As workers navigate a challenging labor market and growing uncertainty about AI-driven change, trust in workplace leadership has taken on greater importance. The Trust Under Pressure report, by online resume builder LiveCareer, found that 73% of workers do not trust leadership to be fully honest during financial difficulties, while 71% questioned the explanations provided during layoffs or restructuring.
Key Findings
- Trust gives way to profit: Four in five workers (80%) say they rarely or never trust leadership to put employees’ interests ahead of profit when the two conflict.
- Financial hardship erodes confidence: Nearly three in four workers (73%) do not trust leadership to be fully honest and transparent during periods of financial difficulty.
- Layoff explanations leave employees skeptical: 71% believe leadership was at least somewhat dishonest or withheld information when explaining layoffs or restructuring.
- Workers expect limited transparency around AI: 71% believe their employer would either downplay AI’s impact on jobs or avoid communicating about it until employees experienced the effects themselves.
- Reskilling inspires little confidence: Seven in ten workers (70%) believe leadership would be unlikely to invest in retraining or reskilling employees whose roles are affected by AI.
Workers Believe Profit Takes Priority
Eight in 10 workers rarely or never trust leadership at their employer to make decisions with employees’ best interests in mind when those interests competed with profit:
- 40% say profit was always the priority.
- 40% say employees were usually second to profit.
- 14% say employee interests were often considered, but profit usually won.
- 6% say employees always came first.
Financial Difficulties Put Transparency to the Test
Employees were also uncertain about the level of transparency provided by their employer during times of financial difficulty:
- 40% believe leadership was never transparent.
- 33% believe leadership was not fully honest about what was happening.
- 19% believe leadership shared limited information.
- 8% believe leadership was fully open and transparent.
Layoffs Leave Lasting Questions
Among respondents who experienced layoffs or restructuring at their employer, just 6% said leadership clearly explained the reasons and context. Most instead reported limited transparency about the reasons behind those decisions:
- 36% feel leadership obscured the reasons.
- 35% feel leadership was not truthful at all.
- 23% feel leadership shared some information but withheld details.
- 6% feel leadership clearly explained the reasons and context.
Employees Expect AI Communication to Fall Short
Most workers were skeptical that their employer would communicate openly if AI or automation affected jobs:
· 40% believe leadership would downplay or minimize the impact to protect the company’s image.
· 31% believe leadership would say nothing until employees felt the effects.
· 20% expect leadership to share limited information.
· 9% expect leadership to be fully transparent.
Workers Doubt Employers Will Invest in Their Future
Workers expressed limited confidence that their employer would invest in retraining or reskilling them rather than replacing them if AI changed their role:
- 40% say retraining or reskilling is not likely at all.
- 30% say it is not very likely.
- 22% say it is somewhat likely.
- 8% say it is very likely.
Trust Concerns Extend to Employee Wellbeing
Workers reported limited trust that leadership would consider employee wellbeing and mental health when making business decisions:
- 42% do not trust leadership at all to consider wellbeing.
- 30% rarely trust leadership to do so.
- 22% sometimes trust leadership, but feel business considerations usually come first.
- 6% completely trust leadership to prioritize wellbeing.
“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.” To view the full report and for more information, please visit https://www.livecareer.com/resources/careers/trust-under-pressure
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Tags: Firm Management, leadership, staff
