In the absence of information, employees will make up their own reality

As a business owner, you often times are involved in highly confidential conversations. Maybe you've had a lot of foot traffic in the front door because you are considering a new software system. Or you cancelled a large fleet order for new work trucks because you are redesigning the logo and don't want to have them painted twice. Or you are interviewing a new Regional Vice President for a yet-to-be acquired piece of business. Whatever the situation is, you have your reasons. Yet, when employees see you make a decision, without context, or follow-up information, they are left to their own imagination as to the "why."

You can always reserve the right to not share anything with anyone. However, I would advise you to share when you can, with care. I would NEVER recommend you share the "why" behind someone's termination and quick exit from the company (Unless you want to make a public example of bad behavior. But you should be very cautious about doing that because you do not want a defamation lawsuit). You should own up to the fact that Joe Friday is no longer with you. It could be as simple as "Joe has left XYZ Company to seek other opportunities." Employees disappearing overnight make people nervous. If you don't acknowledge the departure, the rumors can and often do cause internal unrest. Those same rumors can lead to other situations that fuel the proverbial fire.

Be honest. If you plan to no longer offer a health insurance plan because it's just too costly, communicate that, in advance. Maybe even tell them what the new one is going to be. The more lead time you give your employees to information that may impact them personally, the more you will be respected. Your employees have a personal budget too. They are intelligent and capable of understanding rationale decisions. Isn't that why you hired them in the first place?