How Trust Boosts Team Effectiveness

“Trust is the highest form of human motivation. It brings out the very best in people.”

~ Stephen Covey

Welcome back to our series, Trust drives growth. In these articles, we discuss trust as a force multiplier that underpins worker engagement and productivity, customer loyalty and M&A effectiveness. We share how companies serious about growth embed trust-building as a strategic, fundamental element of successful leadership, organizational culture, and stakeholder relationships—and why they measure gains or losses earlier in the process.

Trust is the foundation of all successful relationships. And successful relationships are the foundation of all thriving businesses. So, it follows that when it comes to teams, trust is a critical driver of team effectiveness, including productivity, innovation, communication, collaboration and job satisfaction. According to a study called “The Neuroscience of Trust,” people at high-trust companies report 74% less stress, 106% more energy at work, 50% higher productivity, 13% fewer sick days, 76% more engagement, 29% more satisfaction with their lives, and 40% less burnout than people at low-trust organizations.

The Consequences of Low Trust

Many leaders pursue growth with little recognition for what underpins it: loyalty, engagement, cohesion. Low team trust can undermine sustainable growth and competitive advantage in many ways:

• Damages Morale and Engagement – Low trust saps team morale, motivation, and engagement. Individuals feel isolated, undervalued, and demotivated, which can result in high turnover, decreased productivity, and a general sense of dissatisfaction.

• Erosion of Collaboration and Support – In low-trust teams, individuals are less likely to help each other or share information, leading to siloed work and diminished collective problem-solving.

• Increase in Conflict and Miscommunication – The absence of trust breeds friction, unresolved conflict, and passive-aggressive behaviors. Team members may avoid addressing issues directly, leading to misunderstandings, blame, and a toxic atmosphere.

• Stifling of Innovation and Risk-Taking – Absent trust, team members hesitate to take risks or propose new ideas due to fear of criticism or failure. This stifles creativity and limits the team’s potential for innovation and growth.

• Increased Inefficiency and Redundancy – Mistrust creates friction and leads to inefficiency as team members double-check or redo each other’s work, wasting time and resources. Decision-making slows down due to second-guessing and bottlenecks.

Trust Can Be Built

The good news is trust can be modeled, learned and measured. When leaders treat trust as a capability and infuse trust-enhancing skills throughout their organizations, everything improves. High trust:

• Boosts Productivity and Performance – Teams with high trust are up to 50% more productive than low-trust teams. Trust enables team members to coordinate efficiently, share knowledge, and support one another, leading to faster and higher quality results.

• Facilitates Open Communication and Collaboration – Trust creates a safe environment where team members feel comfortable sharing ideas, giving feedback, and voicing concerns without fear of judgment or reprisal. This openness is essential for effective problem-solving and innovation.

• Encourages Risk-Taking and Innovation – In high-trust teams, individuals are more willing to take creative risks and propose bold solutions, knowing their contributions will be respected and considered. This leads to greater innovation and adaptability.

• Reduces Stress and Burnout – High-trust teams report lower stress levels, fewer sick days, and less burnout. Members feel supported and valued, which enhances engagement and well-being.

• Strengthens Accountability and Reliability – When trust exists, team members believe that others will deliver on their commitments, fostering mutual accountability and dependability. This clarity around roles and responsibilities is vital for achieving collective goals.

• Improves Team Cohesion and Satisfaction – Trust builds stronger interpersonal relationships, leading to greater team cohesion, morale, and job satisfaction.

• Reinforces Interdependent and Virtual Teams – The more interdependent the team, the more crucial trust becomes. In virtual and hybrid teams, trust is especially important for knowledge sharing and effective coordination across distances and cultures.

Where to Start? Build Belonging, Reward the Builders

At VisiVera, we have learned valuable insights through our relationship with Vic Strecher, Ph.D., MPH, professor at the University of Michigan and founder of Kumanu. One key finding is that 88% of employee engagement can be attributed to their sense of belonging within the organization. Additionally, 49% of what makes people feel they belong at work comes from how much they trust the people around them.

It is important to know that belonging is personal—rather than one-size-fits-all. That’s why the most effective team leaders ask—rather than assume—what makes people feel included. They create space for team members to express what belonging looks like to them, and they foster the human interactions that make those expressions possible.

Start by teaching your leaders to listen for what matters, to model inclusive behaviors, and to motivate peers to co-create an environment where everyone feels seen, supported, and essential. Then, reward the leaders who do it best. Because to fight through a Trust Recession, belonging is more than a feeling—it’s a strategy.

Tell us, what’s your experience leading or working in high-trust teams?

Look for our next article in this series, “How Trust Advances B2B Sales.”

We are VisiVera, a growth accelerator for the trust recession. To learn more about growing well, please visit our website.