Today’s post comes to us from one of our newest board members: author, journalist, and speaker, Ivonne Vargas Hernández.

Although all industries have been impacted by COVID-19, perhaps no other industry more than manufacturing. In Mexico, there are over 579,000 manufacturers, according to data from Instituto Nacional de Estadística Geografía e Informática (INEGI, for its acronym in Spanish).

According to Salesforce’s Trends in Manufacturing, 72% of manufacturers said there was a significant change in their production capacities because of the pandemic.  

Specifically, Salesforce surveyed 750 world leaders in the manufacturing industry in North America, Latin America (including Mexico), Asia-Pacific, and Europe. The research broke organizations into two groups: the “prepared for the future” manufacturers, as in those that believe their systems and technology can help them face the next decade; and the “unprepared” manufacturers, those that do not believe their systems are ready for the next 10 years.

One of the main differences with “prepared for the future” manufacturers is that, even though they have not been immune to the interruptions caused by COVID-19, they have been more resilient. In another survey, the 2021 KPMG U.S. CEO Outlook, 99% of CEOs say they have felt a stronger emotional connection to their purpose – and to their employees – since the pandemic began.

With these numbers, we can determine the key elements to a return to “normal” within this sector. The answer is, among other things, looking at how companies connect and collaborate, and how Human Resources works together as one team with Information Technology (IT). Both are key pieces to providing trust and security to employees in several areas (e.g., protocols at the office, virtual tools for emotional support, and more).  

HR AND IT WORKING ON “BACK TO NORMAL”

According to a report published by ManpowerGroup, 83% of companies in Mexico expect to go back to work full time within the next three months. Only 3% will continue to allow workers to work remotely. Also don’t forget: many workers never left the plant to begin with. For instance, General Motors, which has more than 500 employees in the country, restarted operations with 30% of its personnel in the plant and, little by little, more workers have been incorporated.

In this return to normal, the Mexican manufacturers expressed that their main priorities for the next 24 months are updating their ERP (84%) and increasing their efficiency processes (82%) to enhance productivity – especially in times of turmoil.

Production levels in the factories was also affected, not only in Mexico, but globally in two important aspects:

On the one hand, we have manufacturers that, due to the economic impact produced by the pandemic, had to dismantle a structure of work teams with efficient collaborators – those who already had overcome their learning curve – achieving high-impact performance and stability in their positions. By disintegrating these teams, where talent with great potential and years of experience were surely involved, that workload is transferred to the people who remained in the factory, having to do more with less, and greatly impacting productivity.

On the other hand, the company that saw the need to make changes with its personnel very likely no longer has the liquidity to regain that structure, and not having an experienced team can put the spirit of innovation at risk. In addition to the impact on productivity, delivery times and quality of work are also affected, and the organization is likely hindered from investing today in the innovations of tomorrow.

In Mexico, there is great concern about the return to the offices, due to the low percentage of people who have received the vaccine, in addition to an imbalance between the expectations of both the worker and the employer.

Also, according to the ManpowerGroup report, employers speak of returning the majority to full-time offices. Moreover, 83% believe they will return in the next three months because they are concerned about people’s productivity. However, employees are overwhelmed by returning “to the way things were before” and losing the gains during the pandemic in flexibility and in terms of avoiding contagion.

It is important that we all understand this phenomenon, regardless of the industry since that is where human resources plays a very important role in returning to normalcy.

For many companies, there is an opportunity to acquire competencies where they should have invested before:

It is very important that HR and IT work together on the immediate challenges (i.e., security at the workplace, wellness programs, and business continuity), so they are adjusted now and strengthened for the future for difficult and disruptive times.

This agility will be critical for the long haul. Executives should see the reopening of their businesses as the beginning of a journey toward a bigger transformation.

Whether the person is at home or in the factory, the focus must be on people. And companies cannot open again as if nothing has happened. Employees have become used to the new ways of working and some will refuse to change. The transformation in the long run requires new processes and capacities. Reopening is a new opportunity to create a better future for employees and customers.

