Trust: It’s a word everyone understands but few can accurately define or measure. It seems at once essential but fluffy, complex yet simple. According to the Human Capital Institute, trust can be defined as “the willingness to put oneself at risk based on another individual’s actions.” What does that mean in a business context? And how can trust be measured in economic terms like risk, speed, and cost? Research has shown that high-trust organizations have a total return to shareholders (stock price plus dividends) that is 286 percent higher than low-trust organizations. The top 25% of retail stores that rank high on trust achieve 7% above budget annual sales and 14% sales productivity gains. The impact of trust on productivity and efficiency is clear.
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