As ongoing strikes show, there are real concerns about the intentions of employers toward their workforces, about the fair distribution of wealth and the very nature of employment. There are also changes in what employees expect from their employers. With all this going on, we’re going to take a look at the reasons why trust levels have fallen and why trust is such an important factor in business.

What does trust mean in business?

When I talk about trust in business, I’m referring to three different things.

1. Strategic trust: This is the trust employees have in the people running the business to make the right decisions, set the right course and help the company succeed.

2. Personal trust: Do employees trust managers to treat them fairly and consider their needs, or do managers put themselves first when making decisions?

3. Organizational trust: This is the trust people have in the organization itself. Does the company fulfill its promises? Are its processes and policies consistent and fair, and does the business follow them?

These three types of trust are intrinsically linked. As an example, when a manager does something that damages the personal trust of employees, their trust in the organization as a whole is also affected.

Why is trust important in business?

Employees can enjoy their work and even have a sense of accomplishment and pride, but if there’s a lack of trust between them and their boss, senior execs or the organization itself, they can start to question how and where they fit in the organization, and that has severe implications.

Not only does a lack of trust impact the corporate culture, but it can also affect employee productivity, engagement and retention. Trust also has to be present for employees to take risks. Therefore, without trust, there’s often very little innovation.

According to a PWC study, 93% of employees admitted they would be more loyal to an employer if the organization gained their trust, while 90% said they were more likely to defend the business. On the other hand, 71% said they’d be more likely to leave a company that breached their trust, rising to 75% of younger workers.

Further research shows that when there’s more trust in an organization, employees are 23% more likely to offer ideas and solutions, while 21% will work longer hours.

Which actions destroy trust?

Trust is difficult to build but very easy to destroy. A lack of trust can be triggered by a single event, such as organizational restructuring, where employees feel their needs are not considered. Other single events, such as a manager taking credit for an employee’s work, can also have an immediate impact on trust. Trust that’s lost in this way can be easier to rebuild because at least the action can be identified, worked through and resolved.

In many cases, however, trust erodes over time as a result of subtle and repetitive patterns of behavior that chip away at trust on a daily basis. It’s usually the case that these behaviors, some of which I’ve described below, go unchallenged but leave workers wounded and unwilling to perform at their best.

So what can leaders do?

Be consistent with your messaging.

Inconsistent messaging can occur anywhere in an organization, whether it’s internally, from senior managers down, or externally when businesses communicate with customers and other stakeholders, but the result is always destructive. All too often, senior managers tell people what they want to hear, which leads to confusion and a breakdown in trust.

Prioritize fairness.

Fairness is hugely important to people in their personal and working lives. If employees believe they are being treated less fairly than a colleague or that their boss has “favorites,” their trust will take a hit. Many employees keep score relentlessly, so any inconsistencies in the way you treat employees will be noted and not forgotten.

Be honest—never give false feedback.

Giving feedback to employees can be tough, particularly when you have to talk about their shortcomings face-to-face. But however tough it is, you have to be honest. Giving a glowing performance report to an employee who doesn’t deserve it may spare their blushes, but it’ll also damage the trust of team members who are worthy of honest praise.

Get the basics right.

If you want to build more trust in a business, like every aspect of corporate culture, senior executives must set the example. It takes effort, and the day-to-day realities may require more attention, but ultimately, I’ve found the benefits far outweigh the costs.

The key is to start getting the basics right, like treating the staff well, understanding their priorities and pain points when making decisions, recognizing their contributions to the company and customizing employee experiences whenever you can.