According to a study in Harvard Business Review, people at high-trust companies report 74% less stress, 106% more energy at work, 50% higher productivity, 13% fewer sick days, 76% more engagement, 29% more satisfaction with their lives, and 40% less burnout than people at low-trust companies.
In April 2023, Gallup reported that only 21% of U.S. employees strongly agree that they trust the leadership of their organization.
It’s no secret, in the past few years, everything has changed; the way we live, the way we shop, the things we value, the way we work, and the type of work we are willing to do. And more recently, the introduction of many new advances in AI has shifted the mindset of organizations as well, leaving employees to wonder how secure their jobs really are.
Many organizations are scrambling to determine how they can keep up with technology advancements, manage change within their organizations, and continue attracting and retaining high-performing talent all at the same time.
This is a lot to think about, and, while other factors also play a role, the engagement and commitment employees feel towards their employers often comes down to trust.
It’s long been known, and research supports, that people do not leave organizations—they leave leaders. And often this is a direct result of a lack of trust and a feeling they are not respected. This, in turn, leads to decreased employee engagement and increased turnover.
According to a Gallup survey, disengaged employees have 37% higher absenteeism, 18% lower productivity, and 15% lower profitability. If you convert these percentages to dollars, you can estimate a loss of 34% of that employee’s salary. That’s a whopping $3,400 for every $10,000 they make. And that is only one member of your staff. Now, imagine if this one disengaged employee is negatively impacting those around him/her: you could potentially end up with a team of non-engaged employees, costing your organization both productivity and profitability.
Trust is the measure of the quality of relationships developed between individuals, groups of people, teams, and organizations. As an individual, and as a leader, many of the issues you face and the successes you experience reflect the level of trust you have established and maintained.
Leaders who encourage their teams to take smart risks, make mistakes, be candid with one another, and align with a shared purpose, benefit from a highly developed team that trusts them and one another, and feels safe in assessing many different perspectives that often result in more productive and creative innovations.
Our work with clients in many areas of leadership development, change management, strategy planning, coaching, and organizational effectiveness has proven time and time again that good leaders do not just manage change, they lead change. To lead change effectively, employees have to trust their leaders. Gallup research corroborates this viewpoint, finding that when employees strongly agree that their leaders implement three specific actions, 95% fully trust their leaders.
Here are the three things they say the best leaders do to earn (or build) trust:
- Trusted Leaders Communicate Clearly
Effective leaders provide a clear vision and a well-defined strategy to achieve it, offering employees a roadmap to focus their efforts. Communication is central to leadership, and the pandemic has underscored the value of two-way communication, which has been shown to enhance productivity and performance.
- Trusted Leaders Inspire Confidence in the Future
Employees don’t need every detail of the plan; they need a clear understanding of the primary goal and what steps they need to take to reach it. When leaders break information down into manageable pieces, they show that they have a solid strategy and know how to achieve it. Additionally, celebrating both major and minor successes along the way can reinforce the effectiveness of the plan and build confidence in the strategic direction.
- Trusted Leaders Lead and Support Change
Leaders build the trust, support, and commitment of their teams when they communicate the vision, explain the reasoning, address questions, and inspire confidence in the change.
Building a culture of trust can be daunting. But it will be worth the investment, for leaders individually, for the team members, and for the organization. Leaders who build trust effectively are not only surrounded with people who trust them, they also build an environment that fosters productivity, inclusivity, and innovation.
Building trust starts with everyday actions and behaviors. Great leaders pay heed to the saying, “actions speak louder than words.” They understand that people may hear what they say, but they will remember what they do.
Here are 5 additional tips for building trust:
- Focus on your everyday behaviors and actions. You’ve heard the saying, “actions speak louder than words.” Pay heed to this as you work to develop trust. People may hear what you say, but they will remember what you do.
- Foster a culture of support. Create a clear structure and then allow others the autonomy to work how they work best. Encourage others to openly voice their concerns, while showing support and guiding them toward their own solutions.
- Keep promises. If you say it, do it. Nothing erodes trust more quickly than broken promises.
- Show genuine concern for others. When you ask questions and care about others, they respond in kind. When you show that you value them as a person and they can feel your sincerity, your relationship grows.
- Respect different perspectives. Your ability to look beyond how you feel and consider others’ points of view and feelings opens a path for understanding, tolerance, and acceptance.
- Extend trust. Showing vulnerability and extending trust to others is important, people feel trust when they know they can rely on and be vulnerable with you. But it is equally important to extend trust wisely. First, assess the situation, the risk, and the character of the person to determine if the risk is worth the investment. If the risk is high, you may need to continue building the relationship first.
- Consistently demonstrate personal integrity, honesty, and sincerity. Never distort the truth or cover facts to make things easier on yourself. Who you are when you think no one is looking is every bit as important as who you are in the spotlight.
At Innovative Connections, we know our world promises nothing more than continual, rapid change, and we know that change is hard. We also know that creating environments of trust and psychological safety amid this rapid change is equally, if not more, daunting. We would love to be part of your journey as you navigate the successes and challenges that lie ahead. If you’d like a free consultation to talk about how professional coaching, leadership development, team building, or strategy planning sessions can help shift the culture of your organization, we’d love to talk. Contact us for a free consultation by clicking this link: Innovative Connections or calling us at 970-279-3330.