New study shows that trust improves workplace performance
Trust facilitates economic growth because people who trust one another are more likely to cooperate in trade innovation and entrepreneurship. More dramatically, the decline in the share of people trusting one another as revealed in social surveys has been viewed as a profound threat to the successful maintenance of democracy. In an article forthcoming in the British Journal of Industrial Relations, CeBER researcher Paulino Teixeira, in co-authorship with John T. Addison, examines the relationship between trust and establishment performance using data from the European Company Survey. The survey respondents are spokespersons of senior management and of the key employee workplace representation body. Trust is initially measured using both individual respondent’s assessment the ‘role’ of the other side. These responses are used to create separate trust indices or independent variables of management trust (in employee representation) and employee representative trust (in management). A third, bilateral measure of trust or dissonance is also fashioned from the discrepancy between the views of the two sides. Higher levels of management and employee representative trust were found to be associated with improved workplace economic and financial performance and higher labour productivity, and conversely for heightened dissonance.
More information: Addison, J., Teixeira, P. (Forthcoming). Trust and Workplace Performance. British Journal of Industrial Relations.