Many companies now proudly declare transparency as a core value of theirs. Many are, however, still skeptical about it. So what is transparency in the workplace? Is it profitable? Is it more engaging? Read on to find out.
To understand how important transparency in the workplace is, consider this scenario. Imagine receiving some work to be done. You get the instructions, deadlines, and the required information to do the work. However, you have no clue why you are doing it in the first place. You keep wondering how this work would impact the company. You hesitate to begin it because you have no idea of the vision or mission of the work. There is no motivation and interest in doing it.
Now imagine your employees having to go through this in your company.
Transparency in the workplace is openness and honesty in communication. In this company culture, open sharing of information is encouraged. There is a free flow of information between the people and teams. Transparency requires employers to remain open about the company’s goals, visions, missions, changes, performance, and operations.
Here are the 7 reasons why you should make your company more transparent
1. Establishes trust
Trust matters a lot in the workplace. It helps in improving efficiency, increases loyalty, decreases stress levels, and is a gateway to persuasion, sharing, and developing ideas. In a 2017 scaled US study, researchers found that people at high-trust companies reported 50% higher productivity when compared with people at low-trust companies.
Transparency builds trust among the employees. Companies that inculcate this concept of transparency in their company culture see a stronger bond of trust and commitment among their employers and employees.
2. Helps you find great ideas anywhere
Transparency encourages out-of-the-box thinking and thoughtful innovation. With transparency, employees will be more engaged and committed to the vision of the company. They have a full understanding of the mission of the company. They would be more willing to share their ideas and bring about creative solutions and innovation to the company.
Employees would feel like there is no limit in exploring and finding out diverse ideas to solve the company problems.
3. Aids in the creation of a flatter company hierarchy
Traditionally people assume that all decision-making takes place at the top of the management ladder. Well not anymore. Creating a flatter company hierarchy delivers lots of benefits. A flat company hierarchy is cost-effective, promotes faster decision making, allows easier communication, and reduces supervision and dominance. Transparency can help in achieving all this.
4. Earns greater profitability
Polls state that at least two-thirds of consumers would spend more if it is from a transparent company. According to a recent study by Label Insight, 94 percent rank transparency as the greatest factor in brand loyalty. 73 percent say that they are willing to pay more for a product that offers complete transparency. With transparency, customers can count on you without hesitation.
5. Better productivity
With employees trusting each other and effectively communicating with each other because of transparency, this would also lead to productivity. With transparency, there is a greater level of dedication and engagement among colleagues. There is no hesitation on behalf of the employer when delegating work and employees feel free to ask questions regarding the work.
If your employees feel hesitant to speak out or feel that they cannot be honest with you, this would badly impact their motivation. This affects their productivity as well as they are not motivated enough to do their tasks. Better communication can create marked changes in the productivity of your company.
6. Better hiring and recruitment
Transparency is vital when hiring new employees for the company. Being transparent helps in recruiting top talent easier. You will also have high rates of retention because expectations have been clear from the beginning.
Most interviews unfortunately reveal very little information about the roles, the company, and what is expected from the candidates. The biggest grievance among job hunters is the lack of information about key details of responsibilities, compensation, and benefits. A lack of transparency in the recruiting process can lead to negative candidate experience, high drop-out rates, and several declined offers.
Being open and honest with the candidates can help in making the hiring process easy on both sides. With clear communication, you can give the candidates a good idea of their roles in the company and keep them engaged as well.
Employers expect engagement from their employees. Employees expect their voices to be heard. Transparency is the answer to this.
Informed employees are engaged employees. 4 out of 5 employees in the world are not engaged. The reason is simple. Lack of transparency leads to employees being clueless of what the company is working for. Employees are most engaged when senior leaders update them regularly regarding company strategies and tasks.
Being open, honest, and communicating effectively will bring on major changes in your company and business. Make sure the working environment is open and ensure that your people feel vested to speak out. They should be made to believe that their voices are heard. Being transparent and communicating well regarding company operations and the task would ensure that everyone is on the same page and moving in the same direction; the direction to bring more success to your company. Transparency in the workplace would reap many benefits.
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