“Trust is like the air we breathe – when it’s present, nobody really notices; when it’s absent, everybody notices.” Warren Buffett
Trust is the foundation of any successful organization, yet it is in crisis worldwide. The 2025 Edelman Trust Barometer shows that trust in businesses, government, media, and NGOs has significantly decreased. Employees are more skeptical about whether their leaders act in their best interests.
While business remains the most trusted institution at 62%, this trust is fragile. Employees expect leaders to demonstrate transparency, fairness, and ethical decision-making, yet many believe executives prioritize profit over people.
Great leaders know that trust is the ultimate differentiator. Fostering and maintaining trust directly affects the bottom line. High-trust organizations experience 50% lower employee turnover and outperform low-trust companies by up to 286% in stock market returns.
Trust in leaders is at an all-time low. The message for CEOs and managers is clear: trust must be intentionally built, nurtured, and protected. Without trust, engagement declines, turnover rises, and organizational success suffers. Fortunately, trust can be rebuilt through strong, values-driven leadership development.
The Cost of Eroding Trust in Business
A lack of trust in leadership is not just a reputation problem. It also impacts an organization’s profits. Studies show that when employees do not trust their leaders, productivity drops, innovation slows, and employees are more likely to disengage or leave. In contrast, companies that foster a culture of trust report higher employee satisfaction, stronger collaboration, and improved financial performance.
Distrust can also affect external stakeholders. Clients, investors, and partners prefer to work with organizations that demonstrate integrity and reliability. A business with a leadership team known for clear communication, ethical practices, and a commitment to employee well-being will be more likely to attract and retain high-value partnerships.
Why Leadership Development Is the Key to Rebuilding Trust
Crestcom L.E.A.D.R. provides a structured approach for leaders to develop the skills necessary to build and sustain trust. Managers can build a workplace culture of trust by seeing leadership as a journey, not just a one-time goal.
How Leaders Can Rebuild Trust with Employees
1. Commit to Transparent and Ethical Leadership
Trust erodes when employees feel leaders are not being honest. The 2025 Edelman Trust Barometer reports that 68% of people believe business leaders purposely mislead them. To counteract this, CEOs and managers must actively embrace transparent communication.
Action Steps:
- Be open about business decisions, challenges, and strategies.
- Regularly communicate the organization’s mission, vision, and values.
- Lead by example, act with integrity, and avoid over-promising.
2. Build Psychological Safety in the Workplace
Employees who fear retaliation or feel unheard will not trust leadership. Psychological safety, where people feel comfortable sharing ideas and concerns without fear, is a cornerstone of trust. Teams with a high level of psychological safety are more innovative and productive. Employees will feel more comfortable sharing ideas when they know their opinions are valued and that mistakes will not be met with punishment.
Action Steps:
- Encourage open, two-way communication and active listening.
- Recognize and act on employee feedback.
- Admit mistakes and show vulnerability. Leaders who acknowledge imperfections gain credibility.
3. Address Employee Fears About Job Security
The report highlights that job insecurity is at an all-time high, with employees fearing automation, outsourcing, and economic instability. Leaders must adapt to these concerns by investing in upskilling, reskilling, and career growth.
One of the top reasons people leave their jobs is a lack of career development opportunities. Managers who help their teams learn new skills will boost retention. They will also create a workforce that is more adaptable to change.
Action Steps:
- Provide continuous learning and leadership development opportunities.
- Implement mentorship and coaching programs to help employees advance.
- Offer clear career pathways to demonstrate a long-term commitment to employees.
4. Create a Culture of Inclusion and Fairness
Trust is strongest in workplaces where employees feel valued and respected. However, the 2025 Edelman Trust Barometer shows that employee fears of discrimination and bias are at an all-time high of 63% (up 10 points from 2024). Leaders must take intentional steps to foster an inclusive workplace.
Studies show that diverse and inclusive teams outperform their less diverse counterparts. When employees believe they are treated fairly and have equal opportunities, they are more engaged, committed, and productive.
Action Steps:
- Promote a culture of belonging and ensure every employee has a voice.
- Address discrimination concerns with clear policies and fair leadership practices.
- Recognize and celebrate diverse contributions within the organization.
5. Lead with Purpose to Build Lasting Trust
Employees today want to work for leaders and organizations that make a difference. The report shows that businesses focusing on societal impact enjoy higher trust levels. Leaders who integrate purpose into strategy will build stronger connections with employees and stakeholders.
Organizations that lead with purpose earn trust and drive stronger business results. Consumers and employees are more loyal to companies that align with their values.
Action Steps:
- Align business goals with meaningful social and ethical initiatives.
- Empower employees to participate in community-driven projects.
- Demonstrate how leadership decisions create positive outcomes for people and the organization.
Restoring Trust Requires Continuous Effort
You can’t build trust overnight. It requires consistent effort, ethical leadership, and a commitment to employee development. When leaders invest in their teams through training, open communication, and inclusive workplace cultures, they lay the foundation for trust that lasts.
Businesses that ignore the trust crisis risk higher turnover, reduced engagement, and a weaker competitive position. On the other hand, those who take proactive steps to rebuild trust will build stronger, more engaged teams that drive innovation and success.
Trust is a Leadership Responsibility
CEOs and managers have the power and responsibility to rebuild trust. Organizations prioritizing leadership development through programs like Crestcom L.E.A.D.R. will cultivate trust, engagement, and long-term success.
In a world where trust is declining, the most successful leaders will be those who take action today.
Ready to transform trust in your organization? Explore how Crestcom’s leadership development programs can equip your team with the skills to build lasting trust.
