Based
upon the results of over 500,000 employee engagement responses per year over
the last 15 years, one area stands out as having the highest correlation to
high levels of employee engagement compared to any other - the ability of
Leaders to Build Trust.
And
companies with higher levels of employee engagement report 18% greater
productivity, 12% higher customer satisfaction and 51% less voluntary
turnover while companies with less engaged employees report 12% lower
profits, 19% lower operating income and 28% lower earnings per share. So
employee engagement matters to the people and to the business.
Unfortunately,
recent research shows that less than half of employees trust senior
management, and less than one-third believe CEOs are a trustworthy source of
information.
"Trust
in Leaders" measures the degree to which employees believe that the
leaders responsible for setting the direction of the organization are capable
and trustworthy. This is not only about trust in the strategic direction
itself, but also about trust in those who are setting the direction. Why?
Because our research shows it is possible to believe in the direction without
fully believing in the ability and integrity of leadership to steer the
company effectively to get there.
The
Definition of Leaders
We
define leaders as those responsible for the direction and goals of the
company. While each company defines leaders a bit differently, for purposes
of our research, they typically consist of those with a manager title and
above.
The
Questions Related to Trust in Leaders
Are
your leaders trustworthy? Back in the 1980's, Stephen Covey defined trust as
the combination of character and competence. It makes sense to us that
leaders need to have both traits to be trusted. A person of high character
and integrity but who does not produce results is not credible or trustworthy
at work because they do not get things done. And conversely, a person who
gets things done but has questionable character is also not credible. If you
are not credible at work, you are not trustworthy.
To
test the level of trustworthiness of leaders, we typically use four
measures:
1. I trust the leaders of this organization to set the right
course.
2. I trust the senior leadership team to lead the company to
future success.
3. I believe the leaders of this organization are honest and
trustworthy.
4. The leaders of this organization demonstrate integrity.
All
four questions have between a .73 and .77 correlation with employee
engagement and rank in the top ten out of all the questions we ask in our
Best Places to Work survey each and every year.
|
Voice
of the Customer
"We
turned to LSA to help us custom design and deliver a management development
solution to help drive performance. They have done an excellent job diagnosing
the business situation, designing an approach that fits our culture, and delivering
a first class solution with the support systems necessary to make a real
difference. I recommend them to anyone looking for real results."
Sally Buchannan | VP Human Resources | SonyAbout LSA Global
Founded in 1995, LSA Global is a leading performance consulting and training firm that helps high growth technology, services, and life-science companies create a competitive advantage by powerfully aligning their culture and talent with their strategy. Learn more about getting aligned
