Poor Leaders are Costing Employers

One of the most important qualities a leader can possess is the ability to inspire trust in the workplace, however, it is something that appears to be on the decline within organisations. When trust declines in a workplace relationship, so too does productivity. Everything will take much longer and costs will increase, all to make up for that lack of trust.

Stephen M.R Covey, author of The Speed of Trust; the one thing that changes everything, calls the extra effort that goes into checking and validating employees work by leaders the “low trust tax”.
In the same way that when there is a lack of trust productivity goes down and costs go up, when there is a high level of trust, productivity increases and costs go down.

Covey believes that the need for trust in the workplace is obvious and it is a ‚Äúfinancial, not just social requirement‚Äù. ‚Äú”You can put a value on it,” he said. “The ability to create trust is the number one competency of leadership needed today, more than any other‚Äù.
Trusting your employees, as a leader, makes you better at everything else that you need to achieve at work.

The thirteen behaviours that high trust leaders possess, according to Covey, are;

  1. Talking straight ‚Äì They say what is on their mind, and don’t hide their agenda. Most employees don’t believe their bosses are communicating honestly.
  2. Demonstrating respect – Actions show leaders care. They should be sincere. People will notice if an action is motivated by a lesser reason.
  3. Creating transparency – Leaders should tell the truth in a way that can be substantiated. Transparency is based on principles of honesty, openness, integrity and authenticity.
  4. Righting wrongs – To right a wrong is much more than apologising. It involves making restitution. With customers it might include that free gift along with the sincere apology.
  5. Showing loyalty – Leaders need to give credit to the individuals responsible for success. A leader should never take credit for the hard work of others.
  6. Delivering results ‚Äì The fastest way to build trust is to deliver results. 
  7. Getting better – When others see leaders continually learning and adapting to change, they become inspired to do the same. Covey suggested two ways to get better. First, seek feedback from those around you. Second, learn from your mistakes;
  8. Confronting reality ‚Äì If leaders are honest about the difficult issues and address them head-on, people will trust them. 
  9. Clarifying expectations – It is important to focus on a shared vision of success up front. When expectations are not clearly defined at the beginning, trust and productivity both decline. A lot of time is wasted due to leaders not clearly defining expectations.
  10. Practising accountability – Leaders must hold themselves accountable, and take responsibility for poor results. It is a normal response to blame others for failure, but when leaders fail, they need to take responsibility for themselves.
  11. Listening first ‚Äì Actively listening builds trust. Leaders need to learn not to go through the ‘mechanics’ of listening and give the impression they are listening when really they are not.
  12. Keeping commitments ‚ÄìThis is one of the most important components of inspiring trust in the workplace. When leaders keep a commitment they build trust. Leaders must be careful when making commitments, and make only those they can keep. 
  13. Extending trust – Leaders should extend trust to those who have earned it and are still earning it, but show caution to those who have given reason to believe that they are not capable of being trusted.