Employers these days are in a tough spot, being required to juggle the needs and wants of two groups of people at the same time. On one side are the customers. They’re technically the major income source for businesses. On the other hand, there are the employees. Any company owner would be extremely foolish to disregard them and their demands. After all, they’re the ones who are largely responsible for bringing the products and services to the market. Both groups’ presence is self-explanatory.
Of the two, however, the latter is probably the biggest concern. Employee productivity is a major consideration for literally every employer, and one big thing that plays into this is morale. Keeping employee morale up is a critical business practice, and experts from CoreValuesPartners.com are likely to agree. Are they right, though?
The Current Situation
Various workplace surveys reveal that a good 71% of employees don’t feel that their managers explain company goals well. Another 50% claim that their employers aren’t transparent enough.
Such assumptions are likely to escalate into employee turnover, which can foster massive losses for companies. With an estimated $500 billion worth of losses every year, the word ‘massive’ is an understatement. Taken into a typical employer’s perspective, that’s about 50-60% of an employee’s annual pay. Corporate transparency can help turn the tables into a company’s favor.
Transparency as a Desirable Corporate Practice
An infographic from the research firm Tiny Pulse provides an answer. Numerous factors contribute to employee happiness, but the biggest one is transparency. A survey of over 300 global organizations and more than 40,000 respondents made this claim clear.
And why is transparency favored over everything else? It’s simple: transparency fosters trust between company management and employees, and vice versa. Employees are only engaged if they know where they stand in the company. They’re also more productive if they completely understand how their efforts, no matter how small, affect the company as a whole.
It’s easy to see why this is the case. Employees ultimately have two major goal classifications: personal and organizational ones. It’s the top management’s job to connect to both types of goals to foster trust. They’re doing something for the company, so their employers must also do something for them in return — and it does not end at the paycheck. Nowadays, focus is on mutual benefits, more so in the workplace.
Trust puts everyone at ease. In the office, trust is fostered by transparency. If the company has nothing bad to hide, there’s no reason for ill feelings among its employees. In turn, talent turnover is reduced, and bottom lines are much more improved.