Small firms encourage to 'promote trust' during downturn

Date: 7th April 2009

Small business managers have been encouraged to promote an environment of trust between them and their employees.

The advice comes on the back of research by the recruitment group Endaba, which found that more than half of staff do not trust the head of their business.

According to the investigation, mistrust in the workplace can have a damaging effect on productivity.

This could also potentially be exacerbated in micro firms, such as sole traders and partnerships.

Managing director of Endaba, Patrick Egan, said: "The lack of trust in an organisation will prove catastrophic, particularly in a recession and the firms who have low levels of trust are the ones which will struggle to survive."

He added that "diminished trust" could affect everything, including relationships with employees, suppliers and customers.

Meanwhile, an investigation by the network portal LinkedIn has discovered that nearly half of all employees would use redundancy as an opportunity to launch their own business start-up.