Transparent leaders create trust

Transparent leaders create trust, loyalty and motivation 

Many leaders I work with don’t share enough information with their teams, which can negatively affect your work environment. Transparent leaders build thriving, creative organizations that retain star employees and attract new talent. By sharing information, you empower your team. Here are some reasons why well-informed teams are primed for success.

 Building trust 

Sharing information builds trust and loyalty with your team. If you communicate openly and frequently, your team will feel valued and trusted, creating a strong sense of belonging and desire to stay with the company. 

 Increasing motivation

If your team understands the company’s goals, challenges and strategies and how their work contributes to them, they’re more likely to feel motivated to contribute to what the organization is trying to accomplish. Transparency increases motivation and boosts team morale, leading to a more productive team.

Sometimes, leaders make the mistake of assuming lower-level staff aren’t interested in the finer details about the company’s challenges and accomplishments. However, all organization members must understand the company’s goals and how their role fits them. Staff who know precisely what’s happening are better positioned and motivated to develop creative solutions and innovative thinking, no matter their business card title.

 Reducing anxiety and uncertainty 

I’ve discussed the SCARF model in previous newsletters. SCARF refers to five areas of the human social experience: status, certainty, autonomy, relatedness, and fairness. A lack of certainty is a social threat and causes people’s brains to go into fight or flight because they want control over their future. So, when you share the good and the bad information and provide frequent updates, it alleviates the worry of “I wonder what’s going on?” By understanding the SCARF model, you gain better insight into your team’s feelings about certainty and control and how to foster a more positive work environment.

 Why leaders don’t share

Some leaders dislike sharing because it may feel like giving up some control. If I share too much, I may not be perceived as the one in charge. Information is power. However, it’s essential to strike a balance. Keep your team in the know by sharing timely information without compromising your leadership position. 

Another reason leaders don’t share more is because they’re afraid they may get something wrong or their information is incomplete. So, if there’s some uncertainty about whether the company is being bought or sold or if there’s a new strategic direction, they remain tight-lipped. 

When nothing is said, people experience more anxiety. Instead, try sharing some high-level context so they know what’s being considered, which can help maintain transparency while managing expectations. 

 Professional growth and development

All teams crave feedback. They want constructive feedback and information about opportunities for growth and development. By providing regular feedback, you’re developing a culture of transparency and striving for continuous improvement.

Years ago, in my business life, we had a strong, high-potential performer, but we never told him how impressed we were. We had plans to move him to a new branch we were opening but sat on that for a few months. Then he came into my office one day and told me he was leaving because he didn’t see a future with us. It was a costly lesson for us about not sharing how we felt about how he was performing.

What do they want to know?

Your team wants information about everything: how decisions are made, what’s happening in the marketplace with competition, etc. We know that people make up stories when they need more information. This is a psychological phenomenon where our brain fills in gaps in knowledge with assumptions or speculations. 

Our brain looks for closure, so we make up stories that can provide that. Typically, those made-up stories are not positive ones, which is our brain preparing for the worst. By sharing more information, you can help prevent these stories and ensure that your team has accurate and reliable information.

 Oversharing 

There is such a thing as oversharing. Personal and proprietary information needs to be kept in confidence. However, leaders should practice sharing more freely about the organization’s structure, current challenges, and opportunities. Sharing information can help your team understand the bigger picture and feel more engaged.

If you’re not sure what to share, ask your team. Are you getting enough information from me? What are you curious about? Seeking feedback is a crucial part of transparent leadership, allowing you to address any concerns or gaps in information.