In South African SMEs, leaders often focus on incentives, rewards, or motivational talks to drive engagement. Yet engagement is not a mechanical response to actions – it is a relational process grounded in trust, credibility, and mutual respect. When employees perceive their leaders as trustworthy, it directly increases engagement. On the other hand, even the most well-conceived strategies to build engagement will fall flat if employees do not trust their leaders.
Why trust matters
Trust is the foundation of all meaningful engagement. As an article by Deloitte so aptly states, “Trust develops when actions exhibit a significant level of skill and genuine intention, leading to proven ability, dependability, openness, and compassion.”
Your employees will continually evaluate:
- Competence: Do management know what they are doing? Can they navigate challenges effectively?
- Integrity: Are promises kept, and are decisions consistent with stated values?
- Caring: Do team leaders genuinely care about their well-being and growth?
In companies where teams are smaller and interactions are more personal, every decision and communication matters. One instance of broken trust can have an impact across the whole company, undermining motivation, and commitment.
Trust is earned
Engagement in the workplace is never automatic. It is the result of trust earned – and it is earned daily through interactions and relationships. Employees will weigh the effort they are prepared to invest against what they experience in terms of the reliability and fairness of their leaders. For example, a team member may commit fully to a new project. But if deadlines shift without explanation, resources are unfairly allocated, or contributions go unacknowledged; their engagement will quickly diminish. On the other hand, leaders who demonstrate competence, fairness, and support inspire effort. As a result, employees will go above and beyond because they choose to, not because they are told to.
Click here to read our blog, Six Steps to Building Trust in Your Team.
Building trust in South African SMEs
Trust is not a static commodity – it must be nurtured continuously. Leaders who understand the lived experiences of their employees and act with integrity are better equipped to build a resilient foundation for engagement. The South African business environment presents some unique challenges:
- Cultural diversity: Teams often include multiple ethnicities, languages, and cultural norms. Leaders who do not have appropriate insights and understanding risk alienating employees.
- Informal authority: In small companies, influence is not only hierarchical. It comes from respect, experience, and interpersonal credibility. Leaders must earn trust through consistent behaviour, and not just position.
- Historical context: Awareness of socio-economic and racial dynamics is essential. Employees notice whether leaders acknowledge these realities and act fairly.
In this context, cultivating trust is not optional. It is a strategic imperative for South African leaders seeking to unlock the full potential of their teams.
Practical steps to build trust
Here are 5 practices that when applied consistently engender trust:
- Consistency in actions: Align your words with your deeds. Follow through on commitments, even small ones.
- Transparent communication: Share the rationale behind your decisions. Avoid secrecy or arbitrary choices.
- Show competence: Show that you understand the business, market, and employee needs.
- Show care for people: Recognise achievements, support personal development, and be attentive to well-being.
- Encourage voice: Allow employees to raise concerns safely and act on constructive feedback.
Click here to read our blog, The Secret to Employee Engagement.
Trust as a competitive advantage
In SMEs, when it comes to trust, the stakes are high. Unlike large corporations, small teams have way less chance of tolerating disengagement without it affecting team and company performance. In South Africa, where SMEs often operate with limited resources and in culturally complex contexts, trust is not a nice-to-have – it is a business essential because engaged employees innovate, solve problems proactively, and contribute to a positive workplace culture.
Gallup research confirms that trust – and the engagement it fosters – has a direct link with business outcomes such as productivity, retention, and profitability, underscoring that cultivating trust is one of the most effective strategies for long-term business resilience and growth.
Trust and the role of leadership style
Certain leadership approaches enhance trust more effectively:
- Transformational leadership: Inspires employees through vision, integrity, and empathy.
- Inclusive leadership: Actively considers cultural, social, and personal differences when making decisions.
- Relational leadership: Focuses on building strong, respectful interpersonal connections rather than relying solely on authority.
In SMEs, leaders who combine these approaches strengthen credibility while creating a climate where employees willingly invest in the company’s success.
In summary
Engagement in the workplace cannot be demanded – it must be earned through trust, credibility, and respect. Employees continuously assess whether leaders are competent, fair, and genuinely care about them. When leaders meet these expectations, engagement flourishes naturally, and when they fail, disengagement spreads quickly. For small businesses, the impact of this trust dynamic is magnified. In close-knit teams where every individual’s contribution carries weight, the presence, or absence, of trust directly influences engagement, collaboration, and innovation.
In South Africa’s competitive and often volatile business environment, the ability of leaders to build and sustain trust is therefore not just a moral imperative – it is a strategic necessity for long-term success.
Leadership coaching helps leaders build trust within their teams by developing greater self-awareness, empathy, and communication skills.
Book a discovery call to find out more about our customised leadership and employee coaching packages.
Over to you for sharing your comments and experiences.
About the Author: Kerstin Jatho
Kerstin is the senior transformational coach and team development facilitator for 4Seeds Consulting. She is also the author of Growing Butterfly Wings, a book on applying positive psychology principles during a lengthy recovery. Her passion is to develop people-centred organisations where people thrive and achieve their potential in the workplace. You can find Kerstin on LinkedIn, Soundcloud, YouTube and Facebook.
