Why Is It Important for Employees to Know Their Company's Strategic Plan?

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A company's strategic plan is used to set its goals for the future. This plan lays out where the company wishes to go and how it plans on getting there. Sometimes, a company's management may choose to keep this plan secret from the public and from employees. However, there are a number of benefits to letting employees know the plan.

Motivation

  • When an employee knows his company's plan for the future, he will often be more motivated to perform his job to the best of his abilities. This is because he will know what goal he is working for and be more likely to believe that the company will remain viable. If he doesn't know the plan, he may see little reason to do his work well.

Goal Setting

  • When a person knows his company's strategic plan, she also will be able to better align her own goals with those of the company. For example, if a manager is told what the company's strategic goals are, then she will be better equipped to steer the employers under her command in a direction that is consistent with the one that the company is headed in, thereby creating efficiencies.

Confidence

  • Knowing that a company has a plan also inspires confidence in employees. Being worried that an employer is getting ready to crash and burn has a number of negative effects on employee behavior and performance. By contrast, knowing that an employer has a vision for the future is far more likely to rally the troops and give them the strength necessary to fight on.

Employee Retention

  • A financial benefit of sharing a strategic plan with employees is that it may increase employee retention. Hiring new employees is expensive and fraught with uncertainty. In addition to the time and money that a company must spend training a new employee, the new hire may not even work out. Sharing a plan for the future with employees may keep them from defecting to competitors.

References

  • "Employee Management for Small Business"; Lin Grensing-Pophal; 2010
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