Trust is the building block

Trust is an essential component in any relationship, and this applies to the relationship between an organization and its employees. When an organization lacks trust in its employees, it creates an environment that is hostile, demotivating, and unproductive. Organizations that don't trust their employees are bound to fail in today's fast-paced business environment.

One of the primary reasons why organizations that don't trust their employees fail is because it leads to low employee morale. When employees feel that their organization doesn't trust them, they tend to feel demotivated and unappreciated. This can result in a decrease in productivity, as employees are less likely to put in their best effort when they feel that their efforts are not valued or appreciated. In addition, when employees feel demotivated, they are more likely to look for new job opportunities, which can lead to high turnover rates and difficulty in retaining top talent.

Studies have shown that employees in high-trust organizations are more productive and have higher levels of energy at work. For example, high-trust organizations have 50% higher productivity and 106% more energy at work (source: The Trust Edge: How Top Leaders Gain Faster Results, Deeper Relationships, and a Stronger Bottom Line by David Horsager).

In organizations with low trust, employees may feel discouraged, disempowered, and unappreciated, which can lead to decreased productivity levels. For example, in organizations with low trust, only 15% of employees said they were willing to give extra effort to help the organization, compared to 65% in high-trust organizations (source: The Trust Edge: How Top Leaders Gain Faster Results, Deeper Relationships, and a Stronger Bottom Line by David Horsager).

Additionally, organizations with high levels of trust are more likely to have a culture of collaboration and teamwork, which can lead to increased creativity, innovation, and problem-solving abilities, all of which can contribute to higher productivity levels.

Another reason why organizations that don't trust their employees fail is that it hampers creativity and innovation. When employees feel that they are not trusted, they tend to become more risk-averse, as they are less likely to try new ideas or take risks. This stifles creativity and innovation, as employees are less likely to suggest new ideas or approaches that could improve the organization's products, services, or processes. As a result, the organization becomes stuck in its ways and unable to adapt to the changing business environment, which can lead to its eventual failure.

When employees trust their leaders and coworkers, they are more likely to feel comfortable expressing their opinions and sharing their ideas, which can lead to a more diverse and inclusive work environment. This can encourage collaboration, brainstorming, and problem-solving, all of which can foster creativity and innovation.

On the other hand, in organizations with low trust, employees may feel intimidated or afraid to speak up, which can stifle creativity and limit innovation. When employees don't trust their leaders or coworkers, they may be less likely to share their ideas and collaborate with others, which can have a negative impact on the organization's ability to find new and innovative solutions.

• In a survey of 1,000 employees, 85% of respondents said that a lack of trust in the workplace stifles creativity (source: Edelman Trust Barometer).

• In a study of 1,200 employees, organizations with high levels of trust were found to be four times more likely to have employees who feel free to share their ideas (source: Great Place to Work Institute).

• In a survey of 200 managers, 95% said that a lack of trust in the workplace has a negative impact on innovation and creativity (source: Harvard Business Review).

• In a study of 500 employees, organizations with high levels of trust were found to be six times more likely to have employees who feel comfortable taking risks (source: Trust Across America).

Organizations with high levels of trust are more likely to have employees who feel empowered to share their ideas, take risks, and be innovative, leading to increased creativity and innovation. On the other hand, organizations with low trust are more likely to stifle creativity, limit innovation, and discourage risk-taking, all of which can have a negative impact on the organization's ability to grow and succeed.

Studies have shown that employees in high-trust organizations are less likely to look for new job opportunities, while those in low-trust organizations are more likely to seek employment elsewhere. For example, in organizations with low trust, 51% of employees said they were likely to look for a new job in the next year, compared to only 20% in high-trust organizations (source: The Trust Edge: How Top Leaders Gain Faster Results, Deeper Relationships, and a Stronger Bottom Line by David Horsager).

The high turnover rate in organizations with low trust can be costly for the organization, as it can lead to the loss of valuable employees, the need for constant recruitment and training of new employees, and a decrease in productivity and morale.

On the other hand, companies with high levels of trust have lower turnover rates, as employees are more likely to feel valued, appreciated, and committed to their jobs. For example, companies with high levels of trust experience 50% less turnover (source: The Great Place to Work Institute).

Subsequently, organizations that don't trust their employees also face difficulties in attracting and retaining top talent. When employees feel that they are not trusted, they are less likely to be satisfied with their jobs and more likely to look for new job opportunities. This can make it difficult for organizations to attract and retain top talent, as employees are more likely to choose to work for organizations that value and trust them.

Moreover, organizations that don't trust their employees also miss out on valuable information and feedback. When employees feel that they are not trusted, they are less likely to share their thoughts, ideas, and feedback with their superiors. This can lead to a lack of communication and collaboration, as employees are less likely to work together to find solutions to problems or to share information that could be valuable to the organization. As a result, the organization becomes less agile and less able to respond to new challenges and opportunities, which can put it at a disadvantage in the competitive business environment.

Trust, or lack thereof, influences every level of an organization, and every stakeholder is impacted by an organization’s trust culture. In organizations with high levels of trust, employees are more likely to feel valued, respected, and supported, which can foster a positive and productive work culture. A positive work culture can lead to increased engagement, motivation, and job satisfaction, all of which can contribute to the success of the organization.

On the other hand, in organizations with low trust, employees may feel disempowered, intimidated, and unappreciated, which can lead to a toxic work culture. A toxic work culture can have a negative impact on employee morale and productivity, and can even lead to high levels of turnover.

• High-trust organizations have 70% less stress, 106% more energy at work, 50% higher productivity, 13% fewer sick days, 76% more engagement, 29% more satisfaction with their lives, and 40% less burnout (source: The Trust Edge: How Top Leaders Gain Faster Results, Deeper Relationships, and a Stronger Bottom Line by David Horsager).

• Employees in high-trust organizations are 4.6 times more likely to feel empowered to do their best work (source: The Great Place to Work Institute).

• Only 33% of employees trust their employers (source: Edelman Trust Barometer).

• In organizations with low trust, 51% of employees said they were likely to look for a new job in the next year, compared to only 20% in high-trust organizations (source: The Trust Edge: How Top Leaders Gain Faster Results, Deeper Relationships, and a Stronger Bottom Line by David Horsager).

• Companies with high levels of trust experience 50% less turnover (source: The Great Place to Work Institute).

• In organizations with low trust, only 15% of employees said they were willing to give extra effort to help the organization, compared to 65% in high-trust organizations (source: The Trust Edge: How Top Leaders Gain Faster Results, Deeper Relationships, and a Stronger Bottom Line by David Horsager).

• Companies with high levels of trust have 2.5 times higher earnings per share compared to companies with low levels of trust (source: The Great Place to Work Institute).

Trust is an essential component in any relationship, and this applies to the relationship between an organization and its employees. When an organization lacks trust in its employees, it creates an environment that is hostile, demotivating, and unproductive, which can lead to low employee morale, decreased creativity and innovation, a lack of communication and collaboration, and difficulty in attracting and retaining top talent. Organizations that want to succeed in today's business environment need to build a culture of trust, where employees feel valued and appreciated, and where their contributions are recognized and rewarded.