Are we on the brink of a trust crisis? The 2023 Edelman Trust Report reveals reliable trends that challenge the very fabric of business as usual. In an era of rampant misinformation, dwindling confidence in institutions, and polarizing narratives, understanding the pulse of trust has never been more critical in the workforce today.
In our blog today we delve into the findings of the latest Edelman Trust report. Our review uncovers trust crisis implications for businesses, governments, and society at large. The good news is that TIGERS 6 Principles have been resolving trust issues at work for over the past 30 years. Our resources that empower people to improve how people work together resolve many of the issues raised in the report.
What is the 2023 Edelman Trust Barometer Special Report: Trust at Work?
Our TIGERS 6 Principles analysist views this report as reliable because of the size of the research pool and countries involved. In 2023, it was the 3rd year that Fieldwork gathered their data. They ran their online employee survey from July 20- August 1, 2023. It covered seven countries with 1,000+ respondents. Over 6,977 people replied. The countries involved include Brazil, China, Germany, India, Japan, the UK and United States.
The results indicate a “mathematically significant change in data that can be attributed to a profound change rather than chance. All indicated year-over-year significant changes were determined using a t-test set at a 99%+ confidence level.”
What is a t-test set? It is a popular statistical tool used to test differences between the averages of two groups, or the difference between one group’s average and a standard value.
Sorry if we got into the weeds here, but it is important for your understanding of whether the results are worth your consideration.
From 2020 to 2023 what do the comparisons reveal?
In April 2020 employees reported that their employers were more trusted than any other institution in responding to the pandemic. Certainly not a trust crises for business but an alarming shift for others such as governments and the media. Working remotely had a huge impact on many levels, however, employer trust remained high for the majority of workers. Returning to the workplace in 2021 shifted perceptions.
In 2021, employees who were laid off resolved to work for employers who mirrored their values and beliefs. Mirror failure resulted in many organizations scrambling for employees and subsequent turnover increases of talented employees. This gave rise to the belief-driven employee. In the scramble to attract and retain belief-driven employees, Gen Z employees shifted new perceptions going into 2022.
In 2022, a new cascade of influence pointed to Gen Z employees. Many Millennial managers had received mid-management appointments. Many were untrained before assuming roles as leaders. Learning by watching other older managers, those Millennial managers who desired greater life-balance often found themselves stretched too thin, with stress and burnout indicators. As a result the turnover of mid managers alarmed human resource directors and the C-suite. Some mid managers joined the ranks of entrepreneurs with their own start-up ventures.
In the meantime, new mandates by Gen Z employees demanded management skills and mindsets that many Millennial and Gen X managers were untrained to provide. Efforts to recruit and hire new Gen Z employees often resulted in turnover within six months of employment when demands were unmet or misrepresented. Later in 2022, political misinformation was of increasing concern. However, employees were more comfortable talking about political issues with co-workers than with their neighbors. So the workplace was often viewed as a haven of civility. Civility pushed leaders to rethink work leading into 2023.
In 2023, the emphasis on Leaders was to reimagine what work means to employees. Are employees simply costs that must be continuously cut? Is training really too expensive to apply to people whose wages must be kept down? Are employees partners in the success of the organization? If so, is the training and leadership mindset that Gen Z’s began demanding in 2022 to be built upon? Is the onboarding of new employees simply a financial discovery? Must onboarding also include training? If so, for how long?
The TIGERS 6 Principles positioned ourselves during the pandemic to provide employee behavior onboarding resources. These are resources that both internal and external TIGERS 6 Principles practitioners are discovering to be in increasing demand for recruiting and retaining Gen Z and Millennial talent.
What do the trust results show in 2023 going forward?
According to the research results, there are four major trust trends that potentially might stem the trust crisis:
- The fear of losing one’s job. The soft landing from inflation fears in the United States due to the recovery from the pandemic under the Biden Administration were not felt by two countries, Japan and Germany. The fear of losing one’s job increased 13 points and 10 points respectfully. The greatest insecurities across all countries was an increase in 4 points for fear of job loss due to automation and 3 points from cheaper foreign competitors. Fear of job loss due to the emerging entrepreneur sector increased only 1 point and highlighted the emergence the Freelance and gig economy workers. There was no fear of job loss from lack of training and skills.
