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Business and Trade

Transparency in the workplace: Why it is so important

In an era where brands are under constant scrutiny, transparent team communication in the workplace is an inevitable new age business ethic. Employees want to be part of an organization that gives them an open environment where they can unleash their creativity, gain meaningful experience, and be valued for their contribution. 

Today, major brands that successfully manage a dynamic workforce often emphasize the need for workplace transparency.  An organization that demonstrates transparency as a core element in its work culture is bound to attain higher levels of success and better profitability.  

Transparent team communication – Is it good or bad? 

 Transparency is described as the quality of being honest and open in communicating relevant information to every stakeholder in the company. Regardless of how easy or challenging the situation is, transparent communication is a notable virtue consistently practiced by companies to establish employee loyalty and promote a positive work culture. 

Communicating the company roadmaps, the gains, and losses, challenges, and missteps to the employees is an effective team communication strategy 

The sole intent of sustaining workplace transparency is to benefit the company and its employees positively, However, negative conflicts and employee banters often occur in the guise of ‘transparency’. It can adversely hamper the workflow and be counterproductive to the team’s performance.  

 Hence, companies must meticulously plan with the communication department and upper-level management on – ‘what to communicate’ and ‘how to communicate’ prior to disclosing any relevant corporate information to the employees. 

Why is transparent communication necessary in the workplace? 

 With the advent of social media, brands are placed on a pedestal to be authentic in their communication.  An organization that implements transparency is bound to attract premium talent as well as a loyal customer base. The significance of transparent team communication goes beyond a transparent brand image.  

Transparency in the workplace has many advantages that sure make it an important practice that needs to be followed by every organization:  

  1. Builds trust and improves employer-employee relationship  

When managers openly communicate their goals and the state of the team’s performance, employees feel safe and assured about their future in the company. Gaining employee loyalty is a noteworthy advantage of transparent communication in the workplace.  

Cultivating transparency in the workplace can also attract and retain talent. Employees trust managers who are candid with them regarding the vision or the state of affairs of the company. Additionally, allowing employees to take independent work-related decisions and giving them the liberty to give their inputs to improve the workflow makes employees feel trusted. This helps employees actively engage on how they can contribute to the betterment of their team.   

  1. Promotes inclusive decision making 

Many prominent brands mobilize a diverse workforce with the best of expertise and talent. However, their potential would go underutilized if not nurtured by team leaders. The Slack Future of Work Study in 2018 shows that 80 percent of workers want to know more about how decisions are made in their organization, and 87 percent want their future company to be transparent. 

 In a traditional office setup, important company decisions come from the top management without much input from the ground-level employees. Pursuing transparency in team communication practices flatten the hierarchy and broaden the scope for creativity and innovation. 

While working on a team, making space for everyone’s ideas and encouraging all members to partake in the decision-making process is crucial. In this way, employees feel valued and enable an all-inclusive exchange of ideas and information.  

  1. Motivates employees 

When employees feel a sense of belonging to the team, they become active participants who work enthusiastically towards the group goal. Managers must hold regular face-to-face meetings to discuss challenges and discrepancies openly with the team to build this sense of belonging.  

Including all team members in the decision-making process may be time-consuming, however, it can give valuable insights and viewpoints that can elevate the team’s performance. 

Honest feedback, constructive criticism and employee recognition – are some of the most effective ways to demonstrate transparency in the workplace. It encourages employees to be more involved in the project and work together to accomplish team targets successfully.  

  1. Improves employee engagement 

According to Quantum Workplace, employee engagement is “the strength of the mental and emotional connection employees feel toward their places of work  

Employees who feel that managers are being honest with them tend to be personally invested in the work they do. Engaged employees are more likely to pitch in innovative ideas and, communicate and collaborate effectively to fulfill their responsibilities.  

In a highly transparent team, managers build an environment where team goals and challenges are clearly communicated, encouraging employees to communicate their perspectives, viewpoints, and concerns openly. Thus, pursuing transparent team communication results in high job satisfaction and a low employee attrition rate.  

A Gallup’s report on employee engagement shows that companies with a highly engaged workforce have 21 percent higher profitability. They also have 17 percent higher productivity than companies with a disengaged workforce. Engaged employees tend to have higher job satisfaction and are happier in their roles. This positive outlook makes them act in the best interest of the team.  

  1. A better understanding of team vision and responsibilities  

In a genuinely transparent team, the managers must discuss- 

  • Goals– Discuss in detail what the team aims to achieve and the responsibilities of each team member.  
  • Roles and responsibilities – Managers must clearly assign workflow guidelines and the responsibilities of each team member. Employees must be made aware of what they are expected to do. 
  • Workflow and reporting structure – The structure of the workflow should also be discussed thoroughly. Transparent team communication avoids conflicts,  confusion, and duplicate work within the team.  

Team leaders must communicate the vision and goals of the team with utmost clarity of thought. Giving a clear picture of how an employee’s work contributes to the team is important to improve their work performance and enhance productivity. 

  1. Opens communication channels for interpersonal bonding 

 One of the main objectives of transparent team communication is to facilitate a two-way collaboration between the upper-level management and also encourage peer-to-peer interaction.  

Managers should make an effort to enforce transparent team communication consistently. Transparency helps establish trust between the boss and employees, which is essential to communicate freely and share information without being judged or ignored.  

Open communication within a team develops interpersonal relationships, this ensures every team member is approachable and accessible regardless of the management hierarchy. Being honest and displaying vulnerability while communicating with employees helps in building a strong connection with all team members.   

  1. Encourages employee growth and learning 

Transparency is not just a quality of being honest and open. It also means sharing the knowledge you have with the entire team. ‘Knowledge sharing’ is beneficial to the team’s work performance as well as to the personal development of every employee in the team.  

In a recent study by LinkedIn, 73% of employees say they would choose to stay at their company if there were more skill-building opportunities. The prospect of learning something new from an experienced co-worker motivates employees to invest dedicatedly into the project. Work experience and continuous learning are vital workplace motivators that can boost team spirit and empower employees to put in their professional best.  

  1.  Transparency serves as a mitigating feature during a crisis  

The integrity and values of a business are tested when it goes through a challenging situation – be it a huge financial loss, mishaps within the organization, a pay cut or employee termination. During such events – Transparent communication is a saving grace. 

A business organization is accountable to its employees at the time of a crisis.  If there has been an error on the part of the management, openly acknowledging the crisis or the mistake with an assurance for proper resolution can reduce employee anxiety and doubt. A study by Sprout Social reveals that 85 percent of people say a business’ history of being transparent makes them more likely to give it a second chance after a bad experience. With the help of a meticulously planned communication strategy, employees can understand the issue and the reasons behind a management decision.  

Transparent communication is vital to retain the faith of the employees in the organization and its values. For instance, at the initial stage of the pandemic, many companies opted to go for a temporary salary cutback to safeguard themselves from sudden financial disruption. Transparency in corporate disclosure was the first step to dealing with the issue. Employees were informed of the decision and the reason behind it while transitioning to remote working as a safety measure for the employees 

 Organizations must prudently implement the right kind of transparency at every level of the team in order to facilitate a free flow of information and knowledge. Employees working in a transparent workplace trust their managers and know that their inputs are valuable to the success of the organization. On the whole, this internal harmony translates to improved external relations with the customers and upholds the reputation of the brand.  

The Blogulator

Web World Developers | Digital Marketing |

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