3 Ways Leaders Miss the Boat by Not Building Trust Ahead of Difficult Times

Very few people were prepared for the difficulties we faced starting in early 2020. Even fewer saw inflation and supply chain issues contributing to the challenge of a global pandemic. For many business leaders, the blows seem to keep coming, and they lack the knowhow to turn it around.

But one group of people was well prepared for these challenges—or at least as well prepared as they could be. And those people were leaders who had taken the time to build trust within their organization, trust for employees and management, and trust in their brand.

A leader cannot just “hope” to build trust. They cannot wish for it. It is something that must be cultivated and grown, not begged for or attained through threatening behavior. Trust is delicate and must be cared for. If a leader does not create a culture of authenticity and trust, they will be sabotaging their own efforts.

Here are three ways leaders miss the boat by not building trust ahead of time:

Lack of Trust Makes Unexpected Shake Ups Harder

Whether it’s a global pandemic or a PR nightmare, challenging times will happen. If you have not built a culture of authenticity and trust in leadership, you will struggle. Trust is important during rough patches because without faith in leadership, employees will question leadership and find it difficult to support updates and protocols.

The article The Neuroscience of Trust states that 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. All of these numbers reflect critical factors in maintaining successful productivity, not to mention retention.

Top Talent is Less Likely to Stick Around Without Trust

When there is a distrust of leadership, keeping quality employees at your company will be difficult. Work relationships are relationships, and trust is essential to their success. If a company hasn’t prioritized building a solid foundation, keeping the right talent through the tumultuous times will be a challenge some companies aren’t up to.

Without trust, many employees will perceive more significant inequalities in how they are treated and question decisions leaders make. They may even feel like leadership makes decisions based on what is good for the company, not the employees. This can lead to devastating issues with retention.

Pivoting/Change is Harder without Trust

Most people are wary of change. If a leader must institute sweeping change in an organization, the process is likely to be more fully supported and successfully adopted/implemented if there is already trust within the organization, specifically trust of leadership.

Without faith in leadership, change is harder to implement. Most people find change a challenge. It feels dangerous and unknown. In an organization that lacks trust, rumors and negativity crop up during change implementation and can lead to problems in retention as well.

Trust is the Foundation

A foundation of trust is built on three key building blocks: mutual respect (of leadership and employees at all levels), organizational credibility, and fairness (perceived and practiced).

Trust is also a two-way street. Employees must trust management. And management must in turn trust the input and output of its employees. Productivity, profitability, adaptability are all easier to maintain, as is building outward credibility. Without trust, even the smallest challenges can become magnified.

Liddell Consulting: Helping You Build Trust

We work with high potential individuals and those who need to bridge performance gaps. Our coaching process is pragmatic, meaningful, and results-based. We are always available to talk about how executive coaching can help you build trust, as well as enhance your leadership skills and your organization’s performance. Contact us today!