Authors: Jeff Leonard David Piltz
When building trust is part of an organization's culture, employers have a significant competitive advantage. Earned over time, trust is essential across all levels of an organization, helping to align the goals and values that ultimately drive engagement and long-term sustainability.
In today's connected world, communication within and outside organizations seems limitless. This connectivity has big implications for employers and their cultures, given readily available access to company websites, employee rating sites and online networking forums. The volume and speed of detailed company information sharing are almost unlimited.
The pace of the world adds an undercurrent of uncertainty and the need for agility, as there's a sense that the expected pathway can change dramatically at any time. Where "long term" used to be five years or more, it's now less than a year. The result is an increase in the engagement requirements for establishing and building organizational trust, including the need for ethical business practices, investment in employee wellbeing — especially the financial aspects — and effective communication.
Cultivating a high-trust culture for organizational success
Organizations with a high-trust culture can attract top talent, solidifying their strong reputation in the market. A culture of trust provides a competitive edge and enhances the company's brand image. Further, high-performing organizations prioritize building trust within their workforce and have high ethical standards that also extend to external partners.
Trust and confidence in senior leadership contribute to a positive organizational culture, creating a foundation of respect, fairness and integrity that drive engagement and retention. High-level employee enthusiasm and dedication are also necessary for individual and organizational resilience during difficult periods. Employees are more likely to support and adapt to changes if they believe their leaders are competent, transparent and acting in their best interest.
Establishing confidence and building trust takes time. It requires a deliberate investment of energy and resources across all levels of the organization to look holistically at the business and the people who power it. Supporting financial wellbeing underscores and amplifies organizational trust and confidence, and recognition of this fact is growing — not only between employees and employers but external partners as well.
Establishing trusted external relationships
In a marketplace of vendors vying for employers' business, the "trust factor" can be a differentiator. Paying attention to the brand image of potential partners is essential, including asking pointed questions about their history, typical clientele and how they've successfully solved employers' key challenges. Discovering a track record of success with like-minded organizations, enabled by ethical behavior, instills confidence that the employer's long-term interests are in good hands.
A partner organization's financial health and stability are a signal of its strength. While it's difficult to assess these attributes in a silo, financial outcomes over time are indicators of the durability of the company's strategy and people, as well as its ability to generate sustainable results.
The people representing vendor and consultant partners are perhaps the most important drivers of building trust. They should be authentic, well-informed and reliable. The relationship component is often at the decision-making forefront, and as employers evaluate whether to engage with the company, it's not uncommon nor unreasonable for an intangible "gut check" to influence the decision.
If there are any questions about whether the advisor — and subsequently the partner company — has the organization's best interests in mind, it's a non-starter. Inherent in the term "partner" is the notion that both parties are working collaboratively toward the same goals.
Strengthening employee engagement through financial wellbeing
Employees of high-trust organizations are typically more engaged with their benefits, leading to increased wellbeing. Providing benefits that support the whole person demonstrates that employers are looking out for their employees' best interests and fosters a sense of stability for the future. Financial health is a critical component of employee wellbeing, and investments in this area often have ripple effects on emotional, physical and career wellbeing as well as engagement and job satisfaction.
In particular, emotional wellbeing linked to finances has been a top priority for employers over the last several years. When employees feel financially secure, they experience less stress and anxiety. Offering and promoting financial wellbeing resources, such as budgeting tools, loan repayment or retirement planning, is a tactical way to improve emotional wellbeing.
Financial wellbeing benefits can positively affect physical health too. Elevated blood pressure, poor-quality sleep and migraines can be side effects of financial stress. And organizations reap the rewards of employee financial health through a productive, present and engaged workforce.
Until recently, it was common for employers to avoid connections between external advisors and their employees. But a shift has begun to occur to encourage this connectivity in recent years as employers increasingly acknowledge both the growing complexity and importance of helping employees manage their own finances.
Despite expectations for technology-based tools, employees crave support that goes beyond digital resources and value face-to-face interactions. These interactions requires organizations to select trustworthy and knowledgeable partners that can build strong interpersonal relationships. Employee confidence in the partner company as a trusted advisor helps to drive engagement in guidance ranging from budgeting to managing debt to saving for retirement.
Employers are further building trust with employees by negotiating favorable terms for programs that employees want and need. An example is on-demand pay, also known as earned wage access or instant pay. This financial service allows employees to access a portion of their earned wages before their regular payday, helping them manage unexpected expenses or financial emergencies without using high-interest loans or credit cards.
While on-demand pay can be a cost-effective way to support employees' financial wellbeing without significant changes to payroll processes, financial coaching also remains important. Employees should be mindful of their budgeting and spending to avoid potential financial pitfalls associated with accessing wages early.
Communicating vision and values to enhance organizational trust and confidence
Engagement remains a cornerstone of employee satisfaction, productivity and retention. Understanding employee preferences, aligning resources and evolving support over time are key components for building trust and confidence. However, effective communication is required to realize the full potential.
Communication should be consistent across all levels of the organization to reinforce reliability and dependability. Skills such as empathy and the ability to listen are essential attributes for leaders and managers in high-trust organizations. Regular interactions between leadership and employees, such as Q&A sessions or informal gatherings, can build rapport and reinforce organizational trust.
Effective communication of the organization's vision, mission and values helps employees understand how their work contributes to its overall goals. This understanding of the alignment of work and goals can foster a sense of purpose. A confident and financially sound business is an attractive place to work and collaborate, ultimately building trust and confidence in the organization's future.
