The value of trust
Study links communication culture and employee trust
with higher earnings per share
by Barbara Fagan-Smith, ABC, and Tina Rosenblum, Ph.D.
Communication professionals have long understood that truly engaging a company’s employees—earning their trust, enabling their best work and inspiring their loyalty—is not a luxury but a business imperative. Now there is new evidence to show your CEO that building trust and
engagement through communication can boost the bottom line.
Earlier this year, ROI Communication conducted a quantitative study of communication at leading companies. The study suggests that an open communication
culture, deeper trust and engagement, and more senior leader credibility all predict
higher earnings per share, relative to companies with lower scores in these areas.
The impact of open communication
In its poll of nearly 100 leading companies and organizations, the ROI Communication Benchmark survey explored
performance in the three areas critical to effective internal
communication: communication infrastructure, open
communication culture, and leader and manager communication. While all three areas affect trust and engagement,
we found the strongest linkage between open communication cultures and high levels of trust.
An open communication culture is defined as a working
environment in which employees:
• Feel safe and confident about being open and honest.
• Are encouraged to contribute ideas at every level in the