The Trust Deficit, Transparency, Respect and Ability to Communicate

Having crucial and hard conversations requires at least a basic level of trust. Trustworthiness is the most sought-after trait in leaders according to recent surveys. So why is it declining? And how can it be established or rebuilt?

Children start out trusting, but as adults for several decades we have seen they too often either get overprotective of children or become a model of mistrust in their own lives or both. The Edelman global Trust Barometer covering 28 countries found that trust in all institutions has cratered so much that people globally believe that business is the only institution they see as competent and ethical in today’s polarized world. And only 62% of survey respondents have that confidence in business, which is viewed as more competent than ethical.

Is that finding perhaps attributable to people valuing convenience, speed and lack of effort required more than trust and ethics? For example https://www.businessinsider.com/everyone-hates-workday-human-resources-customer-service-software-fortune-500-2024-5.

Without a reasonable level of trust, healthy debate and team productivity suffers. Mistakes are not tolerated. People fear conversations and that anything they say may be held against them. They may hold back from experimenting and pursuing innovation. We get blandness in the arts and few original insights and scientific achievements.

In the workplace, what is the connection between trust and loyalty, talent retention and safety? A “psychological contract” is necessary for loyalty, that is, what each party feels they owe each other and what they expect in return. It requires shared expectations.

When the contract breaks, people find a way to rebalance the scales in their favor, or worse, seek revenge. Trust is lost; a sense of loyalty disappears on both an individual basis and organizational culture basis.

Rebuilding requires fixing the loyalty breach. That involves restoring some sense of security, for example, retention of jobs and psychological safety norms to be observed in team and cross-departmental discussions. Also significant are continued learning opportunities, and, most importantly, a sense of true belonging. In times when layoffs are necessary, that can be demonstrated if employers and layers of leadership give advance notice and are respectful to all workers who will be cast out.

Security and trust can be built by avoiding confusion and being clear about expectations from all parties.

Also, a significant threat to individual security and team cohesiveness and performance are conflicts between workers and managers. A 2023 Gartner survey revealed (57% of respondents) that managers at all levels are responsible for resolving conflicts among their direct reports and team managers. But the majority of managers are not trained in conflict resolution, a need I have heard directly from CHROs. Often those conflicts are better resolved by external consultants and coaches.

Alumni programs, bringing boomerang employees back, and always showing ongoing respect and caring might be effective policies and practices to adopt. Mutuality and reciprocity create trust, and trust generates loyalty.”

Call to Action: Earn trust, not just by words, but showing action on important issues such as DEIB, wellness and psychological safety, and people-first cultures. I urge all leaders at any level, especially middle managers, to take this vital challenge to heart. What ground rules would you suggest for psychological safety for trustful conversations?

Coming up: Blog #4 in this series will address threats to organization culture, conflict resolution, and role of managers and mentors to promote meaningful conversations.

© Phyllis Weiss Haserot 2024.