Employees Are Losing Trust in Organizational Leadership

Only 52% of Gen Z respondents say they place trust in their organization’s leaders, compared to the 59% overall average.

Photo: Yakobchuk Olena via Adobe Stock

The employer-employee relationship is a crucial dynamic and plays an essential role in building trust and wellbeing within the workplace. A new study by Workhuman, a software solutions company, found that the degree of trust that employees place in their employers is evolving as organizations navigate uncertain times. 

According to the study, established work-life balance was the most important factor in building strong, trusting relationships between employers and employees. Seventy-five percent of employees agreed that work-life balance is the cornerstone of workplace wellbeing. Despite this, 1 out of 4 employees surveyed, reported that their company offered a lack of wellbeing perks or benefits beyond basic health insurance. 

The study found that this lack of wellbeing benefits was even more pronounced for women – only one-third of whom reported receiving additional wellbeing benefits beyond basic health insurance. 

Additionally, as layoffs continue to permeate the labor force, employees are losing trust in their organizational leaders. While 65% of men expressed that they had trust in their company’s leaders – only 52% of women said the same. 

Younger generations – Gen Z in particular – were also less likely to say they trusted organizational leadership. Only 52% of Gen Z respondents said they placed trust in their company’s leaders, compared to the 59% overall average. 

The study found that younger generations, such as Gen Z and millennials faced a greater susceptibility to company layoffs – contributing to greater feelings of burnout. On average, Gen Z respondents were twice as likely to be laid off when compared to millennials, Gen X and boomers. 

Low morale and a lack of trust take a toll on employee wellbeing and productivity. In today’s day and age, many employees experience productivity anxiety – or the feeling that there is always more to be doing. The study found that a large majority – 83% – of respondents globally, reported suffering from productivity anxiety. 

In response to these sentiments, the study recommends that employers take steps to recognize and reward employees for their work, encourage colleagues and managers to share more regular feedback and illustrate how employee’s day to day tasks impact business goals.