Life Consultants

Keeping staff informed. If not, why not?

If a business is not doing well, one of the best ways to accelerate its demise is to keep schtum.
We have seen this so often, where managers feel that the staff cannot be trusted with sensitive information.

Absurd, and foolish.

Obviously not a good idea to broadcast every little detail, especially that which might panic creditors or give competitors an edge. But unless the staff are very dim they will always know when the business is struggling and when it is booming. So not sharing basic P&L information with them, on a regular basis, is short-sighted and lacking in respect – to which they will be sensitive.

Recently, we became aware of a company in precisely that situation. They are facing substantial price-led competition, they have not found alternative income streams, and patently the business is failing. The staff have sufficient day-to-day information to know that all is not well, but their managers will not allow any sort of company meeting or in-house update; consequently, the staff are not inclined to volunteer constructive suggestions, and morale continues to decline.

Such a shame, and so unnecessary.