9 Proven Ways Leaders Can Build Organizational Trust

Sep 12

Trust is the invisible currency that drives organisational performance. When employees trust their leaders and each other, they take initiative, share information freely, and focus on solving problems rather than protecting themselves. Research compiled by leadership advisors shows that organisations in the top quartile for trust have around 50% higher productivity than their low‑trust peers. High‑trust environments dramatically improve employee retention and wellbeing; according to the above research, employees report:

Trust empowers boards and management to have frank discussions, enabling better decisions and faster execution. It transforms the way people respond to change – the most critical factor in organisational transformations – by replacing resistance with constructive engagement and relational resilience. Without trust in the workplace, even smart strategies are sabotaged by defensive behaviours. In short, trust is not a warm feeling, but a measurable metric that contributes to innovation, collaboration, and resilience.

In this article, we use the formula Trust = Credibility × Character × Connection to organise nine science‑backed ways leaders can improve workplace trust. For each factor, we outline an organisational practice to build trust and then describe three leadership behaviours that individuals can apply immediately. Each technique includes research insights, before/after examples, and a case study to illustrate the leadership behavior that contributed to increased trust within their organisation.

Diagnosing the Trust Gap

Before improving trust, leaders must understand where the gaps lie. The 2024 PwC Trust Survey found a striking perception gap:

86% of executives say they highly trust their employees, but only 60% of employees feel highly trusted.
90% of executives think customers highly trust their company, while only 30% of consumers agree.
While 93% of business leaders believe that building and maintaining trust improves the bottom line, many organisations lack structured metrics for trust.

To diagnose and analyze the trust gap in the workplace, we recommend the following:

Conduct trust pulse surveys and 360‑degree feedback. Regular, anonymous surveys can assess perceptions of leadership credibility, character, and connection across employees, customers, and investors. The Leadership Trust Audit is an evidence‑based, 360‑degree feedback tool that invites colleagues to rate a leader’s behaviours against these dimensions. When aggregated across teams, this trust audit becomes a culture diagnostic revealing where trust supports performance and where it erodes, providing leaders with a clear roadmap for improvement.
Analyse sentiment and behaviour. Behavioural metrics such as participation in optional initiatives, employee referrals, and candid feedback offer more reliable insights than self‑reported scores. High voluntary engagement or high referral rates indicate that employees trust the organisation enough to invest their time and reputation.
Close feedback loops. Share results with stakeholders and set targets for improvement. Use follow‑up discussions, listening sessions, and action plans to demonstrate that their input leads to meaningful change.

By combining quantitative surveys, behavioural data, and qualitative interviews, leaders can spot where trust is strongest, where it’s weakest, and which interventions will make the biggest impact.

Credibility: Demonstrating Competence and Expertise

Case Study: Cross‑Functional Collaboration Spurs Credibility

A mid‑sized technology company noticed that product launches were consistently delayed. The CEO realised that silos between engineering, marketing, and customer support were eroding trust and slowing decision‑making. To rebuild credibility, she changed how she showed up. Rather than staying in her executive silo, she personally facilitated cross‑functional “scrum of scrums” meetings, invited contributions from all levels, and modelled inclusive language that resonated with each team. She signalled competence early by referencing past successful launches and explaining how the new process would work, and she consistently asked high‑quality questions to uncover roadblocks.Within a year, employees began sharing information freely and taking initiative. High‑trust organisations have been shown to achieve around 50 % higher productivity and 76 % higher engagement; this company experienced similar gains as the CEO’s personal commitment to showing up differently encouraged teams to speak up and solve problems together.

Organisational Practice: Build Systemic Credibility

Employees judge expertise not only through titles but through the systems around them. High‑trust companies institutionalise competence by investing in continuous learning, knowledge sharing, and transparent processes. Cross‑functional collaboration and inclusive decision‑making break down silos and allow expertise to be recognised beyond hierarchical boundaries. Research shows that teams who collaborate across departments report higher levels of trust and better performance, and inclusive decision‑making activates employees’ reward centres, increasing trust and cooperation. Organisations can encourage skill‑sharing workshops, create accessible repositories of best practices and normalise transparent discussion of how decisions are made. These structures mean that when leaders signal competence, the organisation’s credibility reinforces their message.

Technique 1: Signal Competence Early

Why it matters. People form rapid judgments about competence in the first moments of interaction. Neuroscientists describe the brain as having an “experience bank” that remembers past behaviours; early signals strongly influence future trust. Leaders who quickly establish credibility give others confidence that they are capable.

How to do it. When entering a new role or meeting, briefly outline your relevant experience and how you will tackle the challenge. Anchor your statements with evidence (previous outcomes, data, or customer results). Articulate success criteria up front so others know you have a clear plan.

