Achieving Transparency in the Workplace: Strategies for Success (With Examples)
86% of leaders surveyed in Deloitte’s 2024 Global Human Capital Trends research say that the more transparent the organization is, the greater the workforce trust. Turns out that’s only the case when transparency is done right — and opinions differ on what that looks like.
Transparency in the workplace touches on almost every aspect of the employee life cycle, from attraction and recruitment to retention and development.
In this article, we’ll explore the importance of workplace transparency, the consequences of its absence, and nine actions organizations can take to promote transparency in the workplace.
Contents
What is transparency in the workplace?
Why transparency in the workplace is important
The impact of the lack of transparency in the workplace
Examples of transparency in the workplace
How to improve transparency in the workplace
FAQ
What is transparency in the workplace?
Workplace transparency is when an organization and its employees openly and freely sharing information about processes, decisions, objectives, expectations, and more.
In today’s workplace, there is also a legal element to transparency that organizations and HR need to consider. Legislation around pay transparency, for instance, aims to ensure employees receive equal pay for work of equal value.
The 4 pillars of transparency
Culture Monkey identified four key pillars of transparency in the workplace, namely:
- Communication: Clear communication primarily means two things: i) making sure that messages are easy to understand and ii) actively listening to feedback.
- Accountability: In a transparent workplace, people know who is accountable for what. This increases the chances of meeting commitments and people taking responsibility for things that didn’t go as planned.
- Disclosure of information: Having access to relevant information is essential for people to make informed decisions.
- Accessibility: In a transparent organization, people can easily access the information they need to do their jobs without unnecessary barriers.
Increasingly, we see companies taking their transparency beyond the workplace and into the wider world as they publicly share their progress regarding, for example, DEIB.
Why transparency in the workplace is important
There are several reasons why transparency in the workplace is essential:
- Builds trust: When done well, transparency fosters a sense of trust between employees and managers.
- Promoting a culture of openness: An environment where questions, concerns, and ideas can be freely expressed encourages innovation and continuous improvement — and attracts candidates. According to a 2018 Slack research, 87% of workers wanted their future company to be transparent.
- Reduces rumors and misinformation: Transparency minimizes the chances of rumors and misinformation spreading within the organization.
- Improves decision-making: With access to more complete and accurate information, employees at all levels can make more informed decisions.
- Facilitates change management: During times of change, transparency can help reduce employee resistance and fear.
- Encourages accountability: When actions and decisions are made transparently, it creates a sense of accountability among employees.
- Ensures compliance with legislation: An example of this can be found in the Illinois Workplace Transparency Act. The purpose of this act is to fight sexual harassment and other types of discrimination. Put simply, it forbids employers to enter into a contract with employees (contractors, freelancers, etc.) that includes a non-disclosure clause covering workplace harassment or discrimination.
The impact of the lack of transparency in the workplace
On the other hand, a lack of transparency in the workplace has its consequences, too. Here’s what they can look like:
- Reduced innovation and creativity: Transparency fosters an environment where ideas can be freely shared and debated. Without it, innovation and creativity can be stifled, as employees may feel unsafe or unmotivated to contribute their ideas.
- Compromised ethical standards: A lack of workplace transparency can lead to questionable practices going unchecked. This situation can compromise the organization’s ethical standards and lead to legal or reputational risks.
- Communication breakdowns: A lack of transparency often results in poor communication throughout the organization. Misunderstandings become more common, leading to inefficiencies and errors in work.
- Lower employee engagement: Employees who feel left out of the loop can plummet their engagement and motivation. This disengagement affects productivity, job satisfaction, and the overall morale of the workforce.
Examples of transparency in the workplace
What does transparency at work look like? There are numerous examples in the various phases of the employee life cycle.
In this section, we’ll share three of them:
1. Transparency in recruitment and selection
DHL Aviation provides a prime illustration of transparent recruitment and selection practices. They fill 65% of vacancies internally, with over half of the C-suite comprising individuals who began on the frontline.
By sharing these statistics with candidates, recruiters set realistic expectations and demonstrate the company’s commitment to internal growth opportunities.
2. Transparency in compensation and benefits
MIMOSA Diagnostics embraced radical transparency concerning pay, conflicts, and organizational and business matters. They only refrained from disclosing personal information that employees wished to keep private, as well as investor details.
For instance, in terms of pay transparency at MIMOSA, employees were required to understand the criteria that determined their pay before individual pay figures were disclosed, ensuring fair wage determination. To facilitate this, the company established a structured approach for making pay decisions.
