Businesses that practice transparency in their dealings with their employees and customers are more likely to meet with success. But, unfortunately, there is a severe lack of transparency in companies and organizations globally.
According to Paychex’s survey conducted in the US, around three-fourths of the employees surveyed favored transparency. The same survey also mentioned that around 30% of the employees had decided to quit a job due to a lack of transparency on job growth. So, as an employer, it’s best to implement workplace transparency to ensure success in the long term.
What Is Workplace Transparency
Workplace transparency is, simply speaking, the encouragement of open communication between the employees and the managers in the company. It consists of freely and truthfully sharing all relevant information related to the company with the staff.
When the management practices transparency, employees’ interactions reflect this, too, thus boosting productivity. However, workplace transparency also has a dark side – sharing too much information can backfire. Therefore, the management must maintain the right balance when sharing and withholding information related to the company.
Why is Transparency in The Workplace Important?
Makes Employees Happier And More Engaged
Keeping your employees updated with the company information makes them feel valued and respected, which encourages them to be more engaged in their work. According to one survey, transparency is the most critical factor contributing to employee happiness in the workplace. And happy employees are essential to a thriving company!
Encourages New Ideas
When the management is open with the employees, it encourages them to behave in the same way. In other words, employees who work in a transparent environment are more likely to share new plans, ideas, or feedback with their colleagues and management. This may lead to a smoother workflow and better team cooperation, boosting overall productivity.
Helps Build Trust
A survey conducted by the American Psychological Association found that only 52% of the respondents believed that their employers were honest with them. But this transparency goes a long way in building trust between the employee and the management. As a result, the employees tend to be more invested in their work, boosting company profits.
Ensures A Strong Workplace Culture
When the company’s higher management encourages clear and accessible communication, it becomes a part of the workplace culture. Moreover, organizations with a stronger work culture usually show a higher growth rate.
Leads To Improved Relationships With Customers
A company that practices transparency in its operations will likely build better relationships with its consumers. In fact, customers prefer to engage with brands with a high level of transparency, resulting in better profits.
Summing Up
While creating a transparent workplace has numerous benefits, it’s essential for management to find the right balance between sharing information publicly and keeping it private. So, if you are an employer, maybe it’s time to take steps towards assessing the level of transparency in your company.
About the Author
BCjobs.ca is Western Canada’s largest job board, and host of “Innovators” a weekly podcast interviewing top recruiters in BC and across Canada. Check out our recent interview with Karim Ben-Jaafar, President and COO at Beanworks (Podcast link), and Peter Fitzpatrick, VP of Payments at Thinkific (Podcast link).
