People want to know how to make their business stand out from the competition. Well, one way many businesses are beginning to build trust in their companies is by building transparency.
Being transparent in everything we do always helps in every situation, so it does make sense that it would help with company culture.
To learn more about business transparency, continue reading below.
What is Business Transparency?
Business transparency is when members of a company are continuously encouraged to share their information and accountability. This also means that the business needs to back up all of its claims in its policies with actions and decisions.
Being transparent about the business strategies, direction, and financial outlook will bring the team closer together because the employees will feel like this is a family unit.
Creating this open business environment encourages employees to keep the best interests of the business in their minds.
Also, the real objective of building a transparent business is to support the business by creating better relationships between managers and employees.
This will help employees to understand what they are working for, and they will have a better time delivering the results that the business wants.
Why is it important to establish transparency in business?
There are many reasons transparency is essential in business, but these are five reasons every business should establish it.
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Establish Trust
This may seem like a no-brainer, but having transparency in a business will help build trust amongst employees and managers. They will feel like they are working with a business with high ethical standards.
It is no surprise that many employees globally do not trust their employer, which helps create a toxic work environment.
However, when trust is established through transparency, employees are more likely to be committed to their employer and the business.
Also, they will fully understand the mission of the business, which will help them with their innovation and creativity.
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Expand Relationships
Employees do not always leave a business, but they will leave their managers. One way to combat this is by building strong relationships between the employees and the managers.
When a transparent workplace allows employees to feel like they can share their ideas without being judged by management, they are more likely to stay with the business.
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Increase Productivity
When a business is not truthful about its vision or how employees can be successful in their roles, they are less likely to be productive.
This is because there is no trust in the business since the managers and employers are not being transparent about the business. Overall, this will hurt the employees’ commitment to the business.
However, when there is transparency within the company about the goals and ways to be successful, employees will become more productive in their work.
This is because the employees will want to help the business since the higher-ups are transparent about what the business needs.
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Strengthen Innovation
Massive corporations can reach the heights that they can because the business has identified all of the strengths and weaknesses of every employee. Then, all employee’s strengths are pushed to help the company succeed.
The thing is, everyone is good at something, so when a business combines all of the employees, then they are going to create a strong team.
However, this can only work when the business is transparent. That means that the employees know that there is something that needs to be solved, and a strong line of communication has already been made amongst the team, so they are happy to step forward with their ideas.
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Reporting Becomes Straightforward
When a business is transparent, employees will be more open about their personal goals. These goals can sometimes help with reports by standardizing them or creating clearer templates.
This is because employees will be less scared to disclose information to their managers, whether it be about another employee or a business concept.
Five Ways to Increase Business Transparency
Building business transparency can be a lot of work, but it will be worth it in the end.
Below are five ways that every business can help promote transparency in the workplace.
1. Own Up to Mistakes
Mistakes happen, and when they do, it is essential that a business can own up to them. There is no point in being secretive when someone makes a mistake because this is not being transparent with the employees of the business. Instead, this will hinder the relationship that managers and employers are trying to make with the employees.
By owning up to mistakes, it will show employees that even their managers are not perfect. It shows humility and can make them less intimidating to speak to when someone else needs help.
When owning up to a mistake, it is essential to use clear language and an empathetic tone. There is no need to become defensive because that will not help the situation.
2. Encourage Feedback
Feedback, whether positive or negative, can make a big difference in a business. One of the biggest problems with a lot of businesses is that the team will not accept negative feedback.
Yes, it can sometimes be a hard pill to swallow, but if they are able to push past their ego, then they can make a really big change to their business.
People need to make sure that they are listening to the feedback that is left by employees and customers because this is how a business knows what the change is for the better.
Also, if a business does change due to the feedback, then this will show employees that the business they are working for does listen. Everyone wants to work for someone who will listen to them.
3. Create a Dedicated Company Knowledge Base
Having a company knowledge base will help with transparency in business because all employees will be able to access it.
No one likes to wait for someone else to pass on information because people work at different paces. However, when there is a dedicated company knowledge base, then all employees will use it.
Also, it is a quick way for them to get the answers they need, for the business to update employees, and it’s another way to build open communication amongst the team.
Having this line of communication will greatly improve trust in the business.
4. Have Open Communication
It doesn’t matter what size a business is; being open with employees will make a big difference to them.
When the founder of a business is candid about the struggles it took to get there, employees will begin to have a newfound love for the business.
They should constantly be reminded that an owner is a person too and that this business is essential the everyone involved.
Also, this makes the owner appear more like a human to the employees. It might surprise some people, but employees don’t always have the same empathy for a business owner compared to their fellow workers.
That is because they believe that the owner is far removed from what happens on the floor.
Instead of letting that hinder the relationship, use communication to build it.
5. Create a Core Value and Stick to It
Creating a core value may take some time, but every business needs to stick to it when it is done. If transparency is what a business wants to strive for, then making sure that the core value represents that is important.
Also, it will help employees understand the business better compared to when there is a core value that doesn’t mean a whole lot to the business.
Every business needs a core value that can be brought into every aspect of the business. That does not mean that there needs to be only one, but there can be two. However, do not have more than two because then, it can become confusing.
Conclusion
When creating trust in a business, there needs to be transparency. A business needs to be open with the employees so that they can be open with the business.
However, it is important to note that this will not happen straight away. Building trust takes time, so every business should be prepared to put in the work.
Except, it is easier to do so when a business is transparent from the start compared to one that is starting five years late.
The reason why businesses should be transparent is that employees will trust their employers more, it will increase productivity, innovation will improve, relationships will become stronger, and reporting can become more manageable.
Also, it will only take a business a few steps to become transparent, so the employees and employers can all benefit from the business.
By creating a core value and sticking to it, using a dedicated company knowledge base with Klutch, having open communication, encouraging feedback, and owning up to mistakes, any business can build transparency.
Then, your business will have trust amongst the team, which will create a better work environment for everyone involved.
