CMO & Head of People at BrightPlan, a Total Financial Wellness company.
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In today's rapidly evolving business landscape, a trust crisis has emerged that's casting a shadow over the employer-employee relationship. At BrightPlan, our 2023 Wellness Barometer Survey found that American workers have experienced a significant decline in employer trust over the past year. Less than two-thirds of employees today trust HR and upper management, down from 83% in 2022. Additionally, few workers feel that their employers' financial wellness support is sufficient; around a quarter of employees aren't even sure whether the benefits exist.
As this trust crisis continues, business and HR leaders must recognize the urgency. The implications of eroding trust are far-reaching, affecting employee engagement, morale, productivity and overall organizational success. Leaders must take proactive steps to restore and elevate trust.
Over the years, I’ve seen up close how trust is truly core to company culture and how it emanates from the top down. I once worked for an organization that, despite being public, was run with tight control by the founder. All decisions were made at the top and heavily guarded, with no explanation or regard for employee morale and engagement. As a result, we saw high levels of turnover and low satisfaction. But I’ve also seen how a culture grounded in employee experience and transparency creates high levels of pride. These divergent experiences underscored the pivotal role trust plays in the workplace.
Understanding The Trust Crisis
Trust is a fundamental pillar of a positive company culture. When employees trust their leaders and organization, they're more likely to share ideas, provide constructive feedback and collaborate toward shared goals. Trust also fosters a sense of psychological safety. It creates an environment where individuals feel comfortable taking risks and contributing their unique perspectives, which ultimately leads to innovation.
Factors That Contribute To Lowered Trust
The erosion of trust stems from various factors that leave employees feeling disenchanted and disconnected.
Focus On Cost Efficiencies
The early days of the pandemic saw employers stepping up to support their people in a variety of ways, including numerous innovative benefits. Many offered mental health resources, caregiver support, flexible work arrangements and more. But now, the environment is a stark shift in the other direction, with a large focus on cost efficiencies and profitability. As economic pressures mount, several companies are implementing cost-cutting measures like reducing benefits and delaying promotions and pay raises.
Poor Communication
The manner in which some organizations handled cost-cutting and downsizing efforts has also played a role in lost trust. In many cases, employees were caught off guard with no clear communication about the rationale and decision-making process. This eroded trust and led to increased insecurity.
Return To Office
Finally, employers' move to bring workers back into the office is affecting trust. Employees who experienced the benefits of remote work, such as improved work-life balance and increased job satisfaction, may fear losing that autonomy and flexibility.
The Consequences Of Lowered Trust
There are far-reaching impacts on the entire organization when employees have lost trust.
Diminished Morale
Eroding trust goes beyond just a loss of confidence in leadership. It affects the very core of the employee experience. When trust is compromised, it can lead to a decline in morale as employees feel undervalued, unsupported and emotionally disconnected. Ultimately, this impacts workplace culture, productivity and retention.
Inhibited Innovation
Without trust, employees may hesitate to share new ideas or collaborate. When they don’t openly share their insights, the organization misses out on the diversity of thought required to tackle complex challenges or seize emerging opportunities.
High Turnover
When employees don't feel valued, respected or secure in their roles, they're more likely to seek opportunities elsewhere. The impact of increased turnover extends beyond the loss of talented people. It also incurs significant recruitment and training costs, and it places a significant burden on remaining employees who must shoulder the additional workload.
Paving The Path Forward
To build trust and chart the course toward a resilient workforce, business and HR leaders need to undertake actionable steps.
Embrace Radical Transparency
If employees understand how the company is doing, why leaders are making important decisions and what changes may impact them, they're more likely to develop trust. Regularly sharing transparent, relevant information like company performance and openly discussing the rationale behind major decisions can go a long way in gaining trust and confidence.
Listen And Act On Employee Feedback
Listen with intent by harnessing employee data and insights to understand unique needs and pain points. It's crucial to not only ask for feedback but to then take visible action in response. Whether you roll out a new benefit in response or find you’re unable to do so at this time, openly sharing the rationale can go a long way. This reinforces that you care about employees' voices and needs.
Prioritize Employee Well-Being
Design benefits programs tailored to diverse employee populations. For example, financial stress is at an all-time high. This is an opportunity to prioritize employees' financial well-being. Consider providing access to personal finance professionals or investing in digital financial wellness tools that meet employees where they are in their life journey. By helping improve your people’s overall well-being, you demonstrate a culture of care and trust.
Redefine The Relationship Between Profits And Well-Being
For too long, organizations have viewed employee well-being as a cost rather than a strategic imperative to reducing costs. To reframe the relationship, HR leaders should emphasize its near- and long-term benefits, including increased engagement and productivity, reduced absenteeism and improved employee retention. They should also collaborate with business leaders to develop KPIs that measure financial performance but also take into account employee satisfaction, engagement and well-being metrics. By demonstrating that the pursuit of profits goes hand in hand with prioritizing employee well-being, organizations can rebuild trust and establish a powerful narrative that drives sustainable success.
As the trust crisis looms over the employer-employee relationship, organizations and HR leaders need to foster a culture of care that strengthens the bond of trust. By being transparent, attentive, intentional and supportive, they can enable their employees to feel valued and respected, paving the way for trust to be elevated.
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