The leadership hack that drives success: Being trustworthy

By Yufei Ren, University of Minnesota Duluth National Leadership Day, which takes place every Feb. 20, offers a chance to reflect on what truly defines leadership – not just strategy or decision-making, but the ability to build trust. In an era of rapid change, when teams look to leaders for stability and direction, trust is the invisible currency that fuels organizational success. As an economist, I know there’s a lot of research proving this point. I’ve conducted some myself, including work on how trust is essential for leaders in cross-cultural business environments. In an expansive study of China’s fast-paced restaurant industry, my colleagues and I found that leaders who cultivate trust can significantly reduce employee churn and improve organizational performance. While my study focuses on one sector, its lessons extend far beyond that. It offers insights for leaders in any field, from corporate executives to community organizers. Understanding the impact In China, as in the U.S., the restaurant industry is known for high turnover rates and cutthroat competition. But our study found that managers who demonstrate trustworthiness can keep employees from fleeing to rivals, creating a more stable and committed workforce. First, we conducted a field experiment in which we...