Why Does Trust Matter in the Workplace?

This quarter, the UKG Workforce Institute Weigh-In will focus on the critical topic of trust in the workplace — why it matters, how to foster it, and what to do if you lose it.  

The UKG Workforce Institute Weigh-In for April 2024: Why does trust matter in the workplace, and what is the business case for building trust among employees and the organization?  

“Organizations of nearly any size work toward goals through group actions. Work teams take on portions of the organization’s mission, establish goals that align with stakeholder expectations, and work together to achieve those outcomes. Frequently, perhaps always, the actions of a team are subject to failure, which means that risk is present. Being able to trust one another, to know that tasks taken by members of the team are done with the interests of the group involved, that no member will ‘sell out’ the group in an attempt to gain personal advantage — these are the assurances that stem from well-established, trusting relationships and that, in turn, support constructive action toward group ends. I have seen organizations that are imbued with trust and that achieve great things, and I have seen how impossible it is to meet an organization’s goals when mistrust is widely present. Highly profitable companies need to encourage and nurture a culture of trust in every corner of their organization.” — William Beach , former commissioner of labor statistics at the U.S. Bureau of Labor Statistics and current senior fellow in economics at the Economic Policy Innovation Center (EPIC)

“Sometimes important issues arise in the organization (e.g., something about the bolts used to secure a door on an airplane), and it’s crucial those who spot it trust the leadership enough to report it.” — David Creelman , CEO, Creelman Research

“Trust in the workplace serves as the cornerstone for creating an environment where collaboration, communication, and innovation can thrive. When employees trust their leaders and one another, there’s a significant reduction in workplace stress and conflict, leading to improved morale and job satisfaction. This trust empowers team members to share ideas freely and take calculated risks, driving creativity and innovation. From a business standpoint, organizations with high levels of trust see better performance outcomes. Trust leads to faster decision making, as there’s less need for oversight and micromanagement. This, in turn, increases efficiency and productivity. Companies with strong trust attract and retain top talent, reducing turnover costs and fostering a strong employer brand. Financially, trust translates into direct benefits: higher employee engagement levels correlate with increased profitability, customer satisfaction, and loyalty, forming a strong business case for investing in trust-building initiatives within the organization.” — Jessica Kriegel , chief scientist of workplace culture, CULTURE PARTNERS

“Trust matters because it directly impacts morale, productivity, and retention. Unfortunately, many organizations have been damaging their employees’ trust via the rising trend of employee monitoring. Stories abound of employers using monitoring software to track the location of their staff, record how much time employees spend on different activities, and take screenshots of their devices, sometimes without employee consent. I’m not a big fan of this. If you’re worried about efficiency, you need only look at individual and team performance metrics to determine if there’s an issue. Generally speaking, you shouldn’t care how long a specific task takes as long as quality work is executed consistently and delivered according to deadlines. I recommend that, instead of putting your technology dollars into monitoring workers and risking diminished morale, productivity, and retention, direct your investment toward cultivating a vibrant employee experience that will facilitate a stronger and more trusting culture.” — Alexandra Levit , co-author, “Deep Talent”  

“Trust is the bedrock of any relationship, including the relationship between a company and its employees. A subset of this comment is the trust level between each individual employee and their direct supervisor. Trust-based relationships typically allow an environment to exit (and, ideally, thrive), allowing an employee to operate effectively, take all types of informed workplace-based risks, present challenges to the status quo, support effective collaboration and idea sharing, and support innovation, among a long list of other positive outcomes. High levels of trust can support higher degrees of individual accountability and productivity, where an employee in this scenario is much more likely to apply discretionary efforts toward their work product. High degrees of trust will yield higher retention rates. Conversely, low levels of trust work against all of these positive outcomes. In fact, over long periods of time, survey data informs us that, 7 out of 10 times, employees voluntary leave their job based on a poor relationship with their supervisor, which is most likely directly linked to a poor trust-based relationship with their supervisor.” — Dennis Miller , associate vice president, HR and benefits administration, The Claremont Colleges Services

“Trust is the foundation of any successful relationship, including the relationship between an employer and its employees. When there is a high degree of trust, employees feel empowered to create, collaborate, and innovate without fear of severe negative consequences. Trust allows a culture of psychological safety, where individuals can thrive and be their authentic selves. Trust also helps to streamline decision-making processes, enhance employee morale and loyalty, and reduce the costs associated with absenteeism, burnout, and prolonged stress. Investing in building and sustaining trust reaps major dividends, creating a resilient and harmonious workplace culture with high-performing talent and sustainable business growth and prosperity.” — Sarah Morgan , vice president of people operations, Level Agency

“Trust is the cornerstone of effective workplace relationships and organizational success for several reasons. Firstly, trust fosters open communication, collaboration, and cooperation among employees, leading to increased productivity and innovation. When employees trust their leaders and colleagues, they feel more comfortable sharing ideas, taking risks, and working towards common goals. Trust enhances employee morale, satisfaction, and loyalty, reducing turnover rates and associated recruitment costs. Trust facilitates faster decision-making processes and problem solving, as workers are more willing to delegate tasks and empower others when trust is present.” — Dan Schawbel , managing partner, Workplace Intelligence

Want to learn even more practical ways to build trust in the workplace? Register for the UKG HR & Payroll eSymposium on June 12.