By Kiara Miller
Do you think transparency is a much talked about idea in the workplace? It’s pretty fair to say that transparency is an underrepresented idea in the corporate world. There is always a disconnect between employee expectations of transparency and organizations’ response to them.
However, the fact is that transparency can deliver unprecedented business benefits to an organization. As an executive or business owner, it’s critical that you recognize these untapped benefits. To recognize them, you must first know them, right?
That said, this blog highlights some outstanding benefits of promoting greater transparency in the workplace. On the other side of the blog, you might want to look at the idea of transparency from a whole new angle. So let’s get started without further ado.
5 Ways Workplace Transparency Helps Business Success
1- Cultivate great confidence
When you promote greater transparency in the workplace as a leader, you establish a solid foundation of high trust in the workplace. In fact, transparency in the workplace is a direct measure of the trust senior management places in its employees.
If you look at it from the perspective of your employees, trust is one of the biggest motivators for them. When employers trust their employees, employees feel valued and a greater sense of belonging is fostered. For them, every ounce of trust you invest in them empowers them in an incredible way.
To corroborate this, according to Harvard Business Review, employees in high-trust organizations show 76% higher engagement. Did you know that highly engaged teams can help a company improve its profitability by 21%? This interesting and vital insight from Forbes has a strong incentive for you to work on great employee engagement strategies.
In addition, HBR further reports that employees of trusted companies show 50% higher efficiency and 106% increased enthusiasm to perform better. Obviously, you’re missing out on incredible business benefits if you still don’t feel the need to foster trust in the workplace.
The bottom line is that cultivating high confidence is easier said than done. It takes continuous efforts from senior management and leaders to promote tremendous trust in their workforce. However, can trust and opaque communication or information barriers co-exist in the workplace?
Forbes reveals that 50% of employees believe that their organizations are not sufficiently transparent. When they feel that way, it definitely affects their engagement and commitment. The key is to create a more transparent work environment where employees have access to the latest company updates and information.
Of course, not all information is worth sharing with your employees. The idea of transparency must be meticulous and balanced effectively.
2- Optimized change management
We can very well see around us how the corporate world is changing at an unimaginable rate. In this competitive world, businesses face more challenges than ever. Moreover, it is essential for your business to effectively integrate ever-changing business trends in order to stay ahead of your competitors.
Simply put, your business needs to be much more efficient in terms of managing major organizational transformations. The more adaptable and agile your business is in response to the changing external business environment, the greater the success of the business.
Overall, your business should incorporate effective change management mechanisms to effectively implement pre-transitions.
However, whenever it comes to integrating transitions into your organization, you will encounter resistance from your employees. If you ask your employees, most of them would say they are comfortable with the status quo.
That said, a large portion of them would be hesitant to align their interests with a proposed change. This will often hinder or derail the change management process in your organization and can put your business at risk.
Transparency can be a simple answer to complex change management issues. When the process is more transparent, you can inspire your employees to proactively participate in change. For this, you must share with them the necessary information related to the change.
To explain, if there is transparency around the purpose, vision, values and visualization of success related to the change, things will be clearer. Employees will have a better understanding of the change and its necessity. Thus, they can overcome their resistance to align their goals with the change. This is where transparency will definitely benefit your organization.
3- Systematic knowledge sharing
Transparency also facilitates better knowledge sharing in the workplace. This knowledge sharing is essential for the effective learning and development of your young employees. Every organization expects its employees to learn effectively and develop consistently.
However, do you expect this to happen without good knowledge sharing between superiors and younger employees? To create a culture of high performance, you need to create effective mechanisms for knowledge sharing, feedback sharing, and continuous learning in the workplace.
In fact, in a work environment where knowledge sharing thrives, working relationships and collaboration will also thrive. This will further improve collaboration in the workplace and thus add greater value to the success of the organization. To validate, according to SalesForce, 86% of executives believe that ineffective collaboration is the main reason for the failure of a project.
As you can see, collaboration has a direct correlation to the success of your organization. For effective collaboration between cross-functional teams or employees of different designations, transparency and open communication are necessary. It’s very logical, isn’t it?
4- More optimism at work
When organizations share adequate information with their employees, employees feel motivated. You will see greater optimism in your workforce when you encourage greater transparency in the workplace. This optimism among your employees can still pave the way for incredible innovation that could add tremendously to your company’s USPs.
Additionally, when employees are more positive, they are less vulnerable to experiences of burnout. Furthermore, optimism will also lead them to invest extra effort in their individual tasks in correlation with organizational priorities. With transparency, you can unlock new horizons of potential in your organization and advance your quest for success.
5- Enriched customer experience
Transparency of employers in terms of sharing information or knowledge with their employees is one aspect of corporate transparency. It is also essential and beneficial for companies to foster greater transparency in customer relationship management.
When you are honest with your customers, it means the world to them. Let’s try to understand this with a simple example. Let’s say you’re an e-commerce business and for some reason a few shipments are late.
If you are transparent and honest in sharing the real reasons for the delay, they will understand and appreciate the same. However, if you make redundant excuses, it is sure to infuriate your customers. Simply put, the higher the transparency and honesty in dealing with customers, the higher the customer retention rates.
In fact, according to SupplyChainBrain, more than 94% of customers say they will place greater allegiance to companies that maintain transparency in customer relationships. Otherwise, if you don’t commit to delivering positive customer experiences, your businesses will be on the verge of high attrition leading to heavy business losses.
To back this up, according to Review 42, over 30% of customers will end their association with a brand even after a single instance of a negative customer experience. You definitely don’t want that to happen to your business, do you? That said, with more transparency and honesty, you can create deeper connections with your customers.
To recap, transparency is a virtue that comes with a wide range of business benefits. With transparency, you can solve complex problems like employee disengagement and turnover. Furthermore, transparency also facilitates thriving customer relationships that are essential to the success of any business. However, at the same time, transparency can also have some disadvantages. You need a careful and balanced approach while promoting greater transparency in the workplace.
This article was submitted by an external contributor and may not represent the views and opinions of Benzinga.
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