Startup culture is leading the business world zeitgeist and even big companies are starting to take notice. Startups are changing the way we handle money, how companies talk to customers and how they’re thinking about company culture. One aspect that goes unnoticed in the emergence of startups, however, is transparency. From the ways companies make themselves look good when they share to how being open is better for business, companies looking to adapt to the flexibility and nimbleness of startups stand to gain a lot from transparency.
Inbound marketing company Hubspot went public last October. As the company looked to grow their efforts along with their employees, it had to face the challenge of whether it was going to continue being the open, transparent company it had always been. Larger organizations are known for their entangling bureaucracy and Hubspot wanted to avoid it. Was it possible? According to Katie Burke (@katieburkie), Director of Talent at Hubspot, it definitely is:
"At HubSpot, our founders were adamant: we would do everything required of us from a compliance perspective, but we would maintain our commitment to being as transparent as possible as an organization. We’ve stayed true to this commitment, even designating all of our employees as insiders so that we can continue our practice of sharing as much information as possible with team members at every level.”
Companies don’t have to hide their secrets as they get bigger. In fact, being more clear about what your company’s doing could be a boost in the long run.
Transparency is good for employee morale, but it could be good for business as well. As almost half of all adult consumers are veering towards making eco-friendly buying choices, knowing where their products come from will become more important to them.
When someone knows what goes into their products, they’re more likely to buy them, as a recent “study” shows. When an online retailer introduced a new line of wallets on their website, they included the costs of all the products that made up the wallet, as well as what it costs to put it together. They introduced five colors, but only included the cost information on three of them on accident. As it turned out, the colors which had the cost information displayed ended up selling 44% more.
A Crystallized Way To Attract Hires
It’s better for your current employees, it’s better for business, but how can you attract new hires by being open about your business? If you’re committed to honesty, then you must also be committed to doing the right thing, even if you’re a big company. Employees want to know the company they work for isn’t just honest, but also trying to make the world a better place. 63% of millennials polled said they want their employer to contribute to ethical and social causes they felt were important.
Transparency applies to the hiring process, as well. Applicants who feel more well-informed about the company they’re applying to, the hiring process itself, and the status of their application are 35% more satisfied with the process. Being upfront about the job you’re posting, during the interview process and when making the final hire can benefit you as much as having an ethical background.
Applicants who are well-informed with an organization are 35% more satisfied with the hiring process.
Large companies have always been reticent about their practices, but candidates, employees, and businessmen alike all benefit from a company whose objectives are clear and motives pure. That may sound cheesy, but when it’s leading to better hires, happier employees and bigger profits, is that so bad?
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