employeesWe’ve previously talked about the benefits of supply chain transparency for all business units, from sustainability to compliance to procurement. But in fact, supply chain transparency can also benefit human resources by creating a culture of openness that appeals to both current and potential employees.

Discussions about the benefits of transparency generally focus on providing end-consumers with more information about the food they eat and the clothes they wear, with the ultimate goal of generating more business. But transparency also benefits businesses internally by providing a compelling reason for employees to join, stay, and engage with your company.

Tracking and reporting sustainability attracts employees

In a recent study by HP, forty-six percent of respondents said they would only work for companies with sustainable business practices. Going public with your business’ sustainability efforts—whether or not they are immediately successful—demonstrates that your company is taking steps to reduce its impact on the planet. This resonates particularly well with the incoming, younger workforce who consider a variety of factors when choosing an employer, including alignment with their social and ethical standards. Potential employees are, after all, consumers themselves, so the interest in corporate sustainability and transparency still applies.

Transparent business practices earn employee loyalty

Corporate transparency encourages employee motivation and loyalty. When companies choose to be transparent about their supply chains, it indicates a general willingness to be open, flexible, understanding—all appealing qualities for an employee. Furthermore, transparency indicates that a business is forward-thinking and keeping up with (if not staying well ahead of) the market, which suggests the company’s longevity. Besides supply chain transparency, transparent business practices in general—such as when hiring, setting expectations, or conducting layoffs—are attractive to employees and are likely to earn their loyalty and trust.

Greater purpose encourages employee engagement

Supply chain transparency does not exist in a vacuum. Businesses choose to take steps to understand their supply chains as part of a greater mission to ensure responsible, sustainable, and ethical sourcing. By incorporating this mission into employees’ daily lives, such as through regular updates on the company’s progress or employee programs for sustainability, employees become more engaged in their work beyond the day-to-day responsibilities of their role. The purpose of supply chain transparency becomes ingrained in the job, resulting in greater engagement.

There are many reasons for businesses to become more transparent: while consumer trust is often a primary focus, employee satisfaction is just as crucial. Today’s workforce has new expectations when it comes to choosing an employer besides more traditional factors, such as compensation or vacation days. Therefore it is crucial to find innovative ways to attract, retain, and engage them.

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