Transparency is to Employee Engagement as Failure is to Innovation

Leaders will never gain the trust of their employees, especially in uncertain times without a significant level of transparency. As innovation needs experimentation and failure, employees need transparency from leadership for engagement to take place.

One of the difficulties many organizations are facing is transitioning from a "corporate memo" top down communication culture to having honest and candid conversations with their employees. The former creates an environment of rumors, gossip and anxiety while the latter allows employees to feel a certain level of security remaining engaged and productive.

Like improving the economy it's easier said than done. It isn't easy to tell people they may lose their job. It isn't easy to discuss a negative financial outlook.

It is time for leaders to figure out how to have open conversations with their employees. A recent article in Forbes mentioned some additional insights and benefits to such candor:

"When profits dwindle, many organizations make the mistake of letting people know as little as possible, he says. "I find that people are very capable and resourceful when they're not in the dark. Open the books, show them what's happening. If you get them involved with the problem, they'll be a part of the solution. They may come up with ways to cut costs other than cutting people."

To get employees to trust management when mass firings are more common than rainstorms, leaders need to be open, authentic and real, Covey says. "If there is no real trust and genuine integrity, then it just becomes a kind of fake program of fake democracy, which will worsen it. People will say, 'We were manipulated again.' "

So the question is what are you doing to create an open and honest culture at your organization? How are you talking to your employees and what does it sound like?