A recent report from Secure Data Recovery reveals that over a third of U.S. workers express a lack of trust in their company’s human resources department. Reasons cited include bias, favoritism, inconsistency, perceived lack of employee care, and confidentiality issues.
Particularly alarming is the sentiment among employees in small companies with fewer than 50 staff members, where 47% feel their HR structure is unprofessional, and 43% don’t feel comfortable confiding in their HR team.
The report underscores the importance of fostering a transparent and fair HR environment to build trust within organizations. Consistency in policies and decisions is highlighted as crucial for earning credibility.
The absence of an HR department contributes significantly to a toxic workplace environment, according to half of the surveyed workers. Surprisingly, 88% have worked for a small company without a dedicated HR person, and 73% have experienced instances where the HR person also held another position. In 68% of cases, employees found themselves in companies where their boss also managed HR, a situation that often led to discomfort and perceptions of unprofessionalism.
In small companies, HR practices are often marred by disorganization, poor communication, failure to address conflicts, lack of standardized processes, and disregard for employee feedback, as reported by workers. Not having an HR department can also signal to employees that the company lacks care and allows upper management to take advantage of situations.
The report emphasizes the need for businesses to invest in enhancing HR practices to cultivate a positive workplace environment. HR leaders stress the importance of stability, company values, employee engagement, empathetic leadership, and career development opportunities in building and maintaining employee trust, which in turn contributes to improved bottom-line performance.
According to PwC, transparency in company culture, effective internal communications, and upskilling initiatives are instrumental in earning and retaining employee trust. Deloitte’s report highlights the concept of human sustainability, emphasizing the centrality of workers and customers in driving business performance. Closing the gap between recognizing the importance of human performance and taking tangible steps to address issues of trust and transparency is essential for organizational progress.
