Have you heard of radical transparency? Hint: it’s not the latest fad diet or an upcoming superhero film. Recently popularized in the business world by Ray Dalio (head of the largest hedge fund in the world), radical transparencypromotes a workplace environment of honest communication, where employees acknowledge common biases and weaknesses in order to move past them.
The benefits aren’t just for the employees though. Greater transparency also bodes well for customers and revenue. Learn more about the benefits and discover how to build a more transparent workforce for everyone’s best interest below.
Transparency: the employee engagement elixir
Think of greater organizational transparency as a magic potion for your company. It has been linked to:
· Higher perceived value of products or services
· Increased customer satisfaction
· Greater willingness to purchase
· Better performance
A studyconducted by Brigham Young University School of Communications also found that transparency often leads to higher levels of organizational trust. This is increasingly important to employees and customers alike, since a shrinking number of people in today’s reviews-driven world are willing to engage with companies that they don’t trust.
Do what is right for the future of your organization—use the following strategies to increase transparency one step at a time.
4 Tips for greater transparency
1. Leverage your HR team’s reach
Open and honest communication ensures that everybody within an organization has access to the same information—the first step toward achieving a transparent workplace. As the department that interacts with all employees, HR is uniquely positioned to make this dream into a reality.
Get your HR team together and brainstorm ways to promote transparency throughout the various communication channels used by your organization. As a starting point, check out our blog articleon increasing your HR team’s influence.
2. Make honesty your best and only policy
Job descriptions not only serve as the initial point of contact between your organization and potential employees, but they also outline what is expected from team members. This ensures that you’re on the same page with potential employees from the get-go, and that team members are less likely to become disengagedand leave your organization after joining the organization.
Lower turnoverand happier employees… what’s not to love? Be honest when outlining position duties and expectations, benefits, and company culture in your job descriptions. It’s always better to risk alienating a few applicants who won’t be a good fit anyway than to pull a bait-and-switch on promising candidates later.
3. Don’t hide the hiring process
CareerBuilder found that 32% of job candidates are less likely to purchase products from an organization that does not respond to their application—not to mention that they probably won’t want to join your company down the line when they’re more qualified (and may even badmouth your brand to others).
Don’t leave applicants in the dark and risk hurting everything from your brand to your bottom line. Outline your hiring process and make your decisions transparent every step of the way. For instance, send an automatic email to all applicants outlining your anticipated response time. This will put minds at ease while also ensuring that your HR or hiring team doesn’t get sidetracked handling a flood of anxious follow-up emails.
Recently, one of the most popular trends among organizations striving for transparency is publishing the salaries of all employees, from C-suite executives to new entry-level hires. Wait! We know what you’re thinking.
Before dismissing the idea as a sure fire riot-starter at your company, consider this: SumAll, a social media data analysis company housed in New York, made public all employees’ salaries and has seen marked improvements in operational efficiency.
According to CEO Dane Atkinson, SumAll's turnover rate is less than 10%and employee collaboration is at an all-time high. Atkinson praises the system for facilitating communication between employees at all levels and lessening the burden on the company’s HR team as the sole communicator between employees.
Honesty is the foundation for better employee engagement, lower turnover, and better customer satisfaction.