Why Only 21% of U.S. Employees Trust Their Leaders—and How to Change That

Trust in leadership is the foundation of a thriving workplace. Without it, employees disengage, productivity suffers, and organizational performance declines. Recent data from Gallup reveals that only 21% of U.S. employees strongly trust the leaders of their organizations—a decrease from 24% in 2019. This decline coincides with changes in work dynamics during the pandemic, including remote work, Zoom fatigue, and shifting expectations. Leaders today face a critical challenge: how to regain the confidence of their workforce in a landscape of uncertainty, distributed teams, and heightened employee expectations.

The Role of Trust in the Workplace

Trust is the currency of organizational success. When employees trust their leaders, they are more likely to be engaged, motivated, and committed to achieving goals. Conversely, low trust can lead to disengagement, higher turnover, and decreased performance. Gallup research suggests that when leaders communicate clearly, inspire confidence in the future, and effectively guide change, employee trust rises dramatically—up to 95% in organizations that implement these practices.

Why Trust Matters:

• Productivity: Engaged employees are more efficient and motivated, contributing to better business outcomes.
• Retention: Trust reduces turnover by fostering loyalty and satisfaction.
• Revenue Impact: Disengagement linked to low trust costs the global economy an estimated $8.1 trillion annually.

Leaders who fail to cultivate trust risk undermining not only morale but also the organization’s bottom line.

The Impact of Remote Work and the Pandemic

The COVID-19 pandemic disrupted traditional workplace models, forcing many employees to work remotely. While remote work offered flexibility and revealed a more human side of leaders, it also created new challenges. Physical distance, communication gaps, and Zoom fatigue made it harder for leaders to reassure employees and provide consistent guidance. The result was a disconnect between leadership intentions and employee perceptions.

Example: Employees may feel uncertain about company strategy or their role in long-term plans if communication is irregular or unclear. Without frequent updates, employees can interpret silence as a lack of leadership, decreasing trust and engagement.

How Leaders Can Rebuild Trust

Regaining trust requires intentional action and a three-pronged approach: clear communication, confidence in the future, and effective change management.

1. Communicate Clearly
Transparency is critical. Leaders must share goals, strategies, and expectations openly, avoiding jargon or ambiguity. Consistent, honest communication signals competence and integrity.

2. Inspire Confidence in the Future
Employees need to understand not only what they are doing today but why it matters for tomorrow. Articulating a clear vision and demonstrating a path forward reduces uncertainty and fosters optimism.

3. Lead and Support Change
Change is inevitable in modern workplaces. Leaders must guide transitions thoughtfully, support employees through challenges, and provide the resources necessary for success. Demonstrating competence in change management builds confidence and trust.

Practical Steps to Strengthen Trust

Beyond general principles, leaders can implement specific practices to rebuild trust:

• Encourage Two-Way Feedback: Create channels for employees to share concerns, ideas, and feedback without fear of retribution.
• Recognize Contributions: Regular acknowledgment of achievements and effort reinforces value and respect.
• Foster Meaningful Work: Employees are more engaged when their tasks are meaningful and connected to broader organizational goals.
• Promote Flexibility: Adapting schedules, remote options, and work arrangements demonstrates care for employees’ well-being.
• Model Consistency: Leaders who act predictably, follow through on commitments, and exemplify company values inspire confidence.

The Consequences of Low Trust

Organizations that fail to rebuild trust face tangible risks. Disengaged employees are less productive, more likely to leave, and can negatively influence peers. Low trust environments also stifle creativity, innovation, and collaboration, making companies less competitive.

Economic Impact: Gallup estimates that low employee engagement costs businesses billions of dollars each year globally. Trust, therefore, is not just a cultural issue—it is a strategic imperative.

Recognizing When to Make a Change

While leaders can take steps to rebuild trust, employees also need to assess their own situation. In environments where trust is consistently lacking and leadership fails to act, it may be necessary to consider alternative opportunities. Companies that prioritize inclusivity, open communication, and employee development are more likely to retain and motivate top talent.

Examples of High-Trust Organizations:

• Organizations that offer flexible work arrangements and transparent leadership often report higher engagement and lower turnover.
• Employers who actively involve employees in decision-making processes create a sense of ownership and shared responsibility.

By fostering a culture of trust, companies can create sustainable competitive advantages while ensuring employees feel valued, supported, and motivated.

Rebuild Trust and Engagement in Your Team
Strong leadership starts with trust. In our Starting Your Own Business course, we teach how to develop leadership practices that inspire confidence, foster engagement, and build a culture where employees thrive. Learn strategies to communicate effectively, manage change, and create a workplace that empowers your team to succeed. Start today and become the leader who earns trust and drives lasting performance.