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Should you open the books?

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in Leaders & Managers,Management Training

Take this test to determine whether you should share financial information with your employees:

T - F: My employees don’t care about the financial aspects of this business.

T - F: Sharing financial information will create more problems than it solves.

T - F: Once I open the books, I’ll need to reveal each worker’s salary.

T - F: My employees won’t understand this data.

T - F: It’s against SEC regulations to share financial information internally.

T - F: Once we give out this information, employees will leak it to competitors.

If all your answers are “False,” then you’re ideally suited to implement open-book management. But each “True” response is a red flag.

Realize that it’s premature to judge whether employees don’t care about the financials or won’t understand them. You must give them a chance by teaching them what they need to know.

Don’t assume that by empowering people, you’ll stir up problems. In fact, when you train employees to think like partners rather than hired hands, they’ll take more ownership of their jobs. And there are no laws or SEC regulations against this.

Finally, never divulge individual salaries, just overall payroll costs.

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