As businesses evolve, there is a lot more discussion of topics like transparency and openness within the company culture. In the past, it was common to keep employees in the dark and only share information among upper management. Today’s business world has changed to be more inclusive and open with employees.
However, if you want to be more transparent in your business, it can be difficult to know where to start. There are a wide variety of business practices that aren’t open to the public. Making your decision to be transparent means bringing those areas into the light. Here are five different areas of your business that can benefit from transparency.
1. Payroll
Payroll is the type of information employers often keep private but trends in transparency could lead to changes. When employees are in the dark about what other positions or departments earn, they become suspicious and lose trust in the business, which leads to a lack of enthusiasm for work and lowered efficiency. By being transparent with your payroll information, you could end up with a more cohesive and productive workplace.
Payroll software for small businesses often comes with features for transparency and internal sharing. There are also some companies that take it a step further and publicly release the salary information of each employee. Another way to build the trust of your team is to be transparent about the benefits available to each employee.
One common criticism of payroll transparency is that resentment will build when employees find out what others make. The opposite is often true because when salaries are kept under wraps, workers worry about discrimination and a lack of equal pay. You can use a salary calculator to justify salaries, ease minds, and let employees feel confident in their earnings.
2. Internal Communication
Another area where transparency is important is internal communication. Far too often in the workplace, employees are afraid to voice concerns or ideas. When communication with management isn’t open, employees can feel left out and unhappy at work. This means that resentment is harbored internally, and can lead to high turnover rates.
Companies that embrace open and transparent internal communication function more effectively. They also foster an environment that supports employees and garners healthy feedback. Employees also have more satisfaction in their jobs when they know they can speak openly with management. It leads to higher retention rates and more efficiency.
3. Business Goals
When employees don’t understand the overall goals of the business, they aren’t as motivated at work. Employees like to feel included, and they are happy when there is a common goal to attain. It helps increase motivation and makes processes operate more efficiently. After all, it’s easier to justify hard work when you know the end goal.
In old business practices, the goals and direction of the company were private information. Only certain members of management knew what the company wanted to achieve. This leads to employees and teams feeling directionless and out of the loop. Being transparent about new goals, company direction, and important milestones makes employees feel valued. They know they are part of something bigger.
4. Product Sourcing
Another, more unexpected area of transparency is in product sourcing. Companies that create products have different vendors and sources of materials. When those sources are kept private, it can lead to unexpected ethical dilemmas. When employees understand where products are sourced from, it helps them become strong advocates of your brand.
Keeping employees informed of the places products are sourced also helps them feel important. They understand the business process more clearly, and, as such, feel more valuable to the company. When employees feel included, they want to produce better results and stay part of the team.
5. Human Resources
Human resource is a department that is often filled with secrecy. In part, this is important because private individual information is kept in HR that can’t be shared. That includes addresses, individual tax information, SSNs, and more. However, that doesn’t mean that everything in HR needs to be kept under lock and key.
Different aspects of HR like job security, advancement possibilities, hiring practices, and current open positions can be transparent. Employees like to feel secure in their positions and should be aware when changes are made. Unexpected role removals or shakeups leave employees unhappy and afraid. You should also make it clear when new roles open up both for internal and external applications. This all helps employees feel secure in their jobs and happy with the company.
Conclusion
Business transparency is becoming more and more popular over time. As business practices change to be more inclusive and open, keeping up with the times is important. More transparency leads to happier employees who feel valued. Once you can provide them with transparency, they will have more trust in you and the company.
Transparency doesn’t happen overnight, but getting started doesn’t have to be difficult. Picking at least one of the areas above will help you towards the right path. Businesses with satisfied employees grow faster and are more favorable to consumers. Start today by rethinking your privacy policies and considering transparency.