New report urges leaders to be transparent on changes
Eight in 10 workers say they rarely or never trust leadership to put employees' interests ahead of profit, according to new research, a finding that puts the onus on organisations to rethink how they communicate during periods of change.
LiveCareer's Trust Under Pressure report found that trust in leadership erodes most sharply when businesses face financial difficulty, announce layoffs, or introduce AI-driven change.
According to the report, 73% do not trust leadership to be fully honest during periods of financial difficulty, while 40% said they believe leadership is never transparent at all during such times.
"Trust begins to erode when employees believe business decisions consistently favour financial outcomes over people," the report read. "Even difficult decisions are more likely to be accepted when workers feel leadership has genuinely considered their interests alongside the organisation's priorities."
Among respondents who had experienced layoffs or restructuring at their employer, 71% believed leadership was at least somewhat dishonest or withheld information when explaining the decisions.
Only six per cent said leadership clearly explained the reasons and context behind the cuts.
"The effects of layoffs don't end when the job cuts are announced," the report read. "For employees who remain, unanswered questions about why decisions are made can prolong uncertainty and make it harder to rebuild trust."
Trust regarding AI, upskilling
The same eroding trust manifests when it comes to AI. Seventy-one per cent of workers said they expect their employer to either downplay automation's impact on jobs or avoid discussing it until employees feel the effects firsthand. Only nine per cent expect full transparency on the issue.
Reskilling is another area where trust hangs in the balance. Seven in 10 workers said they believe their employer would be unlikely to invest in retraining or upskilling employees whose roles are affected by AI, a perception that, if left unaddressed, risks deepening disengagement among workers already anxious about the future of their jobs.
What needs to change
The report underscored the need to be transparent about what's changing and to communicate openly how those decisions may affect employees.
"Businesses are often faced with difficult decisions and for employees, the uncertainty surrounding those decisions can be just as unsettling as the outcome itself," said Jasmine Escalera, career expert for LiveCareer.
"Workers need to feel there is a clear, open line of communication so they can understand what is changing, how it may affect them and how to prepare for what comes next."
