The labor crisis isn’t just about headcount, it’s about heart. In today’s volatile economy, the biggest threat to workforce performance isn’t a lack of talent. It’s a lack of trust.
According to new research from KQV and Optimize, employee engagement has hit its lowest point since the pandemic. The culprit? A widening Trust Gap between leaders and their teams. And the cost is staggering:
- 14% drop in productivity
- 23% lower profitability
- 67% of disengaged employees plan to leave within a year
In a market where every hire counts and retention is gold, trust isn’t a soft skill, it’s a strategic advantage.
Source Information Found Here.
What the Data Tells Us About the Trust Gap
The latest KQV survey reveals an interesting trend: employees trust their direct managers more than executive leadership. And when trust breaks down, so does engagement.
- Employees with high trust in leadership report an eNPS (Employee Net Promoter Score) of +66
- Those with low trust? -83
- Honest communication boosts eNPS by +66; dishonesty drops it to -84
Even flexibility, often seen as a perk, is actually a signal of trust. Flexible-hybrid workers report an eNPS of +42, while mandatory-hybrid drops to +4. The message is clear: trust drives loyalty, performance, and retention.
Why Trust Is the Best Talent Strategy
At KQV, we believe trust is the foundation of every high-performing team. It’s not just about being liked, it’s about being believed. When employees trust their leaders, they:
- Stay longer
- Work harder
- Innovate more
- Spread positivity
Here’s how to close the Trust Gap and build a resilient workforce in today’s labor crisis:
- Protect & Deepen the Talent You Have
- Double Down on Culture
- Refine Your Workforce Strategy
- Design for Flexibility and Autonomy
- Upgrade Your Employer Brand
- Get Sharper with Hiring
- Track the Right Data
From Surviving to Thriving
Fear thrives in uncertainty. But trust transforms it. Leaders who build trust don’t just retain talent; they create cultures that thrive through turbulence.
The labor crisis isn’t a pause; it’s a pivot. The leaders who act now will emerge stronger, with teams that are loyal, engaged, and ready to grow.
Want to dive deeper on the Trust Gap?
Download our full white paper on the Trust Gap that includes actual strategies to support each of the 7 steps recommended in this blog and start securing a stronger team today.
