Transparency in Business: upcoming wave in Organizations

Transparency in business

Initially, transparency among employees or within the company was a taboo concept. From employee salaries to business strategies the more opaque companies’ operations were, the better were their chances of success.

Need for transparency

In the present scenario, business strategists who hide their goals and strategies are at the risk of producing the opposite effect. The 21st century is an interconnected world where transparency is considered the new gold standard. Rising organizations are sharing important deeds about their capital, the money earned by them, and about their diverse staff, all the way to how and where they source their materials.

But what exactly do companies gain by maintaining transparency up to competition and scrutiny? Provided below are the most vital perks reported by organizations that are into it, employees who want to experience more of it, and consumers who drive decisions based on it.

Transparency builds trust

A survey conducted by the consulting firm label insight found that 94 percent of consumers prefer purchasing from brands that practice transparency. When organizations aren’t forthcoming, it is likely for the consumers to seek that information elsewhere. Research conducted by Slack’s Future of Work Study also found that over 80 percent of employees want to understand more about the decision-making process by their employees. While over 50 percent of business strategists claim that their companies were transparent, less than 18 percent of employees agreed to it.

The top management needs to share information about their businesses both good and bad with their employees. Chances are that the employees will find ideas to solve any issues, thereby keeping their trust.

Transparency generates better performance

According to Shields, every employee wants to be an asset to the company and think like an owner because (s) he is one. The earlier those organizations and their business strategists can give up control, the more they develop the right kind of culture where an employee is the biggest critic and also advocates.

For instance, Atlassian, an Australian software company, ensured transparency that helped them flatten their firm, making it likely that most of the departments or parts of the firm operate as siloed entities. One way they accomplish this goal is by hosting a weekly meeting that has everyone from their foreign base and the U.S teams.

Transparency improves efficiency

A survey conducted in 2013 by Tiny Pulse found that workplace transparency is the top factor in employees’ increased efficiency and happiness. A report by the Harvard business review in the same year stated that over 70 percent of employees were much more engaged within their company when their business strategists and leaders consistently updated them about workplace dynamics and communicated with them about companies ‘strategies.

For instance, Stripe, a company that strives for digital transformation in all areas, asks employees to CC every email to several mailing list archives. These archives allow anyone in the firm to access sent mails by topic. The teammates have achieved efficiency gains as a result of the transparency initiative.

Transparency entices premium talent

The business data that correlates business transparency and employee happiness are overwhelming. A study conducted by employee feedback company TINYpulse found that over 40, 000 employees favored transparency to be the most vital factor contributing to overall employee satisfaction.

While companies hire employees, transparency is a boon i.e. potential candidates look for firms that are open about their culture, operations of team members, salary expectations, and priorities including financial outlook.