The critical link between trust and performance management Performance management may be the most important lever to push when addressing a trust de昀椀cit. Fairness in feedback, reviews, and compensation are all deeply intertwined with perceptions of trust in an organization, HR, and managers. The data here is compelling. Our 2023 research found that when employees view performance reviews as biased, trust in managers drops 23 points from the baseline, while trust in leaders and HR drops 20 points and 16 points, respectively, from their baseline levels. When employees view performance management as successful, trust metrics skyrocket 2x-4x higher than baseline 昀椀gures (except team trust, which is the highest to begin with). Trust levels when satisfaction with PM is seen as successful vs. as failed Trust: When performance 79% management is seen as a success 73% Trust: When performance 61% management is seen as a failure 49% 40% 41% 21% 10% 12% 4% Trust in HR Trust in organization Trust in direct Trust in team Trust in no one leaders manager members The message in the data is clear. Addressing the trust gap by increasing fairness in performance management and enablement isn’t just essential – it’s existential. 4 Focusing on Fairness to Close the Trust Gap