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How to build trust ...

Andrew Gill on driving fear
out of the workplace.

My father worked for the same company for over 30 years. When he retired, he received a gold watch, his pension, and medical coverage for life. He never considered working anywhere else, knowing that if he performed well in his job, there would be periodic increases in responsibility and pay as well as a job he could count on to support his family. A very clear bond of trust existed between my father and the company that employed him.

Consequently, the organisation received maximum effort and commitment from a talented, dedicated employee and my father received security and the knowledge that he was appreciated by his employer.

Unfortunately, the trust that existed between companies and their employees during my father's working years was blasted out of existence by the business trends of the 1970s, 80s and 90s. Greed, short-term focus and unethical leadership have all contributed to a growing cynicism in the workplace. However, it is intensified competition that has led the revolution...and that means that almost everyone has been affected - however well-intentioned.

It's therefore not surprising that a recent survey conducted by DDI found that over half all respondents agree that "lack of trust" was a significant problem in their organisation.

Further examination of the leading organisations found that one of the keys to their success was a high trust environment and a high degree of employee involvement and commitment the cornerstone of organisational success.

So how can organisations build a high trust environment? Here are three crucial areas that directly impact the level of trust.


Compensation system

Few subjects create as much controversy and distrust as compensation. If people believe that their organisation's objective is to pay them as little as possible, their lack of trust will spill over into related areas, and the vicious cycle of distrust begins.

Ways to ensure your compensation systems is consistent and honest include:

Sharing salary ranges with associates as appropriate. Individuals have a right to know the ranges for their particular job categories and to see how high their compensation will be if they make it to the top of the range.

Make merit pay decisions based on fair, objective data that reflect actual performance levels. Nothing is more frustrating, or more damaging, to trust in the workplace than perceived favouritism.

Make bonus systems quantifiable in order to avoid discretionary or unilateral decisions on bonus amounts.

Conduct internal equity comparisons for the same or similar jobs. If two people in the same job with similar backgrounds and experience make significantly different salaries, trust erodes quickly. It is also advisable to make external equity comparisons. If an organisation underpays, it runs the risk of losing good people.


Work environment

This plays a significant part in staff perceptions of how much their organisations cares about them. Decor, type of furniture, carpeting and windows all communicate how the organisation feels about their sense of comfort and satisfaction with the place they work.

Surroundings don't have to be luxurious, of course, but people need to feel comfortable and relaxed at work. In addition, if management has significantly more extravagant furnishings, their credibility and trust is at risk.

Also important is the atmosphere that exists in an organisation. A negative atmosphere can send ripples of discontent throughout an organisation that extinguish any hope of developing trust.


Leadership

Understandably, many leaders find it difficult to use a high-trust approach when they face the pressures of reducing profits, stagnant inflation and losing market share. Yet effective leadership is one of the most powerful ways to build trust.

Here are some of the best ways a leader can open communication and build trust:


Be positive

Employees look to leaders for direction, guidance, and inspiration. Leaders need to focus on the positive aspects of people, events results, and the organisation as a whole.


Seek ideas and listen

Leaders should seek ideas from others to increase understanding of what is happening and why. Too often, leaders listen with the intent of replying, not understanding; then they reply only to the content of what was said and miss out on hearing people's feelings.

Leaders can improve their listening skills by getting into the habit of offering responses that reflect the content and the feelings communicated. These show an employee that the leader heard what the employee said and felt about an issue.


Disclose

One of the fundamental reasons employees have low trust in leaders is they simply don't know what their leaders think or believe. This situation occurs because leaders sometimes hesitate to disclose their feelings for fear of appearing weak. When leaders remove the mystery surrounding what they feel and think, people have a better understanding of the leaders' position, behaviour and decisions, all of which enhance the level of trust.


Don't shoot the messenger

Open communication quickly evaporates when leaders "shoot the messenger". The bearer of bad news isn't necessarily the cause of the bad news; and the more frequently the messenger gets "shot", the lower the level of trust between leaders and employees.


Be consistent

"Walking the talk" is one of the best ways of fostering trust but is not always easy. Many leaders know what they should do, but doing it every day is difficult. Too often, leaders will say the right things but do the opposite. Yet the way leaders go about their job will communicate far more to the employee about what is important, than a hundred emails or "corporate directives". Leaders need to realise that when they make commitments, following through and keeping them is essential.


Andrew Gill is general manager (consulting) with DDI Asia Pacific
and has worked with most of Australia's Top 500 organisations.
Ph: (02) 9466-0300.

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