Why trust is the growth strategy too many leaders are missing

Trust is crucial for the success of any organisation, particularly during times of disruption. Its presence (or absence) significantly affects talent and, ultimately, business outcomes.

Employees who trust senior leaders are five times more likely to be highly engaged than employees who don’t, according to Gartner’s research. They’re also more likely to be high performers and feel included. Trust is critical to accountability, cooperation and good faith decision making.

Trusted leaders create environments where employees feel valued, heard and motivated to perform at their best. Yet, according to a recent Gartner survey, fewer than half of employees currently trust their leaders, which most often stems from them withholding information, scapegoating or retracting decisions.

Organisational change is also a key factor driving mistrust between employees and their leaders, especially during workforce reductions or restructures.

HR leaders are uniquely positioned to turn this around, helping leaders build confidence and credibility by equipping them with the tools to lead with transparency, accountability, consistency and empathy.

However, when it comes to trust, HR itself has work to do in its own backyard. A Gartner survey found just 44 per cent of employees trust their organisation’s HR function.

By embedding trust into leadership development and people strategies, organisations can establish an engaged workplace culture that drives sustainable growth through increased productivity and employee retention; and thrives, even amid uncertainty.

Invest in leadership development

With CEOs focused on driving growth in 2025, leaders need to make sure they’re doing their part to build trust and encourage employee effort.

HR can support leaders in this endeavour through the provision of development programs that build skills in emotional intelligence, active listening, effective and transparent communication and ethical decision making.

Providing coaching on consistent and authentic leadership practices will also help maintain employee trust and mitigate confusion when changes are made, or a new strategic direction is shared.

Assess employee trust and act on it

Gartner research shows that employees are far more likely to trust leaders when they feel their feedback is valued and acted upon.

HR should regularly take measures to understand current levels of trust and identify areas for improvement. These assessments can be incorporated into existing employee feedback processes, such as annual engagement surveys or through focus groups.

Critically, these surveys and questions must go beyond surface-level satisfaction metrics and dig into whether people feel genuinely valued and supported. For example, asking employees if they believe the organisation has their best interests in mind when making business decisions can be very telling.

The right questions will reveal whether trust is thriving or needs attention. They will also signal how well the organisation’s values are being adopted across the business.

There are many ways organisations can lead with trust. It might be empowering employees to identify and eliminate process hurdles; encouraging leaders to share stories of failure; or allowing employees to lead their cultural diagnosis.

Commitment to addressing the issues employees have raised will enhance trust. By consistently measuring and sharing examples of trust deficits, leaders can reinforce an open and responsive workplace culture where employees feel heard and respected.

Facilitate open dialogue

If employees are to trust leaders, they need to be able to engage with them directly. Gartner’s research, however, shows fewer than half of employees say they’re comfortable raising concerns with their manager.

By creating regular opportunities for employees to connect or speak with the leadership team, HR can help foster a sense of mutual understanding and accountability throughout the organisation.

These open dialogue sessions are particularly important for establishing empathy and connection among leaders and employees. This is critical, with Gartner research revealing employees are 6.5 times more likely to trust leaders who express authentic or genuine concern for the issues that employees care about.

By fostering open dialogue, HR leaders can create platforms for employees to voice their most pressing concerns and enable leaders to respond empathetically and directly. Creating structured spaces for honest dialogue demonstrates trust isn’t built through words alone; it’s earned through consistent action and an ongoing commitment to open communication.

Encourage transparency from leaders

While the foundations of trust are built on day-to-day actions, they’re put to the test during times of change and uncertainty. HR leaders can strengthen employee confidence during these challenging times by urging leaders to provide transparency and rationale about their actions, and the expected implications.

Communication from leaders holds great influence, with employees paying close attention to them. Gartner research shows employees are 4.3 times more likely to have faith in leaders who openly share the rationale behind their decisions, even when they don’t agree with the outcome.

HR teams have the power to turn trust into a clear business advantage, but it takes consistent action, a willingness to listen and transparency. Leaders who commit to earning this trust don’t just retain talent; they build workplaces where employees feel engaged and ready to contribute.

Neal Woolrich is the director of advisory in Gartner’s HR practice.