The Importance of Trust in the Workplace
In any relationship, trust is the foundation, and this principle applies to the workplace as well. What happens when there’s a lack of trust between organizations and employees?
The Emergence of a Trust Recession
According to Jeff Stier, a technology and innovation specialist at EY, there is a trust recession, defined as its decline, fueled by polarization, misinformation, and rapid change.
Employee Engagement and Sense of Belonging
Visivera’s research indicates that 88% of employee engagement can be attributed to their sense of belonging within the organization.
Moreover, nearly half of what makes people feel they belong stems from how much they trust the people around them (49%).
Trust as a Soft Skill and Strategic Asset
Jeff Stier and Woody Driggs argue that, currently, trust is a soft skill. They assert that “trust is strategic,” “trust is measurable,” and “trust is a multiplicative force.” Consequently, companies should view trust as an intangible asset to be integrated into their corporate strategies.
Impact on Company Profitability
When trust erodes between organizations and employees, the entire system weakens, including the foundations. This decline directly impacts a company’s profitability, among other variables.
Key Questions and Answers
- Q: What is the significance of trust in the workplace? Trust is the foundation of any relationship, including those in professional settings. It fosters a sense of belonging and engagement among employees, which ultimately contributes to overall organizational success.
- Q: What is a trust recession? A trust recession, as defined by Jeff Stier, refers to the decline in trust within organizations and among employees, driven by factors such as polarization, misinformation, and rapid change.
- Q: How does a sense of belonging affect employee engagement? According to Visivera’s research, 88% of employee engagement can be attributed to their sense of belonging within the organization. This feeling is significantly influenced by the level of trust employees have in their colleagues.
- Q: Why should companies prioritize trust as a strategic asset? Jeff Stier and Woody Driggs argue that trust is a soft skill with strategic value. They emphasize that trust is measurable, contributes to organizational success, and should be considered an intangible asset in corporate strategies.
- Q: How does a lack of trust impact company profitability? When trust diminishes between organizations and employees, the entire system weakens, leading to decreased employee commitment and, ultimately, reduced company profitability.
