What to do about a crisis of confidence in senior management

A survey reveals employees are losing confidence in leadership

With news that employee confidence and trust in senior leaders has hit a “record low”, employers have good reason to worry over engagement and retention as we head towards the summer.

The results don’t look good. Of 2,000 employees surveyed, trust in senior leaders has fallen significantly, showing a net proportion of -8 compared to -2 in the previous survey. Job satisfaction has also taken a knock, falling from +39 to +34, the lowest ever level in the CIPD’s Outlook surveys.

It gets worse. 37% claim that their standard of living had worsened over the last six months, and 21% believe they’ll lose their jobs.

This is clearly a stressful time for employees, with the cost of living on the rise and many organisations freezing wages. Despite the economic recession being announced as over, it is clear that there are many businesses still in recession, and the thought of redundancy is still in the minds of employees.

So what, as an employer, can you do to increase the confidence of your employees and engage them more?

Be honest and transparent

Employees appreciate frankness from the top – so be as open, honest and transparent as you can be. If the situation is bad, don’t hide behind words or create smokescreens, let them know, and get their views.

Listen

It’s not just about getting their views, it’s about taking them into account. Sometimes, simple things such as an Employee Ideas Forum, perhaps through your intranet, could create more of an involved environment.

Reward

Not every business can afford pay rises or expensive benefits packages, but reward doesn’t have to be financial. Some of the most innovative incentives of late have included giving colleague of the month the Director’s parking place for a month.

Equally, flexible benefit packages can be tax and National Insurance Contribution-free, so both you and the employee save money. This could be through childcare vouchers, bikes to work, or a host of other Salary Sacrifice options. You could even sign up to a “perks” scheme which offers shopping vouchers or special offers just for your employees.

Employees are under pressure from a number of external sources, which can have an effect on engagement and therefore productivity, and profitability. The role of Senior Leaders today is to re-engage, to regain their trust, and retain.