Transparency: A Powerful Force in Shaping Today’s Workplace

Author: Sharon Allen

Seeing is Believing

For leaders, communicating this openly might not seem that important. In the eyes of the people they lead, however, seeing is believing. Such actions are meaningful and carry a message both visible and profound. 

The results speak for themselves. According to the Deloitte survey, 72% of respondents agree that if their manager was more open about his or her need to take time off during regular work hours for personal reasons, it would create a more engaging and productive environment. So, seemingly small gestures can lead to unexpected outcomes that are quite healthy in several regards.

Who knew that leaders taking time off could drive greater productivity?

There is a lesson here and I think it is one of perception. Often, I think that leaders either consciously or subconsciously want their people to view them as completely devoted to the organization and working round the clock: 24/7. It is as if we never allow our people to see that we really do have personal lives and either take or make time for them. 

A certain level of openness helps put a human face on leadership, demonstrating to employees that it is not only acceptable but desired for each of us to fit our work to our life and our life to our work. 

Transparency—Gateway to Do as I Do

Leaders acting and communicating transparently help drive other benefits, too. 

There is a strong correlation between greater openness and transparency by leadership and ethical behavior at work. In fact, according to the results of the Deloitte survey, an overwhelming majority—84%—of employees agree that openness by leadership contributes to a more ethical workplace culture.  Moreover, 68% believe that openness by leadership would create a more values-based organization. 

It is easy to understand why. Without transparency, leadership can quickly become nothing more than direction—do as I say. Yet when the actions of leaders are seen rather than just heard or read, the images are both vivid and memorable. Transparency provides a gateway that enables the direction of “do as I say” the opportunity to grow into something far more valuable—the leadership of “do as I do.”  I know that during my career at Deloitte, seeing my leaders do things the right way left an indelible impression. Honesty in the workplace sets an easily followed example from the top down, opening up the channels of communication between employees and leadership, setting the tone for better employee relations and possibly higher retention rates.

The impact of transparency gravitates in many ways to the bottom line. For example, research indicates that the average cost of replacing an employee is at least two times that person’s salary, underscoring the importance of employee loyalty to financial performance. Considering that 77% of people who started new jobs between the ages 36 to 40 stayed in their job less than five years, creating a sense of loyalty among employees to the enterprise and to each other is one of the greatest challenges facing corporate America today.

Now and in the years to come, those leaders most successful in fostering a loyal and supportive work environment will create an important competitive advantage—so much so, that the transparency of leaders can be a powerful differentiator between those who succeed and those who don’t. 

By acting and communicating transparently, leaders can help create a workplace that can attract and retain the talented people every company needs.

Sharon Allen is chairman of the Board of Directors, Deloitte LLP.