How transparency in leadership benefits the whole of the company

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"63% of workers do not fully trust their CEOs and other leaders"

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As an employee, it can be scary not knowing what’s going on among upper management. It can have a serious impact on employee performance and workforce morale.

According to the 2017 Edelman Trust Barometer, 63% of workers do not fully trust their CEOs and other leaders. About half of polled workers believe their supervisors are upfront and transparent, the American Psychological Association’s reported Work and Well-Being Survey in 2014.

Once trust is lost, it can be hard to get back. Although developing a culture of transparency takes time and consistency, the rewards of such an environment are considerable. Employees in healthy, transparent workplaces are more likely to stay with a company for longer periods of time, more productive and are generally happier.

Here are signs of healthy transparency among leadership:

• Superiors ask for and welcome feedback and criticism.
• Relationships between colleagues and employees and bosses are strong.
• Frequent communication is prevalent in order to avoid unmet expectations or misunderstandings.
• Upper management has an open door policy.
• There are consistent meetings discussing new developments and reestablishing and clarifying expectations.
• Leaders take time to meet with employees individually, establishing personal connections.
• Superiors aren’t afraid to show true feelings and emotions.

As it turns out, the degree to which a manager is transparent directly affects how creative team members are, according to a 2017 article by Yi Han, Po Hao, Baiyin Yang and Wenxing Liu published in the Journal of Leadership & Organizational Studies.

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“From the cognitive perspective, leaders with high transparent behaviors provide more information for employees to do their work and, moreover, give feedback to employees which may also enhance their attention on work,”

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“From the cognitive perspective, leaders with high transparent behaviors provide more information for employees to do their work and, moreover, give feedback to employees which may also enhance their attention on work,” the article titled “How Leaders’ Transparent Behavior Influences Employee Creativity: The Mediating Roles of Psychological Safety and Ability to Focus Attention” states.