How Transparency and Employee Experience Impact Company Culture and Organizational Performance

How Transparency and Employee Experience Impact Company Culture and Organizational Performance

Key Takeaways:

  • The pandemic highlighted the critical importance of company culture in driving success, productivity, innovation, and employee motivation.
  • Global job satisfaction levels have dropped significantly, and a considerable percentage of workers, especially younger generations, are considering changing roles.
  • Organizational culture profoundly influences employee morale, satisfaction, and performance, highlighting the importance of a positive employee experience.
  • Recruitment leaders identify company culture as one of the greatest challenges, emphasizing its importance in attracting and retaining talent.

As the world gradually emerges from the grip of the pandemic, its profound impact on the landscape of work continues to reverberate. Among the many lessons learned, perhaps none is as glaring as the spotlight it cast on company culture. While the immediate crisis may have abated, its echoes linger – prompting a critical reassessment of how organizations engage with their employees.

The significance of fostering a vibrant organizational culture cannot be emphasized enough. Culture is the cornerstone for driving success and growth, providing the essential fuel for productivity, innovation, and employee motivation – key elements in enhancing performance and maintaining a competitive edge.

Nevertheless, reshaping and enhancing culture is not an instantaneous process. It entails a deliberate and continuous effort, requiring companies to understand its importance and ensure a sustainable advantage in the market.


Navigating the Post-Pandemic Workplace: The Imperative of Company Culture

According to a report by the Arbinger Institute, job satisfaction levels have seen a marked decline globally, with a mere 22% of individuals reporting satisfaction with their current roles in 2023. This is further underscored by the fact that, on average, 40% of workers anticipate changing roles. Notably, this sentiment has a generational divide, with around 60% of Generation Z employees contemplating a move compared to only 30% of Baby Boomers.

The ramifications of this dissatisfaction are far-reaching, as evidenced by Gallup's revelation of dramatic drops in engagement among millennial and Generation Z workers in recent years. Particularly concerning is the trend among older millennials, where disengagement appears most pronounced.

The importance of company culture has also been underscored by HR leaders, who have identified it as the second-greatest challenge they face, surpassed only by the perennial struggle of recruiting and retaining top talent. This recognition highlights the critical role that culture plays in not only attracting but also retaining and nurturing talent within organizations.

In light of these findings, organizations are grappling with a pressing need to reevaluate their approaches to fostering culture and employee experience.

company culture and employer branding


Transparency in the Workplace

The dynamics of the employee-employer relationship have undergone a profound shift. As organizations grapple with the complexities of this new era, one principle has emerged as non-negotiable: transparency.

Transparency is the lifeblood of a healthy company culture, serving as the cornerstone of trust, accountability, and collaboration within an organization. When leaders are transparent about their decision-making processes, goals, and challenges, employees feel valued and empowered – creating a culture of openness and inclusivity. However, according to Deloitte, nearly three-quarters of respondents emphasized the significance of increased transparency between leadership and the workforce for the company's success in the coming years.

“Missteps can lead to mistrust and reduced employee motivation and productivity, adversely affecting the organization’s overall performance.” says Art Mazor, Deloitte’s Global Human Capital Practice.

Mazor underscores the potential pitfalls of mishandling transparency initiatives, emphasizing that missteps can breed mistrust and compromise organizational performance. Therefore, it's imperative for leaders to approach transparency with nuance and foresight, ensuring that it serves as a catalyst for fostering a culture of trust rather than eroding it.

Benefits of Transparency 

A crucial aspect of enhancing transparency lies in fostering conversations among workers and leaders to co-create guardrails for transparency. By involving employees in the decision-making process and soliciting their input, organizations can ensure that transparency initiatives are not only effective but also reflective of their workforce’s needs and concerns. This collaborative approach cultivates a culture of openness and strengthens trust between employees and leadership, fostering a strong and supportive employer brand.

By providing clear communication channels and sharing information openly, organizations build trust and encourage employees to voice their opinions and ideas without fear of reprisal. This transparency also breeds a sense of ownership and engagement among employees, as they understand the rationale behind decisions and can align their efforts with the company's vision and values. Moreover, transparency helps to prevent misinformation from spreading, mitigating potential conflicts and misunderstandings.

Note: Nowhere is the need for transparency more pronounced than in the retention of younger employees. Younger generations entering the workforce have high expectations when it comes to transparency and equity. They demand clarity and honesty from their employers, particularly regarding pay scales, salaries, and opportunities for development. Failure to meet these expectations can ruin trust and lead to disillusionment, ultimately driving talented individuals to seek opportunities elsewhere.

transparency in the workplace


Employee Engagement and Organizational Success

Employee engagement has also emerged as a critical determinant of organizational success. As organizations grapple with the challenges posed by fluctuating employee confidence and the specter of increased turnover, the imperative to engage with employees has never been more pressing.

