For WorldatWork Members
- Comp Talk 101: Training Managers to Communicate Pay Decisions, Workspan Magazine article
- Transparency in Sales Compensation, Workspan Magazine article
- How to Communicate Pay Frequency Changes, Workspan Magazine article
- Empowering Connections: Leading Trends in Employee Communication, Journal of Total Rewards article
For Everyone
- How Pay Transparency Connects with Job Architecture and Employee Trust, Workspan Daily article
- Building Employee Trust Amid Layoffs, Workspan Daily article
- Could Constructive Communication Combat Compensation Challenges? Workspan Daily article
- Is Your Organization Living Up to Its Employee Value Proposition? Workspan Daily article
Despite reports that employee trust in their employer is on the decline, there are encouraging signs that it is alive and kicking ... and being rebuilt.
Twenty-one percent of the 1,000 U.S. workers who responded to a recent Korn Ferry survey said they have less trust in their employer than they did one year ago. While not stellar, this is an improvement from three years ago, when 28% of workers reported reduced year-over-year trust.
Access bonus Workspan Daily Plus+ content on this subject:
- Take These Three Steps to Mitigate Employee Distrust
- The Trust Equation: Building Trust Through Total Rewards
“At its core, trust is built on employees feeling that their interests are genuinely considered by their employers, [and employer interest is] not just the company’s bottom line,” said Fresia Jackson, the director of people science research at employee recognition platform Culture Amp. “This fundamental aspect involves creating an environment where workers feel valued and their needs are addressed in decision-making processes.”
For total rewards professionals, providing a robust rewards package can help mitigate workplace distrust. Focus on several rewards areas may elicit more gains.
Maintaining Relationships
According to the Korn Ferry survey data, the top three issues that directly impact employees’ trust in their employers are communication (47%), transparency (21%) and work-life balance (15%). Notably, 76% of employees agreed lack of trust in their manager affects their motivation at work.
The relationship between an employee and their manager is a proxy for their relationship with the overall organization, said Tamara Rodman, a senior client partner for culture, change and communications at Korn Ferry.
“The impact of an employee’s immediate manager cannot be overstated,” she said. “They help manage workloads, guide professional development, and perhaps most importantly, provide context for decisions and explain what strategic choices mean for individual employees. This requires strong communication skills and proactiveness in sharing information.”
Trust in the Era of Hybrid/Remote Work
The Korn Ferry survey found 65% of workers strongly agreed hybrid/remote work arrangements have positively impacted their relationship with their employer.
“Remote/hybrid work has largely been embraced by employees,” Rodman said. “But we’re seeing more and more companies requiring employees to be physically present in the office full-time without strong, data-backed arguments articulating why in-person is better. This leads to assumptions that the real reason is that leaders don’t trust people to work when they can’t physically see them.”
Demonstrating such trust in employees can be key to maintaining their trust in the organization, Jackson noted.
“Show confidence in your workforce by granting them autonomy and flexibility in their work,” she said. “This approach not only builds trust but also fosters a sense of ownership and responsibility.”
Invest in Employee Recognition
To boost trust, employers are offering more promotions, rewards and recognitions (14%), said the Korn Ferry survey.
“Employee performance, especially in knowledge work and work that is completed in a flexible environment, depends on motivation and discretionary effort,” Jackson said. “When employees trust their employer, they’re more likely to take initiative, be creative and contribute their best ideas without fear of negative consequences.”
She advised employers to establish a process to recognize employees for their hard work.
“Research establishes a link between trust and the hormone oxytocin, often called the ‘trust hormone,’” Jackson said. “This suggests that workplace practices promoting positive interactions and recognition can enhance trust levels within an organization.”
Implementing a robust recognition program need not break the bank, Jackson said, and total rewards professionals can foster connection by hosting team-building exercises, cross-departmental projects or informal social events.
“Trust is reciprocal,” Korn Ferry’s Rodman said. “When employers invest in their people, their people are more likely to invest in their employer through their time and energy.”
Editor’s Note: Additional Content
For more information and resources related to this article, see the pages below, which offer quick access to all WorldatWork content on these topics:
