Trust and Retention

What is the level of trust in your organisation? I don’t mean how well management trusts employees to not steal directly or indirectly from the organisation. I mean how much the employees trust the organisation to do what is right by them.

It’s inarguable that the trust relationship has been broken in many organisations during the recession. Towers Perrin reports, “Many employees are feeling less connected to their employers following rounds of layoffs, budget cuts and ongoing uncertainty. This can affect their willingness to commit themselves for the long term – and prompt more interest in opportunities they might have in other companies or even industries.”

PricewaterhouseCoopers (PwC) says that negative actions of the recession (pay cuts, layoffs, slashed budgets and poor communications) “are combining to erode the bonds of trust between some employers and their employees.”

Why does this loss of trust matter? The same reports conclude that these employees will seek other opportunities as soon as the opportunities arise in the recovery. The first to go will be those you most want to keep – the high performers with the most knowledge and competitive advantage.

So what do you do about it? BlessingWhite offers the obvious – rebuild trust: “Communicate the vision. You need to create excitement and trust in your leadership. You should highlight the initiatives of 2010 and create faith that your company is on the right path. Your employees now have a choice about where they work. The large majority want more than 'just a job'. You had better inspire them to be part of your future.”

The same PwC report points out why: “Organisations which continued to focus on investment and employee engagement are emerging as clear leaders. Those who continued to offer their employees new opportunities and invested in their people pipeline have a competitive advantage.”

What are you doing in 2010 to rebuild trust in your organisation among your employees?