The Calculus of Trust: Why Great People Stay with Great Organisations

The big question: Is trust and respect towards the employee the currency of culture? This leads to CEOs’ lessons on organisational magnetism. If not, then, beyond high-flying promises, it may be the silent collapse of trust-deficient institutions.

In a volatile, uncertain, complex, and ambiguous (VUCA) world, the question “Why do people join organisations?” is no longer answered by salary figures or brand names alone. It’s about trust and respect, the silent force shaping the gravitational pull of great institutions. Trust is not a slogan on recruitment brochures; it is the invisible calculus behind employee retention, engagement, and long-term organisational success.

We explore what makes some organisations enduring magnets of talent, while others, often the so-called “high-flying” ones, silently crumble like volcanoes ready to erupt.

Why do people join organisations? 

Individuals do not join organisations. They become a part of cultures. They sign up for missions and undertake leadership roles. One Google developer remarked on joining Google to address global problems at a scale and not to code. The key to trust and respect is pivotal to the congruence of an organisation’s actions and statements. The trust erodes when the employee is disrespected and as soon as a discrepancy between the promise and practice is evident. Mr. CEO, think loudly.

What makes a great organisation enduringly ahead? 

Good to be great! Great organisations are ‘principle-centred.’ They create an internal culture that makes mutual accountability, psychological safety, and personal investment unavoidable. For example, the Tata Group has continuously been rated as one of India’s most trusted businesses, not just because of its history but also because of its ongoing dedication to ethical business practices and employee dignity. While others were laying off employees during the 2008 financial crisis, Infosys made sure there were none, instead taking the brunt of the pain at the top. In contrast, toxic leadership, opaque governance, and unmet employee promises undermined other organisations.

Why do people stay? The magnetic principle of trust 

Individuals stay for their beliefs, not just for promotions. Because they are heard, seen, and cared for, they remain. This is what makes belonging so alluring. Employee loyalty grows like interest in a high-return account when they believe they can grow and contribute authentically in a psychologically safe environment. For example, Patagonia has one of the lowest employee turnover rates in the clothing sector. Why? because it makes investments in sustainability, the welfare of its workforce, and a mentality of mission-first that goes beyond financial gain. There, employees labour for a cause rather than merely a business.

Even in academia, institutions like MIT, Caltech, NTU, SMU, NUS, LSE, Harvard University etc., or the Indian School of Business (ISB) retain top faculty because they offer intellectual freedom, research infrastructure, and meritocracy without micromanagement, a high-trust atmosphere that enables excellence.

What drives people away? The silent decay of distrust 

Distrust is rarely loud. It is the whisper in the hallway, the resignation letter that says “seeking better opportunity” but means “I don’t feel safe here.”

When leadership hoards credit, when feedback is a formality, and when investment in people is seen as a cost rather than capital, these are signs of a culture in erosion.

Examples abound:

• Jet Airways (India): Once a pioneer in Indian aviation, its decline was less about competition and more about internal erosion of employee trust, delayed salaries, and erratic leadership.
• Kingfisher Airlines: It lured talent with glamour but never invested in long-term organisational culture or reliability. As debt piled and trust vanished, collapse was inevitable.
• EDMC (Education Management Corp., USA): A for-profit academic giant that made big promises to faculty and students but collapsed under scrutiny for false claims and predatory practices. Culture and trust were transactional, not transformational.
• Theranos: Promised revolutionary biotech. Internally, however, dissent was silenced, engineers were mistrusted, and a culture of fear prevailed. The result: collapse, lawsuits, and prison time for the founder.

These are iceberg cases that reveal a pattern: trust is eroded before performance declines.

Does managing talent in the networked age require an alliance?  

Employers and employees develop a relationship based on how they add value to each other. It’s a must. It is understood that employers train and develop employees so that they become more purposeful. Yet, employees invest in the company’s culture and their journey. Where is your organisation standing? Mr. and Ms. CEO, rise and answer!

Trust as a strategic asset, not sentimental value 

Trust is a hard predictor of long-term performance. McKinsey research shows that high-trust cultures outperform competitors. Deloitte finds that organisations with strong purpose and trust orientation are more likely to retain top talent. If strategy is the skeleton, culture is the bloodstream. And trust with respect is the oxygen. Don’t kill employees simply because you are driven by your ego and dirty money!

Triangulating trust before you join

As professionals seek great careers, they must assess organisational culture with foresight, not hindsight. Here’s a three-point triangulation framework:

1. Signals in Leadership Language:
   Does leadership speak about people or only profits?
   Are they visible and accessible?
   Is their communication transparent, even in crises?
2. Investment in Learning and Growth:
   What’s the L&D budget for employees?
   Are there structured mentorship programs, sabbatical options, or R&D labs?
   Is failure punished or used as a learning vector?
3. Culture Thermometer from Alumni:
   What is your review of internal dynamics?
   Are alumni vocal ambassadors or silent critics?
   Are exit interviews standard or avoided?

Ask yourself: Do I feel like a valued co-creator or a replaceable resource?

Introspection: The trust dividend or the Volcano Effect 

Trust is not built in offsites. It is earned in decisions, sustained in crises, and proven over time. Organisations that fail to understand this operate like dormant volcanoes. They appear beautiful on the outside but are bubbling with disengagement, disillusionment, and dysfunction underneath. Those that understand the calculus of trust, like Patagonia, Infosys, Tata, Toyota, and Netflix, not only attract greatness, they retain it, evolve it, and amplify it.

As a professional or a CEO, the question is not “Can we grow fast?” but “Can we grow with integrity?” Trust is the most scalable strategy and the hardest to repair once lost. Check the trust parameter in your organisation before your market value erodes and you vaporise in complacency.

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