Trust in the workplace

By VIKKI BLAND

Talk to almost any organisation about corporate values and you'll find "trust" thrust to the top of the list. However, few organisations know the value of trust like the Rodney District Council.

In the late 90s, trust between council staff and councillors went wrong. Without trawling through the details, a review report listed problems including: "Lack of trust between some councillors and management"; "tension created by some experienced councillors not liking new councillors questioning existing policies and direction;" "a total lack of respect for opposing viewpoints"; and "poor relationships which were not conducive to good governance".

The result was the 2000 resignation of the mayor, CEO and councillors; central Government was forced to appoint a commissioner to sort out the mess.

"They were ugly days," says a rueful Nick Verreynne, manager of organisational development for Rodney District Council (RDC).

Verreynne has worked alongside other post-2000 RDC executives to restore trust in the RDC work environment. He says one of the first things to go was council's former autocratic culture.

"The [then] new CEO met with every staff member and asked to be told anything and everything staff thought was wrong with the organisation. It was a significant turning point."

Dr Marie Wilson, associate professor of management at the University of Auckland's Business School, says trust is a critical component of work life. "We can't be lead by people we don't trust, and we don't accept performance feedback or incentives without trust. Teamwork depends on it and stress is reduced by it."

Wilson points out what Rodney District Council discovered: when trust breaks down it is difficult to restore; a good reason for maintaining it in the first place.

Sidney Smith, head of human resources for Television New Zealand, says a company earns trust through its managers, and if an employer isn't clear about its boundaries, it can be difficult for employees to know whether or not they've crossed the line.

So when TVNZ broadcaster Paul Holmes made his infamous "cheeky darkie" comments on radio, TVNZ issued a notice to staff reminding them of the importance of [on air] conduct. Similarly, when TVNZ found one of its staff had "borrowed" company equipment for personal use, it was later agreed some boundaries had not been clearly explained. "I'm big on forgiveness for ongoing development," says Smith.

So, it seems, is Telecom New Zealand, which in 2002 billed a customer for being an "arrogant bastard".

Trisha McEwan, head of human resources for the Telecom Group, says while the employee responsible didn't adhere to Telecom's policy on how its customers should be treated, it wasn't a dismissible offence. (The employee left of their own accord.) "We'd have checked he had first received the proper training and then offered him more training, counselling and performance management."

McEwan says breaches of trust typically occur through incompetence, character, and lack of communication. Of these, she says character is the most difficult to address. "Managers must be taught to manage [employee] performance and manage it well. We're consciously competent in that area now; our managers are pre-armed now with the skills they need."

As a result, Telecom New Zealand received just 26 personal grievances from 6000 employees in 2003.

Suze Wilson, general manager of human resources for New Zealand Post, says employers don't always get it right.

"With the intention of seeking advice, a manager might share something an employee has told them in confidence with another manager. Trust is a fragile vessel and very personal; trying to put rules around it is hard."

With this in mind, can trust be rebuilt? Is restoring a relationship achievable if the right processes are followed?

McEwan says Telecom has done it.

"But you have to slow down and give everyone time and space. It often means relocating the employee."

Peter McClure, CEO for NZ Dairy Group, says mistakes are okay, but cover-ups are not.

"We will probably give an employee another chance unless they have damaged our reputation or a relationship with a customer."

In those circumstances, McClure says employers may be too wary to attempt to restore trust. "It's hard to close the gap again."

Auckland University's Dr Wilson says serious breaches of trust take a frustratingly long time to recover.

"If someone's boss says something to them in person, then says it doesn't count because it wasn't in writing; or if someone takes credit for someone else's work . Those breaches of trust take a tremendous amount of time to recover from."

She says many people are unwilling to commit to that recovery.

Smith says that team members will often observe how a trust issue is handled.

"You have to look at the value of the person who has breached trust, but also the knock-on effect [the breach has had] on other people."

John Barclay, head of group human resources for the ASB Group, says it's up to individual managers to ascertain extenuating circumstances.

"This needs a non-judgmental ear, which some are better at providing than others. Really, people are intrinsically good and should be innocent until proved guilty."

Barclay says it might sound trite, but developing a corporate community helps to build and maintain trust. "People have to be proud of the company, enjoy their role and the people around them. Put an element of irritation into any of that, and your [business] is going to be affected."

He says trust works best when it is reciprocal and one party does not take the moral high ground.

"You can't pay lip service to caring about people and then not give them the chance to explain themselves."

Barclay says ASB Group breaches of trust include "silly things" like employees wiping their friends' account fees.

It's silly, says Barclay, because the Group's information systems quickly detect internal transactions. However, the bank rightly regards such an act as a serious breach of its trust.

"If we find people surfing account information without a valid [customer service] reason, it would in most cases lead to dismissal. There is no tolerance."

As such, the ASB Group prefers getting people on to a common page of understanding rather than necessarily reaching an agreement; an approach also used by the Rodney District Council.

It's a great way to avoid a divorce.


Beginner's guide to trust

Building mutual trust

* Clearly communicate boundaries

* Maintain an open-door policy

* Don't break confidences, gossip, defame or insult

* Be consistent when dealing with trust breaches

* Communicate resolutions to other employees without compromising the personal privacy of individuals

Restoring trust

* Don't take the moral high ground

* Separate performance issues from misconduct

* Hear all viewpoints

* Use internal or external mediation

* Weigh track records against the alleged breach of trust

* Consider your confidence in the evidence.

* Decide whether issuing a reprimand, warning or dismissal is appropriate

* Decide whether taking any action is appropriate

* Maintain open communications

Losing trust

* Ensure all views and facts have been thoroughly discussed and understood

* Aim for a mutually amicable parting

* Clearly communicate what will happen next (for example: does an employee need to leave immediately or will they see out a leaving period? When and how will an employer issue an apology?)