There’s an open secret among leaders at top companies: Workplace transparency is an ROI home run. It costs nothing, increases employee happiness, lowers job-related stress, and boosts performance.
Let’s dive into why corporate transparency matters, and explore practical ways to make it a priority within your team.
Building transparency at work
Workplace transparency is a philosophy of openly sharing information that supports your organization, employees, and clients. That includes:
- Executives getting honest with the whole team about company information
- Individual teammates giving constructive feedback to each other
- Companies being open with candidates, customers, and the public
But it’s not a free pass to say anything that comes to mind.
Keep it constructive
Transparency doesn’t mean sharing every piece of information; it means sharing relevant information. If the goal is to encourage constructive communication, team members need to understand what that means, what they should expect, and what the limits are.
Consider this two-part test when defining workplace transparency boundaries:
- Will disclosing this information help the recipient(s) make a better decision?
- Does the benefit of the information outweigh the harm?
Benefits of transparency in business
Both employees and executives point to transparency as a stand-out trait among Glassdoor’s Best-Led Companies. Let’s look at three examples of how transparent conversations can make for a better work environment.
1. Open communication in the workplace
When upper management models open communication, employees feel empowered to share new ideas and feedback. Talk about ongoing initiatives, why decisions are made, and how those decisions are playing out. (Don’t be afraid to admit that you’ve hit roadblocks!)
2. Better employee engagement and happiness
Encouraging innovation motivates employees to get creative, which leads to greater engagement at work. Create an environment where people feel safe to try (and fail), admit when they need help, and grow from mistakes.
3. Stronger workplace culture and values
Sharing knowledge across an organization demonstrates that management trusts, respects, and values employees at all levels, which helps boost your employer brand. Rewarding knowledge-sharing is a great way to maintain the flow of information.
Being open with employees about the company's performance, priorities, and future plans prevents speculation.
What does good workplace transparency look like?
Building a transparent work environment from scratch is challenging. Score quick wins as you ramp up by focusing on recruiting, performance reviews, and company planning.
Recruiting and hiring
Transparency translates to faster, more precise hiring. Commit to detailed, accurate job descriptions, timely and honest communication from recruiters, and open discussion between collaborators during the interview process. Including an accurate salary range in the job posting is one of the easiest ways to target great candidates — and, in many states, is now required.
Performance management and career development
Shorter, more frequent evaluations allow managers and employees to assess current projects and performance, rather than judging an entire year's work in one review. You can also include peer evaluations, which offer insights at the ground level that might be hard for a supervisor to see.
Company performance and goal-setting
Being open with employees about the company's performance, priorities, and future plans prevents speculation. It also offers an increased sense of ownership and trust — especially when teams can see firsthand how their work fits into the company’s brand and business strategies.
Tools for creating a transparent work environment
When employees and leaders have the right resources to communicate clearly and often — especially when workers are remote — teams are more likely to succeed. This can include:
- Using all-hands meetings to discuss company targets and highlight the work of specific contributors.
- Encouraging employees and applicants to leave a review on Glassdoor, then reading and responding to that feedback.
- Sending out employee surveys and sharing the results, including details on next steps.
- Joining conversations in your Glassdoor Company Bowl to solicit employee feedback in real time.
Transparency takeaways
Transparency is about understanding the benefit of honest and forthright communication in your organization. The most respected companies and leaders are those that consistently invest time and resources into transparent communication with their teams and clients.
After all, knowledge is power — and transparency, truth, and openness empower people and businesses to do better work, together.