In the cross‑functional collaboration case study above, the CEO applied this principle by referencing past successful launches and mapping out the new workflow during the first meeting. By outlining what she would do and how she would measure success, she helped colleagues from engineering, marketing, and customer support gain confidence in her leadership.

Before/After. Before: A new team lead introduces herself with just her title and says, “I’ll figure things out.” Team members are unsure of her abilities and hesitate to seek guidance. After: The leader greets the team, briefly summarises a similar project she led to success and outlines the first steps she’ll take (“I’ll start by mapping our current workflow and identifying bottlenecks”). The team sees a competent leader and engages quickly.

Technique 2: Ask High‑Quality Questions

Why it matters. Questions are a powerful signal of critical thinking. Research on psychological safety shows that teams with leaders who actively listen and invite questions have greater innovation and better performance. Asking thoughtful questions shows you want to understand the problem before solving it, which increases others’ perceptions of your competence.

How to do it. Replace quick answers with thoughtful questions. Clarify objectives (“What outcome are we aiming for?”), diagnose constraints (“What is preventing us from moving forward?”) and probe for underlying assumptions. Make your reasoning transparent by summarising (“So the core constraint is…?”) before proposing solutions. This demonstrates that you are processing information rather than jumping to conclusions.

In our cross‑functional collaboration example, the CEO used diagnostic questions during the “scrum of scrums” meetings to uncover roadblocks and encourage teams to share information. By asking, “What’s preventing us from meeting our launch dates?” and “How can each function contribute to a smoother rollout?”, she signalled critical thinking and empowered others to speak up.

Before/After. Before: An executive hears a problem and immediately proposes a solution. Later she learns she solved the wrong problem, damaging credibility. After: She instead asks, “What factors are driving this delay?” and “What do we need to achieve for success?” After listening, she summarises the constraint and proposes a targeted plan. Her team feels heard and trusts her expertise.

Technique 3: Display Domain Fluency in Context

Why it matters. Expertise alone does not create trust; people need to see that your knowledge is relevant to their context. Cross‑functional collaboration research shows that sharing knowledge across domains boosts trust and performance. Tailoring your language and examples to your audience reduces confusion and signals fluency.

How to do it. Avoid generic jargon and adapt your communication to your listeners’ vocabulary. Draw parallels to familiar patterns (“I’ve seen similar dynamics in supply chain projects; what worked was…”) and calibrate depth to the situation(concise in a crisis, deeper in strategic discussions). Use data and stories that resonate with your audience. When in doubt, ask clarifying questions to gauge their level of understanding.

The CEO in our case study tailored her language to each department. When speaking with engineers, she used technical analogies, while with customer support teams, she emphasised user impact. This ensured her expertise felt relevant and fostered trust across functions.

Before/After. Before: A technical leader speaks in acronyms and deep algorithmic detail to a finance team. The finance staff disconnect and doubt his relevance. After: He explains the same project using parallels to risk management, referencing successful case studies in another division. The finance team sees the connection and trusts his guidance.

Reflective Questions – Credibility

Do I clearly communicate my relevant experience and approach when leading new projects?
How often do I ask diagnostic questions to understand the problem before proposing solutions?
Am I adapting my language and examples to my audience rather than relying on jargon?

Character: Acting with Integrity and Consistency

Case Study: Radical Transparency Restores Trust

A national retail chain experienced rising turnover and allegations of favouritism because bonus and promotion decisions were obscure. A newly appointed CEO recognised that she needed to change how she showed up to rebuild trust. She publicly acknowledged past inconsistencies, stopped hiding behind HR processes, and personally explained the reasoning behind compensation decisions. She introduced transparent criteria for bonuses and promotions, published the decision process, and invited employee representatives to sit on review panels. When mistakes occurred, she owned them and explained how she would fix them. Unfair practices chip away at trust in the workplace, and poor communication or lack of transparency breeds speculation and disengagement. By closing the say–do gap and practising values‑aligned transparency, the CEO signalled her character and encouraged others to follow suit. Employee engagement increased, and turnover decreased as staff felt respected and were more willing to voice concerns and collaborate on improvements.

Organisational Practice: Embed Ethical Standards and Fairness

Trust in leadership and perceptions of fairness are pivotal for fostering employee commitment. Authentic leaders—those who are self‑aware, transparent, balanced in their decision‑making, and guided by internalised moral values—generate higher levels of cognitive trust and positive behaviours than other leadership styles. Organisations can support character by codifying ethical principles, establishing fair systems for resource allocation and promotion, and implementing no‑blame cultures. Research on psychological safety shows that teams with no‑blame cultures are more innovative and perform better. Formal ethics programmes, transparent decision criteria, and visible accountability help institutionalise good character, making it easier for leaders to act consistently.

