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Successful Supervisor Part 86: Trust and Employee Loyalty

Bob Whipple, MBA, CPLP

It seems pretty obvious that supervisors who are able to build a culture of trust within their group end up benefiting in numerous ways.  I have written nearly a hundred ways that trust helps the organization work better.  This brief article focuses on employee acquisition and retention and how these measures are impacted by trust.

Trust impacts employee loyalty

If you work in a culture of low fear and high trust, it stands to reason that you would prefer to keep working in that group. In these times where finding qualified workers is getting more difficult with time, having a stable workforce is a significant competitive advantage. Let me cite a couple examples from my hometown of Rochester, NY.

1.  Wegmans

The home of Wegmans is Rochester, and I have been studying the unique culture of this world class grocery chain for years. Their culture is one where they make continual investments in the training of their people. Someone once asked Colleen Wegman, the current CEO, how she could possibly afford to invest so much money in training their personnel in a low margin business like groceries.  Her reply was classic. She said (not a direct quote, since I was not in the room),  “Don’t you realize that because of our culture we have an average turnover rate well below 10% in an industry that typically averages around 40%. How much do you think that advantage translates to the bottom line?”

2.  Dixon Schwabl

Like Wegmans, Dixon Schwabl Advertising has been on the Great Place To Work list for many years…13 to be exact. They’ve been recognized as the #1 Best Place To Work two different times. And their Trust Index scores on surveys hover in the 98% range. They invest in their culture every day with a program they call “Companies Are People, Too.” It’s an organizational assessment based on the psychology of Myers Briggs. Their turnover rate is extremely low. Reason: their employees simply love working there.

These are just two examples of companies that have figured out that if they build a culture of low fear and high trust, it translates into a more profitable company without the headaches of continually trying to find qualified workers to staff their positions.  Ask yourself how much it would be worth to increase the level of trust within your organization.

Successful Supervisor Part 86: Trust and Employee Loyalty (.pdf 129K)

This is a part in a series of articles on “Successful Supervision.” 

Bob Whipple, MBA, CPLP, is a consultant, trainer, speaker, and author in the areas of leadership and trust.  He is author of: Trust in Transition: Navigating Organizational ChangeThe Trust Factor: Advanced Leadership for Professionals,  Understanding E-Body Language: Building Trust Online, and Leading with Trust is Like Sailing Downwind.  Bob had many years of experience as a senior executive with a Fortune 500 Company and with non-profit organizations. Bob Whipple is currently CEO of Leadergrow, Inc., an organization dedicated to growing leaders.  For more information or to bring Bob in to speak at your next event, contact him by email, phone 585-392-7763, fill in the contact form on the Leadergrow Website, or BLOG.