Few managers would argue that employee engagement and involvement are important factors in a company’s performance. Numerous studies over the years have shown the link between employee engagement and improvements in productivity, performance, customer service, retention, and even the financial health of a company. Managers the world over have taken this to heart and have put engagement on the corporate agenda.
Yet, there is one area that leaves many employees feeling disengaged and downright powerless – understanding the company’s finances. In the spirit of transparency and openness – two often cited drivers of employee engagement – we throw difficult financial terms and concepts at employees and expect them to understand and take appropriate action. Instead, employees very often feel intimidated and ill equipped to make the decisions that can have a positive influence on the bottom line. Invariably, employees feel that the only way they can contribute is by cutting costs. Feeling forced to resign to such a Sisyphean situation and not being able to influence your work conditions can be downright demoralising.