Trust may be even more important than you think, not only for people but also for organizations.

I came across a very interesting and scientific article at HBR. A few takeaways:

Why trust is important in organizations

• Compared with people at low-trust companies, people at high-trust companies report: 74% less stress, 106% more energy at work, 50% higher productivity, 13% fewer sick days, 76% more engagement, 29% more satisfaction with their lives, 40% less burnout.
• Gallup’s meta-analysis of decades’ worth of data shows that high engagement—defined largely as having a strong connection with one’s work and colleagues, feeling like a real contributor, and enjoying ample chances to learn—consistently leads to positive outcomes for both individuals and organizations. The rewards include higher productivity, better-quality products, and increased profitability.
• Employees in high-trust organizations are more productive, have more energy at work, collaborate better with their colleagues, and stay with their employers longer than people working at low-trust companies. They also suffer less chronic stress and are happier with their lives, and these factors fuel stronger performance.
• In its 2016 global CEO survey, PwC reported that 55% of CEOs think that a lack of trust is a threat to their organization’s growth. But most have done little to increase trust, mainly because they aren’t sure where to start.

The neuroscience behind trust

The scientists run an experiment analyzing trust behaviours and hormones.

In rodents a brain chemical called oxytocin had been shown to signal that another animal was safe to approach. I wondered if that was the case in humans, too. No one had looked into it, so I decided to investigate.

To measure trust and its reciprocation (trustworthiness) objectively, my team used a strategic decision task developed by researchers in the lab of Vernon Smith, a Nobel laureate in economics. In our experiment, a participant chooses an amount of money to send to a stranger via computer, knowing that the money will triple in amount and understanding that the recipient may or may not share the spoils. Therein lies the conflict: The recipient can either keep all the cash or be trustworthy and share it with the sender.

We found that the more money people received (denoting greater trust on the part of senders), the more oxytocin their brains produced. And the amount of oxytocin recipients produced predicted how trustworthy—that is, how likely to share the money—they would be.

Since the brain generates messaging chemicals all the time, it was possible we had simply observed random changes in oxytocin. To prove that it causes trust, we safely administered doses of synthetic oxytocin into living human brains (through a nasal spray). Comparing participants who received a real dose with those who received a placebo, we found that giving people 24 IU of synthetic oxytocin more than doubled the amount of money they sent to a stranger. Using a variety of psychological tests, we showed that those receiving oxytocin remained cognitively intact. We also found that they did not take excessive risks in a gambling task, so the increase in trust was not due to neural disinhibition. Oxytocin appeared to do just one thing—reduce the fear of trusting a stranger.

My group then spent the next 10 years running additional experiments to identify the promoters and inhibitors of oxytocin. This research told us why trust varies across individuals and situations. For example, high stress is a potent oxytocin inhibitor. (Most people intuitively know this: When they are stressed out, they do not interact with others effectively.) We also discovered that oxytocin increases a person’s empathy, a useful trait for social creatures trying to work together.

How to Manage for Trust

What can managers do to increase trust?

• Recognize excellence.
• Induce “challenge stress.”
• Give people discretion in how they do their work.
• Enable job crafting (let them do what they prefer).
• Share information broadly.
• Intentionally build relationships.
• Facilitate whole-person growth.
• Show vulnerability.

The results of the trust improvement programs

The effect of trust on self-reported work performance was powerful. Respondents whose companies were in the top quartile indicated they had 106% more energy and were 76% more engaged at work than respondents whose firms were in the bottom quartile. They also reported being 50% more productive—which is consistent with our objective measures of productivity from studies we have done with employees at work. Trust had a major impact on employee loyalty as well: Compared with employees at low-trust companies, 50% more of those working at high-trust organizations planned to stay with their employer over the next year, and 88% more said they would recommend their company to family and friends as a place to work.

My team also found that those working in high-trust companies enjoyed their jobs 60% more, were 70% more aligned with their companies’ purpose, and felt 66% closer to their colleagues. And a high-trust culture improves how people treat one another and themselves. Compared with employees at low-trust organizations, the high-trust folks had 11% more empathy for their workmates, depersonalized them 41% less often, and experienced 40% less burnout from their work. They felt a greater sense of accomplishment, as well—41% more.

To know more, read the whole article at HBR.