The Trust Equation

5 Ways Great Leaders Build and Strengthen Trust for Positive Impact

At a recent event a colleague, Sarah Hassaine , ResMed Head of Diversity and Inclusion, and I were speaking about the articles I’ve written in the Global LeaderSHYFT Newsletter. She asked if I had written an article on the topic of “trust”. I responded I had not and that she had just given me the topic for my next article. Enjoy…

Building trust within teams isn’t just an abstract ideal. Trust is the backbone of effective teamwork, driving open communication, collaboration, and productivity. Without it, even the most talented teams can fall into patterns of miscommunication, low morale, and disengagement. For leaders, building and maintaining trust within teams is essential not only for fostering stronger relationships but also for achieving long-term success. But trust doesn’t come automatically—it requires conscious effort, consistent actions, and leadership that prioritizes people as much as results.?

Why is trust so critical? A trusted team is a high-performing team. It is a team where accountability is strong, relationships are meaningful, and members are willing to take risks, share ideas, and lean on one another. But trust isn’t built overnight—it requires intentional effort, consistency, and thoughtful leadership. When leaders actively prioritize trust, they empower their teams to reach new levels of achievement and cohesiveness.

Here are the five ways leaders can create an equation for building and strengthening trust within their teams, along with clear benefits for both the leader and the team:

1. Lead by Example and Demonstrate Integrity: The foundation of any successful team begins with leadership that consistently demonstrates integrity. Integrity isn’t just about honesty—it encompasses a broad spectrum of values, including transparency, fairness, and responsibility. Leaders who demonstrate integrity set the standard for their teams. By keeping promises, making consistent decisions, and owning up to mistakes, leaders establish credibility and trust. This has a ripple effect throughout the organization, creating an environment where trust, accountability, and mutual respect are the norms. Team members look to leaders for cues on how to behave, and when they see integrity in action, they are more likely to follow suit.?

Perhaps most importantly, leaders who are willing to own up to their mistakes demonstrate humility and responsibility. Rather than deflecting blame or making excuses, they take accountability, showing that it’s not about being perfect—it’s about learning and improving. When leaders lead by example, they don’t just manage—they inspire, motivate, and build a team culture based on trust and shared values. This vulnerability not only humanizes leaders but also encourages team members to be honest about their own missteps, fostering a culture of growth and continuous improvement. In short, integrity is not just a leadership trait; it is a leadership imperative. According to research from PwC, 85% of employees are more likely to trust leaders who demonstrate integrity and consistency in their actions.?

• Action Step: Leaders should commit to following through on promises and decisions, especially during challenging times. Admit when mistakes happen, take responsibility, and outline a clear path to resolution. This consistent behavior builds a foundation of reliability.
• Benefit to the Leader and Team: When leaders act with integrity, they build a solid foundation of trust, creating a team environment where members feel secure and motivated. Trust in leadership fosters loyalty and increases overall team cohesion.

2. Promote Open and Transparent Communication: Trust flourishes when communication is open, honest, and transparent. Leaders who foster open communication create an environment where team members feel comfortable sharing ideas, raising concerns, and offering feedback without fear of judgment or retaliation. “Listening to understand” instead of listening to respond, agree or disagree is critical during open communication. I like to say “if agreement is the currency for open communication, then trust, creativity, and innovation are in trouble.” Transparent communication can ensure everyone is aligned, minimizing misunderstandings and enhancing accountability. According to a Gallup study, teams that prioritize transparent communication are 17% more productive and report 21% higher engagement than teams that lack such practices.

• Action Step: Leaders should establish regular team check-ins, one-on-ones, and feedback loops where team members can share their thoughts, challenges, and ideas. Encourage an atmosphere where decisions, goals, and changes are openly communicated. Actively listen to concerns and ideas to ensure that every voice is valued.
• Benefit to the Leader and Team: Open communication improves team morale and engagement, allowing leaders to identify and address issues early. Teams that communicate well are more likely to collaborate effectively and stay aligned with organizational goals.

