When you own a business, it’s important to spend time thinking about the needs and expectations of the individuals who work for you. When employees are asked what traits they value in their managers, they consistently cite preferring working for supervisors who foster an environment of open communication in the workplace. Employees prefer working with managers who listen to them and who share information with them on a regular basis.

People have a basic need to know what is going on around them. Employees need to feel comfortable that their managers will share relevant information with them about the company, and about their performance and position within the organization. Sharing information about the company’s goals and performance with employees allows them to develop a deeper understanding of where they fit in the big picture. They are able to more directly see why their roles are important and are more likely to be committed to and engaged in working toward the company’s long term success.

Many business owners make the mistake of assuming that employees aren’t concerned with the big picture of how the organization is doing. Those who manage from this perspective tell employees what they need to know specific to their individual jobs, but don’t share information about the vision or mission of the organization. This results in workers who feel confused and uncertain about their role in the organization. When workers don’t feel strong ties to their company, employee retention problems often develop.

If your company lands a new client, it’s important to share the celebration with employees. Alternately, if your company loses a major client, it’s important to be honest with employees about what happened and what the organization is doing to counter the ill effects. Often, when faced with a crisis, small business owners stop sharing information with their employees. Management may be too focused on the financial problems to consider the needs of the employees, or may think that it’s best not to talk about what has happened until there is a solution. The problem with this approach is that silence from management leads to employee speculation about what the problem might mean for the future of the organization. If management isn’t talking, employees usually assume the worst.

It’s better to let employees know what’s going on, and assure them that you are working quickly to remedy the problems. Don’t fib or paint an overly rosy picture; if you lie or exaggerate, employees will know and they’ll become even more frightened. Instead, be honest and open. Let your employees know what you’re doing and ask for their help and commitment to get through the rough patches. By communicating openly with your workers in good times and in bad, you’ll develop a strong team of loyal and committed employees.