This is an invitation to remember two key words: trust and security. HR and IT need to develop, together, a strategic focus around it.

Today's post comes to us from Neil Reichenberg, Former Executive Director of the International Public Management Association for Human Resources (IPMA”HR). Neil is currently teaching a course on human resource management in the public sector at George Mason University.

The January 2021 Gallup monthly survey of the top challenges facing the United States found that government and poor leadership had replaced COVID-19 as the top issue of concern. While the post-election period culminating in the January 6th insurrection likely influenced the results, this was actually a return to the top slot as “government and poor leadership” had held this position of top concern pre-pandemic from 2017-2019. Similarly, the Pew Research Center found that only 20% of U.S. adults say they trust the federal government to do the right thing “just about always or most of the time”.

Historically, Americans have placed greater trust in their local and state governments as compared to the federal government. I recall testifying several years ago before a Congressional committee and on the panel in which I participated was a mayor who said something along the lines of, “potholes don't have a party affiliation”, his point being that his constituents primarily cared if the potholes were repaired and that local officials recognize that they provide basic services on which their citizens depend, making the partisan gridlock, which often afflicts the U.S. Congress, impossible if they want to remain in power.

As we have seen during this pandemic as well as in other disasters, government can and should play a crucial role in assisting its citizens. While government may not always meet our expectations, we tend to turn to the government at times of crisis.

So, how can the United States restore the trust that its citizens need in the federal government?

On January 27, 2021, President Biden issued a memorandum on restoring trust in government through scientific integrity and evidence-based policymaking. The memorandum commits the administration to basing decisions on science and data. To avoid violating the public trust, political considerations, according to the memorandum, will not influence scientific research.

One group working on restoring trust in government is the Partnership for Public Service, a nonprofit, nonpartisan organization that strives for a more effective government for the American people. This organization has developed a public service leadership model that has two core values - stewardship of public trust and commitment to public good. For stewardship of public trust, the model states, “Federal leaders represent the American people and must be held to the highest standard. They are stewards of the Constitution, taxpayer dollars and the workforces they lead.” To demonstrate commitment to the public good, federal leaders need a “deep-rooted service orientation and commitment to the public good.” The model includes four leadership competencies consisting of: becoming self-aware, engaging others, leading change, and achieving results.

The Partnership for Public Service's Government Leadership Advisory Council issued a letter in January 2021 stating that “strong and ethical leadership from elected officials, political appointees, and career executives is necessary to rebuild and revitalize the government and reestablish that trust.” The letter includes recommendations for political appointees, the career workforce, and the Congress and urges that “members of the new administration, members of Congress and the career workforce adhere to their constitutional oath of office, and fully commit to being strong stewards of public trust so they can successfully tackle the many pressing problems facing the nation.”

The United States is a deeply divided country facing numerous challenges in which government needs to undertake a leading role. While there is not one solution, it is important for leaders from all sectors to take steps to help bridge partisan divisions and reunite the country. Fortune collaborated with Deloitte on a survey of 100 CEOs in January 2021 asking them to name their top priorities for the Biden Administration. The top priority, which was cited by 59% of the survey respondents, was restoring trust in government. As President Biden has noted, democracy is fragile. Failing to restore trust in government threatens the democracy on which this country was founded and everything else that has been built by Americans on top of that foundation.

For more on Trust in the Modern Workplace, check out UKG's recent research report on the topic.

Today's post comes to us from Julie Develin, a senior partner in the Human Capital Management Advisory group at UKG.

If you really stop to think about it, there are a lot of things in life that we trust without thinking twice.

Having dinner out at a restaurant? You've trusted that the plate you're using has been washed between uses. You've also trusted that the silverware is clean and that the food you are eating is safe. Perhaps you're driving in your car, and coming to a four-way stop intersection. You're trusting that the other cars in your view will stop as well, and not speed through the stop sign, causing a crash. Heading to an amusement park to ride the rollercoasters? You're putting trust in the machinery to operate and function safely. You're putting blind trust in the ride operator to perform their job correctly and in line with regulations.

