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Survey: Construction Co Trust Linked to Profits

Tuesday, March 24, 2020

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A recent study released by Autodesk and consultant company FMI Corp. has found that construction industry companies that don’t make trust a high priority within their organizations don’t make as much money as those that do.

In the study, “Trust Matters: The High Cost of Low Trust,” researchers revealed that organizations with “very high” levels of trust achieve better financial and organizational performance—yet 63% of survey respondents shared that their organizations have less than “very high” trust.

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A recent study released by Autodesk and consultant company FMI Corp. has found that construction industry companies that don’t make trust a high priority within their organizations don’t make as much money as those that do.

“The performance advantages at ‘very high’ trust organizations can represent millions of dollars in profitability,” said Jay Bowman, research and analytics lead at FMI.

“With margins in the construction industry continuing to shrink, organizations should be aware of their trust ranking and how it can be improved to increase profitability. The ‘very high’ trust attributes uncovered in this report reflect approaches organizations can focus on to minimize uncertainties, simplify collaboration and ultimately improve trust.”

The Findings

In 2019, 2,527 construction professionals worldwide were surveyed, ranking trust within their organizations from “very low” to “very high”—a scale of one to five. The rankings were then assessed against respondents’ reports of their companies’ internal performance, culture and external relationships.

Study participants included project owners (11%), architects and engineers (36%), contractors (31%) and specialty trades (22%) from the United States, Canada, the United Kingdom, Ireland, Australia, New Zealand, Hong Kong and Singapore. Participants’ tenure ranged from less than two years (21%), two to five years (26%), five to 10 years (26%), 10 to 20 years (19%) and more than 20 years (8%).

Key findings include:

  • “Very high” organizational trust can lead to millions of dollars in annual savings and new revenue – very high trust leads to multiple performance advantages including more repeat business, lower voluntary turnover and timely project delivery.
  • Organizations with the highest trust generate more employee engagement – 74% of respondents from “very high” trust organizations said they would recommend their companies as great places to work and 49% of respondents from “very high” trust organizations also disclosed they are twice as likely to go above and beyond what is asked of them
  • “Very high” trust organizations value collaboration and build stronger relationships externally – 43% of respondents from “very high” trust organizations were more than twice as likely to report that collaboration is central to the way they work.
  • Trust can be increased - The study uncovered common, measurable attributes that foster trust and positively impact performance across construction organizations such as consistent internal processes, transparent communications, environments where employees feel safe and secure sharing their views and a focus on employee development.

“Having worked as a project engineer, I know first-hand construction is a team sport and being able to trust the people you work with is essential to business success,” said Dustin DeVan, construction strategist at Autodesk Construction Solutions.

“This study exposes a need for more transparency, accountability and collaboration in the industry. Organizations that effectively adopt processes and technologies that facilitate greater transparency, accountability and collaboration will be able to increase trust and improve their performance outcomes.”

Download the full report here.

   

Tagged categories: Asia Pacific; Business management; Business matters; EMEA (Europe, Middle East and Africa); Good Technical Practice; Industry surveys; Latin America; North America; Research and development; Z-Continents

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