What is Workplace Transparency, and How To Achieve It?

There is a continuously growing demand for transparency in the workplace – inside and outside of it. 

Inside the company, you have (now do so) new norms. From Milennials to Gen Zs, employees are more keen to understand contexts of decision making, the why behind chosen direction, the sense in the operational movement… 

From outside, you have new form of pressures and regulations arround transparent business operations, like institutions impeding ESG reports. 

The older generations tend to discard transparency as a full desire of “incompetent ones to stick the nose in their revenue”, while the truth lies in effect in mutual trust for long-term joint benefits.   

What is workplace transparency?

Transparency at work implies open and honest communication at all levels of an organization. This includes communication between leaders and employees, among employees, stakeholders, etc.

First, in a transparent workplace, leaders and managers communicate openly and honestly with  employees by:

• Providing consistent 360-degree feedback
• Involving them in decision-making
• Setting clear expectations
• Explaining the context and “why” behind the decision-making process
• Sharing company and team setbacks and victories
• Updating employees on key business metrics
• Being accountable for the consequences of made decisions and actions 

Transparency in the workplace goes the other way, as well. 

In a transparent workplace, employees also feel invited and able to communicate openly and honestly with their manager and HRs:

• Asking for clarification on tasks
• Providing feedback of their own
• Submitting new ideas
• Providing updates during the project
• Admitting their mistakes

What are the elements of a transparent workplace?

The trick with transparency is that most of the time, we believe we know what it is, so we don’t think about it much. Then, a certain not-so-favorable moment comes—a wrong decision starts an avalanche, fraud comes to the light of the day… Only then do we realize that a lot of crucial information wasn’t so available and that we’re far from being a transparent organization.  

That humbles us to understand that certain actions and decisions weren’t made because the people who made them were incompetent, but because they lacked context and were acting out of fear and discomfort. 

To be sure your team and organization are operating in full transparency mode, make sure you’re able to tick boxes on these clear indicators:

1. Open (and honest) communication

When you’re open and honest, your team members can share ideas and information without hesitation. That’s why it’s the key to a transparent workplace.

While assertiveness and sandwich techniques are popular approaches, no amount of nice packing and bows will mask unkindness. Whatever communication style you choose, act with good intentions and kindness. It’ll lay a foundation for mutual trust and respect and open the door to dialogue.

Employee engagement and happiness are much higher in an organization that encourages dialogue as they feel valued.

2. Regular team meetings and feedback

If done right and constructively, regular team checkups and continuous feedback can help you and your employees better understand each other’s strengths and weaknesses and choose specific areas for further development.

Discussing timelines, approaches, goals, and challenges will ensure everyone is on the same page and prevent misunderstandings that can lead to decreased efficiency.

That’s why it’s important that you choose a topic for weekly and/or monthly meetings and brief the team on the impromptu ones. This will ensure everyone is on the same page, without unnecessary anxiety, rumination, and the possibility of gossip and sharing untrue information. 

3. Easy access to information

In a transparent workplace, data is shared openly. This means everyone can access important information about the company’s performance or strategic goals and understand how their work contributes to its business success.

When information is accessible, employees can make more informed decisions and feel more included.

You should tend to have an accessible knowledge base online with company policies and operational standards, as well as a mission, vision, KPIs, or OKRs. Later, every team should have the same base that builds on the core one and is shareable with other departments and teammates. 

While it looks like a lot of work in the beginning (and it is), it’ll come in handy for onboarding optimization and clarity on all levels. 

Again, this kind of transparency will prevent false information and interpretations. 

4. Accountability (on all levels)

The key difference between a healthy work environment and an unhealthy one is accountability. In a healthy workplace,  everyone – from leaders to employees – is accountable for their actions.

Self-accountability must be a shared value for you to foster a culture of trust and reliability. Mistakes will happen, but blaming and shaming shouldn’t. 

Once the guilt game is on, innovation and productivity open the door to step out. 

5. Clear company goals and vision

If you’re unaware of the directions you’re heading as a company, each department will create its own way. Needless to say, that won’t help you thrive. 

Having a clear vision, mission, goals, and core values at the company level will help everyone be aligned and heading in the same direction. 

