Do Your Employees Trust You?

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Trust Makes the World Go Round

What's the secret sauce in the recipe for business success? It's trust, according to recent research from Interaction Associates and the Human Captial Institute. The research found that companies with collaborative cultures and trust in management tend to see higher profit growth than those that do not. The bad news for corporate leaders is that they also found that trust is declining across the business world.

Rebuilding Trust: Start with the Basics

Companies that build trust will reap rewards. Among the more telling findings of the research is that companies that tie employee goals to corporate strategy tend to be more profitable. This is intuitive, of course. If employees’ goals are tied to the corporate goals, then the employees have an incentive to meet them. But don't forget the employee perspective. By tying their goals to the overall goals, they are made a partner of the business and are brought into dialogue with the entire company. One of the easiest ways to integrate employee and corporate goals is to make them the center of the performance review process.

Rebuilding Trust: Find the Pain Points

One of the most important steps in building trust is understanding the sources of mistrust. A common misperception among employees, that corrodes trust, is that promotion is driven by relationships, instead of by performance. This misunderstanding and others can only be corrected by proactive communication from the leadership.

Be Transparent to Keep Employees Happy

Communication is a critical component of building trust, and effective communication about compensation will yield significant retention returns. Another valuable research finding is that better performing organizations place greater emphasis on employee retention than those companies that underperform. While it may seem obvious, many companies fail to clearly explain their compensation policies to their employees. Using data to detail the reasons behind your compensation approach, and to prove your competitive pay practices, can lead to happier, more committed employees.

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