3 Things Every Leader Needs to Know About Trust

If you’re in a leadership role, understanding how trust works and how to build it is essential. As a leader, you’re only successful if the people you lead succeed. A big part of your job is to design a work environment where people can thrive and perform at their best. If that environment has little trust, not only will people not thrive, they’ll barely survive. 

A workplace without trust is like air without oxygen. People suffer, and so do their results. Conversely, if trust is high, both people and results prosper. For example, a Watson Wyatt study found that high-trust organizations outperform low-trust organizations in total return to shareholders by 286 percent.

The need for trust probably strikes you as common sense. That’s because it is. However, just because it’s common sense doesn’t make it common practice.

A survey by the Tax and Advisory services company EY found that less than half of full-time workers place a great deal of trust in their employers.

Are you building the trust you need to get the results you want? 

In our 21st Century, the nature of work has changed. Leaders who don’t know how to build trust will get left behind. Here are three things every leader needs to know about trust:  

1.   Trust is the new currency of work.

In our high-tech, mobile age, it’s easier than ever for employees to jump ship. Loyalty and engagement cannot be drilled from the top of an organization chart on down. Commitment is built from the ground up, one relationship at a time.  

2.   Your position gives you authority, but not power. 

Today, no leader is trusted blindly. Trust is created through your daily actions – what you say and what you do. 

3.   Trust is the key to innovation. 

Innovation is all about trying to make things better to create value. People won’t make the effort to create or improve something if the culture is fear-based. Complacency is a byproduct of working in a place where the risk of making change outweighs the risk of sticking with the status quo. People only take risks if they trust they won’t be punished for doing so.   

Leading in today’s workplace is more challenging than ever before. While it’s hard work, the leader who creates a high-trust culture reaps these six benefits:

1. Your influence grows. Leaders who are trusted attract others to them. More people will follow your lead, regardless of your title or seniority.  

2. You’ll gain better information. When people trust you, they’ll open up to you and share more details. This will enable you to gain greater insights and make better decisions. 

3. You’ll get better results. When you're more informed, you make better decisions, and your choices lead to better outcomes. 

4. You’ll build your brand reputation. Word of mouth recommendations, referrals and top talent will come knocking on your door. People want to work with others who are known for creating valuable business relationships.   

5. You get early warning signals. When you’ve built trust, people have your back. They want you to succeed. They’ll forecast any warnings that could be harmful to you down the road. 

6. You’ll decrease your stress. When others trust you, they cut you some slack. Your trust reputation creates a halo effect, where your mistakes are more easily forgiven.   

People don't give their vision, innovations, enthusiasm, respect, engagement, or best work to people they don't trust.

Want to learn more? Read the free e-book "Navigating Trust: A Roadmap For Leaders." It includes 66 specific actions that you can take to increase your expertise in building trust.