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Abstract: Trusting Employees to Deliver Results in Times of Change explores the research foundation showing that building trust is key to empowering high performance, especially during periods of organizational change and uncertainty. Drawing from literature in psychology, management, and organizational behavior, the article discusses factors that contribute to developing organizational trust, with a focus on the pivotal role of managers as "trust anchors." Practical strategies are provided for fostering trust through transparent communication, participative decision-making, skill development support, and empowering teams with autonomy. The article also shares examples from the retail banking and technology industries to illustrate how trust-based approaches aided successful navigations of major transformations. The conclusion reinforces that trusting employees to problem-solve enables engagement and results, even amid disruption.
As organizations face increasing disruption and complexity, leadership styles are evolving. Yet many managers remain focused on results above all else, struggling to trust that employees can rise to new challenges without close oversight. However, research shows that fostering trust is key to empowering high performance, especially during times of change and uncertainty.
Today we will explore the research foundation for building organizational trust and shares practical strategies for developing a culture where employees feel supported to deliver quality outcomes.
Understanding Organizational Trust
Trust is difficult to define but easy to recognize when present or absent in a workplace. Simply, trust involves "the willingness to be vulnerable to another party based on the confidence that the other party is benevolent, honest, open, reliable and competent" (Mishra, 1996, p. 265). At the organizational level, trust involves trusting not just individuals but systems and structures (Fulmer & Gelfand, 2012). Research shows that high-trust organizations see greater loyalty, commitment, innovation and productivity from employees compared to low-trust environments (Costa et al., 2018).
Building Organizational Trust
Several factors contribute to building organizational trust. Communication is key— frequent, transparent sharing of information helps employees understand priorities and challenges (Gillespie & Dietz, 2009). This allows them autonomy and empowerment rather than micromanagement. Participative decision-making that allows employee input in areas that affect their work also fosters psychological safety and competence (Dirks & Ferrin, 2002). Fair treatment, equitable policies and consistent follow-through on commitments further builds reliability and benevolence (van Dyne & Pierce, 2004).
Managers as Trust Anchors
Managers play a pivotal trust-building role. Leading with integrity, compassion and competence through personal interactions establishes them as "trust anchors" (Gillespie, 2003). This involves being approachable, actively listening, clarifying expectations, acknowledging mistakes, and giving recognition and praise for quality work. Supporting employee development through feedback, mentoring and training reinforces benevolence and competence, assuring workers they have the skills needed for tasks (Dirks & Skarlicki, 2009). Empowering employees with autonomy, resources and freedom to contribute ideas allows trust to spread laterally between co-workers as well (Costa et al., 2017).
Industry Example: Retail Banking
One industry facing transformational change is retail banking. New digital technologies have disrupted operations, customer channels and work paradigms. Many banks focused on sales metrics above all else risked losing employee engagement and trust (Mishra et al., 2014). However, some leading banks implemented culture changes focused on frontline employees that improved outcomes. For example, one major U.S. bank rolled out a multi-year initiative emphasizing empowerment, transparency, recognition and coaching/feedback for tellers and customer service representatives (CSRs). Branch managers led "listening tours" to better understand staff experiences and needs. Performance was redefined around quality of customer interactions and problem-solving rather than transactions alone. New digital tools allowed greater autonomy over customer issues. Employee surveys showed trust and engagement increased markedly as workers felt supported to provide excellent service through changes (Chadbourne & Bhatia, 2018). Customer satisfaction and retention metrics also improved. The bank's trust-centered approach proved effective in its digital shift.
