Low levels of senior management trust are particularly marked among Generation Y and legal personnel, central and local government sector workers and those scarred by office closures and compulsory redundancies during the recession.
According to a survey undertaken among 5,000 staff by the Institute of Leadership & Management (ILM), those organisations that chose to cope with difficult economic times by making estate and headcount reductions have seen trust in the chief executive plummet to 51 on a scale of one to 100. The figure compares with an average score of 63.
This loss of faith came about because many workers blamed the situation on poor management, even if circumstances were beyond bosses’ control. In contrast, those that tried alternative methods such as flexible working and budget cuts saw CEO trust rise to 68.
But the study entitled the ‘Index of Leadership Trust’ also revealed that levels of public sector trust fell for the second year running, with chief executives here scoring only 57. Senior managers in the charity sector enjoyed the highest levels of trust, on the other hand.
But the most trusted bosses overall were women. Faith in female CEOs increased by four points over last year to hit 66 compared with 63 for men. Women were rated more highly than their male counterparts for understanding employee roles as well as both their ability and integrity – the three most important factors contributing to trust, according to employees.
Penny de Valk, the ILM’s chief executive, said: “To boost trust, it is important for senior managers to increase their visibility and communicate effectively with staff. Boards need to be aware that constant turnover of CEOs will also erode trust.”
But CEOs also needed to be consistent in their behaviour, she warned. “Constantly announcing different initiatives, saying one thing and doing another and sending out mixed messages all lead to reduced trust within organisations, which negatively impact organisational performance,” de Valk explained.
A second study undertaken among 1,002 office workers aged 16 to 24 by recruitment consultants Badenoch & Clark, meanwhile, found that just under one in three did not trust either ‘most’ or any’ of the information their employer gave them about business performance.
The figure contrast with similar research last year when only 18% did not trust their bosses to provide accurate information, which suggests that Generation Y is becoming increasingly disillusioned with the workplace.
Legal personnel were particularly sceptical, with 37% across all age ranges having little or no faith in what their employer told them. Just over a quarter trusted ‘parts’ and a mere one in 10 believed them totally.
HR professionals were the most trusting, however, with only 6% saying they did not believe what senior management said.
Guy Emmerson, associate director of Badenoch & Clark, said: “The research highlights the detrimental impact the recession has had on the workforce, not just in terms of job losses and pay freezes, but in terms of the relationship between employer and employee. Now is the time to start repairing this relationship and being more honest and open with employees about business performance.”
