A new employee retention strategy appears to be emerging among some private companies. More and more firms are adopting a policy of "radical transparency", which can include openly publicizing financial metrics, such as sales, profit and customer retention rates.
It builds on a theory that transparency helps companies build a stronger corporate culture and attract top talent.
Ann Frost, Ivey professor of Organizational Behaviour, says increased transparency forces companies to be more accountable and can empower employees to pitch in and make their company more profitable.
“I think it’s a positive trend,” says Frost. “People like to see that what they do on a daily basis makes a difference. You are indicating this is an open, transparent [company] and you don’t play games. But you need to have that culture for transparency to work."
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