Put your money in trust

By Darryl Stickel & Catherine Gamroth
Illustration: John Sapsford

Improved productivity and profitability are just two of the many benefits of workplace trust

It cannot be understated: trust is vital to the health and success of any business. Trusting employees and coworkers generally have a positive outlook, are creative, resilient to change and committed to their employer. In turn, companies with high levels of trust tend to be more profitable, pro-viding higher returns to shareholders. In fact, many organizational issues are symptoms of trust problems, including micro-management, poor information sharing, low productivity, lack of buy-into management decisions and high employee turnover rates.

To better understand workplace trust, take the example of imaginary manager Jim. When asked if his employees trust him, Jim’s reply is “how would I know?” This is a common response. After all, if someone doesn’t trust Jim, he or she wouldn’t feel comfortable telling him so. But often, people are not aware of the limit of their trust until they are in a situation that tests it. Problems such as social awkwardness and lack of awareness make trust a difficult issue to tackle.

A common misconception abouttrust is that it’s black or white — we either trust someone or we don’t. But trust isn’t so clear-cut. We trust some people more than others, and we are more trusting in some situations than in others. For example,you may trust a coworker to prepare a financial statement, but wouldn’t trust him or her to take care of your kids. Similarly, you may want to review one person’s work more thoroughly than another’s because you have different levels of trust in their abilities.

Another misconception is that building trust is an innate talent, not a learned skill. Some people do have better natural instincts, but everyone has the ability to build trust. Those who are successful at building trust have more than one strategy for doing so and have good instincts about when to use each strategy. Those who struggle with trust building often have a limited number of approaches and are only successful when their approach corresponds to the situation. The key is using the right strategies at the right time, and to do that we need to understand how people choose to trust.

We need to understand what trust means.It involves three key elements: choice, uncer-tainty and vulnerability. If any of these are missing, trust isn’t a consideration; when they are all present, we base our choice on our levels of uncertainty and vulnerability.

Without choice, trust is irrelevant. There are times when we are forced to rely on others. We may or may not have confidence in the other party, but as we have no choice in the matter, it’s not a matter of trust.

Uncertainty relates to how well we can predict someone’s actions. The more certain we are that someone will act in our favour, the more willing we are to trust. This doesn’t mean we must know someone personally to trust him or her. Although that helps to predict someone’s behaviour, sometimes we can make reliable predictions based on someone’s context. This is how associations help to increase the public’s trust in their professionals. For example within the CICA, a CA designation demonstrates that an accountant is governed by a code of ethics and will face repercussions if the rules are violated.

Finally, vulnerability is about what we stand to lose. The less at stake, the less vulnerable we are and the more likely we are to trust. This is why money-back guarantees and free-trial offers are powerful sales tools. By limiting our vulnerability, companies make us more willing to part with our money. This is why employees who lack trust tend to be less committed to their company: the less of themselves they invest, the less vulnerable they are if things go wrong.

When we decide to trust, the combination of uncertainty and vulnerability forms our perceived risk. Each of us has a level of risk we are willing to accept. If our perceived risk is below that threshold, we will trust; if it’s above that threshold, we won’t. Although our risk threshold tends to stay constant in a given situation, our uncertainty and vulnerability will change. For example, when we meet someone, we may be uncertain and therefore willing to accept only a small amount of vulnerability. As the relationship grows, we become more certain of their actions and are willing to accept more vulnerability.

Now that we understand why people choose to trust, let’s go back to Jim and ask him again if his employees trust him. To answer, Jim should look at how his employees could make themselves vulnerable to him — situations in which they give him the power to hurt their pride, their reputation, their potential for advancement or anything they value. Once he has identified ways they could make themselves vulnerable, he should ask, do they?

People will have different perceptions of their vulnerability. It is difficult to know what people think is at stake and how much they value it. However, there are some workplace situations that require vulnerability. For example, does Jim receive honest feedback? Are employees open about their goals or needs? Do they take risks, try new approaches to solving problems? Do they tell him bad news? If Jim can answer yes to these questions, he knows people are willing to make themselves vulnerable and are showing a degree of trust in those situations.

Not only will this process help Jim identify potential trust problems, it will help him understand how to solve them. However, a word of warning about building trust: the worst thing Jim can do is fool people into trusting him more than is warranted. If he gains people’s trust, then betrays them, he will find it difficult to rebuild the relationships. Jim’s goal should be to close the gap between how much he is trusted and how much he deserves to be trusted.

To do so, Jim needs to be empathic. By putting himself in his employees’ shoes, he can try to understand what’s important to them and why they make the choices they do. The way to do this is to ask for feedback. Although effective, this can be a challenge, particularly because Jim might not like what he hears. Other difficulties can stem from the fact that people may be hesitant to share their thoughts (especially if trust levels are low), may give conflicting answers or may have unreasonable expectations of what Jim can deliver. Nevertheless, Jim stands to gain a lot by asking for feedback and should develop a list of questions to ask.

A direct question about trust can be difficult to answer and might not generate useful responses. Often, when our trust is violated, we feel uncomfortable even though we can’t articulate why. The most helpful questions focus on issues that affect our decision to trust, not trust itself. For example, consider: “Do you trust me enough to tell me about problems with an account?” Only the very brave or very stupid would say “no.” But phrase the question differently: “How do you think I’ll react if there are problems with an account?” This approach is less direct andallows for a broader range of responses. Another way to get people’s input is to give options. For example, rather than asking people to list problems in the workplace, Jim could ask which areas leave the greatest room for improvement: time management, communication or technical competency.

Jim should consider how he would react if he had to answer the question. Is there an answer that won’t be offensive? Jim could ask if employees understand his role and his goals and objectives? Do they see alignment between his decisions and his stated goals? He can ask about people’s vulnerability: do they worry about losing their jobs? How much power do they feel Jim has over their careers? Jim should consider his questions carefully and listen to the answers.

Once he has uncovered the areas that cause the greatest uncertainty, Jim can begin building people’s comfort in these areas. There are many strategies to help him do this. For example, are management decisions clearly explained? Are employees consulted on these decisions? Is there transparency around performance evaluations? Are policies applied consistently? Are employees rewarded for great performance? Do benefits provide the services employees need?

Jim will have to work with his employees to develop a culture of trust. Doing so, he should keep in mind the components of trust: choice, uncertainty and vulnerability. He should remember that empathy is the key to understanding what works and why. This will allow him to create long-term strategies and address any challenges that arise.

Things won’t change overnight, but the long-term rewards make the process worthwhile. While companies with higher trust levels show improved productivity and profitability, the real benefits of trust are priceless. The most innovative and excitingdevelopments come from employees who are willing to take risks. In the words of Oliver Wendell Holmes, “Put not your trust in money, but put your money in trust.”

Darryl Stickel and Catherine Gamroth are with consultants Trust Unlimited (www.trustunlimited.com)
Technical editor: Carolyn Cohen, CA, MSW, president, Carolyn Cohen Training and Human Resources Consulting