Transparency is crucial for the growth and development of companies, big or small, as it is a prerequisite in earning the trust of stakeholders. However, by being transparent especially in its dealings with employees, one acknowledges that they are the backbone of any enterprise and are essential to its success.
Workplace transparency refers to open, honest and direct communication between employees in an organisation as well as the flow of information from senior management to the rank & file. It is essential for setting the overall direction of the organisation and facilitating the achievement of targets through cross-functional collaboration. Moreover, in the unfortunate event of a crisis, it also determines how the public perceives the business as lack of internal transparency will lead to muddled messaging thereby raising doubts.
There are several elements to workplace transparency such as making sure that everyone has the required information to do their jobs effectively and creating a collaborative atmosphere where employees freely share information & knowledge for the benefit of the organisation rather than hoard it for personal gain. In a transparent organisation, employees feel empowered as the extent of their authority, responsibility and accountability is clear and there is no fear of being made a scapegoat. More importantly, it engenders a sense of pride & belongingness and people are motivated to do their best.
Transparency begets trust and, in turn, helps create an environment in which people are more likely to collaborate towards achieving common goals. Thus, the easiest way to keep employees motivated is through regular communication in the workplace. It is important for companies to hold townhall meetings at regular intervals in which senior management address employees of every level and share their thoughts besides seeking feedback.
A company that focusses on employees’ growth, in turn, also performs better. When highly motivated and able employees give their best in every task, this is but the obvious result. Where the transparency aspect comes into play is in ensuring there is clarity about goals and rewards. Any feeling of favouritism for one individual / group over the other will result in demotivation and underperformance. Moreover, in a mature organisation, there should not be any hesitation in having an open conversation about expectations from both sides and many times it is best to part ways amicably if those are not met.
Finally, I cannot but emphasise the importance of being transparent during a crisis. While the natural instinct may be to hold back bad news hoping that it will soon be resolved, it can have the exact opposite effect – that is, a feeling of the problem being much more acute. Therefore, being transparent and sharing information to the extent possible helps build confidence and employees also feel valued.