5 Hidden Consequences Of Leaders Not Trusting Employees

"Several corporations revoked their flexible work policies this year, with 'return to office' mandates becoming a common phrase. Executive leaders often cite a need for increased collaboration, yet evidence shows forced office working does not increase job performance. Many suspect the main driver is a loss of trust in employees. Here's four surprising consequences of what happens when leaders mistrust their own employees."

"Although 86% of business executives think employee trust is high, only 60% of employees think company leaders highly trust them, according to PwC's 2024 Trust in Business Survey. When employees feel a lack of faith stemming from the top, they stop documenting insights or sharing institutional knowledge. They do not believe their knowledge will be utilized or respected. Not sharing information creates silos and a breakdown of communication."

"When employees feel micromanaged, they forgo autonomy and independence in favor of satisfying an anxious boss. Delivering to a micromanaged leader's standards can feel unachievable, cumbersome, and impractical. Individuals will then create their own unofficially workflows and decision channels to make their job tolerable. Hidden workflows, side conversations, and personal systems that bypass leadership fragments information, slows collaboration, and creates business risk. Not only does this slow down delivery of work, it also perpetuates distrust throughout the workplace."

Many corporations revoked flexible work policies and issued return-to-office mandates despite evidence that forced office presence does not increase job performance. Executive frustration often stems from a loss of trust in employees, creating a gap between leaders' and employees' perceptions of trust. Low trust causes employees to stop documenting insights and sharing institutional knowledge, producing information silos and communication breakdowns. Micromanagement drives employees to build unofficial workflows, side conversations, and personal systems that bypass leadership, fragmenting information and slowing collaboration. Distrust erodes psychological safety, reduces upward feedback, and stifles innovation, increasing operational risk and weakening organizational continuity.

Read at Forbes