Starting a new job and going through the orientation and cultural assimilation experience? You're expecting that leadership at the new company will trust you from day one.

Afterall, isn't that why they hired you?

Well, not so fast. Unlike the many things in life that we trust without blinking an eye, that trusting sentiment seems to be lost when it comes to the workplace, and new workers entering it.

According to the Trust in the Modern Workplace report published by the Workforce Institute at UKG, only 25% of leaders say they trust employees on day one. Conversely, only 29% of employees say they feel trusted on day one. When taken separately, these numbers are very much in alignment–and that is not necessarily a good thing! Not only do leaders not trust employees from their first day on the job, employees report that they do not feel trusted. Surely this does not bode well for workplace cultures or employee experiences.

But why do the numbers reflect such blatant mistrust of new hires at work? This is not exactly the way that we want our new hires to feel on their first day at work, is it?

Work “works” best when employer and employee expectations are in alignment. Granted, the psychological contract in the employment relationship is always changing based on shifting needs of employees and employers. But when there is a lack of communication on what these needs and expectations are, the exchange relationship paradigm begins to break down. When there are perceived inequities, oftentimes one side feels slighted and cast aside. If employees do not feel trusted on day one and employers do not provide that trust, the employment relationship may be starting on a negative trajectory from the beginning, thus setting an ominous foundation for what is to come.

The foundation of the work relationship is critical to success. If trust is a pillar of the foundation of the employment relationship, then communication is a major building block. A productive workplace and a good employee experience depend on a trusting environment–one that cultivates confidence on both sides of the work association. Positive experiences have a direct effect on critical aspects of the success of a business, like reducing turnover, increasing performance metrics, and attracting and retaining top talent to an organization. Without the steadiness of trust within the exchange relationship between employer and employee, that relationship will likely fail.

Considering the Trust in the Modern Workplace survey results, it is a good time for organizations to take inventory of their trust indices. While there are many ways to go about doing this, here are a few best practices for consideration.

First, ensure that managers are trained on the importance of trust at work, and the impact that it has on their relationship with employees they oversee. What does trust mean to them as individuals, and as managers? Determining the answers to those questions may help them in their people management role. Of course, asking managers to trust employees from day one only works if managers themselves are trusted by leadership to do the right thing and are given the autonomy to lead their teams to success, and learn from their shortcomings. Educating people leaders on the psychological contract at work can help them understand why their subordinates may be acting or reacting a certain way and will better allow managers to solve problems using a process of elimination. While all workplaces and workplace cultures are unique, trust is a universal driver of mutual respect and productivity.

Next, use the building block of proper communication to your advantage. If trust is the foundation of the house on which working relationships are built, each brick placed on top must be stable and steady, and this starts with an intentional and effective communication plan. From day one, managers should get to know their employees and learn who they are as people; not just workers. Knowing the whole person may help managers learn how to lead subordinates towards success and growth, improving career trajectories and increasing retention. Setting clear expectations from day one is another way to ensure that expectations align.

Finally, define what trust means to your organization, and be sure to model whatever definition fits best. Don't underestimate the importance of everyone being on the same page when it comes to what trust means for your organizational culture. Does trust in your company mean that employees will be available and working between certain hours each day? Does trust mean that major projects should be collaborations between teams? Does trust mean that employees can come to managers and leadership at any time without concern for their job, and with without fear of retaliation for speaking out?

How can we bridge the trust gap in the employment relationship when we cannot always see each other? What are some strategies you've used at your company to build a trusting environment virtually, or in person? Let us know what you think in the comments section!

Today's post, the second in a two-part series, comes to us from the executive director of The Workforce Institute, Dr. Chris Mullen, Ph.D., SHRM-SCP, SPHR.

Earlier this week, I wrote about some new research we have conducted here at The Workforce Institute on the topic of Trust in the Modern Workplace. While trust is always a critical component of a healthy corporate culture, the COVID-19 pandemic has taken this criticality to new heights.

One of the issues we focused on in this survey was whether trust is something that needs to be earned or if trust should be given. The numbers from our survey are clear: 63% of employees and business leaders globally say trust must be earned.

