Patterns of information disclosure and joint consultation in Great Britain – determinants and outcomes

This report examined trends in information and consultation of employees at British workplaces between 1990 and 2004, using Workplace Employment Relations Survey panel data.

Information disclosure to employees increased significantly between 1990 and 1998, but largely stabilised between 1998 and 2004; notwithstanding that during both periods though there were significant fluctuations across size of workplaces with larger workplaces providing more information.

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Between 1990 and 1998 the strongest predictors of information disclosure were the initial level of disclosure, the level of managerial sophistication, and the existence of joint consultation. Between 1998 and 2004 they were the initial level of disclosure, and company financial performance.

While between 1990 and 1998, information disclosure had a significant positive impact on financial performance, this relationship did not hold between 1998 and 2004. The conundrum is that between 1990 and 1998, disclosure was found to have a positive effect on financial performance, while between 1998 and 2004 the relationship was reversed with financial performance having a positive influence on disclosure.