Technique 4: Close the Say–Do Gap

Why it matters. Trust at work erodes quickly when leaders fail to follow through. A study cited by Science of People notes that leaders who consistently kept their promises were viewed as more trustworthy and effective. Reliability builds a track record in the brain’s “experience bank”, reinforcing character and integrity.

How to do it. Make clear commitments using “I will” language, set realistic timelines and publicly follow through, even on small promises. At the end of each day, review your commitments and set reminders. When you fall short, acknowledge it directly and explain how you will address it. This openness can actually increase trust because it demonstrates accountability.

In the case study, the CEO closed the say–do gap by publicly committing to announce bonus decisions by a specific date and then following through. When she missed a deadline, she owned the miss and explained how she would prevent a repeat. These visible actions signalled reliability and rebuilt confidence.

Before/After. Before: A manager frequently says, “I’ll get back to you soon,” but often forgets. Her team stops believing her. After: She says, “I’ll review the report by Friday afternoon and share my feedback by end-of-day.” She adds a calendar reminder, meets the deadline and explains any delays. Her team sees her as dependable and feels comfortable relying on her.

Technique 5: Practice Values‑Aligned Transparency

Why it matters. Research demonstrates that leader transparency is positively related to trust. Authentic leadership theory emphasises relational transparency—openly sharing thoughts, feelings and decision rationales—as a core dimension. Transparency reduces ambiguity and risk, making leaders appear both moral and capable.

How to do it. Explain the why behind your decisions, especially when outcomes are difficult. Name trade‑offs (“This decision is tough because…”) and be honest about challenges and mistakes. Share relevant information broadly, from company results to personal struggles that affect your work. Encourage questions and feedback to show you value input.

The CEO in the case study lived this principle by inviting employees into the bonus process and explaining the rationale behind compensation decisions. She acknowledged past mistakes and trade‑offs, inviting questions and criticism. Her candour demonstrated that transparency and fairness were core to her leadership.

Before/After. Before: During a workplace restructuring, leadership communicates only that “changes are coming” without details. Rumours spread, eroding trust. After: Leaders explain the financial pressures necessitating cuts, outline the criteria for decisions, and invite questions. Employees still disagree with some outcomes, but they appreciate the candour and perceive the process as fair.

Technique 6: Model Fairness Under Pressure

Why it matters. Authentic leaders who act with high integrity and fairness cultivate strong relationships and foster a perception of organisational justice. In uncertain times, trust and perceptions of fairness are crucial.. When resources are scarce or decisions are contested, employees watch how leaders allocate benefits and burdens; consistent fairness signals that decisions are driven by principles rather than bias.

How to do it. Use consistent criteria when allocating resources or making personnel decisions. Slow down and consider whether stress or personal preferences are influencing your judgement. Apply the same standards across team members and situations, and share the reasoning behind your choices to demystify your process. Invite a colleague to challenge you if you’re unsure about your objectivity.

In the case study, the CEO modelled fairness by establishing clear criteria for bonuses and promotions and inviting employee representatives to participate in decisions. By slowing down to reflect on her biases and applying the same standards across the organisation, she demonstrated principled decision‑making under pressure.

Before/After. Before: During a bonus review, a supervisor awards a larger bonus to a favoured employee without explaining why. Others feel slighted and disengage. After: The supervisor establishes clear criteria (performance metrics, team contribution, growth), applies them consistently, and communicates decisions transparently. Even those who receive less feel the process was fair and maintain trust.

Reflective Questions – Character

Do my actions reliably match the commitments I make to my team?
When I make a difficult decision, do I explain the reasoning and trade‑offs behind it?
How do I ensure fairness in resource allocation, recognition, and accountability?

Connection: Fostering Relationships and Belonging

Case Study: Building Connection in a Remote Team

During the pandemic, a pharmaceutical research team shifted to hybrid work. Morale dipped and conflicts escalated as meetings became transactional. The manager realised she needed to change how she showed up to rebuild the connection with the team. She started each meeting with brief personal check‑ins, practised body and language mirroring to build rapport, and highlighted small wins each week. She consciously expressed enthusiasm, interest, and validation, and when tensions sparked, she managed her emotions and invited others to reflect. Neuroscience shows that positive emotions like enthusiasm and appreciation trigger oxytocin and dopamine, while stress hormones inhibit trust, and that active listening and validation are key to psychological safety. Over six months, team members reported higher psychological safety, faster problem resolution, and fewer interpersonal conflicts. Trust transformed how they experienced change—they engaged constructively rather than defensively and supported one another through challenges.

