Trust is a crucial component of any successful leadership. Before we explore how to build trust in the workplace, take a moment to reflect on what trust means to you; on a scale from 1 to 10 how satisfied are you with the level of trust in your professional relationships?
Trust is the belief that the leader will act in your best interest and that they will keep their promise and fulfil their obligations.
I have experienced first-hand the significance of cultivating trust as a leadership skill, and how it can impact the performance and outcomes of the company where I work as General Manager. When I first joined the company, I noticed the toxic environment due to the absence of trust. The employees were demotivated and disengaged, while the managers were tense and defensive. Feedback was perceived as criticism, and everyone was primarily focused on their own interest. As a result, no one felt comfortable speaking up and sharing their opinion, employees were leaving the company, which hindered the company‘s growth and success.
Our organisation saw significant improvements when we adopted a new leadership approach that prioritized serving and supporting employees. Rather than just advocating this idea, we made it a priority in all of our actions. Our communication style became more open, transparent and positive, and we started conducting frequent feedback circles to ensure that everyone´s voice were heard. To promote the psychological and physical well-being of our employees, we initiated various coaching and training programs.
We also implemented leadership with a coaching style, which allowed both employees and managers to tap into their potential and grow. Instead of relying on a culture of command and control, we fostered a culture on interdependence and „us-ness“, with trust at the centre.
These changes have paid off for our organisation. Our number of employees has increased by 50% and our revenues have doubled. We attribute this success to our renewed focus on building trust and creating a more positive and collaborative work environment.
Studies have proven the direct correlation between trust in the workplace and company performance. When employees trust their leaders and colleagues they are more engaged, more satisfied and more likely to stay and contribute to the organisation´s success. An extensive research by Prof. Paul J Zac, author of „Trust Factor ; the Science of Creating High-Performance Companies“ show that „compared with people at low-trust companies, people at high-trust companies report: 74% less stress, 106% more energy at work, 50% higher productivity, 76% more engagement, 13% fewer sick days, 29% more satisfaction with their lives, 40% less burnout“.
THE TRUST-DRIVEN LEADER: HOW TO IMPLEMENT TRUST IN YOUR ORGANISATION
A trust-driven leader cultivates a workplace culture of transparency, clarity, respect, care, fairness, gratitude and recognition. Trust is essential, as it empowers employees, fosters loyalty and commitment, and creates a safe environment that allows them to become high performers. Effective and authentic communication, frequent and contructive feedback, lead to more efficient processes, and a productive and positive workplace. By fostering trust, leaders become part of a high-perfoming, interdependent team; „US“. Trust as a foundation is key for employee retention, and has a significant impact on company´s overall results.
TRANSPARENCY
I witnessed a CEO once saying „ please do not tell the employees that the results are bad, they will try to find another job by fear of being fired, and then we have a double problem“.
Transparency is key in building trust and credibility, as well as for fostering a positive and productive workplace culture. As a leader, it is important not to withhold positive information for fear of employees asking for further advantages, or negative information to protect them. Instead, implement open, transparent and frequent communication on matters that may directly or indirectly involve them. When employees feel informed and included, apart from better doing their job, it empowers them and boosts their engagement and commitment to the success of the company.
In situations where the company is facing challenges or critical issues, it is even more important to communicate openly and honestly with the employees. They should be aware of the situationtheir role in finding solutions. By involving them in the process, they feel a sense of ownership and responsibility and therefore empowerment.
Simply ask: What further information do you need? How can I support you with further information?
CLARITY
One of our employees complained to me that his manager was changing his mind every hour making it very difficult for him to finish the project successfully. He added that he was demotivated and refused to be held accountable for the outcome.
Effective leadership requires clarity. Specifically, it is essential that everyone is clear and aligned with the company´s mission, vision and values. By keeping these core principles in mind, you can find appropriate solutions even in the face of disagreement and challenges.
Furthermore, clarity is also critical on your daily communication. Clear and concise communication can help avoid mistakes and misunderstandings, which can ultimately save time, money and frustration.
Simply ask: How can I support you with further clarity?
RESPECT
An employee complained to me that he was fed-up with his boss because he was sending him emails at all hours of the day and night, even on weekends and holidays, putting pressure on him to work in his free time.
It is important to recognize and accept that everyone has their own unique experiences, perspectives and ways of thinking. As a leader it is your responsibility to respect other people´s being and thinking, including their boundaries and values.
In today´s diverse workplace, showing respect towards others can be challenging. With different generations, genders and cultures there are often differences in values and habits. One way to extend your respect is to approach others with curiosity, sensitivity and without judgement. You can politely ask what is acceptable and not to them, which can help you learn more about their needs and preferences.
