Do You Trust Me?
November 14, 2007
By John Wilwol
Trust is fundamental in the employer-employee relationship. Employers trust that their personnel will produce and, in return, employees trust that they will be fairly compensated. But according to a recent European study, this vital business relationship is alarmingly out of balance—fewer than half of employees feel that their organization is trustworthy.
The study, "Exploring Employee Perceptions of Organizational Trustworthiness," was conducted by coaching, consulting and training company Krauthammer on behalf of a consortium of seven European universities called ROCOT (Research on Cross Cultural Organizational Trustworthiness). The results? Less than 42 percent of those surveyed said they trust their employers.
Krauthammer Executive Board Member Ronald Meijers says, "Organizational trustworthiness is a fundamental asset, a source of competitive advantage for an organization and lack of trust clearly presents a threat for the organizations long term survival."
To determine the overall trustworthiness of an organization, the study asked participants to evaluate their organization in six categories, the "crucial pillars," of organizational trustworthiness. The study then averaged the responses from those six categories to describe overall organizational trustworthiness. The results follow:
•HR Justice—30 percent agreed that HR conditions at their organization are such that they receive fair remuneration, training and development.
•Effective Communication—38 percent feel that their organization’s vision and strategy are effectively communicated to employees.
•Control Mechanisms—48 percent agree that organizational expectations are met, and 25 percent agree that organizational rules and regulations are followed.
•Organizational Prestige—48 percent believe their organization has a good reputation.
•Effectiveness of Senior Management—35 percent believe their senior management is effective.
•Compliance to External Regulation—54 percent believe their organization complies with external regulations.
Although these numbers seem low, results to the positive were slightly higher when employees were asked directly whether or not they trusted their organization, independent of these six categories. Still, the consensus was not acceptable—only 53 percent said that they have company confidence.
In addition to trust, the study also asked employees to give impressions of their respective organization’s ability, integrity and benevolence. About half responded that their organization is competent and capable of meeting its responsibilities. Roughly 40 percent believed that their organization adhered to high ethical standards, moral principles and codes of conduct. But, only about one-third are convinced that their organization is concerned with employees' welfare, needs and desires.
Meijers acknowledges that this situation is challenging for employers to rectify. The solution, he believes, will take time and energy to implement. "The challenge is to start managing the trust-building process deliberately, which obviously requires the undivided attention and leadership by example of top management. Trust is not something anybody can delegate, it should be owned by the whole system," he says.
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