But is that the right way to think about trust? I love the point of view UKG's CEO Aron Ain takes on trust, described in his book Work Inspired:

“The best way to persuade people to trust you is not to lecture them about trust, but simply to trust them. That way, you establish an underlying expectation of trusting behavior, modeling what you wish to cultivate in your team, department, or entire organization.”

The idea here is that you hire a person - at least in part - because you trust them. So, when that person starts their job, you've got to demonstrate that trust right off the bat - not wait for them to somehow “earn it” over time. By trusting them, you make it possible for them to trust you and thus to perform at their highest level, contributing to the overall success of the organization.

I believe very much in this philosophy of giving trust right away and in my 20-plus years of leading groups and organizations, I've always tried to walk this talk with new hires.

When a new employee starts their position, as a part of the onboarding planning, I intentionally look for projects that demonstrate the trust I have in the new employee.

For example, I once had an employee who was hired to work on our HR team. Post-hire, the first thing I asked this person to do was to provide a full review of the hiring process she had just been through and include recommendations for improvement. Once the employee had completed a full review, I asked her to present her findings to myself and our recruitment and selection team. This process demonstrated trust on a few different levels: I was telling the employee that even though she had just started, her opinion mattered. I was putting faith in her knowledge and experience and showing that I felt we could learn from her right off the bat. Finally, by having her present her findings to our full team, I was letting her know that I felt she was ready - right away - to be a valued member of our team.

Afterwards, the trust just didn't stop there. The new employee was able to work on a couple of projects with the recruitment and selection team that came from the opportunities she recommended. This showed the entire team that I trust those that we hire.

I wanted to check in with my fellow Workforce Institute board members to hear from them about experiences they have had in the workplace where trust was placed in them - and how these experiences impacted their perception of the issue:

Sharlyn Lauby, The HR Bartender and president of ITM Group Inc

At one point in my HR career, I was put in charge of uniforms. I didn't ask for this job and actually thought it was some form of punishment because the uniform department was a mess. One day, I made a joke to my boss about it being a punishment. She said, “Please don't think of this assignment as a negative. If anyone in the company can fix uniforms, it's you.” I took that as a positive: the organization trusted my abilities to get this done.

John Frehse, Senior Managing Director, Ankura Consulting Group

I remember going to my boss for permission to meet with a client to help them through a very difficult business matter at no cost. When I asked if I could do it, he said, “I trust you. I hired you because I trust you to make decisions like this. If you want a sounding board, we can discuss it. However, the decision is yours.”

That was so disarming for me. It made me respect him even more. It also made me work as hard as I could to do the best work I could for the client and our firm.

David Creelman, CEO, Creelman Research

I remember a senior consultant trusted me to lead a workshop when I was still very junior. Here's the key: she co-presented the workshop with me so that she was in a position to step in if I got into trouble. There was trust with a built-in safety net. It wasn't just a naive, cross-our-fingers and hope kind of trust. It was a well-designed risk.

Dave Almeda, Chief People Officer, UKG

We teach our people managers that they should let their direct reports skin their knees but not break their legs. Said another way, leaders should empower their people to do their jobs - especially when it involves risk and innovation - and be there as a guide to overcome obstacles and provide perspective. We then hardwire trust and other key leadership behaviors across the company by holding managers accountable. Employees review their manager's effectiveness twice a year through an anonymous survey that helps ensure leaders are living our core values and building a culture of trust.

Have you had an experience at work where trust was put in you and it resulted in great things? Or how about when trust was not granted - did it hold you back? If so, tell us about it in the comments section!

CLICK HERE to read our full Trust in the Modern Workplace Report.

Today's post, the first of two, comes to us from the executive director of The Workforce Institute, Dr. Chris Mullen, Ph.D., SHRM-SCP, SPHR.

It's often said that trust is the foundation of any good relationship. Whether it's your relationship with a spouse or significant other, a friend or yes, even an employer, without trust, there's not much to build upon.

