The relationship between trust and performance

Wondering how to build trust in the workplace, how to fix trust issues and find yourself thinking, ‘why is trust important in a relationship?’ and ‘how to build trust in a team?’.

Trust is a foundational element of any successful relationship, and this holds true in the context of the workplace as well. Whether it is between colleagues, teams, or between employees and their leaders, trust plays a pivotal role in establishing a positive work environment and fostering collaboration and productivity. Understanding the importance of trust and how to build and maintain it is crucial for creating a thriving and cohesive workplace culture.

Why is trust important? Trust forms the bedrock of healthy and functional relationships, both personal and professional. In the workplace, trust is essential for a variety of reasons. Firstly, it creates a sense of psychological safety, enabling individuals to feel comfortable and secure in expressing their ideas, opinions, and concerns. When employees feel trusted, they are more likely to contribute openly, take risks, and engage in creative problem-solving.

So, you might be thinking how to build trust in the workplace or how to fix trust issues? Well, trust plays a significant role in fostering effective communication and collaboration. When there is a high level of trust within teams, members are more inclined to share information, collaborate, and support one another. Trust also facilitates the establishment of strong working relationships, enabling individuals to rely on and depend on their colleagues, which leads to increased efficiency and productivity.

However, trust issues can arise in the workplace, hindering progress and causing disruptions. Trust issues refer to doubts, concerns, or lack of confidence in the reliability, integrity, or intentions of others. These issues can stem from past negative experiences, conflicts, or a lack of transparency and accountability. When trust is compromised, it can result in strained relationships, reduced teamwork, and a decline in overall performance.

Fortunately, trust can be built and repaired through intentional efforts and effective strategies. Building trust in the workplace requires consistent actions and behaviours that demonstrate reliability, honesty, and respect. This can include fulfilling commitments, being transparent in communication, actively listening to others, and treating colleagues with fairness and empathy.

Addressing trust issues requires open and honest communication, actively listening to concerns, and taking responsibility for past actions. It may involve creating opportunities for dialogue, fostering a culture of feedback and constructive criticism, and implementing processes that promote transparency and accountability.

Building trust within a team requires creating an environment that encourages collaboration, values diversity of thought, and fosters a sense of psychological safety. Leaders play a crucial role in building trust by setting an example through their own trustworthy behaviour and by creating a culture of trust within their teams.

Trust is a vital component of a healthy and productive work environment. It fosters collaboration, effective communication, and strong working relationships. Understanding the importance of trust, addressing trust issues, and actively building and maintaining trust are essential for creating a workplace culture that thrives on mutual respect, open communication, and collective success.

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The link between trust and high performance

Time and time again, research has shown that trust levels between managers and employees is the key defining characteristic of the world’s best workplaces and the foundation of high performance.

However, building trust in the workplace contributes to more than just company culture — it’s a hard economic driver. Studies in the US have also shown that high-trust businesses are 2.5 times more likely to be high-performing revenue companies when compared to their low-trust counterparts.

Why is this?

The reason is simple: leaders who focus on building trust in teams are more likely to have employees who are engaged in their roles and work well as a team. According to research from The Great Place to Work Institute and Fortune, companies that rank in the Top 100 Best Companies to Work For have a voluntary turnover rate that’s half the rate of their industry peers. What’s more, employees that trust each other are more productive and also likely to collaborate to problem-solve.

How to build trust in a team

It takes time to establish a high level of trust amongst employees, and even longer to fix a trust issue. However, the good news is that it can be fixed — and the benefits to team morale and performance are undeniable.

The four tips below will help you create a culture where employees feel safe, supported and respected, and in turn, respect and support you and the business.

Empower staff through meaningful participation

Mutual trust and respect are built through reciprocity. It’s simple: employees who feel trusted will trust you more. That’s why it’s important to empower your team by regularly giving away your authority.

Delegate responsibilities to individuals and encourage a collective team decision-making process whenever possible. Let’s say you have an important decision to make on a project. Rather than going at it alone, consult your team for their feedback, and actively show them that you’ve incorporated their opinions into your decision-making process.

Follow through on commitments with actions

“Do what you say and say what you do.” Going back on your word is a sure-fire way to create doubt and break your team’s trust, fast. However, if you practise what you preach, employees will believe you’re reliable and true to your word, and trust in your leadership.

