By Jonathan H. Westover, PhD
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Abstract: This article explores practical strategies for managers and executives to increase trust and loyalty in employee relationships. The article outlines how trust is built over time through consistency, integrity, and care. Specific guidance is provided around communicating expectations, pay transparency, work-life balance, career development, culture, and recognition. Fulfilling implicit and explicit psychological contracts through these approaches deepens employee loyalty and commitment. Case studies then demonstrate how appreciation, recognition, and social/fun activities further strengthen bonds. Real-world industry examples show the concepts applied successfully in technology, healthcare, and retail contexts. The article argues that prioritizing relationships through integrity and compassion lays the groundwork for resilient, high-performing organizational cultures where leaders leave a lasting positive legacy.
As anyone who has worked with employees for any significant period of time knows, developing high levels of trust and loyalty is no easy feat. However, it is also well established through research and experience that organizations with trusted and loyal employees significantly outperform those without it. As an organizational consultant and researcher, I have spent the past decade studying what successful leaders do to cultivate these all-important soft skills.
Today we will explore practical strategies any manager or executive can implement to increase trust and loyalty in their employee relationships.
The Foundation of Trust
Trust does not develop overnight - it is a gradual process built on consistency, integrity and care over time (Mayer, Davis, & Schoorman, 1995). At the core, employees must feel their leaders are credible, reliable and have genuine concern for their well-being (Whitener et al., 1998). One of the most important things leaders can do is follow through on their words with corresponding actions. If a manager promises flexible work hours but then denies every request, trust will quickly erode. Consistency between message and behavior is thus the bedrock of building trust (Sutherland, 2015).
Leaders must also demonstrate integrity by adhering to strong moral and ethical principles in all decisions and interactions (Mayer & Gavin, 2005). When tough calls have to be made, employees need to believe their leaders made the choice they genuinely felt was right rather than what was simply expedient. Transparency about the rationale behind major decisions, without compromising strategy or confidentiality, helps establish a leader's integrity (Horsager, 2012).
Finally, showing care, support and compassion for employees as people, not just resources, is vital for trust formation (Coyle, 2018; Mishra & Mishra, 2013). Getting to know employees personally, remembering family details or life events, and being understanding during difficult times signals that a leader genuinely cares about an employee's well-being, not just their productivity or contributions to the organization.
While integrity and care are certainly important leadership qualities in their own right, research has consistently shown they are also the surest paths to gaining employee trust over the long-run (Dirks & Ferrin, 2002). Trust, in turn, leads to increased cooperation, willingness to take risks and loyalty to the leader and organization (Fulmer & Gelfand, 2012).
Building Loyalty through Psychological Contract Fulfillment
Once a foundation of trust has been established, loyalty develops when leaders consistently fulfill implicit and explicit psychological contracts with employees (Robinson, 1996; Robinson & Rousseau, 1994). A psychological contract refers to the unwritten reciprocated expectations that employees and their organization have regarding things like pay, career growth opportunities, work environment characteristics, treatment, and job security.
When these expectations are met over time, loyalty emerges as employees feel fairly treated, invested in and committed to by their employer (Pearce, 2014; Rousseau, 1995). However, contract breaches through unmet or unclear expectations undermine loyalty (Morrison & Robinson, 1997). For example, promising promotions but then not following through when an employee exceeds goals and responsibility levels damages the contract and erodes loyalty.
Some key strategies for actively building loyalty include:
Clearly communicating expectations around compensation, benefits, professional development support, work environment, etc. from the start of employment (Taplin et al., 2013).
Providing competitive and equitable pay, keeping promises around pay increases and bonuses (Brown et al., 2015).
Offering flexible work arrangements, where practical and strategic, to improve work-life balance.
Investing in regular employee skill and career development through challenging assignments, mentoring programs and tuition reimbursement (Hughes & Bozionelos, 2007).
Maintaining a respectful, inclusive and collaboration-focused work culture.
Providing transparency around organizational strategy, direction and financials to help employees feel informed and invested participants.
Recognizing and appreciating employee efforts and achievements on both individual and team levels.
By consistently delivering on psychological contract expectations through such approaches, leaders validate the investment employees make in their work, which deepens feelings of loyalty and commitment over time.
Incorporating Appreciation, Recognition and Fun
In addition to meeting expectations, research indicates incorporating appreciation, recognition and fun into the employee experience strengthens bonds of trust and loyalty (Farndale et al., 2011; Rogers & Ashforth, 2014). Leaders who take the time to show sincere appreciation for employee efforts, both big and small, see notable increases in areas like discretionary effort, morale and performance (Brun & Dugas, 2008).
Some techniques for integrating appreciation include:
Using one-on-one check-ins to acknowledge progress on goals or contributions to major wins.
Crafting personal thank you notes for going above and beyond.
Publicly recognizing high performers at company meetings.
Creating motivation through competitive leaderboards or gamification around goals.
I have also seen leaders leverage recognition very effectively by incorporating it into annual reviews. In addition to performance metrics, asking employees to note their most significant contributions over the year and then validating those contributions with thoughtful praise builds loyalty. The acknowledgment fosters an intrinsic desire to keep exceeding expectations.
Another important aspect is incorporating fun through company outings, team-building activities and social events (Saks, 2006; Yeo & Neal, 2004). Whether it be a summer BBQ, volunteer day or friendly competition, breaking from routine builds camaraderie while providing an outlet to better know peers on a personal level. The resulting social bonds and friendships increase employee commitment to one another and the organization.
Practical Application Across Industries
The concepts of trust and loyalty building translate to organizations across industries, but implementation looks different based on situational context. Here are a few real-world examples:
Technology Company: A tech start-up I worked with instituted several changes to enhance trust and loyalty among their 150 employees. Leadership adopted full transparency around finances, conducted company-wide Town Halls with Q&As regarding strategy, and launched a new program where staff could propose and vote on charitable causes to support. The changes resulted in higher employee engagement and NPS scores.
Healthcare System: At a large hospital network, division directors began monthly one-on-one check-ins to learn about needs and goals. They also recognized top performers through social media features and during annual events. Within a year, employee satisfaction increased 10% while turnover declined.
Retail Chain: Struggling with high turnover at its stores, a retail chain started a training/promotion track for new hires. It gave managers tools to provide frequent verbal/written appreciation and approved flexible scheduling. The simple tweaks significantly boosted retention rates within 6 months.
As seen across these examples, trust and loyalty enhancing techniques can be adapted to work cultures large and small across multiple industries. The underlying principles remain consistent - show employees integrity, care, appreciation and fulfill psychological contracts to develop the high-quality relationships that energize workforces.
Building a Legacy of Trust and Loyalty
In today's talent marketplace, no factor impacts organizational success more than the quality of relationships between leaders and employees. Establishing deep wells of trust and loyalty provides resilience to withstand challenges while fueling higher performance. It all starts from the top, with leaders walking their talk day in and day out over years through integrity, compassion and consistency. Though gradual, the dividends of trust-based cultures are immense and long-lasting for both individuals and enterprises. As a consultant and researcher, I have seen first-hand how leaders who focus first on cultivating relationships leave a greater positive mark than any single strategy or initiative ever could. Their legacy lives on through the people they helped develop.
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Jonathan H. Westover, PhD is Chief Academic & Learning Officer (HCI Academy); Chair/Professor, Organizational Leadership (UVU); OD Consultant (Human Capital Innovations). Read Jonathan Westover's executive profile here.
Suggested Citation: Westover, J. H. (2024). Building Trust and Loyalty in the Workplace. Human Capital Leadership Review, 13(1). doi.org/10.70175/hclreview.2020.13.1.6
