The value of transparency is an underrated characteristic when it comes to business success. In this context, transparency means that employees and those in leadership positions have open and honest communication about company matters. Decisions aren’t shrouded in mystery or come out of nowhere. Upper management, supervisors, and other leaders can engage in clear discourse with employees to explain the “whys” behind their decisions and processes. Improving transparency in the workplace can lead to greater business success in several ways.
Improve Employee Retention and Engagement
Employees may have a hard time staying engaged with your organization if they can’t trust you. If explanations about the decision-making process are equivalent to a parent telling their child “because I said so,” overall trust in the organization is diminished.
When employees understand the company’s moves in a way that’s appropriate for their role, they feel more involved. You don’t need to communicate this information in painstaking detail. Simply be open about your overall business plans and the short and long-term goals that are on the horizon. These days, corporate intranets and social media platforms present excellent opportunities for management to keep employees, customers, and other stakeholders up-to-date on happenings.
Build Up the Company’s Reputation
Consumers also pay attention to how transparent companies are. Younger generations want to spend their money on organizations that share their values, so they do their research before making purchase decisions. By promoting clear and open communication in the workplace, your organization can position yourself as a trustworthy business that’s worth their time, attention and money.
Maintain Clarity in Communications
Transparency makes it less complicated to communicate with your workforce, customers, and business partners. You don’t need to juggle the information that you’re sending out or worry about keeping your story straight. Instead, you’re open about your operations. Keeping it simple goes a long way.
Clear communications can also counter rumor mills, which can get out of control in toxic work environments. Experiencing negative gossip can make employees uncertain about the future of the company or their role, which can impact retention and engagement.
Give Everyone a Big Picture View
When employees know the company goals and a basic big picture view of your future growth opportunities, they feel like they have a stake. It’s difficult to give people this perspective without being upfront about what’s going on in the company.
Increased Recruitment Success
Recruitment can be a frustrating part of bringing in new employees to the company. If the process doesn’t do a good job at screening new workers, you end up with bad fits and high turnover. Transparency allows your organization to be completely open about the pros and cons involved with the position. You can be upfront about what’s expected, the type of employee who will excel in that role, and the characteristics of those who may not be a good fit.
Open communication and full transparency result in lower stress at all levels of your organization. You don’t have to worry about slipping up and sharing information that contradicts what employees know about. Employees don’t have to play guessing games about the health of the company. They learn about the positive and negative events that influence its growth and the vision of its leaders. And they can help play an active role in its success…or failure.
Transparency provides a range of health and business benefits to your organization. Straightforward communication may take some time to fully adopt, especially if the company has a history of limited transparency between departments, leadership, and front-line employees. But the world and the way we work is changing, and it’s well worth the effort.
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