Building trust as a leader is done one step, one conversation and one action at a time. Don’t make grand promises to employees in the hopes of pleasing or showing off to them as a way to build trust. Instead, focus on committing to key actions and delivering on them.

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One of the classic ‘trust in the workplace’ examples is when an employee asks for career development opportunities. If you promise to help them, make good on your word and proactively come back with proposals or opportunities instead of waiting for them to follow up. This way, they know that when you say you’ll do something, you mean it.

Encourage authentic and transparent communication

Even the best leaders fail. The difference between trustworthy leaders and others lies in their response to failure. If you try to hide mistakes from your team, they’ll feel like you don’t trust them with important information — or even worse, that you don’t respect them enough to tell them the truth.

Being authentic, vulnerable and transparent with your team helps build your credibility and humanises you. Own your mistakes and tackle difficult issues in a timely manner. Be clear on what went wrong, what could have been done better and highlight how you’ll improve next time. At the same time, encourage your team to communicate their thoughts on the matter, and provide you with constructive feedback for the future.

Praise publicly, correct privately

An essential component of trust and your team's success is a feeling of psychological safety. If your employees feel you’ll throw them under the bus or humiliate them in front of their peers, they’ll be less likely to trust you as a leader — and might even lie to avoid getting caught out in the future.

Follow the principles of praising publicly and correcting privately. In team settings, business leaders should commend employees on what they did well. If a project didn’t go as planned and you’re conducting a post-mortem, adopt a constructive approach problem-solving — “What can we do better next time?” — rather than pointing fingers at specific team members or resorting to blame.

This fosters a feeling of support and trust in your team and has a positive impact on the working environment leading to high performance.

How do you measure performance vs. trust?

While it is challenging to measure someone's trustworthiness with complete objectivity, there are several factors that can be considered when assessing someone's trustworthiness:

1. Reliability: Reliability refers to the consistency and dependability of an individual's actions and words over time. Assessing if someone consistently follows through on their commitments and keeps their promises can provide insights into their trustworthiness.
2. Integrity: Integrity relates to the alignment between an individual's actions and their moral and ethical principles. Observing if someone consistently demonstrates honesty, transparency, and ethical behaviour can contribute to evaluating their trustworthiness.
3. Competence: Evaluating someone's competence and expertise in their field or area of responsibility can contribute to assessing their trustworthiness. A track record of successfully completing tasks and demonstrating relevant skills and knowledge can build trust in their abilities.
4. Consistency: Consistency refers to the stability of an individual's behaviour and decision-making. Assessing if someone's actions, words, and values align consistently over time can be an indicator of their trustworthiness.
5. Openness and Communication: The willingness of an individual to openly communicate, share relevant information, and address concerns or questions can contribute to perceptions of trustworthiness. Transparent and open communication builds a foundation of trust.
6. Feedback and Reputation: Gathering feedback from others who have interacted or worked with the individual can provide insights into their trustworthiness. Reputation, based on others' experiences and opinions, can offer valuable indicators of trustworthiness.

While these factors provide a general framework for assessing trustworthiness, it is important to note that trust is subjective and can vary between individuals. It is crucial to consider context, personal biases, and the specific relationship or situation when evaluating someone's trustworthiness aligned with their performance.

The dynamic between trust and performance is a critical aspect in various domains, including interpersonal relationships, teamwork, and organisational effectiveness. Trust serves as a foundation for effective collaboration, communication, and cooperation among individuals and teams, leading to improved performance outcomes.

When individuals trust one another, they are more likely to share information, take risks, and rely on each other's abilities, which enhances synergy and productivity. Trust also fosters a positive work environment, as it reduces conflicts, promotes psychological safety, and increases employee engagement and commitment. Companies that prioritise trust-building initiatives and cultivate a culture of trust tend to experience high levels of performance and achieve their goals more effectively. Thus, trust plays a vital role in shaping individual and collective performance in various contexts.

We hope this has helped you gain a greater understanding of how to build trust in the workplace, how to fix trust issues and ultimately answer the question ‘why is trust important in a relationship?’ and ‘how to build trust in a team?’.