Trust in leadership is like Wi-Fi—you don’t think about it when it’s strong, but the moment it drops, everything slows down, people get frustrated, and eventually, someone threatens to quit. And just like a weak signal, low trust in leadership doesn’t just cause minor inconveniences—it brings everything to a grinding halt.
But here’s the kicker: Low trust doesn’t just hurt morale. It’s expensive. It drains productivity, damages workplace culture, and costs organizations millions in inefficiency, turnover, and lost opportunities. Let’s break it down.
The Financial Toll of Low Trust
Let’s start with cold, hard cash. Companies with low trust cultures have:
- Higher turnover rates (and hiring replacements isn’t cheap).
- Lower productivity (because second-guessing slows decision-making).
- More workplace drama (and drama is rarely efficient).
Imagine Company A—a mid-sized marketing firm that thought their turnover problem was a ‘millennial thing.’ Spoiler alert: It wasn’t. Employees didn’t trust leadership to make fair promotions, and as a result, top performers walked out the door faster than a bad date. The cost? Over $500,000 in rehiring, training, and lost productivity in a single year.
Meanwhile, Company B had the same industry, same challenges, but a leadership team committed to building trust. They focused on transparency, consistent communication, and following through on commitments. Their turnover? 25% lower than the industry average. The difference? Trust isn’t just nice to have—it’s a financial strategy.
The Cultural Fallout of Low Trust
Now let’s talk culture. Low-trust environments are exhausting. People spend more time covering their backs than doing their jobs.
Ever worked in a place where…
- Decisions feel secretive?
- Leaders say one thing but do another?
- Collaboration feels like an episode of Survivor instead of a team effort?
That’s the reality for so many teams that constantly miss deadlines because employees won’t take risks or share ideas. Why? Because every time something goes wrong, leadership plays the blame game. The result? Good people mentally check out, innovation flatlines, and top talent jumps ship to competitors.
Trust doesn’t just create a better workplace—it creates workplaces where people actually want to stay.
The Productivity Nightmare of Low Trust
Here’s a reality check: The less trust there is, the slower things move.
Low trust means:
- More micromanagement (because leaders don’t believe in their teams).
- More bureaucracy (because no one trusts employees to make decisions).
- More meetings (because no one trusts that anything will get done without them).
When leadership trusts employees to make smart decisions they empower their teams. Speed increases, work quality improves, and their engagement triples. A high-trust environment removes bottlenecks and lets people do what they were hired to do.
How to Assess (and Fix) Trust Issues in Your Team
So, how do you know if trust is an issue in your organization? Start with these questions:
- Do employees hesitate to share honest feedback?
- Do small decisions require excessive approval?
- Is there more gossip than collaboration?
- Do people take risks, or do they play it safe to avoid blame?
If you answered ‘yes’ to any of these, you’ve got a trust problem. But the good news? It’s fixable.
3 Steps to Start Rebuilding Trust Today
- Be Transparent – Trust thrives in clarity. Share the ‘why’ behind decisions, be open about challenges, and communicate frequently.
- Follow Through – If you say you’ll do something, do it. Nothing erodes trust faster than broken promises.
- Empower Your Team – Micromanagement is a trust killer. Give people autonomy, set clear expectations, and let them run with it.
Final Thought: Trust is a Leadership Choice
At the end of the day, trust isn’t built overnight, but it can be lost in an instant. Leaders who prioritize trust don’t just create happier teams—they create stronger, more profitable, and more resilient organizations.
So, what’s it going to be? A low-trust culture where everything feels like an uphill battle? Or a high-trust environment where people thrive, teams perform, and success follows?
Your move, leader.