Additionally, having big, clear goals creates a sense of purpose, which helps everyone on the team be more motivated and efficient. 

6. Leadership by example

Transparency won’t last long if it’s just a talk-and-control maneuver for lower management and operational staff. Imitation is the basic form of learning for any human being, which is one of the main reasons a good leader leads by example.

Give recognition to your coworkers whenever you have a chance, admit your mistakes, and take ownership of your team’s actions and decisions. Share with them information ”from above” and vice versa but without any finger-pointing and blaming.   

Support your team so they can support you. So-called “umbrella leaders” create the most resilient, loyal, and efficient teams. 

Why is workplace transparency important?

86% of employees and executives quote poor communication and collaboration as critical factors in workplace failures. Considering that quality communication is the foundation for transparency and efficiency, we can simply say that transparency is important because it sets you up for long-term success. 

Transparent environments are characterized by:

• easier trust building,
• higher employee engagement, productivity, and efficiency, 
• lower turnover costs as it’s easier to retain talent.

Overall, transparent organizations are more ethical, so anxiety and depression among employees are minimized. 

1. Transparency builds trust and reduces turnover

If you’re skeptical about it and still believe that some information needs to be hidden for the greater good, take a look at Buffer, which has very loyal customers and high employee satisfaction. 

According to Gallup, as much as 42% of employee turnover is preventable because it’s tied to open communication and transparency. 

Buffer is aware of that, so the company openly shares information on its salaries, revenues, and equity distribution. Its customers and employees highly trust the social media management company, which is reflected in its almost unexcitable turnover rate and enviable churn level. 

Additionally, if you’re focused on attracting great talent, it’s good to be aware that ads with information about the salary companies offered in 2023 received 75% more clicks than those without.

2. Transparency affects motivation, creativity, and innovation

When you’re honest and transparent about the core values and your end goals – you’ll attract employees who share them. They’ll innovate and contribute more simply because their work mission intersects with their individual one. And there’s hardly greater fuel. 

A great example of this is Netflix. The streaming platform famously released its Memo on Culture in 2009, which the rest of the tech industry quickly embraced. 

This has laid the foundation for the company’s vision of collaboration and innovation. 

Netflix recently also updated its culture memo. Its Head of Talent, Sergio Ezama, emphasized how the transparency and trust they’ve built within the organization have led to the most creative and innovative moments, which enabled the company’s growth.

3. Transparency promotes ethical behavior 

Imagine working for one of the biggest energy companies in America at the start of the 21st century, only to find out that the company lied to you for years and is actually close to bankruptcy.

This happened to Enron’s employees when it was discovered in 2001 that they were misleading their investors and employees by inflating profits and hiding debts. For instance, Enron’s shares at its “peak” were $90.75 but were traded for $0.26 on 2nd December 2001, when the company declared bankruptcy.

Of course, Enron went into bankruptcy once the fraud was discovered, and its accounting firm was dissolved.

If Enron had been transparent and accountable, this unethical behavior would not have gone unnoticed, and the company would still be around.

4. Transparency reduces uncertainty 

Your company will inevitably experience uncertain periods. During these periods, you should pay close attention to your employees and keep them informed, as they will naturally feel uncertain and anxious about their future. 

While work is not the only factor that can influence our health, it makes up a significant part of our day and our lives. 

In the 2024 Workplace Health Report, Champion Health revealed that nearly 2 in 3 employees are experiencing (at least) mild anxiety and depression symptoms at work.

Furthermore, symptoms of anxiety and depression at work have increased between 2023 and 2024 by 8% and 11%, respectively.

It goes without saying that feeling unhappy for a few days at work is different from experiencing ongoing depression and anxiety. And it certainly doesn’t favor efficiency and problem-solving. 

How can a lack of transparency hurt your organization?

Today, one in every three, or 33% of employees, believe there needs to be more transparency in how their company communicates with them.

It’s easy to forget or neglect transparency, but this has consequences on your organization, such as:

1. Lower employee engagement: A workplace where employees are kept in the dark on essential decisions doesn’t promote employee engagement but, instead, diminishes it and leads to lower employee satisfaction and motivation.