Organisational Practice: Create a High‑Connection Culture

Connection amplifies credibility and character by generating emotional bonds and belonging. Neuroscience shows that trust triggers oxytocin release, and cooperation activates dopamine, as where stress inhibits trust. Organisations can build workplace connection by cultivating psychological safety (no‑blame cultures), cross‑functional collaboration, and inclusive decision‑making. Regular recognition (e.g., “win walls”) and transparent communication (e.g., “Transparency Tuesday”) reinforce belonging. Flexible work policies also increase trust; research found that employees with flexible schedules were 40% more trusting than those without flexibility.

Technique 7: Build Rapport Before Getting Down to Business

Why it matters. Connection is built through micro‑behaviours like mirroring, appropriate personal questions, and finding common ground. Trust research highlights the importance of subtle social signals; our brains track non‑verbal cues and past interactions. Active listening is a key component of psychological safety.

How to do it. Spend the first few minutes of meetings connecting. Use body mirroring by aligning your posture, gestures, and expressions with your counterparts to create familiarity. Practise language mirroring by incorporating meaningful words or phrases they use. Before meetings, find common ground by researching shared interests or experiences and preparing thoughtful questions. Demonstrate genuine curiosity through eye contact, leaning in, and focused attention.

In the remote‑team case study, the manager began each meeting with personal check‑ins and mirrored participants’ body language and tone. These simple rituals helped colleagues feel seen and built rapport before turning to business.

Before/After. Before: A sales manager opens a client call by immediately reviewing contract details. The conversation feels transactional. and the client remains guarded. After: He begins by asking about the client’s recent marathon (a shared hobby he learned about), mirrors her enthusiasm, and uses similar terminology. The client relaxes and the negotiation proceeds smoothly.

Technique 8: Express More Positive Emotions

Why it matters. Positive emotions create a neurological loop of trust: showing enthusiasm or appreciation can trigger oxytocin and dopamine in both parties, reinforcing connection. High‑trust companies enjoy happier employees and greater engagement. Conversely, constant negativity raises stress hormones that inhibit trust.

How to do it. Begin interactions with energy and excitement (“I’m excited to work with you”). Demonstrate interest by asking open questions and leaning in. Offer validation (“I understand what you’re saying”) to acknowledge the other person’s perspective. Smile genuinely and use warm vocal tones. Celebrate small wins publicly and frequently—recognising progress signals care and promotes positive emotions across the team.

In the connection case, the manager expressed more positive emotions by celebrating weekly wins, acknowledging her colleagues’ efforts, and showing genuine enthusiasm. These behaviours created a feedback loop of trust and energy.

Before/After. Before: A project leader starts each meeting with a long sigh and immediately points out problems. Team morale drops. After: She begins with a “win of the week,” expresses enthusiasm for the team’s progress, and engages members by asking them to share successes. Team energy rises and collaboration improves.

Technique 9: Limit Negative Emotions

Why it matters. Negative emotions likeanger, defensiveness and fear trigger cortisol production and inhibit trust. They can lead to a cycle of blame and reduce psychological safety. Organisations with no‑blame cultures are more innovative and perform better, suggesting that managing negative emotions is critical for trust.

How to do it. Keep disagreements respectful by focusing on the substance of the argument and avoiding threats or defensive language . When emotions run high, pause to breathe and refocus on shared goals. Manage physical signs of tension—avoid fidgeting, maintain calm speech and open posture. If you slip, acknowledge your reaction and reset the conversation. Encourage “lessons learned” sessions to normalise discussing mistakes without blame.

In our remote‑team example, the manager limited negative emotions by remaining calm when conflicts arose and refocusing discussions on shared goals. She modelled constructive disagreement and helped others reset after tense moments.

Before/After. Before: During a disagreement, a manager says, “If this isn’t fixed by tomorrow, there will be consequences,” and rolls his eyes when challenged. Team members shut down. After: He says, “Let’s talk about what’s causing this issue and how we can solve it together,” while maintaining calm body language. The team feels safe to share ideas and collaborates to resolve the problem.

Reflective Questions – Connection

Do I take time to build rapport before diving into agenda items?
How frequently do I express genuine enthusiasm, interest and validation in my interactions?
When disagreements arise, do I manage my reactions to keep the conversation respectful and focused on the issue rather than the person?

Conclusion: Trust as a Competitive Advantage

Trust multiplies the value of everything leaders do. Without connection, credibility and character don’t land. Without character, competence feels hollow. Without credibility, warmth alone is ineffective. High‑trust workplaces enjoy striking advantages—higher productivity, lower stress, more innovation, and stronger retention. The nine techniques described here offer leaders and organisations specific, science‑backed ways to strengthen each component of trust. By investing in systems that institutionalise credibility, embedding fairness and no‑blame cultures, and modelling behaviours that foster connection, organisations can unlock the full potential of their people.