Broken Trust is Bad for Business

Click above for an overview from Tracey

Broken trust is bad for business.

The lack of trust between and among management, staff and customers/clients can lead to:

  • High employee turnover
  • Low engagement and productivity
  • Reduced innovation
  • Reduced profitability

Wow, all that from a few broken promises or confidentiality breaches?

Absolutely – let’s talk about a few illustrations.

  • High employee turnover– Employees must trust that their managers have integrity, are competent, that they are leading the company in a productive direction and genuinely care about employees’ professional development and personal well-being. If not, they will seek this environment elsewhere.
  • Low engagement and productivity – Engagement and morale are not abstract concepts. A 2018 Gallup poll found that higher engaged business teams show 21% greater profitability, and the teams who scored in the top 20% had 41% less absenteeism and 59% less turnover.
  • Reduced innovation – Management is responsible for creating an environment of trust in which employees feel free to voice dissenting opinions and to try new ideas and new ways of doing things. If people doing so are silenced or punished when a new idea fails, you will not see innovative ideas offered and the entire company suffers.
  • Reduced profitability – As discussed above, a trusting and engaged staff can lead to a better bottom line, but just as important is the trust necessary between a company and its customers, clients and suppliers.  Trust that products and services will be of the quality promised, fairly priced and delivered in on time. There is a wealth of choice available to everyone and people will choose the products and services they trust or again, go elsewhere. 

It is mutual trust, even more than mutual interest, that holds human associations together.” —H. L. Mencken

Momentum has helped hundreds of companies build trust and I would be happy to talk with you about it – let me know your thoughts!


Fundamental #16 : Respect Confidentiality Honor the trust others give us. Be rigorous about keeping all information in confidence and be vigilant to safeguard it.

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