Transparency in the Workplace: What it is and Why It Is Important
It is the end of an era for many companies as Millennials and Gen-Z take over the workforce. No longer are the days where company information is on a need-to-know basis. Instead, many companies are opting for a transparent approach in the workplace. Find out what workplace transparency means and how it can benefit your company.
What is Workplace Transparency?
Being transparent in the workplace means to freely exchange information in the interest of the organization and its employees. There are many ways to incorporate more transparency in the workplace including:
- Constructive feedback between managers and employees – managers should not be the only one giving out criticisms or feedback
- Communication about salaries – this will help to bring equity to employees who may be getting paid less than they deserve
- Involving different employees in decisions or changes about the company – this makes employees feel more involved and invested into the company.
Transparency in the workplace must begin with upper management. By creating an open and inclusive environment starting from the top, all employees will eventually feel more comfortable in the workplace. If employees can tell that leaders do not feel comfortable talking about basic topics (i.e, paying people unfair wages, not reacting well to feedback from others), the company may struggle to keep these employees.
While there are many topics to talk about that increase workplace transparency, some cannot be as freely discussed as others. Remember to set boundaries early to employees about what information should be talked about in private. When deciding what topics should be kept private, it is also important to explain the reasoning behind it. This too will help enhance transparency.
Why does Workplace Transparency Matter?
For many people, transparency with their management is one of the top factors that determine employee happiness. When employees see transparency in action, it will create a sense of belonging and respect with the company. It encourages people to speak up with their own ideas and opinions that may be beneficial to the company. Transparency builds trust and motivation in employees which in turn, creates better job performance.

Workplace transparency is not only important for current employees of your company. People searching for a job or potentially looking to hire your company for your service care about transparency as well. The more honest and transparent companies are in their hiring posts, including the salary they are giving to positions, detailed job descriptions, and company values, the more applications that may be submitted.
A job takes up a significant portion of a person’s life. Now more than ever people care more about finding the job that suits them versus settling with what they have. When faced with burn out, a lack of growth within the company, and lack of skill development in their workplace, employees will not hesitate to leave. By being more transparent in job postings, and creating a more transparent workplace culture, job retention should increase.
hug Can Help Create a more Transparent Workplace
Need help increasing transparency in your workplace? Hug is an award winning service that helps to encourage employee feedback on your company. Using analytics including surveying employees on core values, mind, money, health, and engagement, hug can help leaders become more aware of their employees needs. When employees are able to discuss their challenges and success with their company, transparency becomes more prominent. Try our demo today to start the path to a more transparent workplace!