Transparency in the workplace: Attract top talent and reduce turnover

Would you understand his meaning if a LinkedIn connection posted a post touting his employer’s transparent workplace culture? The concept of “workplace transparency” is gaining popularity.

Companies see it as something to achieve. However, understanding its meaning and benefits may not be easy. It impacts both employers and employees.

The word transparent means easily seen. Thus, a transparent workplace promotes a clear view. Everyone understands the company’s mission and goals and their role in achieving them.

Leadership keeps employees in the loop regarding activities, information, and decision-making. The organization shares both good and bad results.

Honest and open communication is vital to achieving workplace transparency. Constructive feedback should flow freely. This allows employees at all levels to understand business performance better. As a result, they can contribute more to the organization’s success.

The level of transparency differs by company. Places must act in ways that feel authentic to their situation. Many employers, however, learn quickly that a transparent work environment improves the well-being of team members and leaders alike.

How a culture of transparency benefits employees

Simply put, people want to be happy with their jobs. Transparency contributes to those positive feelings. Employees in transparent organizations achieve greater job satisfaction for reasons such as:

• Less stress

Transparent communication provides clear expectations. Individuals know what the company expects of them. They spend less time confused or wondering if their actions are correct. They do not worry so much about what management might be doing behind the scenes because honest communication is part of the modus operandi of their workplace culture.

• More employee engagement

Transparency in the workplace enhances the employee experience. Sharing information engages workers and encourages them to partake in the decision-making process. Knowing that management seeks and values their ideas contributes to employee satisfaction.

• Less subjectivity

Employees crave a laid-out, level playing field. They want concrete steps for career development and confidence that advancement stems from merit. With information out in the open, transparent workplaces reduce favoritism and “insider” deals.

Why transparency in the workplace is important to employers

Transparency helps organizations achieve many desirable things. Besides the effects above it has on employees, other pluses include:

• Reducing turnover

Companies that build trust forge stronger relationships. Such bonds are essential in this age when businesses struggle with employee retention. Workers want to fully comprehend company values, goals, and their role in company performance—all conveyed transparently.

• Gaining a heads-up

An atmosphere of open and honest communication promotes the notion of “See something, say something.” Workers feel more comfortable coming forward when they know management wants them to take such initiative. Transparency instills a sense of responsibility. Leaders can tackle minor problems before they develop into larger ones.

• Making better decisions

Transparency provides clearer, fuller information to managers and employees alike. This knowledge base puts everyone on the same page. With all the team privy to the facts, they can work together to accomplish goals.

• Enhancing employer brand

The Internet allows prospective job candidates to learn a lot about employers before deciding whether or not to apply for a position. Companies with a reputation for transparency attract job seekers.

• Earning higher profits

Gallup reports that organizations with a high degree of transparency post profit margins 21% higher than average. Greater employee engagement in transparent environments raises productivity.

Examples of transparency in the workplace

What does the concept of transparency look like when put into practice? Here are a few of the ways it shines through:

• Accurate job ads

Companies eager to show prospective applicants that their organization values transparency create postings that genuinely reflect their role. While still putting their best foot forward during the hiring process, they provide a truthful portrait of company culture and an honest breakdown of what the position entails.

If the company expects candidates to complete an unpaid skill assessment or a lengthy series of interviews, the prospective employer reveals it upfront.

Wise employers know that misleading candidates or sugar-coating details ultimately strains relationships. New hires who realize that “occasional” overtime translates into an extra hour four out of five workdays rightly get frustrated and wonder what other secrets might emerge. Knowing expectations from the get-go allows candidates to make an educated decision on accepting or rejecting the position.

• Salary transparency

Job seekers like ads with an established pay rate or a salary range. This information builds trust – here is what we are hiring someone to do, and here is what we will pay for these services. Candidates do not waste time on positions that do not meet their financial needs.

However, laying out the pay structure before hiring is just a start. Employers continue to demonstrate transparency by regularly releasing salary information. With data available for all to see, pay inequalities become more apparent (and less likely to occur). Gaps in pay by race or gender stand out, allowing leaders and workers to address them.

• Defined advancement paths

When companies issue guidelines on how workers move up the ladder, they reduce confusion and speculation of favoritism. People know what contributes to the decision-making process—perhaps a certain educational degree, specific skills, and performance review scores. They can guide their professional development to align with their desired career path.

• Feedback opportunities in both directions

Transparent organizations provide various opportunities for employers and employees to deliver honest feedback. Managers schedule regular 1:1 meetings with workers to address specifics of where the individual excels and what areas need improvement.

During these gatherings, leaders encourage their direct reports to offer opinions, ideas, and observations. Managers benefit from knowing their strengths and weaknesses, too.

Surveys offer the chance to collect everyone’s thoughts on specific subjects. While asking demonstrates concern, transparent companies go the extra mile and widely share results with participants. Their willingness to present accurate outcomes, good or bad, enhances the perception that the organization values honesty.

Some businesses conduct town hall meetings. An open forum bringing together people from all levels of the organization generates feelings of fellowship and worth. Giving workers a voice empowers and engages them.

• Attitude of those in charge

Lastly, remember this famous line delivered by Jack Nicholson to Tom Cruise in the movie A Few Good Men: “You can’t handle the truth!” Workplaces that lack transparency foster this mindset.

By contrast, organizations committed to transparency make an effort to prioritize reality. They distribute data and provide updates on company activities.

Leaders admit mistakes or problematic situations rather than sweeping them under the table. They give explanations behind decisions rather than demanding that those affected accept them.

While every piece of information may not be given to every person, there is a general sense that management is not trying to hide something or deceive workers.

Staff members feel comfortable bringing things up and asking questions. When these bonds of trust exist, employees can relax and focus on doing their part to help the company thrive.

More Resources:
Pros and cons of pay transparency and the legal requirements around it
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Workplace etiquette: The ultimate guide to professionalism