Opening the books can improve profitability
At X5 we can advise business owners on many of the issues you face. Here are some of the possible advantages of opening the books to your staff...
Opening the books to employees is a strategy that has been tried to varying degrees by business owners over the years, and has often proved to be successful in motivating the workforce and improving performance.
Those who have taken this route report a number of benefits:
- The trust implied by sharing information that does not normally pass beyond management circles has an empowering effect on all concerned
- It instils in the employees a sense of ownership - of both the successes and the failures of the business
- Employees become more aware of problems and identify with the search for solutions.
- They are able to set themselves realistic targets that fit in with the overall goals and objectives of the business
- Team spirit and co-operation between departments generally improves
Not every owner would want to go so far as to reveal everything to the staff, but it might be worth considering at least a little more transparency for your business.
For the strategy to succeed you will need to develop a system of reporting that provides your employees with timely financial information in a form they can work with. We would be happy to help you.
If you are looking for support and advice from a team of professional accountants and business advisers, contact X5.