Transparent Leadership Is Key to Building Trust and Driving Retention

Transparent leadership is more than just a management style—it’s a philosophy that prioritizes open communication, accountability, and trust between leaders and their teams. As workplaces evolve, organizations must adapt to meet the expectations of a multigenerational workforce while fostering a culture of inclusivity and integrity. 

Sharon O’Donnell, the founder of OHR Consulting, shares valuable insights on this week’s America Back to Work about transparent leadership and its profound effect on employee engagement and retention.

A Journey to Transparent Leadership

Sharon’s career began in early childhood education before transitioning to HR. Her experience as the youngest of eight siblings and the youngest in a family of over 40 nieces and nephews laid the groundwork for her passion for organizational dynamics. 

“I’ve always been interested in understanding how groups work together,” Sharon shared. Her path from headhunter to organizational management consultant gave her a wealth of experience across diverse industries.

Her deep understanding of organizational structures and people management led her to believe that transparency in leadership is essential for building trust and driving retention. 

“Employees today are asking more of their employers,” Sharon explains. “Gone are the days of blind loyalty or rigid corporate structures. People want to know what’s in it for them, and they’re no longer afraid to move on if they don’t see a path forward.”

Why Transparent Leadership Matters

The last few years have highlighted the importance of trust in the workplace. Employees today demand authenticity, accountability, and open communication from their leaders. 

Sharon identified three major shifts in workplace culture that make transparency a non-negotiable:

1. Employees, particularly younger generations, prioritize growth and learning opportunities. Without clear paths for development, they won’t hesitate to seek opportunities elsewhere.
2. Everyone knows what everyone else is earning,” Sharon emphasizes. “Leaders who resist transparency about pay and benefits only create distrust and disengagement.
3. Traditional chains of command that restrict access to leadership are increasingly seen as barriers. Employees expect direct communication channels from senior leaders and want their voices to be heard.

Organizations that adapt to these changes avoid losing top talent, eroding employee trust, and developing toxic work environments.

Overcoming Barriers to Transparency

While the benefits of transparent leadership are clear, many organizations need help to implement it effectively. Sharon identifies fear as the primary barrier. 

“Leaders are afraid of being misunderstood or sparking panic by sharing too much information,” she explains. This fear often stems from a lack of communication and people skills training.

“Many leaders reach the top of their fields because of technical expertise, not their ability to connect with people,” Sharon notes. “We need to prioritize leadership training that includes Communication 101 and People Skills 101.”

Another barrier is the perception that transparency means sharing everything. 

“Not everyone needs to know everything,” Sharon clarifies. “What matters is consistency, honesty, and ensuring that employees feel informed without being overwhelmed.”

What Transparent Leadership Looks Like

Sharon shares contrasting examples of leadership that illustrate the difference transparency can make. 

The CEO introduced a set of core values in one organization but failed to embody them. Gossip, unresponsiveness, and favoritism created an environment where employees felt disconnected and disillusioned. 

“If you’re not living your core values from the top down, they mean nothing,” Sharon states.

In contrast, another leader set clear expectations from day one, consistently communicated with her team, and modeled the behaviors she expected from others. During a challenging period of layoffs, she engaged her team empathetically and fairly, earning respect even from those affected by the layoffs. 

“Transparency isn’t about sharing every detail—it’s about being honest, consistent, and empathetic,” Sharon explains.

Practical Steps for Transparent Leadership

For organizations looking to embrace transparent leadership, Sharon offers the following practical advice:

1. Transparency must begin with senior leadership. CEOs and executives set the tone for the organization’s culture; their actions speak louder than words.
2. Equip leaders with the tools they need to articulate complex decisions, address tough topics, and connect with employees on a personal level.
3. Regular all-hands meetings, like the weekly 15-minute check-ins Sharon described, provide employees with real-time information and a platform to share feedback.
4. Employees thrive when they know what’s expected of them and how their contributions align with organizational goals. Transparency around compensation, career progression, and performance metrics fosters trust and accountability.
5. HR professionals are critical in bridging the gap between leadership and employees. HR can help leaders navigate sensitive topics and ensure consistent messaging by acting as counselors and advocates.

The Benefits of Transparent Leadership

Transparent leadership drives numerous benefits for organizations, including:

• Employees are more likely to stay with organizations where they feel valued and informed.
• Transparency fosters trust, leading to greater commitment and motivation among employees.
• Open communication creates a positive workplace culture where employees feel supported and respected.
• Organizations known for transparent practices are better positioned to attract top talent and build lasting customer relationships.

Anticipating the Challenges of Transparency

While transparency is a powerful tool, it must be implemented thoughtfully. Sharon cautions against oversharing or creating confusion by providing too much information without context. 

“Transparency doesn’t mean telling everyone everything,” she emphasizes. “It’s about sharing what’s necessary in a clear, honest, and empathetic way.”

Sharon encourages small steps for leaders who are hesitant to embrace transparency. 

“Start by aligning your actions with your words,” she advises. “From there, work with HR to develop communication strategies that ensure your messages are consistent and effective.”

Building a Transparent Culture

Transforming a closed culture into one of transparency requires time, effort, and commitment. Sharon stresses the importance of modeling transparency from the top. 

“Leaders must set the example,” she says. “When employees see their leaders acting transparently, it creates a ripple effect throughout the organization.”

Transparent leadership is about building trust, fostering collaboration, and creating a workplace where everyone feels valued. 

Sharon concludes, “It’s not about being perfect—it’s about being honest. Employees can forgive mistakes, but they won’t forgive dishonesty.”

By embracing transparent leadership, organizations can navigate challenges with integrity, inspire team loyalty, and drive long-term success.

LISTEN TO PODCAST