Radical transparency, the practice of sharing all company information with employees, has gained popularity in the business world. Advocates argue that it builds trust, fosters engagement, and drives performance. However, a study from Harvard Business School suggests this approach may not be universally beneficial. The research found that employees value fairness and respect more than transparency.
In the study, workers who felt they were treated unfairly, even in transparent environments, were less productive and more likely to leave. Transparency can also lead to information overload, causing stress and confusion among staff. Additionally, it can lead to internal competition, as employees may feel under constant scrutiny.
A survey from software firm Atlassian found that only 19% of workers want complete transparency, while 70% prefer a balance between transparency and privacy. The study suggests that companies should focus more on creating a fair and respectful culture, rather than striving for absolute transparency.
While transparency can be beneficial, it should not be seen as a panacea for all organisational issues. Companies should consider the potential downsides and find a balance that suits their unique culture and workforce.
Go to source article: https://work.qz.com/1195697/radical-transparency-sounds-great-until-you-consider-the-research/