How to Rebuild Trust in the Workplace: Effective Strategies for a Stronger Team

We all know that trust is the foundation of our familial, romantic, and friendly relationships, but much less talked about is that it’s the foundation of all interpersonal relationships, including those we have in the workplace.

Human beings are social creatures, and because of that, we look to others for a sense of psychological safety, regardless of whether it’s our best friend or our boss. We have to believe that the people around us want what’s best for us– or at the very least, they aren’t actively working against us.

Therefore, it makes sense that an essential ingredient of building great teams is whether or not its leaders start by building trust. Without it, teams fall apart if they even come together in the first place. Employee engagement plummets, communication breaks down, and the general atmosphere is tension instead of productivity.

Unfortunately, trust is fragile and easily damaged in a crisis, a misstep, or even a simple cast of hurt feelings. And once it’s lost, leaders have to respond quickly.

We’re discussing how leaders can address trust issues, help their employees feel safe again, and create a company culture that values accountability and open communication when things go wrong.

In the Workplace, Establishing Trust Matters

Research consistently shows that trust has a measurable impact on an organization’s success.

MIT Sloan Management Review demonstrated as such in a 2023 study that they undertook with a particular hypothesis in mind:

“… Companies in an array of industries are taking a more punitive approach, such as withholding benefits or strong-arming underperformers into taking a buyout. We contend that leaders need to take a fundamentally different tack, starting by asking the question, ‘How much do my employees trust me?'”

Their research demonstrably supported the idea that one of the main factors behind flagging engagement is a lack of trust in the workplace. MIT reports that trusting employees…

• Are 260% more motivated to work
• Have 41% lower rates of absenteeism
• Are 50% less likely to look for another job.

Part of the problem is that leaders have very different expectations about how much their teams trust them than reality reflects. In the same study, researchers found that around 25% of workers don’t trust their employer, but most employers overestimate workplace trust by almost 40%

Common Crises That Undermine Trust

There are countless ways leaders can compromise the trust of their employees, whether by speaking disrespectfully to a direct report behind closed doors or getting involved in a scandal that shakes up the entire organization. In fact, it’s more often an accumulation of smaller moments that, over time, erode people’s confidence in their leadership.

Here are a few examples of how different levels of crises, ranging from everyday frustrations to more severe violations, can chip away at trust in the workplace:

Lack of Communication

In the vast majority of cases, miscommunication doesn’t have any malicious intent behind it, but it’s still harmful for leaders who are working on building trust with their teams.

Consider this scenario: You email someone at 9:00 AM, saying, “I need to meet with you at 4:30 today.” You don’t give a reason why, but you don’t feel like you need to because the meeting, in your mind, is “no big deal.”

On the other side of that lack of communication is a person who will likely spend the rest of their day worrying about the countless reasons their manager needs to see them. They’ll wonder if they’re getting laid off, fired, chastised, or any other number of scenarios that they now have an entire workday to dream up.

There’s a very slim chance that the employee will be productive or have warm feelings toward you, even after they find out that the meeting was about following up on a project or helping out on a client pitch.

Sure, it’s no big deal once or twice, but failing to communicate clearly with your team all the time breeds doubt and uneasiness.

Failure to Deliver on Promises

Think of unmet expectations like ice accumulation on a tree over the winter– The branch won’t snap after the first storm, the second, or maybe even the third. But, eventually, something’s going to give.

When leadership makes promises, employees rely on those commitments to shape their experience at work, and when they go unfulfilled, it’s hard not to feel disillusioned with the organization.

If your team is at the point where they have zero faith in anything you say, it’s time to take a step back and reconsider your responsibility in making that happen.

Sudden Layoffs or Organization Restructuring

Work-related issues are third on the list of the eight most stressful life events, and financial difficulties are seventh. You have a lot of power over how people feel about their lives, even after they leave the office, and with that power comes the responsibility of handling potentially stressful information with empathy and understanding.

Even if the business reasons are sound, sudden announcements without proper explanation or communication can make people feel insecure and undervalued. They worry about their future and whether they’ll be able to recover from the change. Don’t force your employees to contend with more instability than they must.

Breaches of Company Ethics

At the more extreme end of breaches of trust in the workplace are ethical violations that call into question leadership’s integrity. Issues like sexual harassment or discrimination strike at the very heart of what employees expect from a safe, fair company, so if something like this comes up, you need to address it as soon as possible.

Failure to do so can signal that the organization’s values are hollow. If it goes beyond the walls of the office—which it almost certainly will—it can be incredibly destructive to your reputation and lead to legal consequences if left unchecked.

How Leaders Re-Establish Trust After a Crisis

A crisis can shake the very foundation of workplace culture, but it doesn’t have to be the end of the story. Leaders build trust when they recognize they’ve done wrong, listen to learn, and focus on a more positive future.

Acknowledge the Crisis

The first step in repairing trust is for leadership to demonstrate accountability by accepting responsibility for the crisis and its impact on the employees. Every person on your team needs to see that you’re not minimizing the issue or, worse, pretending it never happened. Transparency sets the right tone for rebuilding relationships.

Open Up Lines of Communication

This part is probably one of the most difficult for people leaders to embrace, and it’s understandable. Owning up to disappointing people who depend on you is hard. It can even feel impossible. However, if you truly want to regain trust, you have to have the confidence to openly share what happened, why it happened, and what you’re doing to correct the issue. If you don’t keep people informed, they will fill in the gaps, which can only further damage their expectations for a positive recovery.

However, remember that communication is a two-way street. There will be people in your organization who have questions or want to help with problem-solving. Be open to hearing that feedback, and listen humbly. When you present yourself as a human who makes mistakes, the chances are that many employees will respect the courage you’re demonstrating and are more likely to believe that you’re taking the necessary steps to repair trust.

Back-Up Your Words With Actions

While it’s important that leaders acknowledge work-related problems verbally, actions speak much louder than words. Your employees will be watching closely to see if leadership is following through on their promises, and failing to do so will only further hinder any efforts to build trust.

When you address issues, make sure that those actions are visible to employees and meaningful enough to actually demonstrate progress in correcting the root of the crisis.

Be Patient With Yourself and Your Employees

Rebuilding trust in the workplace is not an overnight process; depending on the severity of the crisis, you might have to build relationships from the ground up.

It will be frustrating sometimes, but the last thing you want to do is come off as insincere in your efforts.

Your employees are allowed to feel hurt when they’ve lost confidence in leadership, and it will be your ability to bear through the rough days ahead that will determine whether your teams move forward stronger than before.

Take Measures to Sustain Trust in the Workplace

Rebuilding trust after a crisis is one thing; sustaining that sense of security long-term is another. Leaders need to show day in and day out that they’re committed to honesty and accountability, not just when things go wrong but in all the small moments in between.

Take the time to do regular check-ins with your employees and listen to what they have to say. Show them that you care about them when you’re not actively trying to mend broken trust. Be present and consistent in creating a workplace where people feel safe enough to do their best work, and you’ll see the investment repaid tenfold

If you’re concerned about trust in the workplace or want to be more proactive in demonstrating transparency for your team, then you need the support of executive coaching with Lori Moen of Catalyst Group ECR. With Lori’s expertise, you can learn the strategies and skills to build and sustain trust with your team, helping your organization thrive well beyond times of crisis.

Schedule a consultation today, and watch yourself, your team, and your organization flourish.