Trust and Trustworthiness - Part II -- What Is the Connection between Trust and Loyalty?

May 10, 2024 Rhonda Weiss

A “psychological contract” is necessary for loyalty, that is, what each party feels they owe each other and what they expect in return. It requires shared expectations.

When the contract breaks, people find a way to rebalance the scales in their favor, or worse, seek revenge. Trust is lost, a sense of loyalty disappears on an individual basis and organizational culture basis.

Rebuilding requires fixing the loyalty breach. That involves restoring some sense of security, for example, retention of jobs, psychological safety norms to be observed in team and cross-departmental discussions, continued learning opportunities, and, most importantly, a sense of true belonging. In times when layoffs are necessary, that can be demonstrated if employers and layers of leadership give advance notice and are respectful to all workers who will be cast out. That will result in possibilities of boomerang employment – an advantage for employers and workers.

Security and trust can be built by avoiding confusion and being clear about expectations from all parties.

Also, a significant threat to individual security and team cohesiveness and performance are conflicts between workers and managers. A 2023 Gartner survey revealed (57% of respondents) that managers at all levels are responsible for resolving conflicts among their direct reports and team managers. The majority of managers are not trained in conflict resolution, a need I have heard directly from CHROs. Often those conflicts are better resolved by external consultants and coaches.

Effective policies and practices might be alumni programs, bringing boomerang employees back, and always showing ongoing respect and caring. As Aki Oto at “Business Insider” wrote, Mutuality and reciprocity create trust, and trust generates loyalty.”

Call to Action: I urge all leaders at any level, especially middle managers, to take this vital challenge to heart. Earn trust, not just by words, but showing action on important issues such as DEIB, wellness and psychological safety, and people-first cultures.