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Do You Trust Your Workplace? PwC Malaysia and ASB Survey Insights from 11,000 Respondents

  • by Tatler Asia|
  • | Featured in the Media

Cover Trust enhances employee engagement, supports active learning, encourages ESG efforts, and fosters a positive attitude toward technological advancements, according to a survey by PwC Malaysia and ASB (Photo: Thirdman from Pexels)

It’s widely known that trust in a work setting acts as the cornerstone of effective leadership, cohesive teamwork, and a productive work environment. To that end, a recent comprehensive study conducted by PwC Malaysia and the ASB has shed light on the intricate dynamics of trust in the workplace, offering valuable insights for both employees and employers.

As part of the Building Trust Awards 2023, PwC Malaysia and ASB ran a survey between August 14 and September 8, 2023, with more than 11,000 respondents from their finalist companies and found that building a high-trust organisation is not merely an ethical imperative but a strategic advantage. Trust enhances employee engagement, supports active learning, encourages environmental sustainability (ESG) efforts, and fosters a positive attitude toward technological advancements. 

By prioritising fairness, transparency, and respect, organisations can create a work environment where trust thrives, ultimately leading to enhanced performance and a more cohesive corporate culture. Employers must recognise the multifaceted nature of trust and strive to address the unique needs and perceptions of their diverse workforce. By doing so, they can leverage trust as a powerful motivational force, driving both individual and organisational success.

Here are more key findings from PwC Malaysia and ASB’s Trust & Leadership Survey Study 2023.

The essence of trust
Trust, as conceptualised in the study, is not a one-size-fits-all notion but varies uniquely across relationships. The foundational aspects of trust include competence, benevolence, and integrity. Competence refers to the organisation’s ability to perform its duties effectively, benevolence indicates the company’s genuine concern for its employees’ welfare, and integrity involves sticking to one’s word and upholding ethical standards.

Employees’ trust in their organisations is pivotal, encompassing their confidence in the company’s competence and benevolence. The study highlights that employees generally trust their employers more than other institutions like NGOs, media, or the government, emphasising the crucial role employers play in shaping workplace trust dynamics.

Trust operates at various levels within an organisation
  1. Trusting the company: Employees’ belief in the organisation’s overall competence and concern for their well-being.
  2. Trusting the supervisor: The extent to which employees feel comfortable allowing their supervisors to influence important work-related issues.
  3. Trusting coworkers: The level of trust employees have in their peers and colleagues.

Interestingly, while 53 per cent of employees trust their supervisors, a significant 29 per cent remain uncomfortable with supervisors having substantial influence over crucial matters. This indicates a gap that needs addressing to enhance supervisory relationships.

Benefits of a high-trust environment

The study reveals several compelling benefits associated with high-trust environments. Employees who trust their company are more likely to engage in active learning, supporting organisational efforts toward ESG, and embracing new technologies such as AI. For instance, 87 per cent of employees who trust their company are active learners, compared to just 13 per cent who do not trust their organisation.

Moreover, trust significantly influences employees’ perception of future rewards. A staggering 93 per cent of employees who trust their company believe their efforts will be rewarded in the future, compared to only seven per cent among those who do not trust their company. This correlation underscores the motivational power of trust in driving employee performance and engagement.

The role of fairness and justice

Fairness and justice play critical roles in trust-building within an organisation. The study identifies four key predictors of employee trust:

  1. Distributive justice: Fairness in resource distribution, such as pay, rewards, and promotions.
  2. Procedural justice: Transparency and clarity in the procedures for performance assessment and reward allocation.
  3. Interpersonal justice: The culture of respect and empathy in interpersonal interactions.
  4. Informational justice: Timeliness and transparency of communication.

For instance, employees’ perception of distributive justice significantly affects their trust levels. An overwhelming 83 per cent of those who perceive distributive injustice distrust their company, compared to just 12 per cent who perceive justice. This highlights the necessity for fair and transparent practices to foster trust.

Demographic variations in trust perceptions
The study also delves into how different demographic groups perceive trust and justice within the workplace. Notably, employees without managerial power report worse diversity climate and justice perceptions compared to their managerial counterparts. Additionally, women experience significantly lower levels of justice and a worse workplace diversity climate than men. These disparities suggest that a uniform approach to trust-building may not be effective and that tailored strategies are required to address diverse employee experiences.
 
Originally published by Tatler Asia.