How Employee Trust Shapes Workforce Performance
Across major labour markets, trust in organisations is declining. This change is not anecdotal, it’s measurable. Global surveys show that confidence in leadership, organisational decision-making and workplace stability is weakening, creating a growing trust gap between employers and the people they aim to hire and retain.
This erosion is emerging as a critical factor in workforce performance and talent attraction. As market conditions continue to shift across the UK, Europe, the Middle East, APAC and ANZ, trust is becoming a defining variable in how organisations compete.
A Global Decline in Organisational Trust
Multiple workforce studies point to a sustained drop in employee confidence:
- Edelman’s Trust Barometer reports that only 51% of people trust their employer, a decline from pre-pandemic levels.
- Gallup’s State of the Global Workplace shows that 62% of employees do not feel confident in leadership honesty and transparency.
- PwC’s Global Workforce Survey notes that one in four employees do not believe their company’s values are reflected in everyday behaviour.
These trends indicate a widening disconnect: employees and candidates increasingly question whether organisations communicate clearly, act consistently and uphold their stated commitments.
The Changing Dynamics of Candidate Behaviour
Trust erosion is also reshaping how candidates approach the job market.
Data from global hiring platforms shows:
- Nearly 50% of candidates review employer reputation before applying (Glassdoor Hiring Insights).
- 42% decline applications if they perceive inconsistencies between employer branding and real employee experience.
- More than half of jobseekers say job descriptions feel inaccurate or inflated, contributing to scepticism during hiring processes.
Candidates are now evaluating employers with the same thoroughness employers use to evaluate them. They assess leadership visibility, organisational transparency, employee development, diversity commitments and long-term stability before making decisions.
Applications may be decreasing in volume, but expectations are increasing in depth.
Internal Trust and Workforce Stability
Inside organisations, trust continues to influence engagement, retention and performance.
According to Deloitte’s 2025 Human Capital Trends, the top three drivers of employee disengagement are:
- Lack of clarity around organisational direction
- Perceived inconsistency between stated values and internal practices
- Insufficient communication from leadership
When trust weakens, organisational alignment weakens with it. Employees become less confident in decision-making, less willing to take initiative and more likely to explore external opportunities.
High-trust organisations, by contrast, demonstrate:
- 30 – 40% higher employee engagement
- Increased discretionary effort
- Stronger retention and internal mobility
- Better collaboration across teams and geographies
Trust directly impacts operational performance.
Why Trust Is Becoming a Strategic Advantage
As workforce expectations shift, trust is emerging as a competitive differentiator.
Organisations that communicate clearly, act consistently and maintain transparent decision-making outperform in recruitment and employee retention, particularly in markets where skill shortages and workforce mobility remain challenges.
Trust strengthens:
- Employer reputation
- Leadership credibility
- Cultural stability
- Candidate attraction
- Workforce adaptability during change
In a global labour market defined by volatility, trust provides structural resilience.
How Employers Can Rebuild Trust
- Increase transparency around decisions
Clear reasoning behind restructures, hiring plans, policy changes and organisational priorities reduces speculation and supports stability. - Align values with daily practice
Employees quickly recognise when culture statements do not reflect reality. Consistency builds confidence. - Prioritise leadership visibility
Regular communication from senior leaders, especially during periods of change helps reinforce alignment and direction. - Strengthen accuracy in hiring communication
Job descriptions, expectations and growth paths must reflect the actual experience. Precision builds credibility from the first interaction. - Deliver on commitments predictably
Trust grows through reliability. Small promises kept consistently have greater impact than large initiatives delivered inconsistently.
Our Perspective
With operations across the UK, Europe, the Middle East, Asia and Australia, RGH has a clear view of how trust shapes workforce outcomes. In every region, the organisations thriving are those that invest in credibility… internally and externally.
This trust recession presents challenges, but it also offers an opportunity. Employers who rebuild credibility now will be better positioned to attract aligned talent, retain high-performing teams and navigate ongoing shifts in the global workforce.
Building trust begins with clarity, consistency and the right workforce approach. RGH supports organisations in designing people strategies that reflect who they are and where they want to go. Visit rgh-global.com for more.