Transparency: Why Is it Essential for a Good Working Environment?

Nowadays, companies live in a challenging environment in terms of employee rotation. In fact, a recent PwC survey indicates that 75 percent of firms in Mexico have experienced levels of rotation from 5 percent to 20 percent, just in the last three years.

This has a direct impact on the work environment within any company. Also, according to the Asociación Mexicana en Dirección de Recursos Humanos (AMEDIRH), characteristics such as bad business environment, unfair salaries and lack of communication are the main causes that lead to this level of rotation. In other words, it is a vicious circle that must be attacked from within the companies.

Companies need to improve their work environment in order to avoid staff turnover, which directly affects the working atmosphere. At HolmesHR, we believe that an important part of the solution to the problem described above lies in transparency and clarity in communication, both between colleagues and from the employer.

Clear internal communications allow companies to keep their workers well informed about the organization's news, as well as the objectives and goals to be achieved, but it also strengthens relationships, fosters a sense of belonging and facilitates the implementation of changes.

On the other hand, increasing transparency within companies ensures that employees' expectations are properly met, thus increasing retention and loyalty. According to the Organization for Economic Co-operation and Development (OECD), corporate transparency can be defined as the possibility that a company's information can be consulted by different parties affected by it, so that they can make informed decisions based on reliable information. In simplest terms, transparency means having nothing to hide.

An employee who is properly informed in a timely and clear manner about internal movements, salaries and growth possibilities, important dates and outstanding events in the company, as well as extra-office events, shows a greater level of identification with the brand, its values, goals and objectives. 

This, of course, improves the level of employee engagement. Glassdoor (a free digital platform that gathers information and reviews from employees or former employees about companies, salaries, and even job openings), in a study released in 2021, points out that workers' commitment and productivity increases when the employer clearly and transparently shares the company's values. Harvard Business Review, on the other hand, points out that 70 percent of workers feel more committed when the company's strategy is constantly communicated to them.

In addition to keeping the organization informed and generating an improvement in productivity and performance, sharing information and knowledge within the company provides other benefits, such as all members of the company moving toward the same goal and objectives. It also encourages innovation and creativity, maintaining the flow of information and, therefore, achieving a competitive advantage.

To this end, there are important tech tools that companies can’t afford not to use for personnel management nowadays. A good technology platform for personnel management allows, for example, a reduction in  the time and cost spent by the human resources team on their daily tasks, thus allowing them to dedicate more time to valuable activities in favor of the company, increasing productivity and retention.

But there are also tools, including corporate social networks, that play an important role in internal communication. With these, employees are in an environment of daily and immediate feedback on their tasks, as it allows them to connect with other employees, even if they are not in the same area, and share achievements and internal recognition of their work. This kind of acknowledgement within a digital platform in front of the rest of their colleagues is, undoubtedly, an important motivator.

Corporate social networks allow the company to publish any information you want to share with your employees in just a few minutes, keeping them informed and in constant communication among each other and with their superiors. With this, you can segment who can see each publication, as well as decide whether employees can publish content or comment on a coworker’s publications.

Finally, transparency can also be promoted by using other software functionalities, such as suggestion boxes. In addition to being transparent, they allow the employer to listen to each employee in a timely manner. This allows employees to feel that they have the possibility of communicating their concerns, proposing better practices and requesting information when required — a key step toward a positive working environment.

In today's environment, technology is a real necessity for companies in several of their departments and human resources is not an exception. In an environment of high staff turnover and the growing need to take care of the work culture, it is a real luxury not to use digital innovative tools for personnel management, with high impact risks that no company wants to jeopardize.