26 September 2023

Why trust and transparency matter in the workplace

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Ron Karr* says leaders need to factor in the neuroscience of trust to build successful teams.

Many business experts champion trust in the workplace. They include the likes of Stephen Covey and my dear friend, David Horsager.

(His 8 Pillars of Trust and his many excellent books should be required reading.)

However, what is perhaps less well known is the neuroscience of trust.

As a species, we’ve developed an array of neurochemical survival mechanisms.

Employers often ignore these mechanisms, and as a result, miss the opportunity to build trust and transparency in the workplace.

The neuroscience of mistrust

Let’s start with the opposite of trust.

It is the “fight or flight” response we experience when faced with a perceived threat.

These “threats” elevate the hormone cortisol, which narrows our focus to deal only with the immediate.

The threat could be actual, imminent, physical, or merely a harsh interruption in our day.

The problem is, our bodies can’t easily tell the difference.

Of course, cortisol has other important functions.

Cortisol controls blood sugar levels, memory formation, and blood pressure.

At normal levels, it keeps us engaged with the day’s activities.

When elevated, cortisol puts us on “alert status” and makes trust a low priority.

Trust and the willingness to take risks

In my book, The Velocity Mindset, I discussed how cortisol can prevent leadership teams from identifying and achieving objectives.

Additionally, I highlighted the role another hormone, oxytocin, plays in velocity (speed with direction and alignment).

Trust in the workplace—and its neurochemical roots—are key drivers for business success.

Compelling research by Dr. Paul Zak and others champions the well-established science around oxytocin and trust.

According to one study, oxytocin “affects an individual’s willingness to accept social risks arising through interpersonal interactions.”

Additionally, researchers have found that oxytocin “enhances an individual’s propensity to trust a stranger when that person exhibits non-threatening signals.”

Obviously, creating artificial trust in the workplace via oxytocin injections would be a short-sighted and ethical nightmare.

Nevertheless, there must be practical ways to promote trust knowing that our biology.

Fortunately, trust in the workplace can be accomplished with common-sense approaches, as Horsager and others have shown.

An Oxford study summarizes the key drivers and human resource practices that develop trust.

These include mutual respect, open communication, and fairness, especially in appraisals of work.

The study also identifies factors which decrease trust, such as a lack of transparency in decision-making.

The risk of betrayal in the workplace

Trust is the gold standard.

It is the glue that makes alignment and velocity possible.

The benefits of increased trust in the workplace are enormous.

Over the long term, it increases individual employee productivity and engagement.

To paraphrase Zak, it improves collaboration and cultivates a happier, more productive workforce.

On the other hand, the consequences of breaking that trust are far worse than not having it in the first place.

Studies have shown that a betrayal of trust, whether familial, cultural, or institutional, creates high levels of long-term stress, including the release of cortisol.

If such responses become ingrained in an employee’s experience and memory, the chances of returning to a state of unqualified trust are slim.

Consequently, employees might resist a manager or HR professional’s efforts to right a wrong or be transparent after a breach of trust.

Though a proactive HR team may be capable of rebuilding this trust, the effort is complicated by the very neurochemicals that make us human.

Transparency: The path to velocity

It is not easy to win trust and transparency in the workplace.

As a result, people are taking a risk when asked to make decisions that may not benefit them.

The deciding factor is often how comfortable they are with those asking the question.

Transparency, trustworthiness, empathy, and understanding are not just words.

They are requirements for every HR professional and executive who aspires to true leadership.

Today, it is impossible to take a “my way or the highway” approach to business.

We need everyone’s buy-in to remain focused on tasks that support a purpose.

Trust and transparency in the workplace, like everything else that enables leadership, begins with an understanding of what makes us human.

And most importantly, it requires a willingness to work hard to gain that trust.

*Ron Karr, former president of the National Speakers Association, a nationally recognised keynote speaker, executive leadership consultant, and author of The Velocity Mindset.

This article first appeared at talentculture.com.

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