3. Transparency in Diversity, Equity, Inclusion and Belonging (DEIB)
Creating a comprehensive DEIB section on a corporate website is one thing; being a truly diverse, equitable, and inclusive employer is another.
Many organizations celebrate their commitment to female representation in leadership on International Women’s Day via social media. One year, Francesca Lawsome and Ali Fensome developed a gender-pay chatbot that extracted publicly available data from these companies. The aim was to assess the companies’ commitment to gender equality in the workplace.
The findings reveal significant disparities between rhetoric and action. For example, despite Heathrow Airport highlighting its “Women at Heathrow,” women’s median hourly pay is 14% less than that of men in the organization.
Some companies are making strides in getting transparency in the workplace right. Nike, for example, has published its ‘2025 Purpose targets’, with various reports for visitors to download, which explain what the company is doing around pay equality, representation, inclusion, and more within the organization.
How to improve transparency in the workplace
There are several strategies HR can adopt to improve and ensure transparency in the workplace throughout the employee life cycle.
Strategy 1: Adopt transparency in your employer branding
Rather than (over)selling the benefits of working for the organization, think about conveying all sides (even the less glamorous sides) of the job and the industry.
For example, suppose you’re hiring people to work in a role that can be physically demanding. Explain to candidates what the role will require. Include uncensored employee testimonials from people who recently joined the company on your website that paint a true picture of what it takes to successfully perform the role.
Strategy 2: Set realistic, fact-based expectations
Recruitment and selection transparency encompasses various aspects.
Firstly, it involves clarity about the application process: What should applicants anticipate? How soon can they expect a response? What is the timeline for the entire process? Who should they contact for inquiries?
Secondly, it includes being transparent about job and organizational expectations: What salary range is offered? What growth prospects does the organization provide, and in what timeframe? What performance standards are expected from employees?
Lastly, an often overlooked yet crucial aspect is setting clear expectations about what not to anticipate. For example, in a fast-paced company, it is vital to tell candidates or new hires that many aspects will be unstructured and require self-driven initiative.
Strategy 3: Explore different levels of transparency
Recognize that not all information can or should be shared openly with every employee (as we saw earlier in the MIMOSA Diagnostics example).
Categorize information and determine the appropriate level of transparency for each level based on factors like relevance, sensitivity, and potential impact.
Strategy 4: Encourage a continuous conversation
Train managers on approaching performance management as a continuous conversation (also referred to as a continuous dialogue) and have ongoing conversations with their employees throughout the year instead of on an annual basis.
Doing so creates a stronger relationship between manager and employee, often leading to greater trust and transparency.
Strategy 5: Open communication channels
Establish and maintain multiple channels for open communication, such as regular (company-wide) meetings, town halls, suggestion boxes, and digital platforms where employees can voice concerns, ask questions, and provide feedback.
Ensure these channels are accessible to all employees and actively monitored for responses and action.
Strategy 6: Involve employees in decision-making
According to a Visier survey, 52% of the respondents who trust their employer do so because they’re transparent about company policies and practices.
Actively involving employees in decision-making plays a vital role in this. This can be achieved in various ways, for example, by enabling them to set their own objectives and KPIs or organizing brainstorming strategy days.
Strategy 7: Provide regular updates and reports
Provide regular updates on company performance, including successes, challenges, and areas for improvement. This can be done through newsletters, emails, Slack channels, or dedicated meetings.
Strategy 8: Build a culture of feedback
Cultivate a feedback culture where giving and receiving feedback is encouraged and valued. This includes both positive reinforcement and constructive criticism. Training staff on effectively giving and receiving feedback can help build a more open and communicative workplace
It’s also essential for both employees and the business to act on the insights they receive. According to the Visier survey, one of the top reasons employees did not trust their employers was that the company did not follow through on employee feedback.
Strategy 9: Create clarity on rules and expectations
Provide clarity on roles and expectations. Use tools like 30-60-90-day plans, roles and responsibilities templates, employee development plans, and performance metrics to help employees understand what’s expected of them.
Key takeaways
- A transparent workplace is one of the cornerstones of employee trust and engagement. It’s a key element for people when deciding what company they want to work for.
- Transparency plays a role in every aspect of the employee life cycle. To create more workplace transparency, the nine action points listed in this article can be an excellent place to start.
FAQ
Transparency in the workplace refers to the practice of being open, honest, and straightforward about various aspects of the business with all its stakeholders, including employees, managers, and sometimes even customers.
Organizational transparency is essential for, among other things, building trust, improved decision-making, increased engagement, and compliance with (local) legislation.
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