Technology, specifically social media & web sites such as glassdoor.com, have made organizational transparency more important than ever before. Glassdoor.com, a go-to website for potential employees, is one of many websites that can influence candidates before they decide to submit an application. By searching a specific company, you can access reviews from current & past employees, their personal rating of the company, average wages & salaries, and details of their interviewing process. Companies are being forced to become more accountable.
Even if your small business is not listed on websites such as the above, social media, & review sites have made it possible for employees to post anonymously & write not-so-nice things if they believe they have not been treated fairly in some way.
The best way to combat this is to open up your organization to your front line staff. Sharing knowledge and information as well as asking and listening to input improves employer/employee relations. Every employee should know the specific goals of the organization in order to play an active part in achieving them.
TINYpulse, a company that provides weekly employee engagement surveys, found that transparency is the #1 factor when determining employee happiness. Management transparency had a correlation coefficient of 0.94 with employee happiness. The survey summary also noted that “…The cost of improving transparency is almost zero, but requires an ongoing dialogue between management and staff” (https://www.tinypulse.com/resources/employee-engagement-survey-2013).
Forms of Transparency
1. Financial
- Helps staff understand how your company makes and spends money
- Increases accountability
- Motivates staff to keep spending in check
- Can strengthen an employee’s sense of investment in the company
2. Social & Environmental
- Recognize that your business decisions have the potential to impact surrounding communities and the environment.
- Make a commitment to be environmentally and socially responsible
- Build consumer trust & loyalty
3. Products & services
- Disclose ingredients, materials, methods for installation or use, etc. to enhance customers’ understanding and usability of products and services
- Embracing ratings and reviews (a forced transparency via Yelp, TripAdvisor, etc.) & proactively responding to negative ones can allow you to provide better customer service
4. Ethics
- Foster a culture of integrity and high ethical standards
Have any questions regarding the advantages or challenges associated with increasing transparency in your organization? Contact our office at (904) 429-4588.