In a recent client session, a participant raised the issue of transparency in their organization. This was an important point as, when an organization is open, honest, and transparent, it benefits everyone.
How an Honest and Transparent Culture Helps Your Business
In an honest and transparent organization, team members are engaged, it becomes easier to attract and retain talent, and relationships with suppliers, partners, and customers are strengthened. Organizations that are honest and transparent are seen as more trustworthy and these organizations have an easier time fostering strong employee relationships.
People value authenticity and transparency from organizations and leaders. They also want to work for an organization that has an ethical, responsible, and transparent atmosphere. One of the best ways for an organization to demonstrate its values is to be honest and transparent about what the organization believes in and stands for.
Younger generations especially value working for an organization that places an emphasis on giving back and being a good corporate citizen in addition to meeting business goals.
Our Gen Z study found that values are very important to this new generation, which is just entering the workplace as they are 22 years and younger and are graduating from college and university. Out of those surveyed, 86% of Gen Zs said that working in an industry that they believe in or that matches their personal values is important. Members of younger generations not only value these traits, but they are more than willing to share their opinions of and experiences online. Thanks to social media, these opinions and experiences can go viral and have a strong impact (negative or positive) on an employer’s brand.
We have seen in the past how industries have struggled to attract and retain Millennials in sectors that aren’t viewed favourably. Most notably, the Oil & Gas industry has been ranked globally as the least desirable sector by Millennials. A former client, who retired from working in that sector after many years, shared with me that his son also works for an oil and gas company. His son is a younger Millennial and while he loves the work, his team and the growth opportunitiesm he is considering leaving the organization (after only a few years) because he doesn’t believe in the product and doesn’t feel it is aligned to his values. Our Gen Z research indicates that the next generation will also be selective in the type of organization and industries they choose to work for.
All generations value honesty and transparency. So, what can an organization do to create a more transparent and honest culture?
Increasing Transparency and Honesty
Some organizations, or leaders, may be resistant to greater transparency. However, there is a strong business case to be made for greater openness and honesty. If this part of an organization’s desired culture and DNA, there are several steps that can be taken to enhance transparency and build trust. This is particularly important during challenging times when employees may be feeling more stressed.
- Communicate more frequently
- An organization cannot be honest and open without communication. This is true for internal communication as well as with customers. Leaders must share information quickly, broadly and honestly. Team members will be most engaged and will trust leadership more if they have an opportunity to communicate with leaders to share their thoughts and/or concerns. As well, enhanced cross-functional communication will break down silos and strengthen relationships and build trust across the organization.
- Consider opening up information
- For many organizations, information is still shared on a “need to know” basis. Information is distributed narrowly to only certain leaders or departments.
- Youngers generations have grown up expecting greater access to information and being able to gain access to what they want, when they want it. They live in a world where knowledge is available 24/7 on their smart phone. So, they expect the same from their employer.
- This doesn’t mean you need to immediately make all information available to everyone in the organization. However, you can take steps to create an environment where team members feel confident asking for access to information and where they feel confident that information requested will be provided to them unless there is a strong reason not to.
- Explain decisions
- Leaders can create a more honest and open environment by explaining the reasoning and rationale for their decisions. Often, team members feel “left in the dark” when the organization does something suddenly or when a decision is made that they don’t understand. This can lead to a culture where team members feel excluded and wary of leaders. Unfortunately, still today, organizations lay off employees in a way that leave the employee and their team members asking questions about why and with little information on how decisions were made. This erodes the trust of remaining employees and increases skepticism.
- If leaders explain how they came to a certain decision as well as what impact the decision will have on the organization, department and team members, employees will respect their leaders more and will believe they are trustworthy and honest.
- Respond positively to honesty
- It is critical that leaders respond positively to team members who are being honest and open, even if what they are sharing may be considered negative. For instance, if a team member comes forward to discuss that they are not happy in their role, it’s a good idea for the leader to listen to the team member’s concerns and avoid passing judgment or getting upset.
- Responding positively is even more important in more serious situations, such as harassment. It is critical that leaders are open in these situations and that they take steps to investigate all credible reports. By encouraging greater openness and transparency by all employees, including leaders, the organizational culture can shift toward being more honest, open and trustworthy.
Giselle Kovary
As president and co-founder of n-gen People Performance Inc., Giselle is dedicated to building strategies and programs that target, motivate and engage a multigenerational workforce. She is a sought after resource to industry leaders, having worked with 18 of the top Fortune 500 companies. Over 60,000 people globally have experienced an n-gen workshop or presentation. She has devoted more than fifteen years to researching the impact that generational differences have on organizational performance. Giselle has co-authored two books: Loyalty Unplugged: How to Get, Keep & Grow All Four Generations and Upgrade Now: 9 Advanced Leadership Skills. She has a Master’s degree in communication studies from the University of Windsor.
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