Why do you need to maintain confidentiality in the workplace?

– Why is it important to maintain confidentiality in the workplace? Hmm. Interesting, well. Stick around and I’ll tell you.

Hi everyone, Simon here from The Contract Company, contracts, that’s all we do, all day every day and sometimes overnight. I know, lucky us.

Right, now what’s the issue here? Well, the issue is you wanna maintain confidentiality in the workplace. “Well, why?” you say.

All right. Well, the simple answer is because you don’t want people to necessarily know what’s going on inside your business.

Huh? What does that mean? Right, let me break it down for you.

Three Types of Confidential Information in the Workplace

If you run a business, there generally are three types of confidential information you wanna keep confidential: information about your employees, information about your customers, and information about your products and goods and services and things like your pricing.

So they’re the three main categories and that’s why it’s really important if you run a business. This is to make sure that all your employees sign up for confidentiality clauses in their employment agreements. That way, that they’re bound by these obligations of confidence.

Meaning that those employees can’t go and disclose any of those categories of information. So they can’t talk about information they find out about other employees.

They can’t talk about information they find out about customers, so they can’t go and disclose customer lists to other people.

Importance of Confidentiality in the Workplace

Let’s say your business produces something that is protected by confidential information, a basic example would be rates in your profit margin.  You don’t want your employees running off and telling your competitors or other people what your profit margins are or things like that.

Or maybe talk about things like where you source your goods or who your manufacturer is of goods.

So just on that, I’m a keen fly fisherman, there are some companies out of the US that make primo, top quality fly fishing stuff, and I know it’s made in China, but you never know where.

And that’s a good thing because that manufacturer is trying to stop people going direct to the actual. Sorry,  I mean that supplier of the fishing gear is trying to stop you going direct to the manufacturer in China and cutting them out and just buying your goods direct from them.

So that’s a good example as to why you want your confidentiality protected. This is also why you need to ensure that your employment agreements cover it.

Lastly, this is why you also need to school up your employees as to what they can and can’t say when dealing with members of the general public and with each other.

So that’s why you want to maintain confidentiality in the workplace.

I hope that helps. If you have any questions or queries, please feel free to get in touch. 1-800-355-455, or simon@contractcompany.com.au. Thanks very much.

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