Learning & Development

New Data Explores Trust Gap Between Execs and Employees

Creating a harmonious workplace where trust flourishes between employers and employees is crucial for aligning incentives and driving employee engagement. Unfortunately, that trust is often hard to find in the business world.

Growing Trust Gap

Recent insights from PwC’s Trust in US Business Survey emphasize a significant trust gap in Corporate America—a gap that, if bridged, could unlock unprecedented growth and satisfaction on both sides of the employment equation.

Consider, for example, these data points from the PwC survey:

  • 93% of business executives agree that building and maintaining trust improves the bottom line.
  • 94% of executives say they face at least one challenge when building trust with stakeholders.
  • 86% of executives say they highly trust their employees, but only 60% of employees feel highly trusted.

These findings suggest a major disconnect between executives and employees.

Employee/Employer Disconnect

While an overwhelming majority of executives recognize the importance of building and maintaining trust to a company’s financial health, nearly all of those same executives acknowledge challenges in building that trust.

In addition, significantly fewer employees feel trusted compared to the proportion of executives who say they trust those employees. This means executives have their work cut out for them to try to bridge this gap.

Building a Foundation of Trust

The essence of building a trusted workplace lies in understanding and acting upon the disparities in perception between executives and their workforce. While many leaders believe in the trust they share with their team, a notable portion of employees feel left in the dark, craving more transparency, recognition, and genuine engagement.

This divide not only hampers employee morale but also restricts the flow of innovation and open communication crucial for tackling today’s complex business challenges.

Moreover, as companies navigate an increasingly competitive landscape, understanding consumer trust becomes pivotal. The assumption that customers inherently trust businesses could lead companies to overlook the importance of continuous, authentic engagement and transparency in every interaction. It’s a stark reminder that trust is not a given—it’s earned and maintained through consistent, ethical actions and decisions.

Addressing this issue requires a multifaceted approach, starting with fostering open dialogue, implementing transparent policies, and demonstrating a genuine commitment to employee and customer well-being. Encouragingly, some businesses are leading by example, actively working to narrow the trust gap by integrating these principles into their corporate DNA.

Lin Grensing-Pophal is a Contributing Editor at HR Daily Advisor.

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