Trust is so essential to business that it's easy to overlook its role in helping companies succeed, especially with regard to the personal trust between individual employees and individual managers. An in-depth article from Human Resource Executive gives some practical tips for managers in the constant effort to build trust, and cites a few interesting studies that reinforce the importance of trust in the workplace:
In a recent University of British Columbia report, economists found that trust in management is the most valued determinant of job satisfaction. They state that a small increase in trust of management is like getting a 36 percent pay increase. Conversely, the researchers found that if that same amount of trust is lost, the decline in employee job satisfaction is like taking a 36 percent pay cut. […]
Simply put, organizations that foster trust are more profitable. A Watson Wyatt Worldwide study found that organizations in which front-line employees trusted senior leadership posted a 42 percent higher return on shareholder investment than those firms in which distrust was the norm.
It's hard to put a number on the value of something like trust, but these study results point to the importance of a trusting work environment and highlight the competitive advantage it can produce.
http://www.bnet.com/2403-13241_23-52960.html?promo=808&tag=nl.e808
In a recent University of British Columbia report, economists found that trust in management is the most valued determinant of job satisfaction. They state that a small increase in trust of management is like getting a 36 percent pay increase. Conversely, the researchers found that if that same amount of trust is lost, the decline in employee job satisfaction is like taking a 36 percent pay cut. […]
Simply put, organizations that foster trust are more profitable. A Watson Wyatt Worldwide study found that organizations in which front-line employees trusted senior leadership posted a 42 percent higher return on shareholder investment than those firms in which distrust was the norm.
It's hard to put a number on the value of something like trust, but these study results point to the importance of a trusting work environment and highlight the competitive advantage it can produce.
http://www.bnet.com/2403-13241_23-52960.html?promo=808&tag=nl.e808
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