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.
Helps your business grow
If you want to grow your business, be transparent about your business plans with your employees and your investors.
If you want them to contribute to the growth of your business, you need to provide them with the very same information that you have. When your employees feel that they have all the facts, and when they are included in the decision-making, they can also understand every decision, and move towards the business goals.
In return, your company will be rewarded with a more innovative and thoughtful atmosphere, where your employees are doing their best to overcome challenges creatively. You can encourage transparency by hosting regular staff meetings, asking managers to share the information with their departments, or writing a newsletter.
Brings more feedback
Being transparent will attract more genuine feedback from both your employees and your prospects. Such feedback is an important source of information for improving your products and services, as well as your business practices and policies. We’ve already mentioned that Buffer is open about their salaries. As they claim, the feedback they got has already brought necessary adjustments for salaries in the San Francisco Bay Area. Now, they are in a much better position to attract new talents from the Bay. And, if you continue being transparent about the evident impact of the feedback, you become more credible, and your audience loyalty only grows stronger.
Encourages organic engagement
Your transparent practices will also encourage people to interact with your business more organically, helping you establish a more visible and better online presence, and positively affect your brand perception. If you talk about the ways your products are made, how you hire your employees or how your business participates in the life of your community, your blog and social media posts are more likely to be shared and discussed on social media and other relevant channels.
It’s more important than ever to be open and honest about your business. Remember that the transparency starts from within, so be the one to start the change.