By: Andrea Bruneau
“Trust is the most overlooked, misunderstood, underutilized asset to enable performance. Its impact, for good or bad, is dramatic and pervasive. It’s something you can’t escape.”
- Stephen M. R. Covey, author of the New York Times best selling book The Speed of Trust
In today's fast-paced and competitive business environment, we often hear from leaders that time is the barrier against the culture and climate efforts they wish to implement. What goes into building trust-based relationships can feel like additional work on top of the already unmanageable to-do list. Yet, research consistently demonstrates the correlation between trust, operational efficiency, and organizational success. According to a study by the Great Place to Work Institute, organizations with high levels of trust consistently outperform their competitors in terms of employee engagement, productivity, turnover, efficiency, innovation, operational agility, and financial outcomes. Disengagement alone is estimated to cost US companies $450 billion to $550 billion a year. Establishing a culture of trust within your organization is not just a nice-to-have; it's essential for achieving sustainable growth and success.
Leaders must recognize that trust is one of the most valuable assets an organization can possess, and it is being built or destroyed in every action and decision they make. The work is already being done. What matters is how you go about doing it.
So what exactly does trust look like within an organization, and how can it be cultivated?
The level of trust with your organization is often reflected in the attitudes, behaviors, and interactions among employees and leaders. Recognizing these indicators is essential for organizations to assess their trust levels and identify areas for improvement.
Indicators of a low-trust work environment:
Lack of Transparency: Information is often withheld or selectively shared by management, leaving employees feeling left in the dark about important decisions, changes, or developments.
Poor Communication: A lack of clear, open, and honest communication channels leads to misunderstandings, rumors, confusion, frustration, and anxiety among employees.
Micromanagement: Dictating or closely monitoring an employee’s actions and decisions not only stifles autonomy and creativity but also signals a lack of trust in their abilities and judgment.
High Turnover Rates: Distrust breeds disengagement and dissatisfaction, causing employees to seek opportunities elsewhere. A revolving door of talent can further perpetuate distrust and instability.
Blame Culture: Instead of taking accountability for mistakes or failures, individuals may resort to finger-pointing, scapegoating, and deflecting responsibility.
Resistance to Change: Employees may resist change initiatives, fearing the unknown or doubting the motives behind organizational changes.
Lack of Collaboration: As individuals prioritize self-preservation over the collective goals of the organization, silos and barriers between departments or teams are more pronounced.
Decreased Morale and Engagement: As trust erodes, employees are less likely to contribute their best efforts, or go above and beyond their job requirements.
Gossip and Office Politics: Rumors, gossip, and office politics thrive in environments where trust is lacking. Instead of focusing on their work, employees may engage in gossip or political maneuvering to protect themselves or gain an advantage, further eroding trust and morale.
Indicators of a high-trust work environment:
Transparent Communication: Information is freely shared throughout the organization. Leaders are open and honest with employees about company goals, challenges, and decisions.
Empowerment and Autonomy: Leaders provide support rather than micromanaging so that their teams are enabled to make decisions and take ownership of their work.
Psychological Safety: Employees feel safe to express their opinions, share ideas, and take risks without fear of retribution or judgment. Mistakes are viewed as opportunities for learning.
Collaboration and Teamwork: Employees work together across departments and levels of the organization, leveraging each other's strengths and expertise in the service of common goals.
Accountability and Integrity: Individuals take responsibility for their actions and decisions. Leaders set the example for ethical behavior in their interactions with others.
Supportive Leadership: Leaders prioritize the well-being and development of their employees by respecting work-life balance, and providing guidance for professional growth opportunities.
Feedback and Recognition: Employees receive regular feedback on their performance. Contributions and achievements are celebrated and acknowledged.
Low Turnover Rates: There is a strong sense of loyalty and connection to the company, which contributes to employee retention and stability.
Adaptability and Resilience: Employees are more willing to embrace change and adapt to new challenges with agility and resilience.
Positive Morale and Engagement: Employees feel valued, respected, and motivated to give their best effort, thus increasing productivity, creativity, and overall performance.
Cultivating a high-trust environment:
Cultivating a high-trust work environment requires intentional effort and commitment from leaders at all levels of the organization. Trust is built through transparency, open communication, and a commitment to integrity and fairness. The simple formula is this: tell your team what they can expect from you (align expectations), then do what you say you are going to do (follow through). Here are some examples:
Someone emails you with an issue they are having. You align expectations by promptly replying, “Thank you for raising this concern. I will look into this further, and will follow up with you by the end of the day.” Then you follow through by following up by the end of the day even if the update is that you are waiting to hear back from another stakeholder.
You want to improve communication in your department and have a plan to implement a new meeting structure to enable the coordinated trickle down of information. You align expectations by telling every employee in your department what the meeting structure is and why it was created. You follow through setting up and holding the meetings consistently.
You want to delegate a task to your direct report to avoid micromanaging them. You align expectations by discussing the task deliverable, what support and resources your employee needs, and when you will follow up. You follow through by giving them the space you agree upon to complete the task and circling back at the deadline.
Communication is key. People only know what they see and hear. You have to explicitly communicate your intentions, what actions you plan to take, and what actions have been taken. If you miss any of these steps then trust is not being built. Instead, your team will go by their own unspoken expectations that will likely go unmet. They will assume you have taken no action, even if you have. They will be caught off guard by your behavior, and might even assume negative intent if you suffer from a low-trust environment. Imagine then, how much extra effort it will take to inspire your team to do what you need them to.
Trust-building is a deliberate process, but it is not extra work. When done effectively, it is the fuel that accelerates all other work to be done.