EMPLOYEES RANK TRUST AS CRITICAL WHEN SELECTING A NEW EMPLOYER
The independent research was undertaken during August and September 2008 on behalf of Endaba, the global executive recruitment and development consultancy. 5,114 employees from a wide range of industry sectors took part.
A staggering 92% of employees believe that a culture of trust is critical within an organisation. This is good news indeed for those organisations that have already achieved this, particularly as the survey respondents also believe that employees who have trust in their organisation are happier (60%); more loyal (56%); more motivated (50%); and more productive (46%).
The top three reasons given by employees as to why they don’t trust their CEOs and senior managers were:
- Almost 50% perceive that their CEOs and senior managers don’t care about employees.
- Around 40% don’t think their CEOs and senior managers say what they mean.
- A similar percentage of employees don’t believe that the contribution they make is valued by their CEOs and senior managers.
Additionally, more than a quarter of employees don’t think their CEO is honest and truthful or that they deliver on their promises. Senior managers fare even worse, with 30% of employees claiming that they don’t deliver on their promises and 29% saying that they think they are not truthful.
Considering these characteristics are ranked highest by employees as those required in trustworthy individuals, in the current economic climate there is a sense of urgency for organisations to take action to address these damaging perceptions. The study showed some differences in perception between male and female employees, with women placing greater significance on a person’s ability to keep a confidence than male employees – and ranking characteristics such as honesty, authenticity and dependability of higher value than their male colleagues.
The research also indicates that the higher up the organisation an employee is, the more trust levels increase. Only 27% of senior managers don’t trust their CEO, compared to 39% of other managers and 44% of employees working in non-management roles. This trend towards diminished trust is far less pronounced amongst those working in less senior roles. Almost three-quarters of employees claim they have trust in their line managers and 78% say they trust their colleagues.
Lynette Deutsch, founder and CEO of Endaba and a leading expert on organisational trust, disagrees. Commenting on the findings, she said: “Although people believe that it is almost impossible to rebuild trust once it has been lost, this couldn’t be further from the truth. There are 13 behaviours common in high-trust leaders – all of which can be learned using the Endaba Trust Model. However, every one of these behaviours has an opposite, which in a large number of organisations has sadly become the operating norm. This manifests itself in behaviours such as engaging in office politics, working to hidden agendas and blaming others – all of which are highly detrimental to an environment of trust, and, ultimately to profitability.
“Lack of trust can also lead to lack of confidence. In an unstable market, this can have a devastating effect on organisations and their share prices – as we are witnessing on a daily basis during the current economic crisis.”
One organisation that has already experienced the business benefits of restoring and rebuilding trust is global packaged food manufacturer, General Mills. As a result of this work, the company was recently recognised within the Top 5 Most Trusted Management Companies by the Financial Times in its list of the UK’s 50 Best Workplaces.
Sue Swanborough, the company’s HR director, explains: “At General Mills, trust is reflected in our cultural values and our ways of working. We constantly seek to create an environment where people know not only that they are trusted, but that they can trust those around them. This paves the way for superior team work.”
Deutsch concludes: “You can generally rebuild trust. There are a few exceptions, but they are rare. It’s all about behaviour. You can’t talk yourself out of a problem you behaved yourself into, so you need to learn strategies that can help you behave your way out of it instead. Ultimately, it comes down to what you do, not what you say.”
Human Resources news brought to you by theHRDIRECTOR – the only independent strategic HR publication.
