“The ability to establish, grow, extend and restore trust is not only vital to our personal and interpersonal wellbeing; it is the key leadership competency of the new global economy.” — Stephen Covey, The Speed of Trust: The One Thing that Changes Everything
Understanding Leadership Trust
Leadership trust is the foundational belief that leaders will act with integrity, consistency, and genuine concern for their team’s and organisational goals. It encompasses three types of organisational trust:
- Deterrence-Based Trust: This initial form of trust arises from understanding the consequences of betrayal. Employees and leaders establish a baseline of accountability.
- Knowledge-Based Trust: Built from consistent and predictable behaviour over time, this type reinforces dependability and reliability in relationships.
- Identification-Based Trust: The highest form of trust, where mutual understanding and shared values create loyalty and alignment between leaders and their teams.
As Abbey Lewis from Harvard Business Publishing Corporate Learning puts it, “Trust is one of the most vital forms of capital a leader has today.”
Why Trust Matters
Trust in leadership is crucial for various reasons:
1. Boosts Performance and Productivity
High-trust organisations provide environments where employees feel safe to express ideas, take risks, and innovate. This leads to enhanced collaboration and communication, resulting in significantly higher productivity levels—up to 50% more than in low-trust settings.
2. Enhances Employee Well-Being
Trust reduces stress and burnout, creating a healthier workplace. Employees in high-trust organisations report 74% less stress and 40% less burnout compared to those in low-trust environments.
3. Improves Employee Retention
Trust significantly influences employee engagement and loyalty. When employees trust their leaders, they are less likely to seek new job opportunities—by as much as 58%.
4. Facilitates Talent Attraction
Employees who trust their organisations are more likely to recommend them as great workplaces. In a competitive job market, 60% of employees have referred others based on trust in their employer.
Key Traits and Behaviours for Building Trust
To cultivate trust within their teams, leaders must consistently exhibit certain traits and behaviours. Here are some effective strategies:
1. Be Transparent
- Keep the team informed about company developments and leadership decisions.
- Offer clear, constructive feedback that aligns with team goals.
- Foster open communication by creating a safe space for employees to share opinions, including dissenting ones.
- Use both formal tools and informal check-ins to ensure employees feel heard and valued.
2. Be Authentic
- Start with self-awareness: Understand your values, strengths, and emotional intelligence.
- Show vulnerability by sharing challenges and lessons learned to foster relatability.
- Embrace growth as a journey, viewing challenges as learning experiences to share with the team.
3. Be Reliable
- Follow through on commitments to build dependability.
- Build expertise by sharing informed insights and best practices.
- Demonstrate integrity by treating all team members fairly and equitably.
The Role of Oxytocin in Trust
Oxytocin, commonly known as the “love hormone,” also plays a significant role in building trust. Leaders can stimulate oxytocin production in their teams through eight key behaviours:
- Recognise Excellence: Immediate public recognition of achievements fosters trust and motivates others to excel.
- Induce “Challenge Stress”: Assigning achievable yet challenging goals triggers neurochemicals that enhance focus and teamwork.
- Give Autonomy: Allowing employees discretion in their work enhances motivation and creativity.
- Enable Job Crafting: Trusting employees to select projects that align with their interests boosts productivity and retention.
- Share Information Broadly: Transparent communication about goals and strategies builds trust and reduces stress.
- Intentionally Build Relationships: Fostering social connections at work enhances collaboration and trust.
- Facilitate Whole-Person Growth: Supporting personal and professional development promotes a high-trust environment.
- Show Vulnerability: Leaders who seek help demonstrate that collaboration and support are valued, strengthening relationships.
Closing the Trust Gap
Despite the importance of trust, leaders often overestimate the trust employees have in them. This misalignment can hinder their ability to address underlying issues affecting employee sentiment. Several factors contribute to the trust gap:
- Misalignment of Expectations: Executives may not fully understand what employees value in terms of trust.
- Lack of Open Communication: Communication barriers can make employees feel unheard, diminishing trust.
- Absence of Trust Ownership: Many organisations lack clarity on who is responsible for fostering trust.
Strategies to Close the Gap
To bridge this gap, leaders should focus on:
- Getting the metrics right: Understand the factors that contribute to trust within the organisation.
- Creating open communication channels: Establish platforms for employees to voice concerns and suggestions.
- Taking ownership: Ensure that someone is responsible for trust-building initiatives.
Why Leaders Lose Trust
Leaders can lose trust for various reasons. To address this, they should engage in self-reflection and identify their “trust wobble”—the specific driver (authenticity, logic, or empathy) that falters in their interactions. Here are ways to assess and rebuild trust:
- Reflect on Past Interactions: Analyse moments when trust was compromised to identify what went wrong.
- Seek Feedback: Engage with trusted colleagues or team members for insights into your perceived trustworthiness.
- Analyse Reactions: Observe how different stakeholders respond to you to identify patterns in trust levels.
- Own Your Mistakes: Acknowledge shortcomings in your approach to rebuild trust and demonstrate humility.
Evolving Perspectives on Trust
The traditional view of trust in leadership assumed that leaders were inherently trusted due to their position. However, modern perspectives emphasise the need for leaders to actively build trust, considering the influence of peers, technology, and generational values.
In a world where younger generations are more sceptical, leaders must earn trust and prioritise an employee-centric approach. It’s less about the leaders and more about the teams they serve.
How Factor10 Builds Trust
- Trusted and long-term client and coaching partnerships
- Data-led approach and our best-in-class tools
- Our team’s diversity, depth of skill, and real community
- Psychology-led coaching that delivers sustainable change
- Impact focus and ability to show tangible change and value
Kerrin and the Factor10 Team
Reach out about partnering with us: kerrin.miller@factor10consulting.co.za
Sources:
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