You must have thought about this notion at least for once in your life. Whether employee trust is important, or it is the financial performance of a company that should stand first. There are various types of employee trust and engagement debates and another angle of the debate is about the connection between the employee trust in leadership and the financial performance measures. As a matter of fact, some people even quote a successful entrepreneur and opine that actually customers are not the bosses, but employees are the bosses and if you please them, they will take good care of your customers. This post is all about discovering how employee trust and financial performance of your company go side by side.
1. Google Case Study
In order to know if the employee trust issues can actually affect the financial performance management of your company, you need to read Google case study. While it is not available over the internet as Google case study stricto sensu, but just a little googling can show you how much attention they pay to the details. Google hired psychologists to learn the reason why employees can be unhappy and to devise the antidotes for stress, depression and unhappiness while on job. This is why their offices throughout the world have recreational facilities as well as those famous nap pods that we saw in The Internship. Now, Google is one of the most successful IT businesses in the world and obviously this financial performance is due to reason that they won the employee trust.
2. Campbell Soup Company Case Study
If you think that the financial performance ratios depend on how closely one watches their employees and how hard is one’s grip on employees, you might not be totally wrong, but you are mostly wrong. The Campbell Soup Company’s CEO learned that inspiring the employee trust is actually the key to success. He knew that employee trust and engagement is directly linked with good financial performance of the company. His radical ideas and acts increased the employee happiness and satisfaction level and thus one day his company became one of the World’s best food companies. Also, in terms of employee engagement level, his company ranked among Fortune 500.
3. The Dilemma of a Boss
In order to better understand the relationship between employee trust and financial performance of a company, you need to first understand the dilemma of majority of the bosses. They live with an old-school concept of business and “being boss”. They think that notions like employee trust in leadership are simply soft, unrealistic and ineffective. They believe that the stick and carrot policy is all a boss needs in order to increase the financial performance of their company. However, what they conveniently forget is that the competition is not only between one company and another company, one’s products/services and another’s products/services or one’s capital and another’s capital, but the competition is most importantly between happy employees and unhappy employees. Thus, employee trust is not a “good to have”, but a “must have”.
4. 100 Best Companies to Work For
There is an institute that conducts researches and surveys on best workplaces and work practices which facilitates the employees. They conducted a research with help from Fortune and the research was named 100 Best Companies to Work For. Amazingly, two-third of the research declared that employee trust plays the key role in a workplace to become one of the 100 best workplaces. Companies that managed to win the trust of their employees, always outperform those who think that employee trust is a utopian myth and it has nothing to do with the financial performance of a company.
5. Speed and Cost
Recent research shows that employee trust is one of the main factors behind the financial success of a company. Trust always have an impact on two most important outcomes: speed and cost. While a boss would like to increase the speed of work, the increase in cost is definitely not something on their to-do list. This is why employee trust comes out as one of the most decisive factors. In case of the existence of an employee trust, the speed goes up and the production costs go down. This is the most ideal scenario for any employer. To the contrary, in case of a lack of trust, speed will go down and cost will go up. Thus, employee trust is a condition precedent for good financial performance of a company.
6. Intent, Respect & Results: Pillars of Employee Trust
Now, that we have managed to find out for once that employee trust is actually the most important game changer when it comes to the financial performance of a company, we need to know how it can be developed. Well, there are three factors that play role in establishing employee trust. Let us have a look at all of them.
- Intent – Intent is the first step towards establishing an employee trust. It is nothing but your one liner agenda or reason behind and for creating the employee trust. You need to be very sure about your intentions, because they bring your final decisions into existence.
- Respect – Once you have clarified your intent, you need to show respect for all those who are involved. In a company, basically there are three parties involved in the success or failure thereof: shareholders/investors, management/CEO and employees. You need to pay respect to the reservations, interests and concerns of all parties.
- Results –Third and the last pillar is delivering results. Once you get your employees to give their level best while at work, you would deliver the results that you promised to them and the shareholders. Delivering results is thus a coordinated effort and it cannot be made possible without first winning the trust of your employees.
7. Possibility of Employee Trust
While this post has discussed in detail why employee trustis so important, we have to deal with the idea that the same trust is not very easy to accomplish even if you are determined to create employee trust. A WorkForce.com survey shows that hardly 2 out of every 5 employees trust their immediate bosses, employers and the company. There are various reasons for that. In a country so ethnically diverse like USA, color, cast, creed and religion also play their roles. However, the communication and engagement seem to be the keys in this case. Once you manage to establish a good communication and engagement level, accomplishing employee trust will definitely be possible.
In this post, we tried to figure out if employee trust for financial performance of a company is only a myth or a factor that actually play a vital role in the success of a company. We believe that cast studies as well as research prove that employee trust is not detrimental to financial performance of your company, but it only favors it. We have also discussed some authentic ways to establish employee trust. In a country as diverse as USA, there could be many deterrents to employee trust named as xenophobia, out of control capitalism, bigotry, hate and even language/culture barriers. It is the job of a successful entrepreneur to erase all such hindrances and assure a constant employee trust.