Building Trust and Confidence in difficult times

Acas/CIPD National conference

Resilience through the recessionThe crucial role of people management and

developmentThursday 11 June 2009

John PurcellStrategic Academic Adviser

Trust: the essential ingredient

• Always essential in effective union – management relationships.

• At the heart of the psychological contract: Trust and the delivery of the deal.

• Crucial for employee engagement: trust in senior management, trust that the organisation will support me – and I will reciprocate with discretionary effort.

• Central to good people management by line managers

To trust is to take a risk

• That what is promised or expected will happen without the need for proof or question of motive.

• That how it happens will be understandable, and be fair.

• That I will be trusted in return with timely information, in confidence if need be with participation and involvement will be treated like an adult.

Confidence

• Self confidence• Confident about the future: stability and security• Confident that my contribution will be recognised.

Trust and confidence combine as two sides of the same coin and are strongly linked to employee wellbeing and the capacity to contribute.

The corrosive effect of recession.

CIPD Employee Outlook: Employee Attitudes and the Recession.

35% of employees trust their senior managers26% agree they are consulted on important decisions36% have confidence in their senior managers.59% believe information from senior managers about

what is happening.75% say their organisation has been affected by the

recession46% in affected organisation report growing stressJust under half feel less secure in their jobJust over a quarter trust their manager less

Black Monday and other horror stories

• Thin evidence on meaningful consultation and exploration of alternatives, despite the law

• ‘they just came to the offices and handed out the letters’

• ‘we were told we were made redundant by e-mail’• Two meetings of staff, one in the morning, one in

the afternoon. What did it mean?

Collapse of confidence, breach of trust, violation of psychological contract, withdrawal of engagement, voluntary resignations.

Is the alternative viable? the case of ‘Welsh plant’

• American owned, makes medical equipment, 450 employees, unionised and works council

• ‘offshoring’ to eastern Europe. Doubts about viability of factory

• Very extensive consultation and communication, top management visibility, search for alternatives

• End of agency work, new shift patterns less pay, new production processes, training for all, ‘bumping’, good treatment for those leaving, bonus to stay until end of contract.

• Now only 100 employed

How good are management here at seeking views of employees (% satisfied, very satisfied)

41%

79%

0%

10%

20%

30%

40%

50%

60%

70%

80%

2007 2009

Managers here can be relied upon to keep promises (% satisfied, very satisfied)

37%

72%

0%

10%

20%

30%

40%

50%

60%

70%

80%

2007 2009

Managers here treat employees fairly (% agree, strongly agree)

50%76%

0%

10%

20%

30%

40%

50%

60%

70%

80%

2007 2009

Satisfaction with level of involvement (% satisfied, very satisfied)

43%

66%

0%

10%

20%

30%

40%

50%

60%

70%

2007 2009

Commitment: I share the values (% agree, strongly agree)

70% 90%

0%10%

20%

30%

40%

50%60%

70%

80%

90%

2007 2009

Commitment: I feel proud to tell people where I work (% agree, strongly agree)

78%86%

0%

20%

40%

60%

80%

100%

2007 2009

Back to the basics in testing timesThe building blocks of engagement

1. Job satisfaction – sense of achievement, the job itself, job challenge

2. Pay level and fair pay3. Trust in management: senior and line4. Relationships between management and

employees - climate5. Communication and Involvement 6. Getting trained – skills for the future, self

confidence 7. Job security – confidence in the future