How Leaders Broke Trust at Work (… and How to Repair It)

It didn’t have to be, and very likely wasn’t, intentional (even if, at times, it was). We know of many well-intentioned leaders who still broke trust because they didn't have the skills or lack the awareness to understand how some of their actions impacted trust.

However, it happened: Leaders broke trust at work.

Why?

Perhaps it was for lack of capabilities (skills or competencies), or maybe because they were promoted to leadership roles, they were unprepared for (which often happens because there wasn’t any other upward mobility available in their technical track, and leadership was all that was left), or simply because they don’t fully understand how absolutely significant and impactful their role (what they say, do, their behaviors and actions) is on the people they lead, both for the positive or the negative.

How Leaders Broke Trust

Leaders break trust in the workplace in several ways, often without realizing it.

We know there are a few “bad apples” out there in leadership (those who behave poorly toward the people they lead). However, more often than not, leaders don’t even know how their actions and behaviors break trust. Research highlights a few common culprits:

1. Lack of Transparency: According to the 2024 Edelman Trust Barometer, over 40% of employees report that their leaders do not communicate openly or truthfully, creating suspicion and disengagement.
2. Broken Promises: Leaders frequently overpromise, particularly when organizations face challenges like layoffs or restructuring. A study from DDI's 2023 Global Leadership Forecast found that less than half of employees believe their leaders will follow through on commitments.
3. Micromanagement: A survey by Gallup revealed that 70% of employees say micromanagement undermines their performance and morale. This erodes confidence in leadership and team dynamics.
4. Inconsistent Leadership: Frequent changes in direction, unclear priorities, or conflicting messages create uncertainty. PwC's 2023 survey showed that 35% of employees cite inconsistency in decision-making as a major barrier to trusting their leaders.
5. Ethical Lapses: Trust is shattered when leaders act unethically. Even small lapses, such as favoritism or perceived dishonesty, can have a ripple effect across an organization.

What Broken Trust Means for Business, Leaders, and People

The impact of broken trust extends far beyond the negative impact on a specific person or the overall quality of the relationships between the leader and the team and among team members. Broken trust affects everything:

• For Businesses: A lack of trust reduces employee engagement, leading to lower productivity and profitability. Research by MIT Sloan shows that high-trust organizations are 50% more productive, while low-trust workplaces face higher turnover and absenteeism.
• For Leaders: Leaders lose credibility and influence when trust is broken. Employees are less likely to follow guidance or support organizational goals, resulting in a disempowered leadership team.
• For Employees: Distrust fosters disengagement, stress, and burnout. Mental Health America’s 2024 report found that employees in low-trust workplaces were twice as likely to report mental health challenges.

Broken trust creates a downward spiral that affects every level of an organization.

How to Rebuild Trust

Rebuilding trust requires significant effort.

Leaders can’t fix the damage overnight, but they can take these evidence-based steps:

1. Prioritize Transparency: Leaders must communicate openly, even when the news isn’t positive. Share the “why” behind decisions and involve employees in problem-solving. Transparency fosters understanding and confidence.
2. Show Accountability: Admit mistakes and take responsibility. Employees trust leaders who model accountability, as demonstrated by the 2023 Edelman survey, where 72% of workers said they trust leaders more when they own up to errors.
3. Invest in Leadership Development: Many leaders are unprepared for their roles. Training programs focused on emotional intelligence, communication, and ethical decision-making can bridge this gap.
4. Empathize and Listen: Trust grows when employees feel heard. A Gallup study found that employees who believe their opinions matter are 4.6 times more likely to feel empowered. Leaders should foster dialogue and act on feedback.
5. Build Consistency: Leaders must align their actions with organizational values and ensure they are steady in their decision-making. Consistency demonstrates reliability, a cornerstone of trust.

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A Guide For Leaders to Boost Organizational Alignment

Alignment is the foundation of business success, and trust is one of the building blocks that enable true alignment.

In remote or hybrid work settings, people may risk feeling isolated or uncertain about expectations. Leaders and managers need to be intentional in creating safe spaces so that team members feel supported, valued, and empowered to do their best work. The absence of regular in-person interactions can create gaps between teams and even individual roles. Miscommunication, unclear goals, and disjointed priorities can quickly derail progress.

We created this free ebook in partnership with Workleap, the operating system for hybrid work. It offers practical strategies, tools, tech solutions, and templates to help managers build trust and collaboration and improve team and organizational Alignment.

? Download the guide here?? https://bit.ly/40Q6YxM

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