- The trust gap grows. The trust gap between employers and other institutions grew. Trust in the employer grew by one point to 65% while trust in the media fell to 49%. Government and nonprofits remained neutral.
- Trust in ethics and competency. Trust in the ethics and competency of organizations created a gap of 62 points between business and government. Trust in both ethics and competence recorded well in business. Unethical and incompetence displayed in both the government and media. Nonprofits were viewed as more ethical than business but less competent.
- Outspoken communication from leaders. Job seekers are expecting more outspoken communication from leaders. In addressing the question, when considering a job, I expect the CEO to speak publicly about controversial issues I care about, there was a decline of 10 points for US businesses. However this expectation grew two points overall in India, China and Brazil.
Trust expectations in other areas of workforce dynamics
Expectations for advancement, employee empowerment, and societal impact also grew. Career advancement expectations grew 2 points as did employee empowerment, and societal impact. It appears that the values of Millennials and Gen Z prevail and are growing as Boomers and Gen X employees retire. Demands in business as usual are changing. Employees are demanding a work-life reset. 67% of the global workforce is reevaluating how they spend their time and 72% believe that business must reevaluate what work means to employees. Gen Z workers are leading the charge.
This is not an insignificant number. 93% of respondents say that work-life boundaries, openness to new tech, desire for career success, fair pay for work, self-advocacy, work as identify, and employer involvement in societal issues are very important going forward.
Likewise co-workers 42 years of age and younger (61% of respondents) say they are willing to pressure employers to change things they do not approve of. This grew 6 points from 2022 to 2023. Across all generations, employees want their work to make a difference and shape the future. For example, one in two Gen Z employees will push their desire for changes in work public. However, the willingness to work with the employer increased 6 points before whistleblowing, striking or leaking internal documents. Therefore, ethics and transparency are important to this age group.
What does the TIGERS 6 Principles interpret from these finding?
Is there a trust crisis or not? If your business requires Millennial and Gen Z employees to make the world turn for you, it is time to take note. Here’s why.
Millennial employees were the first generation to receive group project experience though k-12 public education. Their emphasis was on learning how to do things for learning sake rather than winner-loser competitions. They were chided by Gen X and Boomer employees whose k-12 education focused on competition rather than collaboration. The older generation claims were that the Millennial desire for work-life balance was just one more example of an entitlement mindset stemming from how everyone got a trophy whether they won or lost. The number of Gen X and Boomer employees are now in decline.
The work-life balance mindset is not going away. It is growing. The evidence lies in US Federal Legislators reevaluating work week hours for full-time employment. A shorter work week is in review because technological advancements have made work more streamlined.
High talent turnover, in the experienced Millennial age group is of high concern. Millennials are the age group poised to purchase businesses from retiring Boomers in the largest capital transition in US history. Work culture transition from internally competitive to more collaborative and team-based is expected.
In the meantime, a good number of Millennials are creating their own startups. They have an educated understanding of how important it is to build authentic connections with Gen Z employees. They understand that given the right work environment, the average Gen Z employee wants to stick with a company rather than hopping around. Like the generation before the Boomers, they want to retire with a gold watch. They also want to be mentored and trained, developed and empowered to help their businesses grow. They tend to be more entrepreneurial and want to know what the business will do for them.
Both age groups are concerned about work-life balance, protecting the environment, recovering from the climate crisis, DEI and human rights. They expect their employers to share these values. Whether their work cultures will become fully collaborative and employee-forward enterprises or a compatible mix of directive and collaborative work environments, employee empowerment is no longer just nice to have. It is demanded and becoming increasingly non-negotiable.
Therefore, day long training for leadership and employee development is out because nearly 95% of training like this is lost if not applied immediately back in the workplace. Training designs that combine training with actual workforce development outcomes that transition work culture to what employees are demanding now is gaining significance. These micro-training segments are what Millennial leaders need now to build connections with their employees while mentoring performance.
