Manny is the owner and general manager of a small car dealership with 10 employees, similar to many small businesses that install, maintain and pump septic systems.

On numerous occasions, Manny boasted that his company operates like a close-knit family. He is proud of the way everyone pulls together to serve the customer. However, for the past two years, sales have declined and Manny became determined to change the trend. At weekly team meetings, he made a concerted effort to get ideas on expanding the company’s customer base. To his surprise, no one offered suggestions.

At a loss as to why he gets no input from his team, Manny hired a consultant to coordinate a creativity/brainstorming session. At the beginning of the meeting, Manny informed the consultant that he had to leave for 30 minutes.

When Manny left the room, the consultant asked how the staff felt about the session. He got an earful. The overall consensus was that although Manny boasted about an “open-door policy” and an interest in their ideas, most of their suggestions had been ignored. So they simply stopped sharing them. Some people even felt that Manny had an “I’m the boss’’ or “Do it my way” attitude. Therefore, they were reluctant to approach him with concerns or suggestions.

While Manny had a team that pulled together when necessary, he had inadvertently and unknowingly failed to create a work environment that fostered a climate promoting open communication. In such a climate, employees feel free to express opinions, voice complaints and offer suggestions. This freedom of expression is fundamental to creativity and innovation.

Research has consistently shown that an open communication climate has seven distinct characteristics:

1. Employees are valued

Employees are a reservoir of information. They want to be heard and feel they are making significant contributions. Your response to their concerns shapes how they feel about their value to the company. Nothing is more demoralizing than asking employees for suggestions, then ignoring them without clearly explaining why. When you ignore their ideas, you send a message that their opinions don’t count.

When employees don’t think their opinion counts, they feel detached and insignificant. Ultimately this impacts employees’ attitudes, which in turn, impacts customer service. On the other hand, when you recognize an employee’s suggestion — whether you implement the suggestion or not — it builds confidence in the company and reinforces to employees that their efforts can make the organization better. In essence, employees are happier and more motivated when they feel they are appreciated and treated with respect.

2. There is a high level of trust

Trust forms the foundation for open communication, employee retention and employee motivation. Individuals who trust the people they work with are self-assured, open and honest, willing to take risks, less resistant to change, and inclined to act in a trustworthy manner. In contrast, individuals who distrust the people they work with tend to be less productive because they feel unsupported and alone. Trust in an organization promotes cooperation, commitment and a free flow of ideas. It can help an organization survive and achieve a competitive advantage. A key factor in maintaining a high level of trust is to always tell the truth.

3. Conflict is invited and resolved positively

Conflict itself isn’t good or bad — it’s just inevitable. Make it work for you by using it to invite give-and-take dialogue with employees. When dealing with conflict, be open-minded and listen. Take into account the employees’ feelings about the situation and find areas within their position in which you can both agree. If you don’t have conflict, you don’t have innovation and creativity.

4. Creative dissent is welcomed

Surveys have consistently showed most employees are afraid to question or disagree with their superiors. However, in an organization where the leaders are committed to fostering an open communication climate, dissent is not only welcomed, but also rewarded. Employees are encouraged to think, question, form independent judgments and take responsibility for changing the way business is done.

One way to encourage employees to think is initiating an employee suggestion program. This allows the employees to come up with ideas on how to improve the company and they are, in turn, rewarded for that. Being able to express unique ideas allows employees to feel as if they contributed to the company in a positive way.

5. Employee input is solicited

In any serious quality effort, a key is that all employees be involved. Employee input is a key to an organization’s success. Do not limit open communication to staff meetings. Create a questionnaire or grievance form in which employees can express concerns in a confidential way and then discuss it openly during a meeting. This method helps provide information regarding your company that you may not be aware of and establishes a sense of involvement for the employees.

6. Employees are well informed through formal channels

The grapevine is not the best way to communicate company policies to employees. It’s best to use formal vehicles (meetings, memos, e-mail, etc.) to keep employees informed on what’s happening in the organization. If you don’t use these tools, you’re keeping employees in the dark.

7. Feedback is ongoing

Feedback (positive and negative) is the tool for improved performance. Annual performance appraisals aren’t enough. People need to know regularly how they are doing. When giving feedback, be specific, descriptive, and focus on the person’s behavior and not the person. An example of specific and descriptive behavior is, “Chris, you did an exceptional job selling the Sentra to that couple. Your attentiveness to their needs and your knowledge of the car were excellent.” This is said as opposed to saying, “Good job selling the car, Chris.” The latter is neither specific nor descriptive and makes it sound as though you’re not engaged with Chris’ efforts to improve. Feedback must be ongoing and given in an effort to resolve problems without placing guilt, and building relationships instead of “being right.”

A final word

Finally, creating a communication climate where employees feel free to speak their minds can be a daunting task. But it is well worth the effort. The end results are better teamwork, enhanced work relationships, increased job satisfaction, innovation and creativity. It can also make a world of difference in your workplace and ensure a trustworthy exchange between employees.