April is Stress Awareness Month. Let SHRM make your work life easier: Join Now
Shawn Premer shows how doing the right thing for employees leads to positive business results.
Is your employee handbook keeping up with the changing world of work? With SHRM's Employee Handbook Builder get peace of mind that your handbook is up-to-date.
Build competencies, establish credibility and advance your career—while earning PDCs—at SHRM Seminars in 12 cities across the U.S. this spring.
#SHRM18 will expand your perspective – on your organization, on your career, and on the way you approach HR. Join us in Chicago June 17-20, 2018
Members may download one copy of our sample forms and templates for your personal use within your organization. Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organization’s culture, industry, and practices. Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRM’s permission. To request permission for specific items, click on the “reuse permissions” button on the page where you find the item.
When employees do not trust managers and leaders, various forms of organizational fallout are likely, including low engagement, high turnover and reduced innovation, experts say. And rebuilding trust isn’t easy.
“Individuals can enjoy their work and have a strong sense of accomplishment, but if they don't trust their boss or their boss' boss, they'll begin to question how they fit in with the company and will have less pride in the organization overall,” said Mary Ann Masarech, employee engagement practice leader at BlessingWhite, Inc.
Trust has to be present for employees to do risky things, said Robert Rosenfeld, founder and CEO of Idea Connection Systems, a Rochester, N.Y.-based consultancy, and author of
Making the Invisible Visible: The Human Principles for Sustaining Innovation (Xlibris Corp., 2006). And risk is at the heart of innovation. The more revolutionary the innovation needed, the more trust must be present. “That means the people I work with must be people I trust,” he told
SHRM Online. “Their deeds must match their words.”
Trust is built over time as people get to know one another, through networking and relationship building, Rosenfeld explained. Employees must trust that their co-workers and direct supervisors are competent (head trust) and will do the employee no harm (heart trust).
A single triggering event, such as a restructuring or other organizational change, can reduce the level of trust employees have in leaders, according to Dennis and Michelle Reina, co-authors of
Rebuilding Trust in the Workplace (Berrett-Koehler, 2010) and
Trust and Betrayal in the Workplace (Berrett-Koehler, 2006) and co-founders of the Reina Trust Building Institute in Stowe, Vt. As can other single events, such as a manager who takes credit for an employee’s work.
“It’s easier when it’s a singular event because you can see it, touch it, isolate it and work through it,” Michelle Reina told
Yet most of the time, trust erodes as a result of “small subtle patterns of behavior” that employees experience on a daily basis. For example, working with peers who fail to prepare for a meeting, are slow to respond to e-mail or who gossip regularly. These are the kinds of things that happen all the time, they said.
“While they don’t get addressed, they don’t go unnoticed,” Michelle Reina said. The result of such unaddressed behavior is that employees leave the company “or, worse yet, they stay. They become the working wounded – they stay, they complain, they do as little as possible.”
The Reina Trust and Betrayal Model describes three main types of transactional trust:
“The key thing about transactional trust is that it is reciprocal in nature; you have to give it to get it,” Michelle Reina said. “There are specific, concrete behaviors that build trust.”
Other models take a different approach. For example, six dimensions of leadership trust are outlined in a
report released Sept. 1, 2010, by two U.K.-based organizations, the Institute of Leadership and Management (ILM) and
Management Today (MT) magazine. They are:
The report, for which 5,000 employees, ILM members and MT readers in the U.K. were surveyed, found that line managers scored higher than CEOs on all six dimensions of trust. Line managers’ scores ranged from a low of 62, on a 100-point scale, for fairness, to a high of 72, for understanding. CEO scores, by comparison, ranged from a low of 54, for understanding, to a high of 69, for ability.
“Establishing trust and accumulating trust capital can only really be achieved in a relationship,” the report authors said in explaining the gap between line managers and CEOs.
Rosenfeld agreed. “If I don’t really know who you are, then I’m going to have problems trusting you.”
But it’s much harder, and sometimes impossible, for employees to get to know senior leaders, he noted.
Absent a relationship, employees will observe leader traits to discern whether they are trustworthy or not. For example, a leader that holds an elevator for people conveys that they are willing to serve others and not just be served, Rosenfeld explained. He said employees will likely watch for other leadership traits as well, such as:
Why Trust Matters
Rosenfeld likened leadership trust to the kind of trust that develops in families based on the behavior of the parents, the “leaders” of the family. “Their deeds have to match their words, because everyone is going to be watching,” he said.
“Executives have to remember that the workforce scrutinizes what they do. Any misstep between words and actions will be noted and will ‘go viral’ inside—and even outside—the organization’s walls.”
Moreover, the level of trust employees have for senior leaders can impact engagement, according to
The Employee Engagement Report 2011, released Dec. 15, 2010, by BlessingWhite. The survey of nearly 10,914 employees on four continents revealed that employees who trust their organization’s executives are more likely to be engaged at work than those who trust their direct supervisor.