From a TIGERS 6 Principles perspective and resources we provide, change in the workforce environment does not need to be frame-breaking but instead incremental. This is brought about through education and transparent manager and employee conversations. This also means that training that applies developmental coaching for training transference within annual training platforms are also gaining interest. When organizational improvements are achieved within the training design it is a win for everyone.
Another trend we see is that teachers are quitting teaching due to poor pay and political interference in what can be taught in a classroom from science to history to English. Could people who enjoy teaching and developing others become a new wave of employee development coaches? Science, history and English are also courses that hold meaning for Gen Z and Generation Alpha youth born from 2010-2024. Some students in these age groups can now choose course curriculums that are project based. The Columbus, Indiana school district is a good example of this in the US heartland. This means that team development and collaboration skills will continue to grow as these youth graduate and become employable. Will they hit a brick wall of the same-ol-same-ol? Organizations ill equipped to receive employees from this age group will continue to see talent turnover unless their work culture and leadership mindsets correct to meet generational demands.
Conclusions
In our review of the 2023 Edelman Trust Report, we’ve uncovered a tapestry of insights that paint a vivid picture of the evolving landscape of trust in the modern workplace. As we traverse the tumultuous waves of societal change, one beacon of hope shines through—the TIGERS 6 Principles. For over three decades, these principles have been steadfast pillars, guiding organizations through the labyrinth of trust issues and empowering teams to foster collaboration, communication, and cohesion. Our review not only sheds light on the challenges ahead but also offers a roadmap for businesses, governments, and society at large to navigate the murky waters of distrust.
At the heart of the Edelman Trust Report lies a wealth of data meticulously gathered over three years of research, offering a glimpse into the pulse of trust across seven countries. From the shifting sands of employer-employee dynamics to the seismic impact of generational transitions, each revelation serves as a compass, guiding us towards a deeper understanding of the forces at play. Yet amidst the chaos, there are glimmers of hope—opportunities for growth, transformation, and renewal. It is the TIGERS 6 Principles perspective that the combined efforts of Millennials, GenZ and upcoming Alpha could result in stunning human transformations.
As we gaze into the crystal ball of the future, the implications of the report become clear—change is not only inevitable but imperative. The values of Millennials and Gen Z, coupled with the seismic shifts in societal expectations, herald a new era of work—one where employee empowerment and collaboration reign supreme. The TIGERS 6 Principles stand poised at the forefront of this paradigm shift, offering not just a solution but a vision—a vision of a workplace where trust is not just earned but nurtured, where collaboration is not just a buzzword but a way of life.
In conclusion, the 2023 Edelman Trust Report serves as a clarion call—a call to action for organizations to embrace change, adapt to shifting realities, and chart a course towards a brighter future. With the guiding light of the TIGERS 6 Principles, we stand ready to meet the challenges ahead, armed with the knowledge, insight, and determination to build a workplace where trust thrives, collaboration flourishes, and success knows no bounds.
Care to dig deeper into the topic of trust crisis?
Here are some resources you might find valuable:
- Complimentary webinar: 6 Principles That Build High Performance Teams
- Millennial Blueprint training for building connection and refining work culture: TIGERS 6 Principles Leadership Essential training
- Resource for work culture and employee collaboration conversations: TIGERS Among Us Book Resources
- Blog posts: Why Collaborative Work Trumps Competition in Business Culture Today
- Blog Post: What Will It Take to Ensure GenZ Loyalty?
- Blog Post: Gen Z And Millennials Want Leader Led Employee Engagement
Copyright TIGERS Success Series, Inc. by Claudia Craven
About the TIGERS 6 Principles
The TIGERS 6 Principles emerged from Business, Education and Psychology Group Dynamic Research. Independently evaluated twice for reliability and validity, the TIGERS 6 Principles offer a comprehensive system for collaborative workforce and leadership development. Subscribe to our newsletter. Visit TIGERS Learning Center here. Schedule a discovery call.
