Trust in leadership erodes amid widespread disruption

New report asks organisations: 'Where are all the great leaders?'

Trust in leadership erodes amid widespread disruption

Employees around the world are giving their leaders poor marks as trust erodes in the face of mounting workplace challenges, according to a new report.

The report, released by the FranklinCovey Institute, identifies a growing gap between the type of leadership that organisations need and what most employees experience.

According to the report, only 7% of leaders are rated by their teams as having both high performance expectations and high care and support for the people they lead.

Less than half of employees (43%) also said their own leaders can be trusted, while two out of three employees have low confidence in the quality of today's leaders overall.

Most employees also described their leaders' management style as outdated (62%). Four in five characterise their manager's approach to AI leadership as "hands-off" (80%).

"Drawing from our proprietary global research, leadership surveys, and interviews with executives across industries, this timely report identifies a widening gap between the type of leadership organisations need to thrive, and what most employees experience today," said Adam Merrill, EVP of market and customer intelligence.

Challenges faced by leadership

The findings come as turnover among chief executive officers reaches a record high in 2025, according to data from the Russell Reynolds Associates (RRA).

The RRA report underscored that the CEO role has become "materially more complex and harder" than ever amid ongoing economic and political uncertainty, as well as scrutiny from investors.

FranklinCovey's research identified that there are three key challenges for leaders today. They are:

  • Continuous disruption
  • Diminished trust
  • Rapid advance of AI

"These forces seem almost engineered to fuel self-doubt and put leaders into a defensive posture," the report read.

"Competing demands and their interconnectedness tax judgement and endurance, leaving leaders with limited capacity for human connection. There is no clear playbook to follow or example to emulate."

According to the report, continuous disruption leaves leaders blind to the possibilities and opportunities that such disruption can provide.

In fact, 87% of leaders see disruptions as events that they need to survive, while only 13% recognise them as a strategic opportunity to innovate and grow.

Amid disruptions, leaders are also unable to earn the trust of their employees. The report found that outdated leadership styles are eroding employee trust, limiting what the workforce can contribute in times of change.

"And when we limit people, we limit performance," the report read.

AI has also been cited as one of the key disruptions in the workplace, and is the "clear and telling test" of leaders' ability to lead, according to the report.

The rapid advance of AI in workplaces has left organisations and company cultures scrambling to establish connection and trust, as more employees become more likely to believe AI tools over the judgement of their managers and their colleagues.

"Our message to the C-suite: AI has the potential to be a transformative lever for growth and performance — if people aren't an afterthought," the report read.

"People can change with AI to drive change, but only with great leaders."

Where are all the great leaders?

FranklinCovey's findings underscore the need for great leaders amid the accelerating pace of change at work.

"There's a great need for exceptional leaders who can navigate disruption and transform teams and organisations, while carefully balancing high demand and high care for all stakeholders," said Paul Walker, FranklinCovey CEO, in a statement.

Great leadership is not a skill an individual is born with, the report said, adding that it also cannot be uncovered in an applicant under a pile of job applications.

"It is something that can be learned and strengthened through practice," the report read. "We only need the will to build and reinforce great leaders who rise above position and title with courage and clarity."

How senior executives can help leaders confront the pressing questions brought about by disruption will have a "tremendous impact" on results, according to the report.

"Great leadership isn't a genetic gift, but it's a capability that can be built, practiced, and multiplied at every level of the organisation," Walker said.

"Leaders who can successfully respond to the forces disrupting their organisations will sustain both high trust and high performance, delivering breakthrough results in 2026 and beyond."

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