Transparency in the workplace: What It is, why it’s important, and how to get it right

Transparency enhances employee engagement, boosts retention, and creates a happier workforce — all of which impact business performance. 

With a global workforce, organizational transparency can be tricky. There’s more potential for miscommunication, lack of visibility, and isolation among team members. 

In this article, we outline why transparency is so important in the workplace, how it impacts organizational performance, and how to ensure total clarity for your distributed team.

What is a transparent workplace, and why does it matter?

Transparency in the workplace refers to the two-way sharing of information between employees and employers. It provides clarity for employees about their pay, responsibilities, performance, and career progression. 

Prioritizing transparency leads to better employee-employer relationships. As a result, you can increase employee satisfaction, morale, and retention. Better transparency also leads to high employee engagement, which means higher profits for your organization.

How does transparency affect organizational performance? 

Let’s take a look at some of the ways workplace transparency impacts organizational performance.

Increases employee engagement

Employees who report high levels of transparency in their jobs are more engaged with their work. Engaged employees understand how their role plays a part in organizational success, can visualize their career progression, and they know they’re in the loop and trusted as part of the team. All of this boosts employee productivity, morale, and motivation — which is great for business.

Reduces turnover and attracts top talent 

Creating a more satisfied and engaged team lowers the risk of employees leaving. The happier they are, the more likely they are to stay. 

Transparency is also a good way to attract more talent to your business. When you get a reputation for being a transparent employer, higher-quality candidates are more likely to apply.

For example, job adverts with pay transparency receive 27% more applications than those without. Plus, 65% of employers report seeing higher-quality applicants when posting salaries.

Supports diversity, equity, and inclusion

Transparency supports workplace diversity, equity, and inclusion (DEI). It allows employees to spot any inequities so that they can raise concerns.

For example, think about a contract clause that prevents employees from discussing pay. That can impact the gender pay gap (under which women earned only 83.6% of what men did). With transparency, these employees can openly discuss their rates and make sure that pay is fair company-wide. 

Builds a healthy culture  

Transparency builds trust among employees, strengthening their confidence in the company and its leadership. When organizations operate with openness and honesty, employees feel valued, respected, and more connected to the organization’s mission. This trust forms the foundation for a healthy and supportive work environment where team members are not only engaged but also committed to the success of the company.

5 ways to create transparency in a global workplace

Now that we have established the value of transparency in the workplace, let’s walk through some of the ways to enhance transparency for a globally distributed workforce.

1. Implement clear communication channels 

Start by ensuring you have clear communication channels in place to:

• Update employees on any changes or news within the company

• Allow employees to request information or reach out when they need to

Clear and diverse communication channels ensure everyone is in the loop, regardless of the location of your team members. People can ask questions, get feedback, and collaborate. 

So what communication channels should you implement? Consider these options: 

• Instant messaging platforms that allow quick and easy contact, like Slack or Microsoft Teams. 

• Work management systems that enable commenting on specific tasks or workflows. Project management tools like Asana or Monday are just a few examples.

• Global HR systems that display key HR data (like salaries and vacations) and allow commenting and messaging. This gives remote employees easy access to vital information and lets them communicate within the system. For example, Remote HR Management empowers employees to self-serve so team members can handle HR tasks within the platform.  

Pro tip: Schedule regular updates with remote employees via video chat. This adds a personal touch to your communication, giving you a chance to speak face-to-face (virtually). If you don’t have time for regular video calls with your entire team, send pre-recorded videos to share key company updates in a more personal way. 

Read our remote communication guidelines for more insights into keeping in touch with distributed teams. 

2. Make key business information easily accessible

One of the most effective ways for remote leaders to increase transparency is to make key business documentation easily accessible. That's because all employees, no matter where they work, can instantly access this information when they need to.

For example, let’s say that you have a DEI strategy or statement for your business. When employees can easily access your DEI strategy, you ensure total transparency — not to mention employee peace of mind in knowing they can review and keep track of progress anytime. 

Document work progress, record remote meetings, and store documentation digitally. That way, distributed teams can access documentation whenever they need it from wherever they work. 

3. Provide employees with a clear career path

An unclear career path can negatively impact an employee’s job satisfaction, motivation, and desire to stay. In fact, career development is one of the top reasons for employees to stay or leave their company.

So, be transparent about career advancement opportunities and requirements to boost retention and keep employees happy. This means showing remote workers exactly where they can progress — and how they can get there. 

Take a look at some of the ways you can clarify career paths for your global team: 

• Define clear role responsibilities. Start by clarifying what each role entails. This gives employees a solid foundation for determining whether they might eventually want to move into different positions. 

• Create and share an org chart to show career pathways. An organizational chart is a clear breakdown of your company structure. It outlines the different teams, how they relate to each other, and the hierarchy of the business. An organizational chart helps your employees see where they can progress.

• Ensure employees know the skills and experiences they need for growth. Provide your team with a clear roadmap outlining the competencies, certifications, and experiences required to advance in their desired field. Offer access to resources like training programs, mentorship opportunities, and hands-on projects that help them build relevant skills. Regularly discuss career goals during one-on-one meetings and provide constructive feedback to guide their progress.

Pro tip: Consider providing remote employees with training and development opportunities to support their career development. By creating a supportive environment for professional development, you empower employees to take ownership of their growth and contribute more effectively to the organization.

4. Explain how all employee information will be stored and used 

It’s important to clarify how personal employee information is stored and used in the business. This builds trust with your team, reassuring all employees that their personal information is protected. 

Not only does it provide employees with peace of mind, but it also ensures that the business stays compliant with local data protection regulations, including the General Data Protection Regulation (GDPR).

Pro tip: Data compliance gets tricky when your business operates in multiple countries. Join forces with a global HR partner that can help you stay compliant with local regulations.

5. Create an organizational culture of openness 

Foster a culture of open communication so that employees feel safe sharing their honest thoughts and feedback. This reduces barriers to communication and encourages remote employees to share updates, ask questions, and build professional relationships.

Here are some ways to build a transparent workplace culture: 

• Encourage open dialogue. Promote a company culture where employees feel comfortable sharing their ideas, feedback, and concerns. Gather feedback from employees and ask for new ideas and perspectives. 

• Increase leadership approachability. Ensure that leaders are visible and approachable in the business, even if you’re working remotely. You might create a shared calendar where employees can book time to speak to managers or host a weekly call where teams can speak to leadership directly. 

• Celebrate diversity. Acknowledge and celebrate cultural differences, and encourage inclusive practices to show that you value different perspectives in the business. This can improve employees’ sense of safety in the workplace and make them more likely to communicate openly.

Improve global workplace transparency with Remote 

A transparent environment is beneficial for any business, but even more so for global companies. Transparent company cultures ensures that everyone feels part of the team, increasing communication and engagement — which, in turn, improves business performance. 

For distributed teams, maintaining transparency can be harder. Communication can be difficult, causing employees to feel disconnected and isolated. Remote workers may also miss vital updates if the right tools and practices aren’t in place. 

Luckily, Remote HR Management helps you build a transparent environment by simplifying all your HR tasks. From easy access to documentation to smooth PTO management, your employees can access all their data, change payroll preferences, manage expenses, and more. This helps keep communication and policies clear across your team members, regardless of their location.

To see how Remote HR Management can help you maintain transparency in your business, chat with a friendly expert today.

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