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Writer's pictureMatt Snively

Building Trust: Understanding the Factors that Contribute to Trust in Business

Updated: Jun 18, 2023

Trust is a critical component of successful organizational relationships. It is the foundation for effective communication, collaboration, and cooperation. In fact, without trust, it is difficult, if not impossible, to achieve the goals and objectives of any organization. Trust is essential because it creates an environment in which individuals are willing to take risks, share information, and collaborate to achieve common goals.

Team members bumping fists
Building trust within your business is a great way to improve results and mitigate unpleasant surprises.

Despite the importance of trust, building and maintaining it can be a challenging task, particularly in today's fast-paced and dynamic work environments. In this article, we will explore the factors that contribute to the development of trust in organizations and provide some strategies for building and maintaining trust over time.


Factors that Contribute to Trust


Trust is a complex and multifaceted construct that can be influenced by a variety of factors. Researchers have identified several of these factors which include ability, benevolence, integrity, and procedural justice.


Ability


Ability refers to the perception that a person has the knowledge, skills, and resources necessary to perform a task or achieve a goal. When individuals perceive that another person can perform a task, they are more likely to trust that person. For example, if a team member perceives that their supervisor can effectively manage the team's workload and resources, they are more likely to trust that supervisor. This can be an obstacle for supervisors who are new to their role. Often, a new supervisor is learning on the job and can be caught in situations where subordinates perceive their ability as lacking. It is important in these situations that the supervisor can be seen by their subordinates to be working to improve their ability in their role, asking many questions and listening more than speaking.


Benevolence


Benevolence refers to the perception that a person is willing to act in another person's best interests. When individuals perceive that another person is acting in their best interests, they are more likely to trust that person. For example, if a team member perceives that their supervisor is advocating for their interests and well-being, they are more likely to trust that supervisor. Conversely, a supervisor who is perceived to act mainly in their own self interests will undermine trust within their team and ultimately, their organization.


Integrity


Integrity refers to the perception that a person is committed to ethical principles and values. When individuals perceive that another person has a strong sense of ethics and values, they are more likely to trust that person. For example, if a team member perceives that their supervisor is committed to fairness, transparency, and honesty, they are more likely to trust that supervisor. Integrity often shows up during the most difficult circumstances and it is during these times that subordinates will be watching closely the actions of their leader. It is during these times of crisis that trust is often won or lost.


Procedural Justice


Procedural justice refers to the perception that decision-making processes are fair and transparent. When individuals perceive that decision-making processes are fair and transparent, they are more likely to trust the individuals who are making those decisions. For example, if a team member perceives that their supervisor is making decisions fairly and transparently, they are more likely to trust that supervisor. Processes around every day decisions should be developed to ensure transparency and consistency. For example, having a well defined hiring process and a well defined process for development and internal promotion will go a long way to ensuring a high level of trust and transparency within the organization.


Strategies for Building and Maintaining Trust


Building and maintaining trust requires a combination of behaviours, attitudes, and strategies that promote openness, transparency, and fairness in interactions between individuals. Here are some strategies for building and maintaining trust in organizations:



1. Communicate Openly and Honestly


Effective communication is a key component of building trust in organizations. Leaders should strive to communicate openly and honestly with their subordinates, sharing information about the organization's goals, strategies, and performance. This helps team members understand how their work contributes to the larger picture and can improve their overall engagement. Additionally, leaders should be transparent about any challenges or obstacles the team may face, as well as any decisions that impact the team. Being honest and direct in their communication with team members helps leaders build trust with their subordinates.


2. Provide Feedback


Providing regular and constructive feedback to team members is another important strategy for building trust. This includes both positive feedback for a job well done and constructive feedback to help team members improve their performance. When leaders provide feedback, it demonstrates that they are invested in their subordinates' success and development. However, providing feedback can be challenging, particularly if the feedback is negative or critical. To build trust while providing feedback, leaders should focus on the behaviour, not the person. They should be specific about the behaviour they want to address and provide examples of how it impacted the team or the organization. Additionally, they should provide actionable suggestions for improvement, rather than simply criticizing the behavior.


Another important aspect of providing feedback is to listen to the recipient's response. This means allowing them to ask questions, provide additional context, or explain their perspective. When leaders listen to their subordinates' feedback, it shows that they value their opinion and are open to hearing different perspectives. This can help build trust and foster a more collaborative work environment.


3. Demonstrate Consistency and Reliability


Consistency and reliability are essential for building trust in organizations. When leaders are consistent in their actions and decisions, it demonstrates that they are dependable and can be relied upon. This includes being consistent in their communication, decision-making, and follow-through on commitments.


Leaders should also strive to be reliable in their interactions with team members. This means being punctual, meeting deadlines, and being available when team members need support or guidance. When leaders are reliable, it shows that they respect their subordinates' time and efforts, which can help build trust over time.


4. Lead by Example


Leadership by example is another key strategy for building trust in organizations. When leaders model the behaviours they expect from their subordinates, it creates a culture of accountability and trust. This means being transparent, following ethical principles, and demonstrating a commitment to the organization's goals and values.


For example, if a leader expects their team to be punctual and prepared for meetings, they should model that behaviour themselves. If they expect their team to be respectful and inclusive, they should demonstrate those behaviours in their interactions with others. By leading by example, leaders demonstrate that they are invested in creating a culture of trust and collaboration.


5. Invest in Relationships


Building trust requires investing time and effort in building relationships with team members. This includes getting to know team members on a personal level, understanding their goals and aspirations, and providing opportunities for professional growth and development. When leaders invest in relationships with their subordinates, it demonstrates that they care about their success and well-being.


Leaders can invest in relationships by scheduling regular one-on-one meetings with team members, providing opportunities for training and development, and creating a culture of open communication and collaboration. When leaders take the time to build relationships with their subordinates, it can help create a more engaged and motivated workforce, which can ultimately improve organizational performance.


Conclusion


Trust is a critical component of successful organizational relationships. It is built on a foundation of factors such as ability, benevolence, integrity, and procedural justice. To build and maintain trust in organizations, leaders should focus on strategies such as communicating openly and honestly, providing feedback, demonstrating consistency and reliability, leading by example, and investing in relationships with team members. By focusing on these strategies, leaders can create a culture of trust and collaboration that can ultimately improve organizational performance and success.

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