Why does transparency important to HR managers in their work?

What is workplace transparency?

Transparency in the workplace refers to the act of openly sharing information, policies, and procedures with employees, customers and other stakeholders. It has become an essential aspect of modern workplaces.

Source; https://draft.blogger.com/u/1/blog/post/edit/7803480567248673603/1967634858490314983

Why does it matter?

Workplace transparency refers to the practice of openly and honestly communicating information, decisions, and actions within an organization. It matters for several reasons,

• Builds trust.

When employees are aware of the company's goals, policies, and procedures, they are more likely to trust the management. This trust is essential as it creates a positive work environment where employees feel comfortable sharing their ideas and concerns.

According to the new Edelman "Trust Barometer" (A survey of 32,000 people in 28 countries) one in three people do not trust their employer. 

• Enhances communication.

Transparency ensures that employees have access to the information they need to do their jobs effectively. It also facilitates open communication, which helps to identify issues early, leading to quicker resolution and better problem-solving.

• Increase employee engagement.

Employees who are informed about the company's goals, objectives, and performance are more likely to be engaged and committed to their work. This engagement can lead to increased productivity, reduced turnover, and improved job satisfaction.

The above-mentioned survey provides that employees who trust their employer show certain behaviours' such as higher employee engagement.  

• Improve Collaboration

When everyone in the workplace has access to the same information, it is easier to collaborate and work together. This can lead to better teamwork and more productive outcomes.

• Boost accountability

Transparency ensures that everyone, including management, are held accountable for their actions. It promotes fairness and reduces the risk of unethical practices.

How to promote Transparency?

1. Make transparency part of an organization's policy.
2. Address situations where transparency is not demonstrated.
3. Provide an opportunity for a Q&A session when holding meetings.
4. Give permission to access information to employees.
5. Explain the reasons behind the decision and tell employees.
6. Involve employees to decision making.

How to practice?

 To practice transparency in the workplace, consider the following,

• Open communication.

Ensure that employees have access to the information they need to do their jobs effectively. Encourage an open-door policy (two-way communication) that allows employees to express their concerns or ideas without fear of restriction.

• Be clear and concise.

Ensure that information is communicated in a clear and concise manner. Avoid using jargon or complex language that may confuse employees.

• Share company goals and objectives.

Be open about the company's goals, objectives, and performance. Share the company's vision and strategy and explain how employees' roles contribute to the company's success.

• Share policies and procedures.

Be transparent about the company policies and procedures. Share them with employees and explain how they are implemented.

• Solicit feedback.

Encourage employees to provide feedback on policies, procedures, and other aspects of the company's operations. This feedback can be used to improve the company's performance and foster a culture of transparency.

Importance of Transparency 

Transparency is critical in HRM, as it helps build trust and credibility with employees and other stakeholders. Here are some specific areas where transparency is important for HRM. When demonstrating transparency to employees, it is important to make sure everyone's voice is heard. Preventing unconscious bias and setting clear and achievable high expectations is a good ways to start influencing employees to be transparent.

• Communication.

HR managers must be transparent in their communication with employees. This includes sharing information about company policies, procedures, and decisions that affect employees. HR managers should also be transparent about the reasons for making decisions and the criteria used.

• Performance Management

HR managers should be transparent in their performance management processes. This includes setting clear expectations for performance, providing feedback on performance, and using objective criteria to evaluate performance. HR managers should also be transparent about the consequences of poor performance, such as disciplinary action or termination.

• Compensation and Benefits

HR managers must be transparent in their compensation and benefits practices. This includes clearly communicating pay and benefit structures, how they are determined, and any changes that may occur. HR managers should also be transparent about how employees can advance within the organization and the requirements for doing so.

• Recruitment and Hiring

HR managers should be transparent in their recruitment and hiring processes. This includes providing clear job descriptions, outlining the selection criteria, and communicating the steps in the hiring process. HR managers should also be transparent about the reasons why candidates were not selected and provide feedback to unsuccessful applicants.

