The Right to Know What? by Marc LeVine

It is much more convenient not to be a public company. As a private company you don’t have to give information to the public. Secrecy is an important factor of success in the commodity business? - Marc Rich

When searching for employment opportunities, many first-time job seekers are likely unaware of the major differences between working at a private or public company. From among the many distinctions, it is of key importance to understand which levels of communication transparency one might expect to find at privately owned versus publicly run businesses. They are very different in this respect.

For those not too familiar with a public employer, it can either be a government agency or a for profit or not for profit, independent organization run by board of directors reporting to shareholders or members, which provides products and or services to the community-at-large. Public employers can raise funds by issuing shares to the public, while private employers must rely strictly on sales for revenue.

What you can know depends what type of company you work for

While public companies must be transparent and divulge their business plans and revenue details to the public, most private companies have no such requirements and seek to protect their intellectual properties and competitive advantage.?In most cases, privately held companies have no responsibility to report - even the most minor details – regarding their methods, means and revenue streams to all their employees. ?As employees, it is really none of our business what our company owner makes, but as shareholders it is everybody’s business what the CEO is paid, including the employees.

There are a few areas where public and private companies must share accountabilities.?These include employee rights under the law and personal data protections.

What all employees must know whatever type of company we work for

In terms of our employee rights, the information that we have the right to know at a private employer depends on the laws of our states and the policies of our employers. However, in general, we have the right to know about our pay, benefits, and working conditions. We also have the right to know about any safety hazards in our workplaces and any toxic substances that we may be exposed to. Additionally, we have the right to know about any disciplinary actions that may be taken against us.

When concerned about our own privacy rights, it is recommended that all policies regarding monitoring be documented, well-defined, and available to all employees. Data protection law gives us the right to know the type of personal information our employers hold about us, why that information is being held, how the information is being used or will be used, and who will be able to access that information.?

Which type of organization is right for you?

There are many pros and cons to think about when considering whether to work for public or private organizations, which often include civil service requirements, collective bargaining unit representation, labor negotiated compensation and benefits structures, unique organizational cultures, career pathing advantages or constraints and workforce marketability. ?In all these areas, though, we often find some crossovers between BOTH public and private sector employment.

The question for all of us is where do we fit best??