Trust should always be a core company value within a construction firm and across project teams. A recent study indicated that very high trust firms report better financial performance than those with lower trust levels. Here are some more reasons why building trust improves your bottom line.
More Repeat Business
Mistrust costs companies millions of dollars of profitability each year. Reputable construction firms tend to be more successful in this industry because they understand the importance of repeat business. One of the best ways to get repeat clients is to have high levels of trust in your organization. The trust you have within your team spills over into your interactions with clients and potential clients. It can cost your firm up to 25 times more to acquire new clients than to work with previous clients. It’s not only easier to sell new projects to your repeat customers, but they also represent more order value and increased word-of-mouth advertising than new customers.
Higher Employee Retention
People at organizations that have very high levels of trust voluntarily choose to stay with their construction firm more than those working at firms with only average levels of trust. This can translate to hundreds of thousands of dollars in savings by not having to hire and onboard new employees, especially during a skilled labor crisis. In return, employee engagement also increases as workers are more likely to reach their goals and recommend your company as a great place to work.
Fewer Project Overruns and Reworks
Companies with higher levels of trust also have better organizational collaboration that helps ensure that more projects are completed on time and within budget. If you want to improve your bottom line, then a good place to start is measuring the current level of trust in your company by surveying your employees. Ask them how they would rate trust across the organization. Inquire if their expectations are being met by coworkers, managers, etc.
Here are some effective ways to help boost your company’s trustworthiness:
- Define roles and responsibilities in greater detail.
- Provide regular feedback to employees regarding performance.
- Practice communicating clearly internally and externally.
- Encourage employee input.
It’s important to remember that construction is a team sport, and to be a successful team, you have to trust the people that you work with. Then, focus on creating a “we” instead of “me” environment by simplifying how your teams collaborate. Good construction leadership is always more solutions-focused rather than blame-focused. Strengthening professional trust takes a multi-pronged approach that requires more transparency in external and internal communications, encouraging employees to express their views and providing them with adequate opportunities for employee development.
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