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.
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
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.