How to Make Your Organisation More Transparent

With the Great Resignation putting a strain on many businesses, retention strategies are more important than ever. Organisations increasingly recognise that workplace transparency fosters company culture, making it a great and cost-effective strategy for retaining top talent.

So, how does workplace transparency look in practice? Here are three areas of your business where greater transparency can improve employee satisfaction, engagement, and retention.

 

1. Transparency in Decision-Making in the Workplace

Most businesses are already on board with the concept of transparency in company-wide decisions, at least to some extent.

Many companies, for example, have vision and mission statements that they are eager to share with their employees and with good reason. Similarly, when a company makes a significant change that requires employee compliance, it is self-evident that the decision must be communicated.

However, there is often room for more transparency when it comes to requesting feedback from employees before making a final decision. After all, if the change will impact everyone, shouldn't they have some say in the matter? Giving workers ample notice is a step toward transparency, as it allows them to better prepare by informing them of upcoming events.

Many workplaces, for example, are faced with difficult decisions about whether to return to the office as more employees are vaccinated or to return to remote work as COVID variants continue to disrupt plans. In any case, employees' concerns must be heard and taken into account when assessing the risks to their physical and financial well-being.

Consider holding weekly 1:1 meetings between managers and direct reports or conducting an employee survey to understand where everyone stands.

Additionally, the leadership may want to hold a company-wide meeting to walk employees through the reasoning behind difficult decisions and invite team members to share their thoughts on potential issues and opportunities. At the very least, communicate major decisions in advance so that everyone can prepare.

It isn't easy, especially early on, to be transparent about company-wide decisions. It can feel like giving up control to start a conversation when you recognise a problem but aren't ready to commit to a specific solution. When you feel the need to put your foot down, it's hard to open the door to feedback.

However, there are situations where everyone's input isn't needed, such as sensitive personnel changes, where employers must respect an employee's privacy. Leadership should, however, inform employees who will be affected by the changes. Transparency of this nature necessitates discretion.

When management involves team members in decision-making, it instils a sense of trust and ownership in the company's direction. As a result, loyalty and retention improve.

 

2. Compensation Transparency in the Workplace

Company compensation practises are one area where transparency may make employers feel uneasy. This retention strategy can be traced back to the interviewing stage.

Many employers are concerned that including salary information in job postings will lead to them offering more than a candidate is willing to accept, while others are concerned that offering new hires more will make current employees feel underappreciated. There's also the possibility that they're sharing information with their competitors. Some hiring managers may also be concerned that if qualified candidates post their wages upfront, they will self-filter too soon. It can be deceiving, even with the best of intentions.

Of course, pay isn't the only factor to consider when accepting a job offer. Still, transparency can help set expectations for candidates and hiring managers, resulting in a more efficient hiring process.

Consider using target compensation to figure out how much each team member should be paid. In a given role, target compensation is what a reasonably good performer can expect to earn. You should include it in every job posting you make.

However, remember that compensation transparency can also be used as a retention strategy. Employees can refer to compensation practises included in an employee handbook as needed. It should enable them to understand how their pay was calculated and what would be required to "level up" to a raise. When compensation practises are transparent, employees do not need to negotiate raises.

When employees understand how their salary is calculated, they feel respected and appreciate a commitment to equality and nondiscrimination.

Consider holding weekly 1:1 meetings between managers and employees once more. These regular meetings offer an open forum for discussing performance and compensation. Training managers to have these conversations using best practices is also a good idea.

Transparent compensation practises, rather than just the compensation of a single employee, are essential for healthy company culture and successful retention.

 

3. Company Performance Transparency

Employers have the right to hold employees accountable for their work, and most of them are happy to do so. After all, it has a financial impact.

If a company is truly committed to transparency, it should also hold itself accountable for its own performance, including its bottom line. The mere mention of disclosing financials causes anxiety in many small-to-midsize businesses, and it can be a bad idea if done carelessly.

When a small business owner has put so much into the start-up of their company, the financials can feel very personal. It's like opening the floodgates to other people's thoughts when you open your books. Transparency is a sign of weakness.

On the other hand, vulnerability is an act of trust, and small business owners require the support of their entire team.

You could start by organising a monthly company-wide meeting where the CEO and other senior executives share the company's financial spreadsheet. When it comes to sharing financial information, context is crucial. Leadership should take the time to explain how to interpret the numbers, including the nuances and fluctuations, rather than simply making the document available and leaving it open to wild speculation. 

Similarly, HR could call a separate monthly company-wide meeting at which each team leader reports on their progress toward achieving their monthly SMART goal. HR can use this method to hold teams accountable, but it's also one of several ways HR can show leadership and cultivate company culture.

Both of these monthly meetings should include sharing successes and framing setbacks as opportunities for growth. This type of transparency, like company-wide decisions, necessitates discretion, especially if the news is negative. You don't want to cause panic, resulting in a mass exodus. It's critical to provide context once more.

However, one should note that a culture of secrecy and paranoia can be far more damaging in the long run. Transparency about company performance helps retention by preventing rumours and speculation about the company's future, as well as assisting employees in managing their anxiety about the company's future. 

 

Improve Transparency in Other Ways

Revisit your mission and vision statements if you're looking for more ways to improve retention by increasing workplace transparency. Even if it isn't explicitly stated, your company's vision should include transparency. Your mission statement can assist you in setting transparency goals that are in line with your organisation's goals and daily tasks.

An HR audit can also assist you in identifying areas where you aren't being as transparent as you could be. Transparency should be implemented one area at a time rather than all at once.

Source: BerniePortal