Building Trust: The Foundation of Employee Retention (Part 1)

In May, Rodney and I attended PCBC 2023 in Anaheim, CA, and were privileged to present our thoughts on employee retention to the Land & Capital track. In this two-part series, I’ll share some thoughts from my presentation on the power of trust and its impact on retaining valuable team members in the homebuilding and land development industry.

Trust Triangle: The Foundation of Retention

At the core of fostering employee loyalty lies the trust triangle, developed by Harvard Business School Professors Frances Frei and Anne Morriss (If you haven’t read their book Unleashed, I highly recommend it!). This framework emphasizes the significance of authenticity, empathy, and logic in building trust within organizations. We all have strengths and what Frei/Morriss call “wobbles” in each where maybe we’re not as aware of our missteps. Let's explore each element and discover how they apply to us as leaders within our industry.

AUTHENTICITY

• Authenticity serves as the cornerstone of trust. Employees want to know that their leaders genuinely care about their well-being and professional growth. This involves being transparent, honest, and vulnerable, creating an environment where individuals can bring their true selves to work.

• Example of an Authenticity Wobble: Imagine a project manager consistently overpromising and underdelivering, leaving their team feeling undervalued. Such a wobble erodes trust and can lead to talent drain.

Actions Leaders Can Take Today:

• Conduct "Stay Interviews": Engage in one-on-one conversations with employees to understand their needs, challenges, and aspirations. Actively listen, show empathy, and address their concerns.

Actions Leaders Can Take in the Next Year:

• Develop a Mentorship Program: Pair seasoned professionals with junior team members to foster knowledge sharing and provide guidance. This initiative demonstrates the company's commitment to employee development.

Actions Leaders Can Take in the Next Three Years:

• Implement Transparent Career Paths: Create clear roadmaps for career advancement within the organization. Provide employees with growth opportunities, ensuring they feel invested in the company's long-term success.

EMPATHY

• Empathy is the secret ingredient that strengthens team bonds. It entails understanding and appreciating the unique challenges individuals face while fostering a supportive work environment. Empathetic leaders prioritize mental and emotional well-being, recognizing that a happy team is a productive team.

• Example of an Empathy Wobble: Consider a situation where a supervisor dismisses an employee's personal struggles, showing no empathy or understanding. This wobble can lead to feelings of alienation and decreased job satisfaction.

Actions Leaders Can Take Today:

• Encourage Work-Life Balance: Promote flexible schedules, remote work options, and time off to help employees maintain a healthy work-life integration. By doing so, you show that you value their overall well-being.

Actions Leaders Can Take in the Next Year:

• Implement Employee Recognition Programs: Celebrate achievements, milestones, and exceptional performance publicly. Acknowledging and appreciating your team's efforts boosts morale and reinforces a culture of empathy.

Actions Leaders Can Take in the Next Three Years:

• Foster a Supportive Environment: Establish Employee Resource Groups (ERGs) where individuals can connect based on shared experiences, interests, or backgrounds. ERGs provide a sense of community, ensuring everyone feels heard and valued.

LOGIC

• Logic involves clear communication, setting expectations, and delivering on promises. Employees need to understand the company's vision, their role within it, and the path to success. When logic is applied consistently, it builds confidence and trust in leadership.

• Example of a Logic Wobble: Picture a scenario where a supervisor frequently changes project objectives without clear communication, leading to confusion and frustration among team members. This wobble undermines trust and can impede progress.

Actions Leaders Can Take Today:

• Enhance Communication Channels: Establish regular team meetings, open-door policies, and transparent communication channels to foster a culture of trust. Encourage feedback and act on it promptly.

Actions Leaders Can Take in the Next Year:

• Invest in Training and Development: Provide employees with the resources and opportunities they need to grow professionally. By equipping them with the skills and knowledge to succeed, you demonstrate a commitment to their long-term success.

Actions Leaders Can Take in the Next Three Years:

• Lead by Example: Consistently demonstrate integrity, professionalism, and accountability in your actions. By embodying the company's values, you inspire trust and encourage others to do the same.

Developing and deploying a trust-centric culture will be explored in the upcoming Part 2 of this series.