4 Reasons You Need a Transparent Company Culture

Many experts agree that transparency is important to a company and its culture.


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Transparency means a company is open and honest about its plans and operations, and its employees are also open and honest with one another and with customers. But a lack of transparency creates a secretive environment and untrustworthy employees, and people don’t like to buy from or work for a company they don’t trust.

The following are four reasons why your organization needs a transparent company culture.

1. Employee Productivity Will Improve

When employees deeply trust one another and their managers, they collaborate on projects and work better as a team, as well as are more likely to regularly share notes, data, and ideas with one another without restrictions. With full transparency in the workplace, employees won’t fear coworkers or managers taking credit for work or being misguided or lied to and will be much better at setting and reaching realistic goals, which improves the organization’s productivity and profitability.

2. Employee Engagement and Innovation Will Improve

Employees working in a transparent environment will be more engaged in in their roles because they won’t be worried about unfair treatment or being belittled or lied to. Studies even show that more transparent work cultures lead to happier employees, and when employees are happier and more engaged, they become more innovative and can focus on producing new and exciting ideas.

3. Employee Retention Will Improve

To retain your employees, implement a transparent company culture that allows them to fully trust their bosses. Fifty-eight percent of employees trust strangers more than they trust their own bosses, and most employees leave a job because of these bad bosses. As such, they will be much more eager to work for trustworthy and transparent leaders and managers.

4. Customer Satisfaction Will Improve

Transparent company cultures also extend to an organization’s customers. When employees are transparent with each other, they foster a more transparent company environment overall that impacts customers—and customers prefer buy from companies they can trust. Thus, organizations that are up front about their refund policies, sales prices, etc., will be more likely to retain these customers over the long term.

So, if you’re currently implementing a new company culture, be sure to weigh the four reasons you need transparency mentioned here. In part 2 of this article we’ll elaborate on what you can do to actually implement this kind of culture.

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