Team Management

An In-Depth Look at Workplace Transparency

March 23, 2023
minute read

Every company has room to improve their employee engagement rates. To do so effectively, invest in workplace transparency. Transparent communication is well perceived by employees. When they receive open and honest communication at work, they will engage better.

Job satisfaction directly influences employee retention rates. With that said, transparency prevents attrition. With all of this in mind, what exactly does transparency in the workplace look like?  

Transparency in the Workplace

Workplace transparency can be identified as open communication between leadership and employees at work. Management openly shares feedback, expectations, revenue, and other factors with their team.  

In return, employees openly ask questions and share feedback with one another. This process will instill higher levels of trust amongst your team. Invite questions, share company growth plans, and discuss mistakes.  

The Importance of Transparency in Leadership

To build trust with employees, leaders must practice transparency in the workplace. You build trust as a leader when your employees don’t have to play guessing games.  

Vocalize your willingness to openly discuss constructive feedback, concerns, and other aspects of business. Trust will only increase the longer you practice transparency. Aside from this, trust improves employee satisfaction, which is linked to employee retention.  

In addition, employees who feel they can trust their employer will value the work they do for you more.  

The Benefits of Transparency in the Workplace

What exactly can transparency do for you and your team? How can it positively affect your organization? For one, transparency builds trust and dedication. To develop a transparent culture, there needs to be a two-way communication between employees and their leader.

Motivation happens when employees feel they can trust the company they work for.  

Transparency Improves Team Efficiency  

Over half of employees aren’t well informed about their company’s goals, and as a result, employees often experience chronic stress. This hinders their ability to connect with their coworkers, negatively impacting teamwork.

Transparency Attracts Top Talent

Employee satisfaction is directly linked to transparency. After all, the leading reason employees leave their organization is because of poor company culture. A transparent culture makes for a healthier, more positive environment employees can thrive in.


The Drawbacks of Transparency in the Workplace

It’s impossible to predict how people will respond to updates. Of course, there have been instances where transparency was met with some backlash. On some occasions, employees will react well to what you share, however, that isn’t always the case.

This is especially true when you’re morphing into a company that practices honest communication from a lower level of transparency. Keep in mind that some individuals may not be used to receiving open and honest feedback and may resist this change.

Aside from this, they may also believe your requests for openness in the workplace are a trap. You may see a lower level of engagement initially, however, that will change.  

Potential Backlash

Employees may feel exposed and vulnerable, as if they’re constantly being watched. When this occurs, they may hide their thoughts and emotions.  

May Slow Down Decision-Making  

To make decisions in the workplace, employee engagement must be at an all-time high. People engage by sharing information and ideas with one another. However, business owners often forget the time factor.  

The more people who are involved in decision-making, the longer this process will take.  

Ways to Increase Transparency within Your Organization  

To start, find a balance between too much transparency and not enough. While it isn’t easy to find, it depends on the organization. Utilize the following tips to develop a more transparent workplace.  

1. Give Honest Feedback.

The key to transparency is honesty. If your employees find out you’ve lied to them, you’ll immediately lose their trust. When giving feedback, don’t beat around the bush. Your feedback should always be honest and constructive for the better of your company and your team.

2. Document Training and Processes.

When your employees know what to do, and how to do it, they’re bound to feel more comfortable at work. This confidence will make for better efficiency in the long run.  

3. Give Your Team Frequent Updates.

Consistently update your team about possible changes as soon as possible. This is the best way to reinforce their trust in you.

4. Communicate Your Expectations.

It’s one thing to communicate your expectations with your team, it’s another to do so frequently and on time. This will keep everyone on your team aligned on their assignments.

5. Explain Your Decisions.

When you explain your decisions and encourage employees to ask questions, this improves employee satisfaction and teamwork within your organization. Aside from this, encourage your employees to share feedback with you.

The Power of Transparency

Workplace transparency comes with a slew of long-term benefits that affects both your company and your employees. With that said, transparency doesn’t just happen on its own – you have to initiate it.  

FRIDAY’s blog always encourages small business owners to improve their organization from the inside out, and it starts with them.  

FRIDAY Helps Small Business Manage and Pay Their Team  

When it comes to managing, tracking, and paying your employees, additional help goes a long way. FRIDAY is the simplest software created to help small businesses manage, track, and pay their team without any paperwork involved.  

FRIDAY is an easy to use, yet powerful payroll and team management solution. Stay up to date on our blog, where we frequently post educative and informative articles for small business owners.