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

“We are an ESOP company, so almost all our employees have some ownership. We give everyone a year-end P&L and have done so for the last 40 years. The benefit is huge—everyone has skin in the game. I haven’t yet discovered the downside.”

“We share our sales and margin with employee’s to show them how important it is to get a fair market value to cover operational cost. The downside is that most employees think that a profit is cash in the bank.”

“The big benefit is that our people understand how small the difference is between profit and no profit, or a loss. Coming in, our people imagine our margins are huge—50% and more. When we show them that if we do well, we have just 2-3% left after interest and taxes, they then understand the importance of each job in the company.”

“We give every employee a snapshot of their store’s P&L as part of explaining their quarterly profit-sharing bonus. The benefit is the employees understand how their store is doing and also how sales, margin, damage, etc. affect the bottom line and their compensation. There is no downside.”

“A monthly letter goes out that compares current month sales with prior month, and same month a year ago. Same for gross margins. Been doing this for over 20 years. Downside is some think the company has all these sales and is rolling in cash. Upside is that they gauge our success on the growth or decline in the numbers.”

“There’s little downside. Whatever they think you make is almost certainly more than you actually do. You are asking them to go into your market and win. But they can’t play the game if they don’t know the score.”

“A few years ago, I read a book about getting employees to buy into the company. The book suggested sharing the numbers, having them help set sales goals, plus incentives if they reached the goals, etc. I tried this for two years, I do not think it helped at all and caused stress and competitiveness among the team members. This past year, I just shared the sales dashboard with them so they know the pulse of the business, with no responsibilities and goal setting on them, and the atmosphere has changed for the better. What I think I discovered is they are worker bees who just want to work, and to know that they have contributed.”

“All financial information is regularly available for staff to review. No apparent downside. Everyone knows what’s going on.”

“All info at a monthly meeting.”

“We share everything monthly. It takes a ton of educational effort, but its worth it.”

“We share company sales; GM percentage; overall payroll expense w/ benefits as a percentage to sales on a quarterly basis. Customer sales and GM percentage can be obtained anytime by running reports. We do not share Net Margin/Profit. We feel by sharing this info, it negates the notion that the company ‘makes a fortune’, as most employees don’t really understand the cost structure of a lumberyard. Secondly, the employees feel more a part of the company when we share such info. We tell them it is confidential, but we have no real control on the info getting out. It doesn’t make a difference, because if the info gets out it tells someone the figures but not the details nor how we do it.”

“Our company shares percentage-of-growth figures and profit sharing amounts at the end of the year. The downside to sharing only this information is that we have no idea of how the company compares to competitors, or to the industry as a whole.”

“We are an ESOP, essentially an employee-owned company, and we share detailed financial information. The downside is that some employees don’t understand what those numbers mean; a good example of this was when an employee interpreted sales dollars to mean profit. Even when the difference was explained, the employee was suspicious of the explanation. We do try to help them develop a better understanding by providing financial training performed by a third-party.”

“We share all info monthly and we do a deep dive into the full year financials at our annual kickoff meeting. There is no downside unless you don’t share the wealth. In bad times, your employees understand why you are making cuts. In good times, as they see how well you’re doing, you have no problems as long as you share the wealth like we do.”

“Financial information is only shared with the owners. They see monthly P&L statements.”

“The downside to sharing is the employee can figure out what the owners make and they may feel that is unfair not realizing all the owners have a stake. The benefit to our Sales Manager is to know exact sales trends.”

“The benefit is goal-setting. Downside might be them sharing where you do not want them too.”

“Not sure of the benefit, as profits lead to questions about bonuses, pay increases, etc., while losses lead to worry about things they can’t influence.”

“Sales and gross profit on a weekly basis —shrinkage on a yearly basis.”

“Sales info and margins. I find that most of the lower tier employees really don’t care.”

“Sales and margins mostly.”

“We are a public company, but we also feel sharing this info makes employees feel like they have more of an impact on the numbers.”

“We share nothing. Most employees do not understand what it costs to run a business. They see figures and assume the boss gets rich, and they are not getting a fair share.”

“We share quarterly/YTD financial performance at quarterly employee meetings. We compare to prior year and budgeted performance. We are an employee-owned company. Downside is some employees don’t understand what we are communicating, so they misinterpret the information provided. Upside is that they understand the fluctuation in the value of their retirement benefit.”

“I do not think of the downside, just a motivating factor to work harder. Back in the day, the goal was to simply keep your job, now it is an incentive to get a bonus. No fancy cars, no boats, just forklifts, paid inventory and owning the building. Employees feel secure.”

“I am willing to share all facets of the business except for individual salaries. It is important that employees know how much their benefits cost and what percentage of every dollar goes toward compensation and benefits. The yard and delivery crew take pride in knowing how much volume they ship monthly, and the average transaction size per delivery. We are tying incentives to that by setting benchmarks for size and complete, on-time delivery.”

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