Importance of Transparency in an Organization

January 26, 2021
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Imagine being in a place where you are constantly questioning yourself and the people around you. It is always unclear what will happen next and you wake up unsure of what your day will be like. Working for a company that is not transparent feels like this. Transparency can be described as people being open and honest with each other. When employees and management are on the same page, it creates a positive environment and decreases negative feelings amongst staff. Transparency in an organization is important because it builds trust, enables collaboration, and increases productivity. All of these can lead to bigger successes well worth the sometimes uncomfortable moments of being transparent. 

Transparency Builds Trust

Transparency in an organization builds trust between management and employees. Employees are more likely to trust a leader who is open and honest about both the positive and negative aspects of the company. They are also less likely to complain to others about the problems if they know you are aware of them. According to The Myers-Briggs Company, “Transparency breeds transparency and, if allowed, it can spread to become part of the organizational culture. Leaders demonstrating that expressing honest opinions and being open is acceptable gives permission for others within their teams to do the same.” This proves that transparency not only improves the relationship between leaders and employees, but also between employees themselves. If you create an open and honest culture, people are more likely to trust you and your decisions. They will work together to come up with solutions to any problems you present. 

Transparency Fosters Collaboration

Being transparent can be difficult because you might be sharing problems or issues you would rather keep to yourself. Oftentimes, these problems or issues can be solved with collaboration. For example, if you were having an issue with reaching more people through social media, there is most likely someone on your team with great ideas waiting to be used. This will make the employees feel valued for being trusted with problems, as well as appreciated for being able to come up with solutions. In turn, your company begins to be a well-oiled problem-solving machine. 

Transparency Increases Productivity

When a leader is transparent with their employees, the employees feel committed to their positions and work. Employees need to feel committed in order to be productive in their position. According to Psychology Today, the number one quality of productive employees is being “honest and straightforward.” This goes for both management and staff. If management models this behavior, employees will put it into practice, therefore becoming more productive. The number two quality of productive employees according to Psychology Today is a collaborative team member that “shares the load,” another quality that comes from transparency. If productivity is one of the main concerns in every business, transparency seems like a small price to pay. 

Although transparency can be uncomfortable at times, the benefits far outweigh the uncertain moments of sharing. Your organization’s trust, collaboration, and productivity will skyrocket with each increasing moment of truthfulness. When in doubt, share it out. 


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