When it comes to business and moving forward, honesty really is the best policy. It’s best to be open and transparent with everyone, employees and shareholders alike. Sometimes transparency can be overlooked for things like profit and growth, but it’s an important component of a working business: transparency improves morale, productivity, and faith in your organization.
Transparency should apply to everyone, not just the low-level employees.
Cultivating an atmosphere of trust and support takes work. Make it clear that transparency is everyone’s responsibility, from the CEO down. If in-house communication isn’t a two-way street, nothing is going to work. When transparency is treated as a company value, it contributes to teamwork and helps the company to feel like a more cohesive whole.
Transparency encourages employees to stay.
If an employee does not feel like they know what’s going on with the company, they might start to worry that something bad is happening. If they don’t have faith in the business, workers may begin to look for other jobs. And when they do, they will look for companies that do value transparency, because through valuing open communication, a company can show how it values the people it employs and serves.
There’s money to be made.
Companies that are transparent about their doings have a higher market value than companies that don’t, says Robert Eccles, author of The Value Reporting Revolution. Companies that disclose more information earn more trust from their clients and investors, meaning that there is less hidden or unknown risk.
So how do you be transparent?
Sharing information sounds more difficult than it is. If you are a business owner, make yourself available to employees. Don’t be afraid to share emails—and don’t say things you wouldn’t want the whole company to hear. When you point out areas for employees to improve on performance, too, provide suggestions about how employees can do that. Challenge your team to think creatively and work together.