Respecting others is an ongoing process that requires active listening, openness and a willingness to learn. By being respectful you can create a more positive and inclusive workplace.
Simply ask by starting your sentence with softneres: would you allow me to ask…? would it be ok to ask you…?“
CARE
One of the leaders that I was coaching once told me that she was feeling exhausted because she had been taking on as much work as possible from her employees to demonstrate her concern for their well-being.
As a leader, it is important to demonstrate care by being empathetic and by actively listening to your employees. This involves giving them your undivided attention and responding in a supportive and understanding manner. Encourage them to share their concerns, and be open to discussing what is important to them both in and outside the office. It is equally important for leaders, as role models, to be authentic, show vulnerability and share their own concerns and challenges. While it is not necessary to share everything, it is important to provide enough information to build professional companionship and care. In the above case, when she discussed her feelings and state with her employees, she realised that she unintentionally demotivated them and made them feel untrusted.
You can also help your team´s physical and mental well-being by providing resources such as coaching, training and workshop. These opportunities can support them develop new skills, reduce stress and feel more motivated and engaged at work.
Furthermore, care means supporting your employees in their professional growth and development. This involves providing opportunities for learning and advancement within the organisation. When employees feel valued and supported this way they are more likely to be committed and loyal to the company.
Simply ask: How are you? How can I support you? How are the ways that you could support me?
FAIRNESS
One of my colleagues, a specialist in gender issues, has shared her experience of being hired to conduct a workshop on gender equality, only to realize upon arrival that the audience consisted entirely of women. This raised an important question: how can we change mindsets if the male leaders are not present?
Being fair means treating everyone equally and impartially, regardless of their gender, culture, background, status or personal relationships. It means ensuring that all team members have equal opportunities to succeed and advance, and that decisions are based on merit and objective criteria rather than personal biases or preferences.
The issue of fairness in the workplace today extends beyond important areas such as gender equality and the rights of people with disabilities to include the diverse range of nationalities and cultures present within a company. As a result it is important for leaders to establish an ongoing, open and transparent dialogue that includes all parties involved. By actively listening and taking effective actions to change mindsets and practices, leaders can create a culture that promotes fairness.
Simply ask: how are the ways that we could foster further fairness?
CELEBRATE
We nearly lost one of our employees simply because no one ever showed him gratitude or recognition for his work. He felt undervalued and taken for granted.
As a leader, authentically and frequently recognise and celebrate the successes of your team. Take the time to congratulate employees for a job well done and thank them for the efforts they have put in and recognise their contributions. When giving feedback, start by highlighting what they have done well. This sets a positive tone for constructive feedback and motivates employees to continue performing at a high level. It boosts their self-confidence, and gives them the security they need to unleash their potential.
Remember, your employees are the heart and soul of your company. Celebrating them is an important way to show that you appreciate their hard work and dedication.
Simply say: thank you! Well done! We appreciate your efforts!
LEADERSHIP IN THE AGE OF REMOTE WORK
In the era of remote work, building and maintaining trust among team members has become increasingly challenging but also more crucial. As virtual interactions replace in-person meetings, Leaders must be aware of the six components of trust and incorporate them into their virtual communication with their team. To establish trust, leaders need to prioritize clarity and transparency in their processes. In an article he wrote in the Harvard Business Review (March -April 2023), Sid Sijbrandij, CEO of GitLab´s, one of the world largest all-remote company´s employing more than 2000 people from all over the globe, emphasized transparency as a core value „Our commitment to transparency has helped us win customers, investors and talent because it creates trust. Our stakeholders understand that being so transparent makes us accountable for addressing problems and providing solutions“.
At the beginning of the pandemic, several large corporations were concerned about how to control their employees who are working remotely. However, many of these organizations learned valuable lessons from start-ups and younger companies, emphasizing that the location of the employees and the exact number of hours they are working is not as significant as the result they deliver. In fact studies indicate that remote employees tend to work longer hours, which is leading to the issue of home office burnout. Therefore even remotely, leaders should pay attention to the well-being of their employees.
In conclusion, trust is key for effective leadership, encompassing trust between leaders and employees as well as among peers. And it all starts with the leader.
The establishment of clear and transparent processes to facilitate access to information and people, coupled with respectful, fair, grateful and recognition-based communication is vital for fostering a culture of trust. By focusing on trust leaders can enhance employee retention and drive positive results for the company.
Creating and maintaining a culture of trust should be a central focus for any leader seeking to build a successful team and organisation.