ADP CEO Maria Black Says Employees Who Trust Their CEO Are 41% More Likely to Be Engaged at Work

To cultivate a workforce that is more engaged, ADP CEO Maria Black emphasizes the importance of trust between employees and their senior leaders.

In a conversation with Diane Brady, the executive editorial director of Fortune, during the Fortune's Most Powerful Women Summit held in California, Black underscored the strong correlation between trust and employee engagement. She stated that employees who trust their colleagues are 60% more likely to be actively engaged in their work.

"Trust is a direct corollary to engagement," Black remarked. "Therefore, in order to enhance engagement, productivity, and foster a dynamic work environment, which I aspire to be part of and want for my children, we must prioritize trust."

The insights from ADP challenge the prevailing narrative that employees display apathy toward their work. Engagement is often viewed as a sentiment-driven metric, perceived as something individuals either possess or lack. However, ADP's findings suggest that engagement is significantly influenced by employees' confidence in their leadership, thus placing the onus for enhancing engagement largely on management and executive teams.

Research conducted by ADP indicates that a mere 1% decline in engagement correlates with a 45% increase in voluntary employee turnover. Currently, only 30% of employees report being highly engaged at work. Conversely, if employees have trust in their CEOs and senior leadership, they are 41% more likely to exhibit engagement, and this likelihood rises to 60% if they trust their immediate colleagues.

Black pointed out that there are numerous factors contributing to a climate of distrust today, including the prevalence of information echo chambers and challenges in discerning credible information from AI-generated content. She noted that cultivating focus and engagement hinges on whether employees trust their peers and leaders. As a leader, Black actively engages with her workforce and listens to their concerns, illustrating her approach by recalling a recent visit to Las Vegas where she interacted with 1,000 leaders and a trip to Florida where she connected with employees, utilizing the universally appealing medium of ice cream for conversation.

"The only way to stay relevant is to be present and trustworthy," Black asserted.

Additionally, Black addressed the pressing need for companies to upskill and reskill their workforce. ADP manages payroll and human capital for over one million clients in 140 countries, and she emphasized that the advancement of AI will hinge on how employees choose to interact with these new technological tools.

"We are aware that, in general, today’s workforce feels underprepared by their employers," Black noted.

Since joining ADP as a sales associate in 1996 and rising to the position of president and CEO in 2023, Black has gained invaluable insights from her long tenure within the organization. As AI continues to permeate various aspects of work and personal life, she believes it can empower individuals by enhancing their skills and widening their opportunities for increased income as they take on diverse responsibilities.

"However, we must guide them through this process," Black cautioned. "This is a critical area that often does not receive the attention it deserves."