How Does Company Transparency Leverage Co-Workers’ Happiness?

・6 min read
How Does Company Transparency Leverage Co-Workers’ Happiness?

The IT sector is continuously growing, especially when it comes to the demand for programmers. However, hiring and keeping experienced and qualified developers can be tough, but some companies manage to do it just fine.

This is the first article of the series, which will tell you more about the ‘Selleo way’ of creating an amazing working culture, supporting freedom and growth. If that sounds interesting to you, keep on reading.

Why will happy co-workers boost your business?

The influence of employee happiness on business has been known for a long time. Hawthorne studies from the 1930s showed the impact of an improved workplace environment on the overall factory outputs. Gallup’s research from 2016 found that companies with high employee engagement experienced growth in performance, in comparison to businesses with lower engagement. The complete report with a detailed analysis can be found here. The authors said that ‘Employees with positive attitudes toward their workplace are likely to carry those attitudes over to customers and to engage in the discretionary effort it takes to serve . . . at a high level.’

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Teamwork and close collaboration increase efforts and good people management is key to having happy employees. Nowadays, people strive to have a coach and to receive meaningful feedback. The best managers build a sense of trust and autonomy, which is directly linked to higher performance. Pleased employees create high-performing organisations because there are more opportunities for them to satisfy their aspirations, career development, job security and the chance of promotion. Education, training and development that focuses on the natural talents and predispositions of employees help people feel like they are the future of the organisation, which in return, helps them to do what they do best. A poll by Partners In Leadership shows that when employees are happier at work they take more initiative, are better collaborators and care more about their work.

At Selleo, we recognize how important it is to enjoy our work. We create a community of collaborating colleagues where everybody is welcomed and supported by the rest of the group. Our teams are organized around Agile methodologies, which helps us stay consistent and focused. To find out more about Agile development, go to the article How To Sustain Performance While Working Remotely? 5 Helpful Agile Practices.

What is transparency?

Transparency seems to be a big trend in HR. It is a practice of being straightforward, honest and open about various company operations including performance, internal processes or sourcing. If something goes wrong, a transparent company does not try to hide it. Transparency also includes pay transparency, which is becoming more and more present in big and small enterprises. Pay transparency includes compensation figures to be visible to other people internally, externally or both and we can divide it into two categories receiver-wise:

  • financial transparency with employees
  • financial transparency with clients

There is also a division into partial pay transparency and full pay transparency. The first includes public ranges of compensation figures for roles within the organisation. It is typically used for recruiting purposes. On the other hand, we can talk about full transparency when specific compensation numbers for every employee are revealed. Most companies choose to keep this visibility in-house, however, there have been occurrences when it was released to the public eye. More about it below.

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People across the world want to be able to openly discuss finance among coworkers, which some time ago, would be off-limits. They do not believe that all employees are paid equally regardless of gender, race or age and demand pay transparency because they believe it will be a motivating factor to work harder, solve the pay gap and create better companies.

How pay transparency affects employee happiness?

Among the benefits of transparency is employee happiness. Happiness in the company does not come from paying employees more, it comes from ensuring that the reward is fair. This means, financial transparency heavily influences service quality since service providers know the client is paying the appropriate amount for their expertise. Companies like Whole Foods or SumAll have taken it a step further and published all employee salaries on their website. Hailley Griffis, Buffer’s public relations manager said that job applications increased after the company made its compensation data public. They also noticed an increase in collaboration and productivity.

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Additionally, pay transparency can help companies close pay gaps and get full control over the narrative. By being open about payrolls, businesses avoid being involved in pay gap controversies. What is more, states like California, Colorado and Delaware passed laws banning penalization for discussing salaries while websites like GlassDoor and PayScale allow employees to anonymously share salaries in order to determine the market rate for their job.

A good idea to retain pay transparency is a clear growth path. At Selleo, our co-workers know exactly what is expected of them in order to get a raise. This makes them want to constantly improve their skills while being aware that there is a reward waiting.

A tool for financial transparency

To ensure employees’ happiness it is important to give them control. Ownership is a powerful tool and is defined by two factors: involvement and agreement. That is why many companies decide to give co-workers an opportunity to manage compensations on their own.

Some time ago, we designed and developed a tool that can be used exactly for this purpose. It gives people an opportunity to reward the team members who, for example, helped you solve a problem, had an amazing performance or simply those who are enjoyable to work with. The reward can have additional comment, ensuring full transparency and delivering positive feedback. The dashboard can be accessed by the entire company, which gives the possibility to appreciate even the co-workers that you do not usually have day-to-day contact with and recognize their contributions. Thanks to this solution, people have a direct influence on the compensation system, shining a light on those who stand out.

To find out more about the Merit Money project go to our portfolio.

Why is it working?

In our experience, transparency is what helps us throughout the years to grow, retaining a small employee rotation. People who collaborate with Selleo are satisfied with the working environment, growth opportunities and bonuses. As a company, we encourage developers to take part in conferences, organize hackathons and workshops. We regularly gather and implement feedback, ensuring every opinion is heard. We recently published a 2-part article all about growing in Selleo, you can find it here Part 1 & Part 2.

Summary

Co-workers’ happiness is crucial for the success of the business and more and more companies recognize that. It is essential to focus on collaboration and mutual support while providing opportunities for training and growth. Employee empowerment is vital for the well-being of a company as it encourages transparency and responsibility.

At Selleo, we cultivate a knowledge-sharing culture, supporting skill growth and personal development. We are a community of engaged co-workers, striving for innovation and rewarding collaboration.

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