Elizabeth Cogswell Baskin

What we know about building employee trust in the CEO

One of the best ways a CEO can build employee trust is to first demonstrate that he or she trusts employees. A recent article in the Harvard Business Review addresses this dynamic from the perspective of managers, but the same principle applies at a higher level in the corporate hierarchy and to the organization overall.

How does company leadership show trust in employees?

  1. Share information. Not just good news, but the bad news as well. In fact, sharing bad news honestly can go a long way towards increasing employee trust. Of course there will always be business information that’s not appropriate to share, and it’s fine to say that. Employees can appreciate that distinction. But if you talk about transparency, make sure you follow up by truly keeping employees in the loop on news you can share.
  2. Avoid creating a risk-averse culture. This is a big ship to turn around, if your culture is already rife with policies and attitudes intended to put as many controls in place as possible. It’s popular now for companies to promote the idea of failing fast, but there’s sometimes a contradiction presented by punitive policies. Giving employees a little more autonomy and decision-making power demonstrates trust in their abilities and their judgment. That’s a first step in having them return the favor.
  3. Promote visibility for individuals responsible for innovation. Look for examples of leaders within the company who are spearheading new product developments or initiatives and celebrate them. Mention them in town halls, encourage your communications staff to feature them in the internal publications or on the intranet. Most success stories will include bumps and challenges along the way. Telling those stories reinforces the notion that the company leadership trusted those employees enough to let them hit a dead end or two before they got it right.

Interested in building trust in leadership at your company? Tribe can help.

Steve Baskin

TRIBE TRIVIA: Non-Desk Employees and Corporate Communications

Question:  Do non-desk employees feel that corporate is keeping them in the loop?

Answer: About 20 percent feel that the company shares only good news with them, according to Tribe’s national research with non-desk employees. Almost 40 percent indicated they “take all corporate communications with a grain of salt.

For more information about this study, see Tribe’s white papers and other resources on the expertise page of tribeinc.com, or shoot me an email.

 

Elizabeth Cogswell Baskin

5 Tips For Building Trust In The Corporate Workplace

Here’s the thing: trust is not about guaranteeing employees that nothing bad will ever happen. If building trust requires a guarantee of anything, it’s that the company will tell employees what’s really going on, even if it’s bad.

Employees are smart enough to realize that no company can promise lifetime employment anymore. Most employees don’t even want lifetime employment. They want interesting, challenging work, and in an ideal scenario, work that they find personally meaningful.

They start a new job with the expectation that eventually they’ll move on to another company, ideally when they themselves decide it’s time for a change. But unless they’ve been living under a rock lately, they recognize that sometimes companies have to lay people off, eliminate positions or somehow reduce head count.

Honesty, then, becomes the real building block of trust. Employees feel trust in their company — and thus do their best work and are most engaged — when they believe management is being honest with them. So how does a company go about doing that?

1. Tell employees about any significant changes in the company — and tell them fast, before the rumor mill and the media get a jump on you. Some CEOs and other leaders delude themselves into thinking that if they don’t say anything, the employees won’t notice that anything is going on. Wrong. Employees know when something is up, and in the absence of management communication, they’ll take their information wherever they can get it, often from each other.

2. Tell the truth, even when it’s bad news. Particularly when it’s bad news. If employees know that the company will be straight with them in communicating negative developments, then they tend not to worry so much. Ironically, sharing bad news makes employees feel more comfortable instead of less so.

3. Give employees credit for being smart enough to know business includes both ups and downs. Most people have experienced plenty of highs and lows in their own lives, and they have an understanding that things move in cycles. Just because the business is down today, doesn’t mean it won’t be up tomorrow.

4. Make room for employees to ask questions. You have to make this honest communication a two-way street. Provide an online forum or town  hall meetings or some venue for your people to ask management the hard questions. That gives the company a chance to respond to the issues that you have to accept are swirling around the workplace. The other side of that coin is that employees need the information they need to make their own decisions –even if that means their decision will be to leave the company. By answering their questions though, you make it less likely that they’ll feel in a panic to jump ship.

5. Share the management vision for the future. Most corporate management teams believe they’re doing this all the time, and it’s true that the people closest to them are familiar with the vision. But when we speak to the rank and file, there is most often a disconnect and the further away an employee is from the top, the less confident they are that the company leadership has a plan. There are many ways to do this, but one of the most effective is a management blog, which we at Tribe liken to “walking the halls, electronically.” A employee blog allows a CEO to communicate one on one with the entire workplace, and to reinforce the vision over and over, and to discuss a range of aspects of that vision.

— posted by Elizabeth Cogswell Baskin