When we think about what makes a great workplace, we often think of fun perks such as foosball tables, massages, coffee/beer/wine bars, free meals, and fancy parties. However, when the qualities of great workplaces are systematically studied, what actually matters is a culture of trust, employee engagement, company mission, support to do one’s best work, and professional development. In addition, developing a great workplace is intentional and constant.
Why is it important to understand great places to work?
Only 58% of employees in the U.S. say that their employer is a great workplace. At the Fortune 100 Best Companies to Work For, 91% of employees say that their employer is a great workplace. These employees also enjoy going to work more, with 84% of them saying that they look forward to going to work compared to 42% of the rest of the population.
This article is the first in a four-part series on characteristics of great workplaces. In this series, we discuss the five characteristics that actually matter for making a great workplace, as well as briefly touch upon a new important characteristic of great places to work: innovation. This article focuses on the characteristic of having a culture of trust.
Culture of trust
One of the most important characteristics of a great workplace is a culture of trust. This culture of trust is bidirectional – employees trusting managers and managers trusting employees.
Great places to work have a culture in which employees trust executives and managers in the company to lead the company and look out for its people. The culture of trust depends on employee perceptions of credibility, respect, and fairness. With regards to credibility, 83% of employees said management’s actions match its words at the Fortune 100 Best Companies versus 42% of employees at the average workplace.
Respect can be demonstrated in various ways, but at the top of the list are listening and appreciation. Listening and genuine, effective collaboration for ways to improve the business inside and out, for both clients and employees, establishes respect between employees and management. Appreciation and recognition for good work demonstrates that the company values their employees’ contributions. Recognition “allows an employee to feel more invested, more valued and more engaged in the work,” says Brad Taylor, principal consultant at employee consulting firm DecisionWise.
Fairness contributes to a positive employee experience. The 100 Best scored 37-42% higher than the average workplace when rating equal compensation, recognition, favoritism, and politicking. Policies and practices should promote a sense of equity between employees and managers. Compensation-related activities should be fair, well-communicated, and inclusive.
Respect and fairness come together when work environments treat “everyone – leaders, hourly staff, everyone – with trust, respect and dignity in every interaction. Not just sometimes, not mostly—every time, every interaction,” says S. Chris Edmonds, founder and CEO of The Purposeful Culture Group.
Leaders and managers should be held accountable for treating all employees with respect and care, all of the time, and encouraged to regularly recognize those they supervise for the positive contributions they make. A culture of trust based on credibility, respect, and fairness improves employee retention, overall workplace satisfaction, and employees’ willingness to recommend their company and motivation to give extra at work.
The other direction of mutual trust is managers trusting their employees in their decisions that support the business and clients. In other words, employers treat employees “as colleagues who are invested in the business.” Leaders demonstrate trust in their employees by engaging in substantial transparency and communication. They provide a clear view of the company by being open about problems facing the business and its successes. Leaders seek feedback about a broad range of issues in the business, including culture and practices. Managers are accessible and approachable. Communication is constant and regular between managers and workers.
This kind of open and constant communication contributes to a successful organization because people feel free to challenge the status quo and are treated with respect and trust. Great places to work continuously seek feedback from employees. For example, The Motley Fool deploys engagement surveys twice a year, plus regularly tests new programs and solicits feedback.
Great places to work admit when there’s a problem, and they discuss the problem openly and honestly. They also work with employees to make improvements, all while engaging in transparency. “Employees are given a voice and their ideas and their ideas are heard and respected. When problems are solved this way, there’s a great deal more buy-in because everyone has had a hand in the solution,” says Jessica Rohman, director of content at Great Place to Work, the organization that compiles Fortune’s “100 Best Companies to Work For.”
Lastly, trust between colleagues is an important ingredient at great workplaces. The culture is one where coworkers enjoy working with each other, experience camaraderie, (5) regard each other as “family” and “have each other’s back.” Taking this further, a culture of mutual trust and warm regard between colleagues encourages the ability for workers to seek feedback from their peers, thus improving work quality as well. Mutual trust between employees and managers contributes to the next important characteristic of great places to work: employee engagement.
Michelle Cheuk has her B.A. in Sociology from Wellesley College and M.A. in Sociology/Demography from University of North Carolina, Chapel Hill. At UBF, she is focused on marketing, business development, and project management. In her spare time, she enjoys parenting, going to the gym, and volunteering.