TGC examines the difference between smart trust and gut feel—and why it’s important you consider this when working with your team.

Business leaders often talk about the importance of trust in the workplace—after all, understanding how to harness trust in the workplace is vitally important when developing effective managers.

But how do we know how much trust is required to be successful and what kind of trust is most beneficial to business?

Building trust within our teams is not only a great way of increasing morale and workplace productivity. It is also a cost-effective management strategy that will help in reducing overall staff turnover.

You may ask, how does trust among staff reduce costs? Having confidence in your team allows employees to feel like an integral part within the organization, with a path to advancement, greater responsibilities, and job satisfaction—ensuring that they are less likely to resign.

On average, the cost of rehiring is 33 percent of a person’s annual salary in lost productivity, with an average of twenty-eight weeks’ time taken to replace employees. This can be exorbitant for SMEs in particular.

Replacing micromanagement leadership styles with the ability to effectively and strategically trust in your team naturally empowers your employees. This strengthens relationships, allowing for effective communication and an increase in employee loyalty. In essence, effective leaders will go on to create even more effective leaders.

 

The Right Kind of Trust

It’s very tempting for key decision makers to take full control over minor tasks to ensure that employees are completing them correctly, particularly when faced with pressure to meet high standards. Not only is this unrealistic, it is damaging to operational productivity and team dynamics.

At the other end of the spectrum, some leaders have a tendency to put too much trust into individuals, meaning that failures occur. So, how can we ensure that our trust is put into the right people?

Thomas Giles has created a ‘Head vs. Heart’ framework for better placing and building your trust within your professional relationships.

 

Smart Trust

Smart trust—or going with your head over your heart—is well-informed and extends trust appropriately. This type of trust also empowers people within the business because it sets individuals up for new opportunities, responsibilities, and achievements.

 

Blind Trust

Blind trust—or going with your heart over your head—is based on gut feelings which in some cases can be effective. However, when faced with important business decisions this is an unreliable method of building trust. It can also set individuals up for failure if trust is being given as a leap of faith.

 

If you want to learn more about building smart trust to create effective communication in the workplace, Thomas Giles Consultancy is hosting a series of webinars entitled Great Conversations

Not only will you have the opportunity to learn in more detail about how trust can empower you as a leader, you’ll also discover how you can plan conversations to deliver the maximum return for the time that you invest.

As Stephen Covey once said,

Trust is the glue of life.

It’s the most essential ingredient in effective communication.

It’s the foundation principle that holds all relationships.