No matter if you are a private or public organization, making all internal and external stakeholders feel comfortable is vital to your organization’s success. Many leaders, however, feel torn about sharing sensitive information. They worry if they are being too transparent. But being transparent, to an extent, can prove to increase employee morale, their productivity, and the company’s culture.
The Positive Effects of Transparency in the Workplace
Being overly transparent with employees has its pros and cons. The major pro is that employees will feel they are contributing in a major way and morale is enhanced. The company culture is enhanced and you will find employees that are more loyal.
The productivity in the workplace is enhanced by being transparent. The more information they have access to, they may feel more empowered to work and complete projects. If employees feel they are constantly kept in the loop, they will feel involved and important.
Identifying the responsible parties of projects openly through the company helps everyone understand how their role affects others. Clearly defining roles and goals holds employees accountable for his or her actions, and the employees do not feel obligated to complete someone else’s work. This company wide clarity leads to productivity on all sides.
Some companies feel the best way to become transparent is to encourage employees to reach out to their CEO’s and other business leaders. As mentioned in Forbes, 5 Powerful Things Happen When A Leader Is Transparent, employees are looking for their leaders to interact with them on a one-on-one level. Their ideas being brought directly to the authority figures equal a faster processing time and greater employee recognition on the ideas. If an idea is not approved, it can be explained in person why, and how that idea could possibly blossom for the benefit of the organization.
Employees Feel Left Out When It’s Not Transparency in the Workplace
A negative aspect of being too transparent with employees is if not everything is going so well. Individuals may put forth less effort in their work and some look to jump the bandwagon before their position is threatened.
Employees Can Feel Undervalued When There Is Too Much Transparency in the Workplace
Information, such as employee pay, should not be as transparent. Employees do talk amongst each other. Employees may feel undervalued that they do so much work and a peer receives more than they do. Then, it’s a matter of damage control to prevent high turnover.
Steps Business Leaders Can Boost Employee Morale with Transparency
Overall, when implemented properly, an organization can boost employee morale with transparency. They need to share information clearly, accurately, and to the extent that employees can understand.
Instead of breaking into an entire accounting session, it’s ok to give a brief overview of where the company or department goals are at with easy to understand graphs and charts. Provide relevant information they will find interesting. This information should be shared corporate wide and not on a C-level versus subordinates. Consistency throughout the entire organization is key.
If you are sharing employee pay structures, offer a salary range and be sure to explain how that structure was devised. Finally, don’t assume its ok to be transparent with external shareholders versus your employees. Their trust can fade quickly if the outside world knows what’s going on before they do.
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