Leadership credibility hinges on aligning what leaders believe, say, and do. Any disconnect can lead to a loss of trust and credibility.
When leaders do not practice what they preach, they suffer significant penalties in terms of internal and external credibility, reputation, and business impact. Employee trust in leadership has declined significantly since the start of the pandemic. About 1 in 4 employees don’t trust their employer—and trust is a major component of employee engagement.
Authentic leadership is critical and builds trust when actions align with stated beliefs and values. A disconnect between a public-facing persona and actions significantly impacts employees’ trust and engagement. Leaders who are self-aware, transparent, ethical, and genuine in their interactions foster higher levels of trust.
When employees trust their leaders, they are more likely to experience positive outcomes, such as job satisfaction, well-being, and engagement. One untrustworthy act can significantly damage credibility. Leaders should only say things they genuinely believe in and their actions consistently reflect their beliefs.
Trustworthy leaders communicate and act consistently, embody the organization’s vision and values, consult with and listen to stakeholders, and protect the organization and its employees. They make decisions that align with both explicit and implicit promises made to stakeholders.
Trust is further eroded by unethical behavior, dishonest communication, and self-serving actions.
Leaders are always being watched.
Leaders must be mindful of their actions and behaviors, as they send strong signals about acceptable behaviors. Even minor ill-perceived actions or remarks can significantly impact team morale and create a toxic environment.
Employees under toxic leaders report impacts on their job satisfaction and motivation. Toxic leaders often have power issues and prioritize their agendas over the organization’s long-term success. Establishing a culture that promotes ethical behavior and encourages collective decision-making, safe feedback loops, and open communication can help mitigate the impacts of toxic leadership.
Leaders must fully engage in the issues they support to be perceived as genuinely making a difference. It is not enough to express support; leaders must be actively involved in addressing key challenges. Successful leaders engage in thoughtful public dialogue about their organizations’ issues and challenges.
Successful cultures do not categorize people. They see people with skill sets and know how to utilize them. Creating an inclusive environment where everyone feels valued and able to contribute is crucial for building a solid culture. They must be aware of the importance of each employee and create an environment that empowers people. Inclusion is a fundamental aspect of trustworthy leadership. Trustworthy leaders commit to being leaders for everyone and spend time with people at all levels of the organization, not just those in high positions or the C-suite. The phrase “people are our most important asset” is commonly heard but needs to be backed up by actions. Leaders must consistently promote and practice inclusion to create a truly inclusive company culture.
Organizations should champion empathy as a core value, setting high professional and personal interaction standards to inspire others and foster a positive, innovative culture—the critical role of empathy impacts engagement, trust, and innovation. Empathy and humility are necessary to build this trust, creating a psychologically safe environment for employees to express their needs and thrive. Leaders must rethink their approach to employee experience, acknowledge diverse perspectives, and leverage technology to align with modern expectations. Shift from Human Capital Management (HCM) to Human Experience Management (HXM) to emphasize putting employees at the center. Leaders must balance performance demands with the need to align, connect, and empower team members.
Ethical leaders act with integrity and authenticity and enable equitable opportunities, considering all viewpoints. This fosters a positive, ethical culture within organizations and enhances overall trust and cooperation. The link between integrity, ethics, and trust is crucial in leader-employee relationships. Leaders are judged on character and competence, with integrity associated with kindness and good intentions rather than selfishness. In one survey, 87% of employees “indicated that their workplace does not have a strong ethical culture.” This highlights a significant gap in effective leadership.
Building trust involves listening to employees and having two-way conversations. Employees are more likely to trust leaders who provide opportunities for honest feedback. Trust is essential for engagement, performance, and retention, and it begins with practical and supportive communication. There has been a significant shift in the leadership skills required, with a growing emphasis on social skills over traditional technical and administrative capabilities. Social skills now include self-awareness, effective communication, working with diverse groups, and understanding others’ perspectives. Social skills are crucial in large, complex, and technology-intensive organizations where effective communication and coordination are essential.
Leaders must spend significant time interacting with others, building teams, and solving problems. As routine tasks are automated, the need for leaders with judgment, creativity, and perception increases, highlighting the importance of social skills. Navigating diversity and inclusion issues requires strong social skills, particularly theory of mind, to effectively navigate and represent various employee groups. Companies must systematically build and evaluate social skills in their executive development programs. Traditional criteria for evaluating leadership candidates, such as work history and technical qualifications, must be revised to assess social skills. Promoting and nurturing social skills should be a criterion for advancement.
The alignment of a leader’s beliefs, words, and actions is essential for maintaining credibility and trust within an organization. Authentic leadership, characterized by self-awareness, transparency, ethical behavior, and genuine interactions, significantly impacts employee trust and overall organizational success. A strong organizational culture driven by ethical leadership, inclusivity, empathy, and effective communication is crucial for long-term success. Leaders must balance performance demands with the need to connect and empower team members, fostering a culture of learning, trust, and ethical behavior. By doing so, they can navigate challenges, drive engagement, and secure the organization’s future in an increasingly complex and dynamic world.