Empowering Teams Through Change
Times of organizational change test existing levels of trust as comfort zones shift. Leaders then have a choice—either tighten controls and micromanage, risking disengagement, or empower teams through transparency and support. Research shows the latter approach allows groups to rise to new challenges through their intrinsic motivation and competence (Costa et al., 2018). Practical steps leaders can take include:
Communicating openly about strategic priorities, challenges and rationale for changes with regular check-ins
Engaging employee ideation through brainstorming sessions to provide input into change processes
Providing training, resources and mentorship on new skills required through the transition
Giving autonomy over tasks where possible with backing to problem-solve barriers
Acknowledging stress/frustration of change with empathy and reiterating commitment to support staff
Sharing ownership of goals through collaborative goal-setting versus mandated targets
Recognizing accomplishments and milestones publicly to reinforce effort through uncertainty
Industry Example: Technology Company
One technology firm navigated an acquisition that merged two separate departments through trust-building (Fulmer & Ostroff, 2017). Leadership hosted "Future Forums" to outline strategic aims, clarify roles and solicit feedback on integration challenges. Cross-functional teams prototyped new workflow processes with leeway on specific solutions. Managers coached staff through ambiguity with frequent check-ins on well-being. Peer support networks formed and an internal recognition program incentivized collaboration over competition. Post-merger surveys found high levels of trust in leaders and commitment to new goals as employees felt ownership over navigating change jointly with management support. Productivity and innovation measures surpassed projections. The empowering approach to transition aided the company well.
Conclusion
As volatility becomes the norm, trust between leaders and employees will define organizational success. Yet trusting workers requires relinquishing some control, which does not come naturally to all managers. Research provides a foundation for developing trust through integrity, competence, care and autonomy support. Leaders who commit to clear communication, participative processes, skill-building, and empowering problem-solving see engagement and performance thrive even amid disruption. While the short-term path may seem to demand tight directives over empowerment, studies consistently show that developing a high-trust culture pays off most significantly in times of change and uncertainty. When employees feel trusted to handle challenges, they rise to fulfill that confidence.
References
Chadbourne, A., & Bhatia, A. (2018, January 15). Building employee trust and engagement: A case study of retail banking transformation. McKinsey & Company. https://www.mckinsey.com/business-functions/organization/our-insights/building-employee-trust-and-engagement-a-case-study-of-retail-banking-transformation
Costa, A. C., Fulmer, C. A., & Anderson, N. R. (2018). Trust in work teams: An integrative review, multilevel model, and future directions. Journal of Organizational Behavior, 39(2), 169–184. https://doi.org/10.1002/job.2213
Dirks, K. T., & Ferrin, D. L. (2002). Trust in leadership: Meta-analytic findings and implications for research and practice. Journal of Applied Psychology, 87(4), 611–628. https://doi.org/10.1037/0021-9010.87.4.611
Dirks, K. T., & Skarlicki, D. P. (2009). The relationship between being perceived as trustworthy by coworkers and individual performance. Journal of Management, 35(1), 136–157. https://doi.org/10.1177/0149206308321545
Fulmer, C. A., & Gelfand, M. J. (2012). At what level (and in whom) we trust: Trust across multiple organizational levels. Journal of Management, 38(4), 1167–1230. https://doi.org/10.1177/0149206312439327
Fulmer, C. A., & Ostroff, C. (2017). Trust in direct leaders and top leaders: A trickle-up model. Journal of Applied Psychology, 102(4), 648–657. https://doi.org/10.1037/apl0000189
Gillespie, N. (2003). Measuring trust in work relationships: The behavioral trust inventory. Paper presented at the annual meeting of the Academy of Management, Seattle, WA.
Gillespie, N., & Dietz, G. (2009). Trust repair after an organization-level failure. Academy of Management Review, 34(1), 127–145. https://doi.org/10.5465/amr.2009.35713319
Mishra, A. K. (1996). Organizational responses to crisis: The centrality of trust. In R. M. Kramer & T. R. Tyler (Eds.), Trust in organizations: Frontiers of theory and research (pp. 261–287). Sage Publications.
Mishra, J., Boynton, L., & Mishra, A. (2014). Driving employee engagement: The expanded role of internal communications. International Journal of Business Communication, 51(2), 183–202. https://doi.org/10.1177/2329488414525380
van Dyne, L., & Pierce, J. L. (2004). Psychological ownership and feelings of possession: Three field studies predicting employee attitudes and organizational citizenship behavior. Journal of Organizational Behavior, 25(4), 439–459. https://doi.org/10.1002/job.251
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). Trusting Employees to Deliver Results in Times of Change. Human Capital Leadership Review, 14(1). doi.org/10.70175/hclreview.2020.14.1.10
