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Potentially, an increase of 2.5% in annual revenue.
From Tony Simons, Cornell University professor and author of The Integrity Dividend: Leading by the Power of Your Word:
Hotels where employees strongly believed their managers followed through on promises and demonstrated the values they preached were substantially more profitable than those whose managers scored average or lower. So strong was the link, in fact, that a one-eighth point improvement in a hotel’s score on the five-point scale could be expected to increase the hotel’s profitability by 2.5% of revenues – in this study, that translates to a profit increase of more than $250,000 per year per hotel. No other single aspect of manager behavior that we measured had as large an impact on profits.
Source: The High Cost of Lost Trust” from Harvard Business Review
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