Trust issues: How earning employee trust can pay dividends

Employees who feel trusted by their employers feel empowered to do their best work.

Improved employee output can, in turn, fuel consumer trust.

That simple formula for success can guide companies dealing with trust issues on the employee and consumer side. And, according to research from PwC, most companies are dealing with at least some trust issues.

The 2024 Trust Survey of 548 business executives, 2,515 consumers, and 2,039 employees in the U.S. across industries found that 90% of executives think customers highly trust their companies – but only 30% of consumers said they actually do.

Eighty-six percent of executives said their trust in employees is high, but only 60% of employees feel highly trusted.

“Many companies say that they measure trust but, based on our conversations with business executives, those metrics are often subjective and don’t fully capture the current sentiment across stakeholder groups such as employees, customers, and investors,” the PwC report said. “These often include metrics such as customer satisfaction and employee engagement, which are related to trust but are only part of the picture when it comes to trust. Companies that move beyond these partial measures can better identify where they should focus.”

While it’s a good starting point that employers tend to trust their employees, it’s a moot point if employees aren’t aware. That disconnect can impact the bottom line: 61% of employees said perceived lack of trust from leadership affects their ability to do their job well.

While a formula for success seems simple enough – that employees who feel trusted are better equipped to drive business objectives – achieving the objective may not be so simple.

PwC suggests that executives embed trust in any new areas of development by focusing on transparency from the start. In existing areas where trust issues exist, PwC said, companies should:

• Take on trust opportunities as a team. Treat trust as a collective responsibility within the organization, using a common set of metrics that formally measure trust. Building trust is a shared responsibility, which means working harder as an executive team to put it at the center of your strategy.
• Focus on building a culture of trust. Tell and show your employees that you trust them and provide opportunities to help them trust each other more. Offer additional training and mentoring programs for all employees, as well as opportunities for career advancement.
• Develop a stakeholder engagement plan. Assign relationship owners to your stakeholders and outline what your communication strategy with them will be. Put listening channels into place to better understand stakeholder perspectives and to anticipate any shifts in views.

— To comment on this article or to suggest an idea for another article, contact Bryan Strickland at Bryan.Strickland@aicpa-cima.com.