The importance of internal transparency

The importance of internal transparency; the structures and strategies companies use to ensure vital information is shared. 

Internal transparency encourages people to share valuable information about the job they do, how they do it, and who they do it with. It’s a crucial aspect of workplace culture rather than a quantitative and measurable goal, but done right, you’ll definitely see its impact on trust, morale, and talent retention. 

These all lead to significant gains in performance from both individuals and organisations as a whole.

The first and most obvious reason to recognise the importance of internal transparency is trust. This has historically been something that employers and their organisations have failed at, with a 2023 study of 3000 UK workers finding only a quarter trust their boss.

There will always be a potential for distrust due to the inherent power imbalance of a hierarchical relationship. An employer can always, to at least some degree, influence how much someone is paid, how fast they are promoted, and for how long they stay in that role. These can have a dramatic impact on someone’s life. However, your boss can also impact your life in less existential and dramatic ways, such as by limiting or giving employees’ certain comforts and freedoms when they’re at work, and allowing for a better balance between work and other areas of life, as examples.

Trust goes both ways, and mutual trust between employees, their immediate management, and up to senior leadership, increases morale. Firstly, and most importantly by making employees feel cared for and listened to. Employers can feel reassured that freedoms or comforts can be given without them being exploited or abused in a way that would unduly impact performance. Therefore, in an ideal world, they will be more likely to give such benefits. Secondly, employees won’t worry that they may be penalised or punished without good reason.

The link between morale and productivity has long been established, with a 2019 University of Oxford study showing that happy workers are 13% more productive.

This impacts each person personally as they can concentrate on work without worrying about office politics or ask for what they need to do their job properly without being penalised or judged, for example, and management can spend less time micromanaging and looking over shoulders, and more time driving growth and efficiency. More generally speaking, a trusting environment encourages people to try harder than they may do otherwise.

Furthermore, organisations will perform better, as employees know they can share potentially innovative ideas or take calculated risks where beneficial without fear of reprisal. Over time, this transparency, and the trust it builds, will create a more flexible, agile organisation which is faster to fix problems and seize opportunities.

Businesses are struggling to hire, particularly digital talent – with two-thirds of UK businesses experiencing a digital skills gap. Artificial intelligence, which is increasingly vital to a modern business’s performance, is one of the hardest to hire for, with only one in ten global workers having sufficient AI experience according to a Salesforce survey.

Unnecessary staff turnover impacts company trust and morale. It also means a business is more likely to lose its most promising performers, as if they do not feel their position is safe, they can find more secure employment elsewhere.

Where possible, lead from the front.

These should carry both good and bad news, and they’re an ideal way to start. Announcements should be regular, expected, and when relevant, include admissions of poor performance, as well as company wins, to further build trust. This has its limits, of course, as an announcement of imminent staff cuts, for example, would only lead to panic.

These will give employees the appropriate avenues to know that their grievances, recommendations, constructive criticisms, or even work-related compliments and thanks, are being heard by management. This will build trust and morale, as stated throughout, but more importantly, will also relieve tension and reduce any temptation to gossip and spread rumours in frustration.

In an ideal world, an employee would feel their comments are welcomed through a less formal context, such as in a random email, message, or office drop-in. However, in an ideal world, it is not, and having official ‘channels’ and the dedicated time to enact this transparency means employees don’t feel they are intruding into a manager’s office, their time, or their inbox. It goes without saying that where and when relevant, transparency should be accepted and welcomed outside of these spaces too. 

These communication channels should be active and accessible whether your organisation works in person or virtually. For some people, communicating via digital tools does not come easily, but for others, the opposite is true, and a message over Slack or Teams or an email is much easier. 

It is important to remember that transparency should, unless relating to a serious issue, be voluntary. Enforcing active transparency, whether that’s requiring a positive complement or a constructive critique, will damage the morale and trust of people who are less communicative; no one likes to force a criticism or compliment.

Although having a company that is always forgiving and accepting of fault is the ideal, it is important to have anonymous channels, as well as names, so people can share less positive points without fear of reprisal. This anonymity, where appropriate, is vital to corporate whistleblowing. This is a key check and balance in any organisation against the abuse of power.

Some examples of established communication channels could be:

–       Team and company-wide surveys

–       Open office hours and voluntary ‘drop-in sessions’

–       Virtual compliment and complaint ‘boxes’

–       Monday morning meetings and Friday afternoon ‘wrap-ups’

Exit interviews may be tricky and awkward for both parties involved. Even hearing criticisms from a disgruntled employee or someone who’s found a better position elsewhere, however, will often provide valuable feedback and constructive criticism for both parties. After all, hard truths about your business may only come out after the employer-employee relationship is no longer relevant.

It is important not to ask for details of an employee’s relationships, as it is not an opportunity to collect ‘dirt’ on other staff. Also, don’t ask leading questions such as “what was wrong with…” Some useful questions to gain feedback or helpful tips on company culture, training, and the morale and trust between people at the company, could be:

1. Why did you start looking for a new job?
2. What circumstances led to you accepting the new position?
3. Did you feel that you had the tools to do your job well? 
4. How would you describe the company culture?
5. What could we have done to keep you here?
6. Did you discuss your reasons for leaving with anyone at the company prior to resigning, such as your manager?
7. How can our company improve training and development programmes?