Trust. You may think you’ve got it, but the data is showing otherwise.
93% of executives agree - building & Maintaining trust improves the bottom line.
So why is there a disconnect and what can you do to help?
In today's evolving landscape, trust has become a precious commodity in business. That's why PWC conducted its fourth trust survey, and why I always make sure to review and share the results. What they learned speaks volumes about the significance of trust among business executives, consumers, and employees alike.
According to their findings, 95% of business executives agree that organizations bear the responsibility of building trust—a notable increase from 92% in 2023. Similarly, consumer and employee sentiments remain steadfast, with 92% and 94% respectively, acknowledging this responsibility, reflecting consistency over the past year.
Building trust isn't merely a moral obligation; it's also a strategic imperative. A striking 93% of business executives recognize that the ability to cultivate and sustain trust directly impacts the bottom line.
The data underscores a significant opportunity for companies to enhance trust with key stakeholders. Businesses that grasp their trust levels among employees, consumers, investors, and other stakeholders—and take proactive measures to fortify them—stand poised to gain a competitive advantage.
In a world where trust is paramount, investing in building and nurturing trust can differentiate your company and drive sustainable success. The first step in improving in this area is recognizing - there is a trust gap in general in business, but also likely in your organization. However, the findings indicate that many business executives are overestimating the level of trust they command from both employees and consumers.
Consider this: while a staggering 90% of business executives believe that customers highly trust their companies, only 30% of consumers actually do. This stark gap of 60 percentage points exceeds the discrepancies observed in both 2023 and 2022.
Even though employees tend to trust their employers more than consumers trust businesses, there remains a significant disparity. While 86% of business executives perceive high levels of trust from employees, only 67% of employees express such confidence in their employers. This widening gap of 18 points underscores the importance of addressing internal trust dynamics.
One contributing factor to this overestimation may be the absence of robust internal mechanisms to accurately gauge trust levels. While many companies claim to measure trust, conversations with business executives reveal that these metrics often fall short (or truly, I rarely see executives or business leaders measuring this data at all), relying on subjective assessments that fail to capture the true sentiment across stakeholder groups.
Metrics such as customer satisfaction and employee engagement, while valuable, provide only a partial view of trust. Companies that move beyond these incomplete measures can gain deeper insights into where trust expectations are falling short and focus their efforts accordingly.
As you navigate the complexities of trust within your organization, we encourage you to consider these insights and explore avenues to bridge the trust gap effectively.
If you’re an employee tuning in to this data, here’s a high point:
For the first time, PWC probed executives on the extent of their trust in employees, revealing that a striking 86% express a very high level of trust. However, the sentiment isn't mirrored from the employees' standpoint, with only 60% believing that company leaders highly trust them. This discrepancy underscores the critical significance of demonstrating trust towards employees. It's noteworthy that a majority of employees (61%) concur that the perceived lack of trust from their company's leadership adversely affects their job performance.
Surprisingly, the level of trust executives place in employees remains consistent, regardless of whether they work in-person or remotely. Among companies with hybrid work setups:
A significant majority (68%) of business executives express equal trust in both remote and in-person employees, with only a mere 20% favoring in-person employees.
In contrast, 60% of employees believe that leaders trust all workers equally, regardless of their work location, while 31% perceive a bias towards in-person employees.
For executives overseeing hybrid workplaces, it's crucial to communicate unequivocally and consistently that trust extends to all team members, regardless of their work environment.
In workplace dynamics, trust tends to be stronger among colleagues who collaborate closely compared to those with less interaction. For instance, 53% of business executives express a high level of trust in their senior leadership team, while only 38% extend the same level of trust to entry-level staff.
However, within the C-suite, trust among peers is notably lower. Only 44% of C-suite members report a high level of trust in each other, compared to 53% outside the C-suite. This discrepancy raises concerns for several reasons. A cohesive C-suite fosters trust throughout the organization, promoting a culture of transparency and teamwork. Moreover, a lack of trust at the highest echelons can impede decision-making and hinder the execution of company strategies.
As managers strategize on cultivating trust across all levels, certain considerations come to light:
Entry-level staff emerge as the least trusted group, with only 38% of executives and 32% of employees overall expressing a high level of trust. This underscores the importance of implementing additional support, training, and mentorship programs to instill trust and confidence in these employees.
Employees emphasize the significance of in-person team building opportunities, with 57% stating that it would enhance their trust in their employer. Involving employees in decision-making processes also proves pivotal, as 83% agree that their trust in the company would increase if their direct supervisor engaged them in important decisions.
Listening emerges as a crucial factor in building trust within teams, with more than two-thirds (68%) of employees deeming it highly important.
Providing avenues for career advancement is another key element in fostering trust among employees, with 61% highlighting its significance. Investing in career growth not only nurtures trust but also boosts employee engagement, motivation, and overall job satisfaction.
Ultimately, the core issue lies not in inherent distrust among different divisions or seniority levels but rather in the lack of familiarity. Regular interactions are essential for forging trust bonds. To address this, consider initiatives such as job rotations, secondments, and Q&A sessions with senior leaders to facilitate greater exposure and understanding across the organization. Whatever approach you choose, emphasize your commitment to employee development and the long-term success of your team members.
Want to impact trust in your organization but not sure where to start? Reach out to us to schedule a 30-minute call where we can discuss your concerns and our recommendations on how to address them. It may seem like something ambiguous to address, but as the data shows, if you don’t focus on this area, it’s going to hurt more than morale, it’s going to hit the bottom line in your business.
