Recently, as I waited for a delayed flight with zero status updates from the airline, I started thinking about uncertainty. Specifically, why it makes human beings so anxious. Sometimes receiving bad news—that your flight is canceled or that you accidentally throw out your keys—is preferable to anxiously wondering.
When the stakes are high, uncertainty can be draining. On an organizational level, it can destroy employee satisfaction and engagement, preventing employees from focusing on meaningful work. And on a personal level, not knowing about the future of your career and your livelihood can be debilitating.
As the World Uncertainty Index indicates, we are living in decidedly uncertain times. The spike in uncertainty during the beginning of the covid pandemic may have subsided but uncertainty is still at an elevated level. Now, more than ever, employees need transparency from leaders. Indeed, studies show that top-down transparency increases employee engagement and boosts the perceived effectiveness of leaders. Transparency can help build resilience in a tough economic climate.
As CEO of my company, I understand that with no strategy in place, transparency can interfere with our goals, causing more damage than good. Here are three tips for finding balance and practicing candor with your team.
Create a forum for regular dialogue
I believe most leaders have good intentions—even when they aren’t completely transparent with their employees. Many leaders don’t want to incite panic if it’s not completely necessary. That said, over the past few years, with mounting uncertainty and turbulent economic climates, many leaders have swung too far in the opposite direction. Today, many leaders are too opaque about company developments. In fact, a 2021 Gartner survey found that “only 33% of organizations practice true information transparency.”
If you’re wondering whether you’re being open enough with your team members, consider whether you have an internal communication plan to address employee concerns. Leaders should designate a forum for open dialogue with their team members to explain company updates and bring upcoming decisions to the fore.
At my company, I take advantage of our weekly all-hands meetings, to discuss organizational news in the pipeline. Employees know they can ask questions and bring up any topics needing clarification. We might not have all the answers, but at least employees feel heard.
Establish office hours
In addition to designating a time and place for group discussions, leaders can host office hours, which can be a great resource for employees who aren’t as comfortable sharing in a public forum. Employees can discuss sensitive subjects and learn about business decisions that may impact them.
Share your office hours with your team. I use an automated calendar tool to update my office hours, during which I have an open-door policy (or an open e-door if I’m working remotely). Employees can also see when I block out time for deep-thinking work and plan their drop-ins accordingly.
Follow up with employees in cases where an issue isn’t resolved immediately. If your office hours aren’t effective, or if people aren’t taking advantage of them, solicit feedback to understand why.
There’s no one-size-fits-all approach, but the idea is to show your team that you are meaningfully accessible.
Lead with optimism
I would be remiss if I didn’t address the caveats of being transparent with your team. Disclosing information where the picture is incomplete might cause panic and confusion. Martin G. Moore, author of No Bullsh!t Leadership offers a smart rule of thumb: Never give people a level of detail you aren’t happy to entertain a conversation about. Sharing half the story without being prepared to hash out the rest can cause more frustration than comfort. Also, don’t make promises that you won’t be able to keep. We saw trust erode during the pandemic in organizations where leaders promised no downsizing only to announce sweeping layoffs soon after.
That doesn’t bar leaders from being hopeful about the future. In fact, research shows a leader’s positivity boosts trust and perceived effectiveness. It’s a delicate balance, but leaders can aim to be honest about the future but also optimistic, realistic, and resilient. For instance, you might not be able to permanently safeguard someone’s job, but you can instill confidence that you will help them move forward regardless.
Transparent leadership isn’t always the easy option. But it will serve your team and your organization in the long run by easing anxieties and freeing people to focus on work that matters.