Last week, eight employees of Market Basket, a Boston-based grocery chain, were fired for protesting the ousting of their CEO, Arthur T. Demoulas. Demoulas was fired and removed from the company's board in June after an internal dispute. Over the weekend, more than 2,500 of Market Basket's employees protested the decision (Business Insider, 7/21/14), and other employees working at Market Basket's warehouse refused to deliver goods as a form of dissent until Demoulas was reinstated (Boston.com 7/21/14).
Why would Market Basket employees risk their livelihoods for their CEO? Employees' trust in Demoulas' leadership propelled their support for him, even if it meant losing their jobs. Staff at Market Basket receive strong benefits, including a profit-sharing program, and historically the company has promoted from within and rewarded hard work and longevity (Boston.com 7/21/14). Employees' positive experiences and high regard for Demoulas stemmed from their confidence in his decisions and leadership. Trust in an organization comes down to whether an employee feels they can rely on their managers. Market Basket workers were so certain they could rely on Demoulas as a leader that they risked losing their jobs to keep him as their CEO.
Elsewhere, only 43% of employees trust their CEO and only one in five people trust their business leaders to make ethical decisions (Edelman Trust Barometer, 2014). Basic trust in CEOs is rare, making this kind of public support almost unheard of. But why is this kind of faith in an organizational leader so uncommon? Most employees don't feel as if their work is recognized or that they have opportunities to grow. Only 49% of employees are satisfied with the growth and development opportunities, and only 47% are satisfied with their companies' recognition practices. Workers report having more trust in their company when the organization acknowledges employee contributions, provides opportunities for involvement, and communicates effectively (American Psychological Association, 4/23/14).
Trust is not just influenced by executives or the C-suite. Any Manager can create an impact and foster an environment of trust by following a few simple trust principles:
- Your team is more likely to trust you if you first extend trust to them. You can't expect anyone to trust you if you refuse to put your confidence their performance, results, and integrity.
- Don't keep your employees in the dark. Share critical information with them in a timely manner. Make sure your team has the knowledge they need to effectively perform their job.
- Pay attention and recognize good work. Don't ever assume your employees know intuitively they are doing a good job. Observe their accomplishment and recognize them... publicly. (Conversely, if you need to provide critical feedback, do that behind closed doors.)
The Market Basket employees' loyalty to Demoulas became national news because trust in leaders has become a rare sentiment. If other organizations want to garner similar loyalty, they'll first need to establish organizational trust.
Readers, do you trust the company you work for? How would you rate your trust on a scale of 1-5 (5 being high level of trust)?