ROI of Trust & Vulnerability in the Workplace
One of my colleagues recently raised an interesting question: What is the ROI of trust and vulnerability? Is there one? Or is it just a "nice thing to have"?
Here’s my anecdotal thinking from my own personal experience:
Without a certain level of vulnerability, you can't build trust. And trust is the foundation of any team's functioning. For high functioning teams, true connection via high levels of trust is mandatory. I've been on plenty of teams where there was no trust and engagement was low, people were going through the motions, paying lip service to the boss, and having very surface level interactions with colleagues. (Note, this is a best case scenario!)
Also having been part of teams with high levels of trust, we were able to accomplish so much more...we got out of our own way, challenge one another's thinking, which allowed for greater innovation, all the while having a high level of comfort in our interactions so we weren't worried about politics and damaging relationships while speaking our truth. It was truly liberating!
But what does the data show?
Paul J. Zak, the founding director of the Center for Neuroeconomics Studies and a professor of economics, psychology, and management at Claremont Graduate University, and the CEO of Immersion Neuroscience, did some specific research in this area. He found that:
“Compared with people at low-trust companies, people at high-trust companies report: 74% less stress, 106% more energy at work, 50% higher productivity, 13% fewer sick days, 76% more engagement, 29% more satisfaction with their lives, 40% less burnout.”
How’s that for your return on investment? I would extrapolate that those findings resulted in not only higher productivity which translates to top line earnings, but lower healthcare costs too, which can amount to significant expense savings for employers, thereby positively impacting profitability.
Establishing and building trust is a key differentiator for employers and also boosts the bottom line, which translates into shareholder ROI. Each year, FTSE Russell conducts independent research that analyzes the cumulative stock market returns of publicly-traded Fortune 100 Best Companies to Work For.
Here’s what they discovered: if you invested in the publicly-traded companies featured on the 100 Best Companies to Work For® list , and each year divested stock in the companies that were no longer on the list and invested in companies added to the list, your returns would be nearly three times that of the general market. Here it is represented visually:
Now that we know there’s a clear ROI to Trust, what can leaders do to establish or increase trust with their teams?
A 2019 Harvard Business Review study found that three key factors drive trust in leadership: consistency, good judgment and positive relationships.
1. Consistency: Do what you say you’ll do.
Act as a role model and set a good example.
Walk the talk.
Honor commitments and keep promises.
Follow through on commitments.
Be willing to go above and beyond.
2. Good judgment/expertise: Be well-informed and knowledgeable about the technical aspects of your work and have a depth of experience.
Exercise good judgement when making decisions.
Be trusted by others for your ideas and opinions.
Be sought after for your opinions.
Demonstrate knowledge and expertise that contributes to achieving results.
Anticipate and respond quickly to problems.
3. Positive relationships: Create positive relationships with other people and groups.
(Note: The research shows relationships to be the most significant element of the three in building trust.)
Stay in touch on the issues and concerns of others.
Balance results with concern for others.
Generate cooperation.
Resolve conflict.
Give/receive honest feedback in a helpful way.
Be vulnerable.
Let me double click on that last point. Being vulnerable doesn’t mean oversharing for the sake of gaining sympathy, but rather having the courage to ask for help with a project, soliciting feedback, trying something new, or admitting a mistake. When employees see their leader doing these things, they will likely reciprocate, thereby increasing the trust bi-directionally. Which translates to greater innovation, engagement, and an overall positive working environment…further increasing ROI.
So what are you waiting for? Check in with your team/yourself and see where you might be willing to be a bit more vulnerable to boost trust and team performance!
Are you struggling with establishing or building trust with your team or across your team?
I can help. Schedule a complimentary Breakthrough Session so we can discuss the specifics and get you the support you need.
Sources:
https://haiilo.com/blog/trust-in-the-workplace-why-it-is-so-important-today-and-how-to-build-it/
https://hbr.org/2017/01/the-neuroscience-of-trust
https://hbr.org/2019/02/the-3-elements-of-trust
https://emergenetics.com/blog/the-connection-between-vulnerability-and-trust-in-teams/
