A Framework for Cultivating Corporate Trust
Is there a connection between trust and corporate performance? And is it possible to grow levels of trust? For the Roundtable’s first Open Forum in 2023, we welcomed experts from Roundtable member Deloitte including Ashley Reichheld, lead author of The Four Factors of Trust, and co-author Amelia Dunlop of Deloitte Consulting LLP, to learn about their research on why trust is so important to corporate performance and employee loyalty.
We have heard from many Roundtable members about how the pandemic has led to a renewed focus on empathetic leadership and deepened employers’ commitment to creating an inclusive, welcoming workplace where their employees can feel supported and connected to the company’s mission. This discussion topic was an opportunity to highlight some of the strategies and practices for employers to consider as they cultivate their company culture, particularly in a hybrid environment.
To ground the Open Forum discussion, Amelia and Ashley outlined what makes trust so important to business. They shared their research that demonstrates how trust drives consumer behavior, with trusted companies outperforming their peers by up to 400% and data shows that customers who trust a brand are 88% more likely to buy again. Moreover, it impacts the workforce, as trusting employees are 260% more motivated to work and are 50% less likely to look for another job. Despite the importance of trust, trust in all institutions is at an all-time low and companies tend to overestimate their levels of trust.
So is it possible to cultivate trust? Amelia and Ashley’s research offers a framework called TrustID, which measures the following Four Factors of Trust: Humanity, Capability, Transparency and Reliability. TrustID also provides an approach for predicting how trust will impact behavior to help drive leadership decisions to build trust with customers and workers. Their presentation included practical guidance to measure, predict, and build trust. Key insights included:
- How demographic data impacts trust among customers
- The impact of the four factors of trust in the workforce, including employee seniority and tenure
- Strategies for companies to build and grow trust
As part of the discussion, Roundtable members also shared the strategies they utilize to increase loyalty among employees and customers. For companies interested in more information about the Four Factors of Trust, click here to learn more about the TrustID framework, or explore further resources at the links below:
- 4 Questions to Measure — and Boost — Customer Trust (Harvard Business Review)
- How to Build a High-Trust Workplace (MIT)
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