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—NEIL DHAR VICE CHAIR AND CONSULTING SOLUTIONS CO-LEADER, PwC US

“The current environment has shifted power from the employer to the employee for organizations. There are new expectations for work/life balance and a renewed focus on purpose and tangible value for employees. And organizations that are open to reimagining their benefits ranging from compensation to flexibility will be better positioned to translate employee trust into loyalty.”

In part, this may be because employers think about trust in the big picture, such as building responsible artificial intelligence and sustainable value chain management. These are important—but they aren’t always key concerns for employees. When the survey asked about the most important drivers of trust in a company, workers cited accountability to customers and employees (50% picked it as a top-5 trust driver), clear communications (48%), admitting to mistakes (40%), and delivering a consistent customer experience (39%). These speak to values that can feel personal to your team.

Tomorrow Takes

trust

A new survey reveals what workers think and what business leaders can do to inspire loyalty.

Your employees trust you, but will they stay amid the Great Resignation?

If employees trust your company, does that imply that they’ll be loyal? This is an important question for companies that are grappling with one of the tightest labor markets in memory. Many workers are rethinking their priorities in the wake of the pandemic. In August, 88% of the executives PwC surveyed said their companies are experiencing higher turnover rates than normal, and many employees said they’re looking for higher wages, better benefits, greater career advancement opportunities, and increased flexibility. Meanwhile, The Complexity of Trust: PwC’s Trust in US Business Survey shows that 80% of employees say they trust their companies the same or more than before the pandemic. Shouldn’t high levels of trust translate into loyalty and retaining talent? Trust can be the key to developing loyalty, but it doesn’t happen automatically. Fortunately, PwC’s data suggests that companies can build on their existing foundation of employee goodwill by taking actions that can lead to loyalty. Who do employees really trust? And why? For employees, trust is tied to proximity: 77% say they trust their direct managers and coworkers completely or a fair amount. This shrinks to 67% when asked about their company’s board, and 59% for other companies in their industry. These numbers vary across gender, age, and income levels. So, despite companies’ good intentions to build trust, there are many pockets of employees who aren’t bought in.

To build trust and loyalty, be accountable, transparent, and real PwC’s survey points to a number of opportunities for companies to build trust with employees in a way that translates to loyalty and retention.

Use the power of company culture. Trust is everyone’s job. Your leaders can’t know every decision made by middle managers—yet these choices can sometimes erode trust in an instant. This may not come as a surprise: 41% of executives identified their current company culture as a challenge to building trust, above nearly all other categories. A culture in which everyone accepts trust as their personal responsibility, with an emphasis on clear communications and accountability, can guide discussions and decisions at every level. And, yes, this can be taught and strengthened. Be willing to be agile and change. If the last year has taught executives anything, it’s that people are a big priority. You’ll want to adjust processes and operating models in ways that prioritize people. Start by paying attention to employees’ well-being and work-life balance. For example, consider introducing flexible work schedules, which demonstrate to employees that you trust them to get their work done during hours that better complement their life. When you demonstrate trust to let workers do their job with some autonomy, you can further strengthen their connection to the enterprise and build loyalty that leads to retention. Be open and transparent. There are complicated decisions ahead, with vaccine mandates and employees returning to offices. You may not be able to please everyone, but if you remain authentic and true to your stated values, you have a good chance of getting employees on your side and keeping them there. Show employees you value their input on these decisions by creating ways for them to provide feedback and voice concerns—and then considering their opinions when formulating policy.

The golden rule Businesses are still a pillar of stability in our deeply polarized society—cited as the most trustworthy institution in Edelman’s 2021 Trust Barometer. And they have a solid foundation from which to build. Employees want to trust their employers, and there are strong feelings of connection among workers and their colleagues. You can build on this to create a reputation for trust across your company that can give you a sustainable advantage with employees and potential recruits. Many companies are already doing important work to develop trust by focusing on the big picture, like enhancing ESG reporting. Keep doing this. But don’t neglect the stakeholders on your payroll: Do unto your employees as you would have others do unto you. Communicate clearly. Admit when you’ve made a mistake. Develop a culture that rewards everyone for taking responsibility. These are the attributes that make employees proud, and that make them want to stick around.

Your employees trust you, but will they stay amid the Great Resignation?

A new survey reveals what workers think and what business leaders can do to inspire loyalty.

—KATHRYN KAMINSKY VICE CHAIR - TRUST SOLUTIONS CO-LEADER, PwC US

“Trust is complex. And loyalty is difficult to achieve. To earn either, let alone both, people need to be the priority. Business is backed by people. Always has been—always will be. They’re the key to growth and sustained success. But to unlock the force of your workforce a people-first mindset is needed at every juncture.”