In boardrooms across America, many top executives are fixated on financial metrics to drive shareholder value. Yet they’re missing the elephant in the room: their employees don’t trust them.

New data from Culture Amp reveals that only 38 percent of senior leaders at enterprise companies are perceived as trustworthy by their teams, quietly undermining the performance outcomes leaders seek.

This disconnect arises as employees realize their professional future hinges on decisions made by distant executives, rather than the team relationships they can influence.

According to Culture Amp research, teams led by trusted leaders show significantly higher engagement and retention, while only 24 percent of employees under ineffective leaders plan to stay. The solution requires leaders to fundamentally rebuild trust through practical strategies that address the root causes of disconnection in today’s workplace.

Lead with Transparency During Uncertainty

With layoffs surging 50 percent in the US in 2025, workers feel vulnerable. The harsh reality is that layoff decisions are made by small groups of top executives, often without input from managers who may themselves be impacted. When employees are immediately cut off without warning, those who remain feel jarring uncertainty about their futures.

“One of the hardest things about leadership today is inspiring the organization when there is constant change and uncertainty in the world around them,” explains Amy Lavoie, VP of People Science Experience at Culture Amp. “The best leaders don’t sugarcoat this. They state what they know, share the values and principles guiding decisions, and remind people what’s in their control to influence.”

Instead of generic reassurances, take ownership of the situation, share specific information about market conditions, strategic decisions, and the reasoning behind difficult choices. When confidentiality prevents full disclosure, explain what factors you can discuss and acknowledge what you cannot.

Make Recognition Personal and Consistent

Satisfaction with recognition has hit its lowest point globally since 2022, creating a motivation crisis that directly impacts performance. According to Culture Amp research, when employees feel valued by their managers, they’re 74 percent more likely to earn a high performance rating within the next year. Yet most recognition programs fail due to one-size-fits-all approaches.

“The great news about recognition is that it can be influenced at all levels and doesn’t always require major financial investment,” notes Lavoie. Simple strategies include asking senior leaders to send personal notes to employees who demonstrate company values, or implementing monthly team meetings where colleagues share specific appreciations for one another.

Build Psychological Safety Through Modeling Vulnerability

Employees who sustain high performance over time share a critical advantage: psychological safety. Culture Amp data shows that 83 percent of sustained high performers feel safe taking risks at work (9 percent higher than those whose performance declined after initial success).

In hybrid and remote environments, psychological safety manifests when people ask hard questions, share innovative ideas, and take ownership beyond their job descriptions. But this only happens when leaders model the behavior first.

“Psychological safety is built as members see others take risks and be appreciated, share vulnerabilities and be supported, or see people in positions of power stand up for others who are not in the room,” Lavoie explains.

Start by sharing your development areas and asking for help. Model vulnerability and support others who do the same. These meaningful moments establish deeper connections that teams can leverage for higher-stakes innovation and performance.

Focus on Relationship Quality Over Productivity Metrics

The data is clear; workplace relationships directly drive performance outcomes. Employees with strong team relationships are 39 percent more likely to receive high performance ratings, and those who feel part of their team are 31 percent more likely to excel, according to Culture Amp. Yet leaders often prioritize individual productivity over relationship building.

This approach backfires in our interconnected work environment. When employees don’t feel seen or valued, they disengage. When they hesitate to share ideas due to poor relationships, organizations lose creativity and problem-solving capacity.

“As a senior leader, recognize that you’re under a magnifying glass by your employees,” advises Lavoie. “But that inspection does not only happen during formal and scripted communications. It happens in small moments when you send a Slack message to a lower-level employee to thank them for their work, when you treat all employees respectfully, and when you ask questions to show curiosity and openness.”

The trust crisis in American workplaces is solvable. Leaders who prioritize transparency, personalized recognition, psychological safety, and relationship quality will not only rebuild trust but also unlock the sustainable high performance that has proven elusive through traditional management approaches. In an era where human connection drives competitive advantage, relational intelligence has become the most important currency of effective leadership.

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