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The naked truth on organizational transparency

Co-Factor November 16, 2021


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25% of employees don't trust their employer and only 50% think their employer is open and honest with them. Much of this lack of trust is due to a lack of transparency in the workplace. Trust and transparency go hand in hand and they are essential in determining the quality of the organizational climate. The key to promoting a culture of trust between employers and their employees is a transparent leadership. Without it, a natural “us against them” mentality is born among employees since who could possibly put their faith in a company or a person who keeps everything under lock and won't share information?

Actually, what is a transparent workplace?

A transparent organization is about transparent people. A culture of trust and transparency emerges when leaders intentionally show their own openness and encourage transparent and trustworthy behaviors and attitudes, such as:
• Tell the truth, don't sugar coat it
• Rewards people fairly based on their contributions
• Show respect, be trustworthy and kind
• Communicate clearly and coherently
• Be yourself, don't try to be someone else
• No "hidden agendas" and no "double meanings"
• Keep your promises
Google, Microsoft or Deloitte are already using open ended performance measures, analysis and assessments in gamified forms. This allows employees to feel more comfortable and to openly discuss almost any aspect of their position with their managers, from personal compensation to the company long-term vision.

naked-truth-blog

Why do we need transparency in business?

In a transparent company, employees are informed about everything, which makes them feel involved. On the other hand, managers also feel they belong to the team they are responsible for and don't lead from behind locked doors that no one dares to open. Transparency is a prerequisite for taking responsibility and it leads to commitment once people understand the purpose behind their work. Here are some of the benefits that transparency brings to organizations:
• A healthy, happy and constructive workplace where relationships develop genuinely and teams are built easier, alignment occurs naturally (since people trust their leaders), problems are solved faster, the reaction to market changes is faster (companies with informed and proactive employees are much more agile), engagement is real and thus high levels of performance are emerging.
• An increased autonomy level, which improves the overall motivation and organization efficiency.
• Hierarchical relationships improve and culture flourishes when information is openly shared.
• Positive control, because transparency improves self-control and less expensive formal control mechanisms are needed.
• Organizational change is easier to implement when everyone shares the same reality.

What happens when transparency isn't a standard?

The management team often refuses to share less optimistic news for fear of losing employee involvement. While seems counterintuitive, employee engagement - not to mention leadership confidence - increases when the company has the courage to communicate honestly with its employees. Otherwise, people might not be aware of what is real and true, doubt instils into their minds causing a deep sense of insecurity, and the climate degenerates into a toxic one.

Social media and organizational transparency

major change in organizations. Social media has suddenly opened the door to leaders and employees' personal spaces. The world is still divided between the electronic mail and the new social communication habits. In recent decades, electronic mail has moved from a specialized communication channel to the most popular one until it has become less tolerated (the "No new message inbox" concept) nowadays. However, the electronic mail is still essential in many work environments and has remained a strong channel when it comes to employee engagement. Its competitors, on the other hand, are much more appealing to the younger generations - the social apps, the chat channels and chatting are more flexible and funnier. But, whatever technology you may choose, relevant information should be delivered to those who need it.

The principles of transparency

At first transparency may seem difficult to implement. Becoming transparent is a slow process that is done in baby steps, which firstly encourage the information exchange and then understanding the benefits that will lead to a high trust culture based on transparency.
• Transparency applies to everyone, no matter their position in the organization
• Information, either good or bad, is to be shared fairly, as quickly as possible
• Any change concerning the company vision or values is communicated to all without any delay
• Operational information (including headcount related) is regularly updated for everyone in the company
• Delegating authority, widening the decision-making circle, involving employees in decision-making and motivating decisions become a priority
• Set up mechanisms to allow people to request information (such as monthly meetings with the CEO, a business open house etc.)
• Cultivate and increase employees' project ownership
• Conversations are kept real and honest
Nowadays, transparency is a standard. This translates into job security and career development opportunities for employees, and provisions and loyalty for leaders. It is only by delivering truth in all its forms (information, reactions, feedback) and at all levels that organizations can objectively assess themselves and quickly adapt to the current dynamic contexts.

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