Recent findings from Eagle Hill’s Retention Index paint a sobering picture of employee sentiment, with a nearly 6-point drop in worker confidence regarding their organization's stability and leadership. However, amidst this gloomy outlook, there lies a glimmer of hope. According to Melissa Jezior, President and CEO of Eagle Hill, now is the opportune moment for organizations to engage with their workforce proactively. Employers can drive positive impact and stem the tide of employee departures by addressing the areas of concern where workers feel most pessimistic, such as organizational culture and confidence.

A key insight from a MIT Sloan study underscores the importance of fostering consistency in the workplace. In an era marked by heightened burnout and stress, inconsistent practices can undermine efforts to improve productivity and performance. Rather than focusing solely on cost-cutting measures or superficial checklists, employers are encouraged to invest in genuine engagement with their employees. This entails actively listening to and understanding employee feedback, thereby fostering a culture of trust and collaboration.


Employee Experience and Company Culture

Central to the discussion of employee engagement is the pivotal role played by organizational culture. As the foundation upon which the employee experience (EX) is built, culture profoundly influences employee morale, satisfaction, and performance. A positive EX cannot exist without a supportive and inclusive organizational culture. By prioritizing culture-building initiatives and nurturing a conducive work environment, organizations can foster engaged employees and contribute to a thriving culture, which in turn enhances the employee experience.

Effective leadership necessitates a continual pulse check on employee sentiment, discerning the factors that drive fulfillment and motivation. Leaders can forge a deeper connection between employees and the organizational mission by crafting a strategic communication plan that articulates the company's vision and values while highlighting the significance of individual contributions. This alignment instills a sense of purpose and cultivates a shared sense of direction, guiding employees through even the most challenging circumstances with honesty, transparency, and people-centricity.

At the heart of this strategic approach lies the imperative for HR to define and track core human capital and business metrics that serve as barometers of organizational health. From unwanted attrition and employee net promoter score to productivity, inclusion, and diversity metrics, these indicators offer invaluable insights into the organization's cultural health and resilience. By routinely assessing and revamping company culture, HR can ensure its alignment with evolving organizational expectations, fostering a cohesive and resilient workforce.

Note: Create employee sentiment surveys and send them out regularly to gauge employee sentiment. Surveys help hiring professionals understand where to focus when revamping strategies to foster a stronger company culture, which is essential to ensuring the culture is aligned with employee expectations (and ensuring an employee value proposition people are aligned with).

employee engagement


Breathing Life into Company Culture

It’s clear that transparency and employee experience have a significant impact on company culture and organizational performance. However, knowing where to begin can be daunting for hiring professionals looking to invigorate their company culture.

Here are eight actionable strategies to help hiring professionals breathe life into their company culture, enhance transparency, and elevate the employee experience.

  • Empower Employee Voice: Establish platforms and forums for employees to voice their opinions, ideas, and concerns, and demonstrate a willingness to listen and act upon their feedback, empowering them to shape the direction of the organization.
  • Lead by Example: Leadership plays a critical role in shaping company culture. Leaders should exemplify the desired values and behaviors, demonstrating integrity, inclusivity, and respect in their actions and interactions with employees. When leaders embody the company's culture, it sets a powerful example for others to follow.
  • Establish Clear Values and Mission: Define and communicate the organization's core values and mission statement, ensuring alignment with employees' beliefs and aspirations.
  • Solicit and Act on Feedback: Regularly gather feedback from employees through surveys, focus groups, and one-on-one meetings, and take actionable steps to address concerns and improve the employee experience.
  • Promote Transparency in Decision-Making: Ensure that decisions are made transparently, with clear explanations provided to employees about the rationale behind them, fostering trust and understanding.
  • Lead with Empathy and Compassion: Demonstrate empathy, compassion, and understanding toward employees' personal and professional challenges, recognizing their humanity and supporting them through difficult times, thereby nurturing a culture of care and compassion.
  • Embrace Accountability: Hold leaders and employees alike accountable for their actions, decisions, and performance, ensuring that transparency is not just a buzzword but a core value that guides behavior and decision-making throughout the organization.
  • Promote Recognition and Appreciation: Recognize and celebrate achievements, both big and small, to reinforce desired behaviors and values. Acknowledge employees who embody the company culture and go above and beyond in their roles. Regular recognition fosters a positive work environment and encourages employees to uphold the company's cultural norms.


Revising organizational culture requires strategic foresight, relentless introspection, and unwavering commitment. By embracing transparency, fostering alignment, and prioritizing the employee experience, organizations can breathe new life into their culture – creating a thriving ecosystem where individuals are empowered to realize their full potential and contribute meaningfully to collective success. 

As we navigate the intricacies of today's workplace, let us remember how imperative it is to cultivate cultures that inspire, unite, and stand the test of time. The RX Studio team at Recruitics has decades of expertise in elevating and amplifying the world's leading employer brands and company cultures in their efforts to attract and retain quality talent. Reach out today to see how we can help unlock your brand’s potential and engage and convert the right talent.

Subscribe to newsletter


Find Out How We Can Become an Extension of Your Talent Acquisition Team