Now more than ever, organizational trust is the cornerstone of every thriving organization. While some leaders may shrink from associating the word ‘trust’ with the perception employees have about their employers, it correlates directly with employee well-being, engagement and a company’s overall success. In fact, the relationship between trust and well-being is so intertwined that it's difficult to have one without the other.
The importance of trust in the workplace cannot be overstated. According to The JUST Report 2023, companies that prioritize employee well-being and foster a culture of trust consistently outperform their peers in areas such as employee satisfaction, retention and productivity. This underscores the critical role that trust plays in shaping a positive work environment and driving business success.
How can an organization build trust with its workforce? The fundamentals.
It starts with leadership. The most effective leaders consistently demonstrate trustworthiness and a genuine concern for their employees' well-being. They understand that trust is not a blanket characteristic that can be applied companywide, but rather something that must be cultivated one person at a time.
Transparency is also key in fostering a culture of trust. Leaders who actively engage in open and honest communication, sharing both successes and challenges with their teams, set the table for a foundation of trust that can pay significant dividends. This need for transparency extends to company policies and decision-making processes. When employees understand the reasoning behind organizational decisions, they're more likely to trust in the company's direction, even during times of uncertainty.
Research shows that when employees trust their leaders and feel valued, they become significantly more motivated and committed to their work and willing to engage beyond the “paycheck player” level. High-trust environments create a sense of psychological safety where employees are 260% more motivated, experience 41% lower absenteeism, and are 50% less likely to seek alternative employment.
Among the most under-represented factors associated with corporate leaders’ reconciling trust-building with the bottom line is empathy. Leaders who take the time to truly listen to their employees' concerns and perspectives create an environment where trust and productivity can flourish. This means listening to understand, not just to respond. It's about demonstrating genuine care for employees' well-being and showing a willingness to support them through both professional and personal challenges.
What can organizations do to build trust when the unexpected happens? An innovative solution.
Perception is reality in today’s workforce landscape. Because of the now six generations in the workplace, many employees have a “Show me; don’t tell me” mindset as it relates to organizational trust. When it comes to employee well-being and creating an environment where trust is expected and delivered, one of the most effective investments employers can make is in an Emergency Financial Relief program. When an employee is impacted by an unexpected disaster or hardship, company leaders depend on E4E Relief to act as Financial First Responders, providing a safety net for employees facing financial hardships and demonstrating that company leaders are there for their employees during times of crisis. This innovative workforce solution is correlated with a significant boost in employee loyalty and overall company perception.
In fact, from a social impact perspective, 95% of E4E Relief grantees say the grant positively impacted their well-being, including outcomes such as financial stability, mental well-being, maintaining stable housing, regaining food security, maintaining quality of life, retaining current employment and utilizing necessary healthcare treatment, to name a few. When employees know that their company is invested in them during difficult times, a deep sense of security and trust is often the result. This, in turn, contributes to improved well-being, increased engagement and higher productivity.
The Trust Equation, from “The Trusted Advisor”, provides a useful snapshot for understanding the components of trust:
Trustworthiness = (Credibility + Reliability + Intimacy) / Self-Orientation
By offering an Emergency Financial Relief program, company leaders can demonstrate credibility in their commitment to reliably and fairly provide support when their employees need it most. It all contributes to employees perceiving leadership’s self-orientation as being lower than their willingness to prioritize employee needs.
Integrating Emergency Financial Relief into the broader total rewards package is no longer considered a nice-to-have; it’s germane to conversations about well-being, resiliency and social responsibility. It should be incorporated in employee onboarding and in the annual benefits summary, in manager training and in communications throughout the year and after disasters. By positioning the program as a core part of the company's culture and values, organizations can reinforce their commitment to employee well-being and further strengthen trust. This intern leads to a ripple effect of goodwill, with employees feeling more connected to their colleagues and more invested in the company's success.
Establishing organizational trust is not a one-off proposition. It’s an ongoing commitment leaders make, which can create a culture of trust that not only benefits their workforce but also drives long-term business success. Trust is not just a soft skill - it's a hard business imperative. By prioritizing trust-building initiatives like Emergency Financial Relief programs, fostering open communication, demonstrating empathy and consistently acting with integrity, organizations can create workplaces where employees feel valued, supported and empowered to excel.