Despite the current state of the economy, transparent leadership is one of the most impactful leadership styles that can fuel employee motivation and improve productivity towards stated goals.
Transparent leaders are open and honest with their employees about business developments, changes within the workplace, what is expected of them and what they can expect in return. This builds trust, loyalty and employee advocacy, which ultimately benefits the organization and helps to build an employer brand.
Transparent leadership is a vital trait that can help leaders elicit creative problem-solving and promote a culture of honest and open communication. However, some CEOs struggle to practice transparent leadership amid economic uncertainty. They may feel like they should already have all the answers or worry that their team will start to gossip and lose focus on their day-to-day responsibilities.
Instead, CEOs should value their employees as dedicated and innovative individuals hired to help uncover solutions even in the most challenging times. They should also understand that their teams will need to trust their CEOs' decisions to work together as a united team to tackle the crisis.
If leaders communicate openly with their teams, they will be able to navigate economic uncertainties better and provide employees with regular updates on how the business is tracking against its goals. This is important to keep everyone informed but also helps foster a healthy company culture that encourages employee input and transparency.
With economic uncertainty, leaders must make decisions quickly. They must do what they can to minimize disruption, keep the business strong, and grow revenue and profitability.Leaders can do this using various tools and strategies, including agile leadership, problem-driven iterative adaptation (PDIA), crisis management experience and expertise, decision science and more.
Transparency is a big part of transparent leadership when leaders share details about difficult decisions and why employees are more likely to trust the decision.
Practising transparency also can help reduce rumours.
When employees are informed about challenges, they can work together to solve them instead of focusing on rumours and gossip. This can help keep a team aligned and focused on the company's mission, which will help it survive these challenges. This may be especially useful in retaining top talent, as employees are more likely to stay committed to the organization during difficult times.
Leaders who practice transparent leadership create a strong foundation for problem-solving. They give their employees a chance to be heard and empower their people with facts.Aside from being honest about the company's goals, leaders can also be upfront and open about what is happening in the economy, industry and within their organizations. This way, workers can understand why the company is cutting costs or re-evaluating goals.
Employees want to know what is going on in their job, how it affects them and how they can improve their work experience. They also want their leaders to provide them with psychological and instrumental support.
Transparent leadership isn't always easy, but it's a critical tool for building trust and enabling employees to feel safe and empowered. When leaders can communicate openly and make decisions quickly, they can create a culture of honesty that gets their teams through tough times. It's a win-win for everyone involved.
Transparent leadership is a powerful tool for fostering a culture of honest and open communication. It also gives CEOs and employees a united foundation for problem-solving.
When leaders share information about their company's challenges, employees feel like they're a part of the solution, promoting a sense of teamwork and employee satisfaction. This can be especially important in times of economic uncertainty, when employees may feel more susceptible to stress and have a harder time trusting their leaders' decisions.
It's a good idea for managers to provide feedback to their direct reports as often as possible, even if they need to take extra time away from their work. The most effective forms of feedback include appreciation, coaching and evaluation.