Why employee trust is good for business

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Most can agree that true trust has to be earned, and the workplace is no exception. If companies want to succeed in 2025, trust may need to be part of their plans — and there's data to prove it.

According to ADP, workers who trust their teammates are 16 times more likely to be highly motivated and committed; workers who trust their managers and supervisors are 26 times more likely, and workers who trust their senior leaders are 41 times more likely to be motivated and committed. In other words, employers can't expect a high-performing workforce without a company culture built on trust. But cultivating employee trust isn't as easy as including a specific benefit or adding a new policy. 

"Employers can erode trust when they're not transparent around decisions like pay expectations and policy changes," says Mary Hayes, research director at ADP Research. "From the top level of an organization, consistency and transparency are key."

Read more: Secrets of HR: 6 components of a great workplace culture

For example, lower raises or return-to-office mandates can harm employee trust, especially if leadership doesn't have an open discussion about why they're making what can seem like sudden changes to their workforce, explains Hayes. She advises employers to pay special attention to how they treat any business decision that impacts employee freedom, flexibility and autonomy — three factors key to building trust. 

"Freedom is defined as the ability to choose how the work gets done, and flexibility is the latitude workers have to choose where they work and set their own schedule," says Hayes. "Autonomy is the ability to make daily decisions without being told what to do."

ADP found that workers who reported having all three kinds of independence are more likely to have trust in their colleagues and leaders. Notably, 63% of workers say they don't get the freedom, flexibility or autonomy they need at work, and just 12% feel they have enough of all three, according to ADP. Hayes admits that remote work could act as a vital component to cultivating a culture of trust, as it proves that organizations trust their employees to know how and where to get their work done. That doesn't mean remote work is a cure-all. Leadership still has to be trained to facilitate open communication with their teams, and teams need to be confident they have the bandwidth and resources to meet their responsibilities.

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"We are connected almost 24/7 with the electronics we carry in our pockets, so it is hard to shut it off," says Hayes. "Having team members and leaders we can trust can help us relieve the burden of the constant bombardment from work."

As for employers with RTO mandates, ADP has some good news: Seventy percent of workers who report having no flexibility on the job but enough freedom and autonomy can still be highly motivated and committed. Ultimately, workers need to feel they are trusted to get the job done, regardless of whether they are at home or in the office.

However, Hayes warns employers against bringing people back to the office without being upfront about the reason. The last thing employees want to feel is that they're being punished or that their productivity is being questioned, especially if performance metrics prove otherwise.

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"Organizations need to think about why they're bringing back people to the office," says Hayes. "Is it because they own a building and want people in it, or is it because people need to be in the same area to work together? Being transparent and consistent with your workforce will probably go a long way in building trust."

Hayes reminds employers that even in a favorable labor market, they cannot afford to lose talent. According to ADP, 63% of employees who are highly motivated and committed report no intent to leave their current jobs, compared to 38% of workers with lesser levels of motivation. Given that hiring replacements can cost companies as much as double a former employee's salary, Hayes advises employers not to risk the financial loss, especially in today's unpredictable economy. Not to mention the knowledge base employers lose when experienced employees walk away. 

"The longer an employee has worked for a company, the cost goes up, not necessarily in dollars, but because of the knowledge they have," says Hayes. "That institutional knowledge of what has happened in the past, why we did what we have done over the years is irreplaceable."

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