In fact, the CEO of UKG, Aron Ain devotes a whole chapter to trust in his book, Work Inspired, noting “For a more engaged, higher-performing workforce, start by assuming competence, and then demonstrate to your people over and over again that you trust them.”

Here at The Workforce Institute, we've just released new research with our friends at Workplace Intelligence on the topic of Trust in the Modern Workplace. With the COVID-19 pandemic coloring every decision and interaction in the workplace, the topic of trust has taken on renewed urgency. Every organization is different, but trust is a universal element required for success, especially in times of uncertainty.

A few of the key findings of the report:

I thought this last statistic was an especially positive one given the impact of COVID-19 on working life. If we drill down into the country-by-country data, the picture becomes ever clearer: workplace trust improved due to the pandemic most in India (67%), Mexico (56%), the U.S. (53%), the U.K. (52%), and Australia and New Zealand (50%).

Why is this? I'd bet it has something to do with how all of our working lives have changed because of COVID-19. Many people around the world now find themselves working from home - a situation that frankly just doesn't work without a high degree of trust being put in employees. On the flip side, many employees whose jobs require them to be present in a physical location are having to trust their employers to do their level best to reduce danger and risk when possible. We're all trusting each other to stay home if we have symptoms of COVID-19 and to make good choices in our personal lives to reduce the risk of contracting the disease. Vaccinations are thankfully on the horizon and that's going to be a whole other exercise in trust.

In any normal year, trust between employees and employers is important. But this year, in the world we find ourselves living in, it truly has never been more essential.

Do you trust your employer more now than you did before the pandemic? Why or why not? Let us know in the comments section.

CLICK HERE to read the full Trust in the Modern Workplace Report.

Today's post, the final in a 3-part series, comes to us from Workforce Institute board member and HR Bartender Sharlyn Lauby. Here Sharlyn shares her insights about what it takes to create a trusting company culture.

Trust is important. Customers want to trust the businesses from whom they purchase products and services. Employees want to trust the companies where they work. Trust is the top driver of employee engagement. And companies with employee engagement strategies outperform those without by 3 times, according to O.C.Tanner.

But gaining trust isn't easy. The latest reporting from the Edelman Trust Barometer indicates that globally, 75 percent of people trust “my employer” to do what is right. This is significantly more than non-governmental organizations (NGOs) at 57 percent, business (56 percent) and media (47 percent).

So, businesses have some work to do when it comes to building cultures of trust. In this series, we've talked about the “5 Essential Currencies to Your Company's Employee Value Proposition” because employees need to trust that they will receive the currencies (aka employee value proposition or EVP) that they've been promised.

We've also talked about the “4 Steps Toward Building a Recruiting Process that Creates Employee Trust” because the recruiting process is where trust is initially built between employees and companies. It takes place during interviews, orientation, and onboarding.  

During KronosWorks 2018, Malysa O'Connor, senior director of marketing at Kronos, talked about the four qualities that are necessary to build a trusting workplace culture (note that these four things aren't just qualities needed at an organizational level. Employee-to-employee trust is just as important as manager- to-employee trust):

  1. Capability. Organizations and individuals need to have the ability to deliver on their promises. Does the company have the ability to give employees what they promise in the EVP? Employees also need to have both the responsibility and the authority to deliver on their promises as well.
  2. Transparency. Are employees and the company honest about their capabilities? This isn't designed to be a cop-out as in, “Oh me, I'd love to do that but the company won't let me.” Rather, that employees and companies need to be open about what they're able to do. \
  3. Alignment. This is about values. Does the organization have care and respect as a value? Employees should demonstrate care and respect in their interactions with customers and each other. And employees should hold themselves and others accountable for these organizational values.
  4. Past behavior. Ultimately, trust is built on what we say and what we do. We can talk about trust all day long, but we also have to live the qualities of capability, transparency, and alignment. People will look at past behaviors to determine if a person (or organization) is trustworthy.

Trust is essential in today's business world. This isn't just the latest trend du jour. It's also not a generational thing. Every age group wants work with dependable people and in a place they can trust. Companies that focus on building trusting cultures will win the talent wars and the customer wars too.

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