“Employees who don’t trust leaders may jump ship because they’re not confident in the organization’s direction or aren’t certain of the leaders’ motives,” Masarech said. A lack of trust breeds distractions and side conversations about hidden agendas, which damages productivity, she added.
“Discretionary effort suffers, because employees aren’t willing to go above and beyond for leaders they don’t know,” Masarech said.
But it is more important for trust to be present in closer working relationships, particularly with those leaders within “arm’s reach” of an employee, Michelle Reina said.
The level of trust an employee has for a supervisor influences how the employee perceives those who are farther up the chain. For example, if a supervisor talks about a workplace issue in a way that is degrading of a senior leader, it can impact the level of trust employees have toward the senior leader and color their perception of the immediate supervisor, Michelle Reina noted.
There’s a way that the supervisor can communicate in order to remain trustworthy, such as explaining the facts without added commentary. Yet what often happens, she said, is that a supervisor’s frustration seeps out “with badmouthing and backbiting and gossiping.”
The BlessingWhite report reveals that among North American respondents, a much larger percentage (72 percent) said they trust their managers compared to those who said they trust their organization’s top leaders (52 percent).A similar, double-digit trust gap exists in Australia/New Zealand, China and Europe, though in India and Southeast Asia the gap is smaller.
“It’s hard to separate leadership style and regional culture,” Masarech explained. “Leadership styles themselves are tied to a country’s culture—as are perceptions of senior management.”
Masarech noted that in China the workplace tends to be formal and personal connections take a long time to establish. Leaders there “need to make sure they demonstrate credibility, reminding employees of their experience, seniority, education, achievements and other credentials,” she said.
But in India the workplace tends to be more informal and relationship-based, she added. “The workforce has a lot of young employees, and leaders need to create excitement and a sense of belonging and opportunity.”
“Unlike the West, where high bonuses and stock options drive leadership behavior, in India managers are generally not perceived as being individualistic but more caring and supportive of teams,” said Nirmala Menon, founder and CEO of Interweave Consulting, a Bangalore, India-based consulting firm. “The management style is predominantly paternalistic in India, where there is high degree of trust and belief that the senior managers will take care of their team members.”
Masarech observed that, around the world, there are two ways to build trust: by “doing what you say you will do” and through “regular, authentic communication.”
“It’s much harder to restore trust once it’s been broken,” Rosenfeld said. “When we break the psychological contract with our people, that’s when we have problems.”
Sometimes those problems come out as a result of an employee attitude or engagement survey.
When leaders get indicators like culture scores that say there are issues around trust, they need to pay attention. “When there is a sign and an indicator that trust is compromised, is vulnerable, is eroding or is at an all-time low, there must be a method to acknowledge that and to dig deeper to see what people are experiencing,” Michelle Reina emphasized.
Leaders have to observe and acknowledge what their people have experienced, she continued, “and be very careful about their tendency to gloss things over and sweep them under the carpet.”
The Reinas’ model outlines seven steps to rebuild trust:
Leaders need to listen and pay attention when their HR partner raises issues associated with trust, according to the Reinas. HR professionals need to be able to reframe the issues in the context of the leader’s business needs, they said, particularly when senior leaders imply that the HR department simply needs to “wave a magic wand” and “fix it.”
HR teams can increase the likelihood that leaders will listen if they build alliances with senior people and lay out the business case for rebuilding trust, Dennis Reina said, even if that means that they have to tally up all the signs—such as turnover, tardiness, absenteeism, accident rates and the like—that reveal that low levels of trust are costing the organization money.
Business leaders realize that work is conducted through relationships, they noted.
Yet that doesn’t mean that it’s easy to get senior leaders on board. The Reinas hear from many HR professionals trying to get senior leaders to act on issues they have identified.
“You’re not alone,” they want HR professionals to know.
Rebecca R. Hastings, SPHR, is an online editor/manager for SHRM.
In the Company We Trust,
HR Magazine, January 2011
Trusting Employees Supports Better Performance, Research Finds,
SHRM Online Business Leadership Discipline, October 2010
How to Build and Keep Workers’ Trust in a Crisis,
SHRM Online Business Leadership Discipline, March 2009
How the Best Leaders Build Trust,
SHRM Online Organizational and Employee Development Discipline, February 2009
Do They Trust You? HR Magazine, June 2006
Trust Travels: The Starbucks Story, SHRM Foundation Educational Session, 2007
You have successfully saved this page as a bookmark.
Please confirm that you want to proceed with deleting bookmark.
You have successfully removed bookmark.
Please log in as a SHRM member before saving bookmarks.
Please sign in as a SHRM member before saving bookmarks.
Please purchase a SHRM membership before saving bookmarks.
An error has occurred
Recommended for you
Become a SHRM Member
SHRM’s HR Vendor Directory contains over 3,200 companies