Transparency: More Than a Buzzword

Mar 7

Businesses might be tempted to be cautious, even opaque, when sharing information with their customers and clients. Certain subjects have long been considered top secret or taboo, from secret recipes to employee salaries. But the business landscape changed during the COVID-19 pandemic, and the public expects more. More social good. More positive change. And more transparency.

Why is transparency needed?

The more transparent companies can be, the more consumers believe they have nothing to hide. An important insight when the public is losing trust in businesses nationwide. According to Cision, “Large businesses and corporations experienced a significant loss in trust (during the pandemic) with 32% of Canadians saying they have less trust compared to 14% having more trust for a score of -18.”

Meanwhile, Business.com says, “Successful startups have shared salaries companywide, made company performance reports accessible to all employees and built transparency into everything they do. The results are striking: increased employee morale, higher employee retention rates and a boost to the bottom line.” An article from Forbes elaborates, “transparency in business leads to trust. And, many consumers only want to support companies they trust… In this Information Age, customers demand stronger communication and transparency. If you don’t provide it, they’ll move on to a business who can. That goes for your employees, too.”

Increasing transparency in your business can:

Engage customers: There are plenty of ways to engage your customers through transparency. Be clear with customers about product ingredients, pricing, labour and sustainability practices, and how you use their data. Made a mistake? Don’t try and hide it. Let customers know what you’re doing to fix it and how you’ll prevent that mistake from recurring. When communicating, don’t beat around the proverbial bush — keep it concise and clear so that your customers know you can be trusted!
Improve employee happiness. Happiness means less burnout, better retention, and better productivity. That’s what it’s all about, right? You can bring transparency to your employees by regularly updating them on strategies and events and sharing your vision for the future of the business. No one likes being blindsided, and when your employees feel like they know what’s going on within your company, you’ll create a more stable atmosphere for all. “When employees trust their employers, there’s an increase in advocacy, loyalty, engagement, and commitment,” says Forbes.
Help with recruitment: Relevant skills aren’t the only factor when hiring. Cultural fit can be just as important as experience or skills. Be open about your internal culture, the day-to-day life of your team, salary expectations, values and priorities of your company and even the future financial outlook of our company. Successfully attracting the *right* team members will increase productivity and ultimately improve your bottom line more than just a butt in a chair.

When should you keep things to yourself?

Engaging in greater transparency doesn’t mean giving away everything that makes your business different. For example, you can be transparent about the ingredients in your secret sauce without giving away the exact recipe. Sometimes, you may decide to be transparent internally and still require a confidentiality agreement with employees.

If you’re concerned about transparency in your business or are facing a crisis and want to know how to tackle it in the most ethical and effective way, get in touch with our experts!