This article will discuss the challenges organizations face in earning, developing, and retaining employee trust. Specifically, special emphasis on how and why companies should develop trust among their workforce. Next, I will discuss the involvement that organizations can and will face if they do not develop trust within their workforce. In addition, I will offer suggestions on how to build trust in organizations.
Since managers are trust initiators, the target audience for this document will be management at all levels of a company. It is essential that management understand the value of trust and how to promote trust in their organizations. Competence, integrity and employee relationship are some of the factors that determine organizational trust. However, the elusive nature of trust makes it one of the most difficult traits to maintain. Management needs employees to feel that they are valued, trusted, and to believe that the company is acting with integrity in their best interest. In a recent survey, conducted by Watson Wyatt, they surveyed 13,000 people at various job levels and industries. The study revealed that fewer than two in five employees today have confidence in their senior leaders (Caudreon). These results show that there is room for improvement in the development of trust within organizations.
Recent events in the business world have made it more difficult for companies to maintain trust. The accounting scandals of Author Anderson, Tyco, World Com. and Enron are just a few of the recent scandals. Also the intractable conflict in the Middle East, 9/11, and the abuse of children by Catholic priests have also contributed to people’s lack of trust (Chen 1). This leaves the workforce with a very cynical view of management based on their observations that management often sidesteps ugly ethics to benefit the bottom line. Even in companies with a clean track record, it’s the little things that are undermining trust, like management saying one thing and doing another, forgetting promises and creating confusion (Caudreon 2)
Economic factors, which resulted in layoffs, have caused a loss of confidence in many people. This, in turn, has been the cause of low morale and reduced company loyalty. Downsizing has the same effect on employees, especially if it’s not managed properly or communicated poorly. The remaining employees are stuck asking themselves, “Am I next?” This has an even more devastating effect on younger and newer employees who have recently witnessed being fired or fired from senior management after having been loyal to and serving the corporation for many years. This sends the message that loyalty no longer exists in companies, and when the economy improves, these employees are likely to seek employment where they feel more secure.
Other hidden costs of mistrust in the workplace include: a lack of company loyalty, lower engagement, and increased employee turnover. Distrustful employees are not as productive. Similarly, mistrusting management wastes time controlling employees. Therefore, it is imperative that companies work to build trust in their organizations.
How do you build trust? Trust is earned when everyone’s interests are considered and respected. Communication is the key to doing this. The following is a list of suggestions for building and maintaining trust.
Building trust:
o Ensure open communication.
or Tell the truth.
o Share good and bad information between all levels of the organization.
o Encourage creativity.
o Foster talent.
o Allow disagreement without negative repercussions.
o Maintain integrity.
o Make decisions that are fair and consistent.
Maintain trust:
o Reward value-added activity.
o Managers must say what they will do and do what they say they will do, in a pleasant and consistent manner.
o Reward trustworthy behaviors.
o Sanction breaches of trust.
gaining confidence
Be honest.
o Management that accepts the changes.
o Lead by example.
o Management visible at all levels of the company.
o Improve training.
o Communication as far in advance as possible.
o Try Workforce Reduction alternatives; as,
or voluntary termination,
I am early retirement.
In the end, organizations cannot earn, develop or retain the trust of employees; only people can. Trust is an interpersonal experience, while organizations can define policies and practices that promote trust; It is the behaviors of people, especially leaders, that determine the level of trust in an organization. Being honest is the easiest way to avoid losing trust. If you don’t know the answer, say so. If you have a difficult question, ask it. If you say you are going to do something, do it or provide an update as to why the schedule has changed. It’s the little things, that add up, that help earn and maintain trust within organizations.