done at different levels and varying frequencies. The benefit at the yard level is to focus on the actual profit on an outgoing truck.”

“We share sales milestones, not monthly numbers. Some care, some don’t. We usually do food with each milestone, so they like that!”

“Getting the employee to understand what it takes to run a successful business, the risk involved and that a fair return on investment is needed.”

“We share sales, gross profit, overhead and expenses. Basic info to show how we got to the bottom line. Makes the employees realize we are not just raking in the money, and that margins are tight. They see the store making money, they may get greedy and want more and more. We pay a percentage of what we put on the bottom line.”

“All sales personnel have access to daily reports, with financial information for the balance of our personnel given out at quarterly company-wide meetings. Can’t think of a downside. Motivation, friendly competition, and useful information are among the benefits.”

“All employees see total sales figures compared to previous year at Christmas dinner. Only management see all of P&L statement. Downside of sharing any info is we wouldn’t feel comfortable if our competition knew any information. The benefit if we shared all information with all, would be that the employees would see how anything good or bad affects the bottom line.”

“Basically sales info.”

“We are privately-held, and ownership doesn’t think it’s anyone’s business other than ours.”

We share some monthly and also do quarterly and annual review with more info. we share a lot and answer most questions. the benefit has been to educate them on how our business is financed and the importance of controllable activities (turns, collateral, cash flow, etc.). limited downside, unless have wrong people and they want more solely based on how company performs

“We are an ESOP and share all information. Any employee can ask their supervisor or access the financial information from our computer system anytime they choose to. Managers do a monthly sharing with employees at their monthly meetings, and Senior Management visits each location after year end results and share the detailed P&L with all employees. Downside is that some staff may not understand what is covered, but they do not ask questions or they may share information with others who really do not need to have our results. Benefit is they see the results of their work and how they can impact the results on many P&L line items.”

“We are an employee-owned company, so we are transparent with our employee/owners on most information.”

“We do not share financial information with employees. We have considered it.”

“Total sales and gross profits only.”

“We share everything. Knowledge is power. Otherwise, how can our team members manage what they don’t know?”

“Customer sales and profit dollars are available anytime, as well as the company sales and gross profit dollars broken out by salesperson. All sales commissions are based on GP, so we let everyone see it. People are competitive and we benefit from that. Don’t see a downside.”

“Monthly, we share 90% of the information. We don’t feel that there is a downside. The more people with an understanding of the financial side makes it easier for a company to accomplish its goals.”

“It varies by branch, but at minimum, the ‘front page’ of the financial statement is shared with employees on at least a quarterly basis.”

“Some sales people do not understand numbers and / or do not believe them. We take individual approaches towards them, as well as any new sales person who has not quite taken on the company sales philosophy or culture.”

“As a privately held company, we do not share financial information with anyone. The downside of sharing financial info with employees is that it almost always results in morale issues, (i.e.) employees feeling that they’re not getting their ‘fair share’ with regard to compensation. We see no benefit in having them feel ‘slighted.’”

“We share customer sales information with staff. We also share total sales by location with our yard managers. I guess the downside is that there can be conversations between the managers about who is/isn’t performing. I think the benefit is that they can see where they are compared to the prior year and also see how the company as a whole is performing.”

“The downside is depression when sales are below our goals.”

“It all depends. It is a fine line on who you share it with. You want your people to understand how you are doing, with the cause and effect of everything that goes on. But sometimes, if you are a union shop, that ‘good’ information can come back and bite you during contract negotiations. Still, your employees need to be proud of the success your company is enjoying, so you want to share that information.”

“I share a summary P&L with my employee team in each location at least once a year. There’s way more upside than down. In the absence of the real info, the perceptions are that the business is taking loads of money to the bank.”

“Daily. I don’t see a downside.”

“Weekly to the salespeople. Very little downside. The benefit is competition and disclosure.”