Integrating trust into corporate culture

Deloitte HX Trust ID Workforce Research suggests that employees in highly trusted companies are 50 percent less likely to leave, 180 percent more likely to be motivated and 140 percent more likely to take on extra responsibilities. They are generally more productive, healthier and satisfied with their jobs. Fostering a culture of trust within organisations secures long-term success and cultivates a resilient and collaborative environment where individuals can express ideas without fear of judgment or failure.

Employees are more productive, healthier and less prone to burnout in such settings. A strong sense of psychological safety develops among people within these organisations. Although building a trust-based culture is a top priority for management and boards, the process has become increasingly difficult and complex. The below-mentioned internal and external factors contribute to this complexity:

• Internal factors:
  
  

Hybrid or remote working: As organisations evolve, especially in a post-pandemic world, trust has become more critical and serves as the cohesive force that holds hybrid or remote work models together. One of the biggest challenges of this working arrangement is maintaining a unified organisational culture, which becomes more difficult when employees are in dispersed locations. Integrating trust into culture involves creating meaningful experiences for all employees, regardless of where they are located. Trust fosters a sense of belonging, and consistent experiences help reinforce that connection across the organisation.

• Diverse workforce:

Organisations today have a multi-generational workforce with a large percentage of millennials and Gen Z employees. Each generation has different perspectives on trust and how it should be established and maintained. For instance, the Ipsos Global Trustworthiness Index report of 2024 suggests that baby boomers are more likely to prioritise reliability an openness/transparency, while Gen Z and millennials place higher importance on value sharing, intent and the significance of leadership. As organisations grow and become multigeographical and multi-cultural, formalising the trust responsibility and reiterating trust principles becomes crucial.

• Leadership: 

Leaders are either not equipped with the right approach to build a trust-based culture or are too busy with running the business to be able to focus on it.

• External factors:

Business and economic uncertainty: Macro factors external to organisations can significantly influence trust. Industry disruptions or market downturns often create an environment of mistrust that is difficult to manage. For instance, unexpected shifts in economic conditions may lead organisations to reassess their workforce requirements, resulting in decisions such as layoffs or restructuring. Such actions can profoundly impact organisational culture, leading to a decline in employee trust and morale.

• Rapid technological change: 

Rapid technological advancements bring both opportunities and challenges for organisations. While they drive innovation and efficiency, they can also increase concerns about job security and the ability to keep pace with evolving skills. This is influenced by the rapid pace of technological change and the growing skills gap, leaving many employees unprepared. In addition to these
challenges, cost-cutting measures, automation and workforce restructuring can negatively affect employee trust and morale. Organisations must address these challenges to build a culture of trust by fostering upskilling opportunities and transparent communication.

• Building trust at all levels
  

Empowering change: How businesses can be a force for good. According to the Deloitte 2024 Gen Z and Millennial survey, younger generations highly value businesses that are socially responsible and purpose-driven. Organisations perceived as a “force for good” can enhance trust among employees. This is crucial for maintaining a motivated and committed workforce and for attracting and retaining top talent. To achieve this, businesses need to provide a sense of purpose to their people by focusing on the environment, sustainability and mental health issues.

• Unlocking leadership success:

Building the Trust VAULT Leaders play a crucial role in building trust. In one of our culture studies for a bank, we found that when leaders foster confidence through mentorship, it increases employee trust. This approach led to a high culture index of the organisation, outperforming more than 50 percent of its peers. While senior leaders' behaviours are pivotal, it is equally essential for leaders at all levels, including supervisors, to model the right behaviours.
Effective trust-building is not the sole responsibility of top executives; it must be pervasive across the entire leadership. By empowering and developing leaders throughout the organisation, companies can ensure that trust-building practices are consistently implemented and reinforced.

• Vulnerable:

Leaders who are vulnerable in front of their people and accept that they can also make mistakes go a long way in building trust. It helps their teams see them as one of their own and relate to the leader in a more humane manner rather than a larger-than-life figure who can never go wrong.

• Authentic:

Genuine and authentic leaders are much more likely to build trust. Pretending to be someone you are not leads to relationships that seem insincere and superficial.

• Unbiased and fair: 

Not all decisions made by leaders will be universally liked. However, when decisions are perceived as unbiased and fair, they play a crucial role in building trust.

• Lead by example:

This is arguably the most critical element in building trust, as teams are profoundly influenced by their leaders' actions. When leaders exhibit trust-building behaviours, they set a standard that naturally cascades throughout the organisation, shaping its culture and defining “the way we do things here.”

• Transparent:

It is not always possible for leaders to share all information or what goes behind a decision with their teams, but as far as possible, being transparent is a great enabler in building trust. Rather than just communicating the decision, helping people understand the factors behind the decision and the process that was followed to reach the decision goes a long way in building trust.

Measuring trust
As the saying goes, “What gets measured, gets done.” This is particularly true for trust, which often appears as an abstract concept that is difficult to quantify. A structured framework is crucial for measuring trust, requiring a 360-degree assessment of the organisation and identifying trust deficits, thus making trust tangible and actionable. When trust is managed proactively, prioritised, acted upon and embedded in organisational culture, it can become a competitive
advantage.

Integrating trust into organisational culture is more than just a strategic choice but an essential priority. Rapid digital transformation, evolving workforce expectations and economic uncertainties have stressed the importance of fostering trust. This calls for embedding trust as a foundational element in every decision, interaction and policy. It should move beyond being an abstract value in mission statements to become a tangible experience for employees, customers, partners and investors.

*The original article was published in ETHR World on 17^th December 2024.