2. Lack of direction: In a work environment with a lack of transparency, employees can feel lost and unable to understand their role in the company’s goals, making them less productive and inefficient.

3. Reduced innovation: Where transparency is lacking or doesn’t exist, innovation is also non-existent, and such an organization soon becomes stagnant as others surpass it.

4. Poor team relationships: Lack of transparency leads to strained relationships within the team, potential conflicts, and even a toxic work environment. These are fertile soil for gossip, bullying, and various boundary violations. 

5. Compromised ethical standards: A company can maintain high ethical standards when people are held accountable for their actions and decisions. However, if no one takes responsibility or faces consequences, ethical standards quickly become irrelevant.

6. Limited (or no) input: In a transparent workplace, employee input is highly valued and listened to. This means that the organization can benefit from their perspective.
   
   However, employees will feel frustrated and devalued if the employees’ input is not listened to and they are treated like cogs in a machine.

What role does leadership play in building and fostering workplace transparency?

Leadership is vital in establishing and promoting transparency at work in different ways.

As a leader, you set the tone for establishing communication and should ideally serve as an example for others to emulate by sharing information openly and being accountable.

Speaking of accountability, you should hold yourself to the highest standards here, as your actions and decisions often have a much more significant impact on your colleagues than what you tell them as a story. 

If employees see that their manager is held accountable, they are likelier to take ownership of their mistakes.

7 tips to build a transparent workplace environment

Building a transparent workplace doesn’t happen overnight. Instead, it’s a long process that will ultimately pay off and benefit both the organization and its employees.

Define what “transparency” means in your organization

It would be hard to find two organizations that define transparency similarly. Here are some different ways organizations define “transparency:”

• The practice of sharing information amongst people on important matters
• Open communication between leadership and employees
• Direct dialogue between management and employees
• Practice sharing information regarding the organization’s operation with its people, etc.

Your definition of workplace transparency must be unique to your organization and its challenges, not a carbon copy of someone else’s. You can set the standards for employees’ expectations and behavior with a good definition.

Promote accountability and ownership

A project’s success depends on everyone’s accountability. Accountability starts from the top and then “trickles down” the chain of command.

Take a project manager who failed to meet the KPIs on an important campaign. By taking full ownership of the team’s failure instead of blaming individual team members, the project manager demonstrates authentic leadership and fosters a culture of open discussion, accountability, and ownership.

Encourage feedback and questions from employees.

Feedback from their manager is crucial for employees to understand what they must pay attention to. However, feedback should be a two-way street. 

Don’t ignore feedback from employees, either. Just like when looking at a painting, you should step back to see the “whole picture,” which is what your perspective as a leader gives you. Sometimes, you also need to squint a little closer to see the tiny details you might have missed, which is what the employees’ perspective gives.

With HeartCount Pulse Check, your employees can share their feedback every week.

In addition to surveys, they can use direct messages and comments on the HeartCount portal to provide feedback to management on any issues they encounter.

Over-communicate if necessary

Employees will only trust you if you communicate transparently with them. Instead of keeping them in the dark, which can lead to lower engagement and productivity, try to overcommunicate.

This will make them feel trusted and increase their loyalty.

Document your decisions

Average HR leaders make decisions and don’t explain them to anyone. Great HR leaders document their choices and are unafraid to explain their reasoning.

When employees understand why a decision was made, they are more likely to accept it.

Highlight and reward transparent behavior

Transparent behavior doesn’t mean sharing information and feedback only from leaders to employees. A genuinely transparent manager is open to feedback from their team as well.

When employees witness a leader or manager act this way (transparently), they know that they, too, should act like this, significantly if you recognize and reward this behavior.

Provide transparency training and support

Providing transparency training is an excellent way to build trust within the organization. This training can take different forms, from providing employees with a handbook detailing transparency guidelines you want to promote in the organization to using quizzes to test their understanding of transparency to inviting guest speakers to share their insights on transparency in their organization.

Conclusion

As HR or team leader, you should set an example for the employees. By promoting transparency at work and a culture of innovation and open communication, you will encourage everyone in your organization to be more engaged, and together, you will all advance toward the same goal.

Start a free, 14-day HeartCount trial today to build a culture of conversation, sharing, and mutual support.