Whether it’s because the Millennials and their need for social impact are overtaking the vast portion of our employee and customer pool, or it’s the rise of technology that has developed some new values in our culture, yet business transparency is no longer optional. It has become a norm instead. The truth is that your good reputation may get your customers to try your products or services. It can also make you seem like a desirable employer and even attract new talents to your company.
However, if you want to excel at your customer and employee retention and prevent them from turning to your competitors, you need to deliver on your promises. To build loyalty, you need to be transparent along the way.
Here are the six most important reasons why transparency is substantial for your business.
Boosts employee engagement and satisfaction
Studies show that transparency in the workplace is one of the key factors affecting employee satisfaction. Transparency helps employees see how their work fits into the greater scheme of things and how it contributes to achieving business goals. It also empowers them to give timely feedback to their managers and makes them certain that their feedback is taken seriously and appreciated.
Naturally, they feel more ownership over the processes that are taking place in the company and are more engaged with them.
You can start nurturing transparent corporate culture by:
- Communicating your company values and visions,
- Involving your employees in decision making,
- Making your financial data available,
- Opening lines of communication for any feedback.
Buffer is, for example, famous for being transparent about salaries of everyone in their team, and the formula used to calculate them, moving towards resolving any possible inequality.
Builds trust and brand loyalty
Employees trained and nurtured in a transparent corporate culture will also be capable to understand the value of transparency and practice it in all their interactions with the customers. This way, they will help you build trust in your customers, which is invaluable. Transparency is the key to creating trust because it eliminates any insecurities they might have on the products or the services you’re offering. One of the great examples is the Australian insurance company Youi, that is open and straightforward with their customers when it comes to the products and the schemes they’re offering, like in the case of NSW Greenslip. When you lay out the truth, you’re pointing out any possible limitations too, so your customers are certain that you’re not hiding any flaws or defects. And when you make a mistake and be honest about it, your history of being transparent will come to the rescue, as 85% of your customers are most likely to give you a second chance.