What Erodes Trust Between Employees and the Organisation? | Building a Culture of Trust at Work

Trust: The Foundation of Organisational Culture

In every organisation, trust is the invisible glue that holds everything together. It drives collaboration, engagement, and innovation. Without it, even the best strategies fail. When employees no longer trust the organisation or its leaders, performance declines. People become cautious instead of creative, compliant instead of committed, and quiet instead of honest.

So what causes trust to erode inside organisations — and how can leaders prevent it?  Let’s explore the top factors that break trust in organisational culture.

1. Lack of Transparency in Leadership

Nothing damages trust faster than secrecy. When leaders make decisions behind closed doors, share only partial truths, or spin difficult news, employees begin to assume the worst. Transparency doesn’t mean sharing every detail — it means being honest about what’s happening and why.

Clear, open communication builds confidence even during uncertainty.

2. Inconsistent or Unfair Practices

Perceived unfairness is one of the strongest trust killers in any workplace. When policies, recognition, or consequences are applied unevenly, employees start to question the organisation’s integrity.

Fairness isn’t just about equality — it’s about consistency. People trust what feels predictable and principled.

3. Broken Promises and Unmet Commitments

Every promise a leader makes is a small act of trust. When commitments — like career growth opportunities, flexibility, or rewards — aren’t delivered, credibility takes a hit. Over time, employees stop believing words and start judging only actions.

Consistency between what’s promised and what’s practiced is essential to sustaining trust.

4. Poor Communication at Work

In a communication vacuum, assumptions and rumours thrive. When employees hear about major changes from the media or social channels before they hear it from leadership, trust deteriorates.

Effective communication is open, timely, and two-way. It helps employees feel informed, respected, and valued — even when the message is tough.

5. Lack of Psychological Safety

A culture without psychological safety is a culture without trust. When employees fear speaking up, sharing feedback, or making mistakes, authenticity disappears. 

Leaders must create environments where people can be candid without fear of blame. That’s where innovation — and trust — grow strongest.

6. Misalignment Between Words and Actions

Employees notice when leadership says one thing and does another. Preaching “work–life balance” while rewarding burnout, or celebrating “inclusion” while tolerating bias, creates deep cynicism.

Trust flourishes when values and actions align. Authenticity is a daily practice, not a slogan.

7. Avoiding Difficult Conversations

When toxic behaviour or underperformance goes unchecked, it sends a message: “We care more about results than respect.” Addressing issues directly — and consistently — shows employees that integrity isn’t optional.

Courageous leadership means tackling uncomfortable truths before they damage trust and culture.

8. Transactional Relationships with Employees

Trust erodes when people feel like replaceable resources.If the relationship between employees and the organisation is purely transactional — based only on output — loyalty and engagement fade fast.

Genuine trust grows when people feel seen, supported, and valued as humans, not just workers.

9. Leadership Turnover and Instability

Frequent leadership changes or constant strategy shifts create uncertainty. When every new leader “redefines the vision,” employees struggle to believe in long-term direction.

Consistency in leadership builds credibility. Employees trust what feels stable and dependable.

10. Lack of Follow-Through on Culture Initiatives

Many organisations talk about culture — few commit to it. When values campaigns, wellbeing programs, or “culture weeks” lack ongoing action, employees quickly tune out.

Culture isn’t a marketing initiative. It’s a daily behaviour that’s reinforced by leadership, systems, and accountability.

How to Rebuild Trust in Organisational Culture

The good news? Trust can be rebuilt.

It starts with small, consistent actions:

  • Be transparent, even when it’s uncomfortable.
  • Keep promises and admit when you can’t.
  • Act fairly and hold everyone — including leaders — accountable.
  • Encourage honest conversations and listen deeply.
  • Align words with behaviours, every day.

Trust isn’t a “soft” measure — it’s a powerful performance driver.

When employees trust their leaders and organisation, engagement rises, collaboration deepens, and the culture becomes self-sustaining.

Final Thought

In a world where talent has more choice than ever, trust is your greatest competitive advantage. 

Building it takes time. Losing it takes moments.

And rebuilding it takes courage — the kind of courage that starts with leadership willing to look in the mirror and act with integrity.