Building trust in your organisation
How do we keep our employees from joining the Great Resignation? Studies have shown that trust is key to attracting and retaining talent, key to building a sustainable business.
Why is trust so important?
A 2015 study by Interaction Associates showed that high-trust companies “are more than 2½ times more likely to be high performing revenue organisations” than low-trust companies.
How does trust drive economic value?
Trust helps attract and retain talent, which is key to driving economic value in an organisation and ensuring its sustainability in the long term.
In a study done by Paul J. Zak, neuro-economist and author of “Trust Factor: The Science of Creating High-Performance Companies”, it was found that compared with people at low-trust companies, people at high-trust companies report:
Results of leaders who build trust
Organisations with a high level of trust have:
Engaged & collaborative employees
Low voluntary turnover rate*
Employees who are more productive employees
*According to research from The Great Place to Work Institute and Fortune, companies that rank in the Top 100 Best Companies to Work For have a voluntary turnover rate that’s half the rate of their industry peers.
These factors are imperative to building a successful business, especially in an economic downturn and talks of a recession. How then can leaders build trust effectively?
Besides building trust with employees, organisations also have to understand other stakeholders’ values to succeed in the long term. Click here to read about how to earn trust with a values-led approach to business operations.
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