Trust Never Sleeps: How TR Pros Can Stay Awake on This Issue

Layoffs, return-to-office (RTO) policies and artificial intelligence (AI) implementation are hammering trust in the workplace. But total rewards professionals have the tools to rebuild it, experts agree.

Just 23% of surveyed employees report having a strong sense of trust in their organization’s leaders, according to recent data from Achievers Workplace Institute, the research arm of software company Achievers. A similar study by consulting firm Gartner found less than half of polled employees trust their senior leadership. And, the 2025 Edelman Trust Barometer found 1 in 4 workers canvassed by the communications strategy firm don’t trust their employer to make ethical choices.

“Simply put, workplace trust is on shaky ground,” said Hannah Yardley, the chief people and culture officer at Achievers. “Building up employee trust is especially pertinent in today’s evolving workplace, where economic uncertainty and rapid change make for a more complex business landscape.”

Trust directly impacts employee experience, making it a total rewards (TR) issue, Yardley said. But she clarified it’s more than an HR initiative — it’s a corporate key performance indicator (KPI).

“A sense of belonging is critical to business success,” Yardley said. “When employees feel a strong sense of belonging, they’re twice as engaged, productive, satisfied and committed to their organization.”

Factors Impacting Trust

Experts agree that layoffs, workplace changes and AI are among the recurring factors that can erode trust.

Layoffs

Ned Feuer, the senior director of quantitative analytics and data science at Gartner, pointed to recent research that found employees are significantly less likely to trust senior leaders at their organization if leaders initiated layoffs or restructured in ways that affected workers’ roles or teams during the past 18 months.

“But it is not just these changes themselves that reduce trust; it also matters how leaders model and communicate change,” Feuer said. “Employees are significantly less likely to trust senior leaders at their organization when they engage in three trust-breaking behaviors: withholding information, scapegoating and retracting decisions.”

When organizations resort to layoffs as a means of cost-cutting, it can send a message that employee job security is not a top priority, said Fresia Jackson, the director of people science research at Culture Amp, an employee experience platform provider.

“This action directly contradicts the foundational element of trust, as employees feel their interests are being sacrificed for the company’s financial gain,” Jackson said. “Even the measures companies take to avoid layoffs, such as pay reductions, can erode trust.”

Workplace Changes

RTO efforts also can have a negative impact on trust.

A 2024 survey of U.S. workers by consulting firm PwC linked employee trust in their employer to autonomy over workplace and work setups. For example, 7 in 10 workers said flexibility around where and when they do their work would build trust.

“Many organizations have implemented [RTO] policies with little regard for employee preferences or individual circumstances, leading to feelings of disempowerment and lack of consideration among workers,” Jackson said.

Artificial Intelligence

Even though leaders may tout the benefits of AI tools, employees aren’t as convinced, Jackson said.

“While AI has the potential to streamline tasks and reduce administrative burdens, many employees perceive its implementation as a cost-cutting measure aimed at replacing human roles,” she said. “When organizations introduce AI without transparency or without involving employees in the process, it fuels anxiety and suspicion.”

Ways to Boost Trust

“Building employees’ trust levels doesn’t happen overnight; it requires consistent, intentional actions that take place over time,” Yardley said. “It’s a matter of showing — not just telling — employees that they are trusted.”

So, how exactly can organizations and their TR professionals move forward?

Feedback as a Foundation

For every action focused on keeping or enhancing workforce trust, obtain feedback and take it to heart.

Pulse surveys are a simple, scalable way to capture real-time employee sentiment and are much more effective than annual surveys, Yardley said. But an organization can’t stop at just collecting data — they need to put the feedback into action, she said.

“HR must share key insights from the results with managers — given that they have the closest day-to-day connection with employees — so managers can use the information in thoughtful one-on-one conversations,” Yardley said.

When employees feel heard and supported, trust can blossom and grow into a powerful driver that fuels employee performance.

Gain Trust by Being Trustworthy

Trust and truth are interconnected. So, above all, be true to your word and stand by what you offer, advised Dirk Doebler, the founder and CEO of Parento, a paid-parental-leave insurance company.

“If you offer remote work, honor it. If you offer paid parental leave, honor and encourage its use,” he said. “The minute management tries to backpedal on new policies, rewards and offerings, employees become leery and hesitant to engage.”

Honesty and transparency are critical — and pay transparency is a particularly effective way to demonstrate this commitment, said Gartner’s Feuer.

“Employee trust increases substantially alongside the degree of pay transparency that organizations offer,” he said. “We found that when employees have visibility into how their pay is determined, they have a stronger sense of security and trust in their organization.”

Don’t Skimp on Training, Empathy, Communication

Train your leaders to foster this transparency, consistency and accountability, Feuer added.

“Focus on key capabilities such as emotional intelligence, active listening and ethical decision-making,” he said. “By raising awareness of trust-breaking behaviors, leaders can adopt more transparent and empathetic actions, reinforcing consistent and authentic leadership practices essential for maintaining trust.”

Offer autonomy and flexibility to display empathy and show confidence in your workforce, said Jackson.

“This approach not only builds trust but fosters a sense of ownership and responsibility,” she said.

And, practice transparency in communication, even when sharing difficult information.

“Trust that employees can handle and appreciate honest, straightforward messages about the company’s situation and decisions,” Jackson said.

Recognize the Power of Recognition

Recognition programs also can be game-changers. Yardley stated that when a rewards and recognition program is thoughtfully designed, it can not only improve employee trust but boost average employee performance by 11.1%.

“In the workplace today, where salary increases may be off the table, trust and recognition are some of the most powerful levers HR can pull to encourage employee success,” she said.

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