Trust is central to good business.
Trust is central to good business. Companies need their customers to trust them in order to build loyalty and drive sales. Within an organization, it's important for workers to trust their employer. For example, they need to have confidence in their job security, feel comfortable with their manager and know that their personal information is protected. According ASTD, a recent Forum Corporation survey found that 91 percent of employees believe it's "extremely important" to be able to trust their boss.
Mistrust within the workplace can have negative repercussions beyond employee retention and performance. HR Magazine explained that mistrust is "contagious" and can be transferred from within an organization to the outside and vice versa. How employees feel about their company can impact the business's public image.
Developing a culture of trust
HR magazine argued that a foundation of trust is necessary for employee engagement initiatives, such as reward and recognition programs, to be successful. Engagement and trust actually go hand-in-hand. According to the 2014 Edelman Trust Barometer, engagement and integrity are the key areas managers should address if they want to build trust within their organization. For example, better communication can help improve transparency, fostering trust among employees and teammates. To build integrity, the report encouraged supervisors to involve workers in upholding company values throughout the organization.
Trust has to be at the core of company culture. Business 2 Community contributor William Powell, Executive Director of The Leadership Advisor, noted that without trust, employees will not be as engaged on the job and their performance will suffer as a result. Good leadership is critical for building a trustworthy company, HR Magazine stressed. Relationships should be formed at all levels of management, from lower-level managers to executives. Supervisors also need to demonstrate that they trust their employees, such as by resisting the temptation to micro-manage or giving employees more opportunities to strive for greater goals.
The magazine also explained that HR has an important role to play in building trust among workers.
"HR and HR systems are so important," Veronica Hope-Hailey, dean of the Bath School of Management, told the source. "They are about the employment relationship and what the organization values. If you don't change the basic HR processes around promotion, appraisal, reward, leader selection and so on to reflect the importance of trust to the organization, you are not going to get trust."
Using technology to ensure that appraisal and reward programs are fair and consistent can contribute to employee confidence.