Here’s a new litmus test for measuring your organization’s productivity: examine how much employees trust their employer. 

New research from the human capital research firm Institute for Corporate Productivity (i4CP) finds that organizations with higher levels of trust between workers and leadership have greater productivity. 

Employees at what the firm deemed high-performance companies were 11 times more likely to say they had senior leaders and managers who trusted them to do their jobs. In contrast, “just 2% of respondents from low-performance organizations strongly agreed that their senior leaders trust employees,” according to the report. 

Mass layoffs, dispersed work, and high turnover are all factors thought to have led to the deterioration of trust between leaders and their reports. “Unilateral trust is directly correlated with productivity, but unfortunately, trust has eroded recently in many organizations,” says i4CP’s CEO, Kevin Oakes. And while more companies have recently used tactics like digital monitoring and return-to-office mandates to increase efficiency, some say they do little to motivate workers.

“Our research shows that has almost nothing to do with improving their output,” says Oakes, of the many organizations seeking a productivity bump by requiring employees to be in office.

A March report from professional services firm PwC found that although 79% of executives believe employee trust is high at their organizations, only 65% of employees agree. Researchers from i4CP say there are few techniques and programs CHROs can implement to create or restore a more trusting culture.

— Establish leadership training for managers specifically focused on how to model behaviors that encourage healthy workplace cultures. 

— Empower HR and DEI teams to lead training on creating inclusive workplaces. 

— Provide employees with clear feedback on career development, goal setting, and performance expectations. 

“CHROs are uniquely positioned to not only put those programs into effect but to work with managers and employees to bridge any perception gaps,” says Oakes. “The risks of not doing so are high. Festering toxicity could become a new cultural norm, among other unintended consequences. That’s not a recipe for success.”

Amber Burton
amber.burton@fortune.com
@amberbburton

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