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Leadership Trust Is Declining: 5 Ways to Rebuild Trust and Drive High Business Growth

Why trust is becoming one of the most important drivers of business success

Filed under: Leadership

Trust is the foundation of effective leadership, employee engagement and sustainable business growth. Yet new research suggests that confidence in workplace leadership is declining at a time when organisations need it most.

The 2026 Edelman Trust at Work study, involving more than 10,000 employees across ten markets, reveals a concerning trend:

  • Trust in CEOs has fallen from 70% to 66%.

  • Trust in direct managers has declined from 79% to 72%.

  • Trust between colleagues has dropped from 82% to 73%.

These findings should concern every business leader seeking high growth.

As organisations navigate artificial intelligence, economic uncertainty and changing workforce expectations, employees are questioning whether those making important decisions genuinely have their interests at heart.

Perhaps the most revealing finding concerns organisational transformation. Among employees who experienced positive change, 82% trusted their CEO. Among those reporting negative experiences, that figure fell to just 49%.

The message is clear: successful transformation is not simply about strategy, technology or processes. It depends on how leaders engage, empower and support their people.

Here are five leadership behaviours that can strengthen trust and create the conditions for sustained business performance.

1. Communicate honestly, especially when the answers are uncomfortable

Trust begins with transparency.

Employees do not expect leaders to predict the future perfectly. They do, however, expect honesty about decisions that affect their roles, careers and livelihoods.

Consider an organisation introducing AI to improve productivity. Employees will understandably question whether automation threatens their employment.

Offering unrealistic reassurance may temporarily ease anxiety, but it risks damaging credibility when circumstances change.

Effective leaders distinguish between what is known, what remains uncertain and what happens next.

High Growth action: Establish regular communication opportunities where employees receive clear updates, can challenge assumptions and understand the reasoning behind important decisions.

Transparency builds confidence even when the message is difficult.

2. Encourage constructive challenge rather than discourage disagreement

One of the greatest threats to organisational performance is a leadership culture where people feel unable to speak openly.

When employees question decisions, some leaders interpret their concerns as negativity or resistance.

Yet disagreement can expose operational weaknesses, overlooked risks and opportunities for improvement.

High-performing businesses understand that constructive challenge strengthens decision-making.

Rather than becoming defensive, effective leaders demonstrate curiosity.

A simple question can transform the conversation:

“What are we missing that you can see from your perspective?”

High Growth action: Introduce regular opportunities for honest feedback and actively demonstrate how employee contributions influence business decisions.

When people feel heard, they become more confident about contributing ideas that drive innovation and growth.

3. Empower employees through greater ownership and accountability

Uncertainty often encourages leaders to increase control.

More approvals, additional reporting and closer supervision may appear sensible, but excessive oversight can undermine employee confidence and restrict productivity.

Trust grows when people are given meaningful responsibility alongside clear expectations.

Delegation is not about abandoning accountability. It is about defining outcomes, providing support and allowing capable employees to determine the most effective approach.

Empowered employees are better positioned to respond quickly to customers, resolve problems and identify improvements.

High Growth action: Review your decision-making processes. Identify where unnecessary management approvals delay progress and give employees greater authority within agreed boundaries.

Greater ownership can unlock both individual performance and organisational agility.

4. Turn empathy into meaningful leadership action

Empathy is frequently discussed as a leadership quality, but its value depends on how employees experience it.

Listening is important. Acting on what you hear is what builds credibility.

During restructuring, technological change or periods of intense growth, employees may experience uncertainty, increased workloads and concerns about their future.

Dismissing these concerns as an inevitable consequence of change can erode confidence.

Instead, effective leaders ask thoughtful questions, understand the underlying challenges and respond practically.

That might mean investing in training, improving workload management or communicating clearer expectations.

High Growth action: Make employee wellbeing, capability development and constructive feedback part of regular management conversations.

Empathy becomes a performance advantage when it creates an environment where people feel supported, valued and motivated.

5. Build trust into your business growth strategy

Trust should never be treated as a secondary leadership consideration.

The Edelman research found that 83% of employees experiencing positive organisational transformation were prepared to exceed expectations to help their company succeed.

Among employees reporting negative experiences, that figure was only 57%.

Although these findings do not prove that trust alone produces higher performance, they demonstrate a powerful association between employee experience and organisational commitment.

Businesses pursuing ambitious growth targets need people who are engaged, adaptable and willing to contribute beyond their immediate responsibilities.

A business coach can help leaders examine the behaviours, communication patterns and management practices that influence trust across their organisation.

Through honest reflection, leadership development and practical accountability, business coaching can help turn trust from an abstract aspiration into a measurable management priority.

High Growth action: Assess trust alongside your financial and operational indicators. Monitor employee feedback, retention, engagement and the effectiveness of organisational change.

The quality of leadership relationships deserves the same attention as revenue, profitability and strategic execution.

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