The crucial role of trust in employee engagement

Trust is not just a soft sentiment; it's a powerful force that shapes the foundation of relationships between employees and their workplace.

Whether in marriage, love or business, trust is the cornerstone of any successful relationship, and this holds true for the relationship between employees, leaders and stakeholders within small and medium enterprises (SMEs). Where collaboration, agility and innovation are paramount, the absence of trust can have far-reaching consequences. The lack of trust can severely hinder growth, productivity and overall success.

Without trust, employees may be reluctant to express their ideas, opinions or concerns openly. This lack of open communication stifles collaboration and prevents the free flow of innovative ideas. When employees fear judgement or backlash, they refrain from sharing valuable insights that could be progressive. Without taking calculated risks, SMEs cannot be innovative and without trust, employees will be reluctant to put their necks on the line when things go wrong. That will be the end of new thoughts.

A lack of trust erodes employee morale and engagement. When employees feel undervalued or that their contributions go unnoticed, they become disengaged and deliver subpar performance. This downward spiral is never going to be helpful in growth plans. SMEs must be agile and adaptable to keep up with evolving market trends. But with an environment lacking trust, employees will resist change due to scepticism about leadership motives or concerns about job security.

Trust is closely tied to employee loyalty. A lack of trust can lead to high turnover rates as talented employees seek opportunities elsewhere, where they are valued and respected. This is the biggest issue for most SMEs. In an atmosphere of mistrust, decision-making becomes skewed. Employees may second-guess decisions made by leadership, and leaders may hesitate to delegate authority. This will lead to delays, missed opportunities and a lack of alignment.

Trust nurtures accountability. Workplaces with distrust will make employees avoid taking ownership of their tasks, and shift blame onto others. This lack of accountability undermines overall performance and hinders growth. SMEs often rely on partnerships and collaborations to expand reach and capabilities. If there is a lack of trust, it can extend to external relationships as well, leading to missed collaborative opportunities.

Trust is not just a soft sentiment; it's a powerful force that shapes the foundation of relationships between employees and their workplace. It is a fundamental human need, and its presence or absence has a profound impact on various aspects of employee engagement:

Open communication: Trust encourages transparent and open communication. When employees believe that their opinions matter and that their concerns will be addressed honestly, they are more likely to engage actively in discussions.

Empowerment and autonomy: Trust empowers employees with a sense of autonomy and ownership. When trust is established, employees are more likely to take the initiative, make decisions and contribute creatively.

Emotional wellbeing: A workplace built on trust contributes to employees' emotional wellbeing. They feel valued, respected and secure, resulting in lower stress levels and higher job satisfaction.

Innovation and risk-taking: Trust encourages employees to step out of their comfort zones and take calculated risks.

Lessons can be learnt from good practices by large companies. The Tata Group, a conglomerate known for its ethical values, has ingrained trust into its corporate culture. The group's commitment to employee welfare, ethical business practices and community development has established trust among employees and stakeholders alike. This trust has translated into a sense of pride and loyalty among employees, driving high levels of engagement.

Smart Growth

Infosys emphasises transparency in communication and decision-making. The company's "Speak Up" programme encourages employees to voice concerns or report misconduct without fear of retaliation (although in recent times this has lost some steam). This approach cultivates trust by assuring employees that their wellbeing and opinions are valued.
Known for its unique organisational culture, Zappos (now under Amazon India) places significant trust in its employees. The company practises "holacracy", a decentralised management approach that empowers employees to make decisions. This fuels innovation and enhances employee engagement.

In my opinion, building trust can be a competitive advantage for SMEs that want to get ahead of the pack. In India's diverse and dynamic work environment, this can be a powerful differentiator:

· Retention and attraction: Employees are more likely to stay with an SME where they feel trusted and valued. Trust becomes a magnet for talent, attracting individuals who seek a supportive and empowering workplace.

· Adaptability and change: In an era of rapid change, a foundation of trust enables smoother transitions. When employees trust their leaders, they are more likely to embrace organisational changes and adapt to new strategies.

· Customer relations: Trust extends beyond internal relationships to external interactions. When employees trust their organisation's values and practices, they can genuinely represent the brand to customers, leading to stronger customer relations.

Trust is the invisible thread that weaves through the fabric of employee engagement. It transforms workplaces into environments where individuals are empowered, encouraged and enthusiastic about contributing their best.