America’s Employees Don’t Trust Their Employers

Trust plays an important role in the workplace and affects employees’ well-being and job performance. At least that’s what organizational experts say. And the American Psychological Association’s 2014 Work and Well-Being Survey released this week says employee distrust is pervasive in the U.S. Workforce today, despite an improving job market.

One in four workers say they don’t trust their employer and only about half believe their employers are open and upfront with them.

This lack of trust should serve as a wake-up call for employers,” says David W. Ballard, PsyD, MBA, head of APA’s Center for Organizational Excellence. “The layoffs, benefit cuts and job insecurity that accompanied the recession put a strain on the employee-employer relationship and people aren’t quick to forget.”

One in four workers say they don’t trust their employer and only about half believe their employers are open and upfront with them.

Workers reported having more trust in their company when the organization recognizes employees for their contributions, provides opportunities for advancement and involvement and communicates to the workers effectively.

Although a majority of workers report being satisfied with their job overall, less than half said that they are satisfied with the growth and development opportunities (49%) and employee recognition practices (47%) where they work.

More than a quarter (27%) of U.S. workers said they intend to seek new employment this year.

The survey also found that workers who feel valued by their employer are more likely to be engaged in their work. Employees who feel valued were significantly more likely to report having high levels of energy, being strongly involved in their work and feeling happily engrossed in what they do.

Additionally, those who felt valued by their employer were more likely to report being satisfied with their job (92% of those who felt valued vs. 29% of those who do not) and to say they are motivated to do their best (91% vs. 37%) and to recommend their employer to others (85% vs. 15%).

Employees who felt valued were also less likely to say they feel stressed out during the work day (25% vs. 56% of those who do not feel valued) and more likely to report being in good psychological health (89% vs. 69% of those who do not feel valued).

While more than six in 10 employed adults say they can effectively manage the work stress they experience, almost one-third report typically feeling tense or stressed out during the workday.

The most commonly cited sources of work stress:
• Low salaries
• Lack of opportunity for growth and advancement
• Unclear job expectations
• Job insecurity
• Long hours

“The emphasis in recent years on employee wellness is a step in the right direction, but the psychological factors are often overlooked,” says Ballard. “It’s clear that an organizational culture that promotes and supports openness, honesty, transparency and trust is key to a healthy, high-performing workplace.”

“It’s clear that an organizational culture that promotes and supports openness, honesty, transparency and trust is key to a healthy, high-performing workplace.”

An acquaintance of mine works as a mid-level manager at a vendor whose largest customer is currently experiencing significant pressure on their business. After seeing headcount in his office get reduced by half during the past 12 months, he went in to see the general manager, and found out…nothing. Here is what he said about the meeting.
“While I don’t believe that senior managers at most organizations intend necessarily to be ‘secretive’ or ‘sneaky,’ it’s all about perception. So when my boss is not able to look me in the eye and give me a straight answer to an important – and direct – question, the perception is that there are secrets within the organization and the result is going to be a lack of trust. I know company leaders can’t tell you everything, but I do believe that all employees have a right to know certain basic things, like whether your job is in immediate jeopardy.”

A lack of trust in the workplace is bad for business, and can impact the bottom line. The APA says when a sense of trust is missing, workers may put in less effort or otherwise subvert their employers’ goals.

“Employees want to know that there are fair processes in place and a sense of equity” in the exchange between their efforts and the compensation (monetary and otherwise) they receive in return, said Ballard.