Challenges to HR transparency

Human resources transparency can be challenging for organizations, as it requires a willingness to share information and practices with employees and other stakeholders. Some of the limitations that organizations may face in implementing HR transparency include;

• Fear of Negative Reactions.

Organizations may be hesitant to share HR information with employees due to concerns about negative reactions or potential legal issues.

• Confidentiality Concerns

Some HR information may be sensitive or confidential, such as employee medical records or salary information, which can make it difficult to share transparently.

• Legal Risks

Sharing certain types of HR information, such as performance evaluations or disciplinary actions, could expose organizations to legal risks if the information is used against them in lawsuits or other legal proceedings.

• Employee Anxiety

Some employees may feel anxious or uncomfortable about the idea of their HR information being shared transparently, which could lead to lower levels of trust in the organization or increased stress and anxiety.

• Organizational Culture

HR transparency may not be a good fit for all organizational cultures, and some companies may not be willing or able to adopt transparent HR practices due to cultural norms or traditions.

• Lack of Consistent Standards

Organizations may struggle to develop consistent standards for HR transparency, as different departments or locations may have varying practices and policies.

• Technology Limitations

Technology may not always be available to support HR transparency, such as in the case of paper-based records or outstanding HR systems.

• Resistance to Change

Some employees or managers may be resistant to changes in HR practices or transparency initiatives, which can make it difficult to implement them effectively.

• Resource Constraints

Implementing HR transparency initiatives can require significant time and resources, which may be difficult for smaller organizations or those with limited budgets.

To address these challenges, organizations can take a number of steps to promote HR transparency, these might include,

1. Develop clear policies and standards.
2. Use technology to Facilitate Transparency.
3. Educate employees and managers.
4. Encourage feedback and dialogue.
5. Lead by Example.

Conclusion

HR transparency is an essential aspect of modern workplaces. By practicing transparency, companies can build trust, enhance communication, increase employee engagement, and boost accountability. On the other hand, to address these limitations, organizations should carefully consider the risks and benefits of HR transparency and develop policies and practices that balance transparency with confidentiality and privacy concerns. It is also important to communicate clearly with employees and stakeholders about the goals and expectations of the HR transparency initiative and to be transparent about any limitations or constraints that may exist.

Reference. 

        Campbell, A.C. (2022) Transparency in the workplace: what it is (and what to avoid), Leadership &Management. BetterUp. Available at: https://www.betterup.com/blog/transparency-in-the-workplace (Accessed: April 1, 2023).

        Hawk, R. (no date) 5 Benefits of More Transparency in Your Workplace, The career for association leadership. www.asaecenter.org. Available at: https://www.asaecenter.org/association-careerhq/career/articles/talent-management/5-benefits-of-more-transparency-in-your-workplace (Accessed: April 1, 2023).

     Perucci, D. (2019) “Creating Transparency in the Workplace: How to Get Started,” PERFORMANCE & CULTURE. www.bamboohr.com, 22 August. Available at: https://www.bamboohr.com/blog/creating-transparency-in-workplace (Accessed: April 1, 2023).

       Team, G. (2021) Transparency in the Workplace: Why It Matters and How to Practice It, glassdoor for employers. www.glassdoor.com. Available at: https://www.glassdoor.com/employers/blog/transparency-in-the-workplace/ (Accessed: April 1, 2023).

        Transparency in the Workplace (Definition and Effects) (no date). www.citethisforme.com. Available at: https://recognizeapp.com/cms/articles/transparency-in-the-workplace-definition-and-effects (Accessed: April 1, 2023).

   Tsai, K.A. (2019) “Why transparency is good for HR,” Supply Chain Transparency. www.transparency-one.com, 18 July. Available at: https://www.transparency-one.com/why-transparency-is-good-for-hr/ (Accessed: April 1, 2023) 

            7 Vital Trends Disrupting Today’s Workplace (2013) Results and Data from 2013 TINYpulse Employee Engagement Survey. www.tinypulse.com. Available at: https://www.tinypulse.com/resources/employee-engagement-survey-2013 (Accessed: April 1, 2023).