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Don't underestimate the ROI of trust in your business

As many organisations experience high turnover and low productivity, what can be done at a HR level? In this week's HCTV we speak to Bruce Anderson of Lee Hecht Harrison and Adrianna Loveday of Randstad about the tangible financial benefits of building trust within your organisation.

Video transcript below:

Stephanie Zillman, HC TV
Stephanie Zillman:  Many organisations are experiencing high turnover, low productivity and are looking for ways to improve their bottomline.  Bruce Anderson, Managing Director of Lee Hecht Harrison says there is a tangible return on investment when it comes to building trust in organisations.
Bruce Anderson, Managing Director (Aus and NZ), Lee Hecht Harrison
Bruce Anderson:  Relations are critical inside any organisation and the relationship between two people is the basis for a business and so initially to have the trust inside your organisation means that ultimately you can provide trust outside your organisation as well.  So it’s absolutely critical that an organisation is, you know has a stated aim of building trust.  It doesn’t happen by accident.
Stephanie Zillman:  Adrianna Loveday of Randstad adds that trust isn’t something that’s implicit.  It has to be built over time and is very much a skill set.
Adrianna Loveday:  The interesting thing about trust is that it’s usually misconstrued as being a soft skill, but in fact it has a very hard edge to it.  And the reason being because trust is actually one of the strongest drivers of engagement in the workplace and we know that from recent research in the area.  But leaders that can build trust with their people are capable of anything.  
Stephanie Zillman:  For Anderson trust is an element of the employer employee relationship which must be championed from the most senior rungs of management.
Bruce Anderson:  If you go into any organisation you will see up on the wall that they have got this wonderful culture and they have a vision and they have values and that you know trust is implicit in a lot of those things and everybody reads those and they listen to their CEO and senior managers talk about trust and talk about how important they are, but they actually watch what they do.  So if a CEO or their senior management team is actually not demonstrating what they expect, then they won’t get it.
Stephanie Zillman: Characteristics and behaviours that earn trust include integrity, admitting mistakes, open communication and respecting different points of view.  If they are eroded, they can’t easily be rebuilt.
Adrianna Loveday:  There is actually a formula that sits behind trust, trust otherwise known as the trust quotient.  So trust is made up essentially of competence.  So the feeling, you know an employee feeling for example if it’s with regards to trusting their manager, that that manager is competent and that they are the expert in what they do and they have the credibility.  The other part of trust is about reliability.  “Does the manager deliver on their promises?”  Because once promises are broken and the trust is eroded, it’s really hard to regain that trust.  
Stephanie Zillman:  This is Stephanie Zillman reporting for HC TV.