3. Provide Autonomy and Empower Decision-Making:? According to a Harvard Business Review study, teams that are given autonomy are 20% more engaged and experience a 30% increase in productivity, with greater trust reported between leaders and team members. Trust grows when leaders empower their team members to make decisions and take ownership of their work. Micromanagement erodes trust, whereas autonomy shows confidence in the team’s abilities. Allowing individuals to take responsibility for their tasks and make decisions fosters innovation and a sense of accountability, all while strengthening trust.?

• Action Step: Delegate tasks to team members and trust them to make decisions within their areas of responsibility. Provide guidance where necessary, but resist the urge to micromanage. Encourage your team to solve problems on their own and come to you with solutions rather than questions.
• Benefit to the Leader and Team: Autonomy empowers team members to take ownership of their work, resulting in higher engagement and productivity. Leaders may spend more time coaching and offering feedback initially then benefit by freeing up their time to focus on strategic priorities while fostering a culture of trust, innovation and accountability.

4. Encourage Feedback and Continuous Improvement: Trust grows in environments where feedback is welcomed and viewed as a tool for growth. A high performing work environment is a “feedback-rich” environment. Encouraging constructive feedback—both giving and receiving—shows that the team is committed to continuous improvement and values each other’s contributions. When feedback is framed positively, team members feel supported and are more likely to trust their peers and leaders. Zenger Folkman reports that teams that actively give and receive feedback show a 15% increase in performance and higher levels of trust, as individuals feel more invested in one another’s growth.

• Action Step: Leaders should create a feedback culture by regularly soliciting input from the team and encouraging open dialogue. This includes fostering an environment where feedback is delivered respectfully and focuses on growth opportunities rather than criticism.
• Benefit to the Leader and Team: A feedback-rich culture leads to higher levels of trust and performance as team members feel valued and supported in their development. Leaders gain insights into their own performance and can adjust their leadership style to better serve their team.

5. Recognize and Celebrate Milestones: Recognition goes beyond a simple “thank you”; it reinforces that the effort, dedication, and contributions of team members are noticed and valued. This act of acknowledgment signals to employees that their hard work is an essential part of the team's success, and in turn, strengthens the relationship between team members and leaders. According to Psychological Bulletin, teams that regularly celebrate successes and milestones report 31% higher levels of trust and 27% higher team performance, as recognition boosts morale and fosters a culture of appreciation. In short, recognition is not just a feel-good gesture; it’s a strategic tool that builds trust, promotes engagement, and drives success.?

Celebrating milestones and achievements, both big and small, helps build trust by reinforcing that leaders value the hard work and dedication of their team members. Regularly recognizing accomplishments fosters a sense of appreciation and shared success, which strengthens the bond between team members and leaders. Recognizing milestones provides tangible evidence that leaders are paying attention to progress. When team members feel that their contributions matter, they are more likely to stay motivated, perform at their best, and remain committed to the team’s mission. A Gallup study found that employees who feel recognized are 3 times more likely to be engaged in their work and show a higher level of commitment to their organization.

• Action Step: Don’t rely on generic praise—acknowledge specific contributions and efforts. Tailor your recognition to what matters most to the individual. Make it a point to celebrate not only project completions but also individual efforts and progress along the way. Acknowledge milestones through public recognition, personal notes of thanks, or team celebrations. The key is to make recognition a consistent part of your leadership approach.
• Benefit to the Leader and Team: For leaders, celebrating achievements enhances team motivation, loyalty, and engagement, which leads to better overall performance. Recognition can boost employee retention. Studies from Harvard Business Review show that employees who feel appreciated are more than 40% less likely to experience burnout, which is critical in high-pressure environments. Recognizing achievements prevents disengagement and helps maintain a positive, energized atmosphere even during challenging times.

Conclusion: Strengthening Trust for Positive Impact

Building trust within teams isn’t a one-time action—it’s a continuous process that requires thoughtful leadership, consistent effort, and intentional strategies. Trust is the foundation of any high-performing team, and leaders play a crucial role in cultivating it. By leading by example, promoting open and transparent communication, encouraging continuous improvement, and celebrating achievements, leaders can create a strong culture of trust that benefits both the team and the organization.

The benefits of this Trust Equation being applied in a team environment are clear: higher engagement, improved collaboration, and stronger performance. Leaders who prioritize building trust will find their teams more cohesive, adaptable, and capable of achieving their shared goals.