Why Employees Lose Trust During Organisational Change (And How Leaders Can Rebuild It)
Organisational change has become a defining feature of modern workplaces. Whether driven by technological innovation, economic uncertainty, mergers and acquisitions, restructuring, evolving customer expectations or changing legislation, organisations are under increasing pressure to adapt quickly.
Yet while change is often necessary for long-term success, it can also be one of the greatest threats to employee trust.
Leaders frequently focus on the operational aspects of change like new systems, revised structures, financial outcomes or strategic priorities, but employees experience change in far more personal ways. They ask questions such as:
Will my role change?
Will my voice still matter?
Will my manager support me?
Can I trust the information I'm receiving?
Does leadership genuinely care about people?
These questions are not signs of resistance. They are natural responses to uncertainty.
Research consistently shows that trust is a critical factor in employee engagement, wellbeing, collaboration and organisational performance. During periods of change, trust becomes even
more important because employees are required to navigate uncertainty while continuing to perform, collaborate and adapt.
The good news is that change itself does not destroy trust.
Rather, trust begins to erode when employees feel excluded from decisions, uncertain about the future, or disconnected from leaders. Organisations that communicate openly, involve their people and demonstrate inclusive leadership are far more likely to maintain confidence throughout the change journey.
Trust is not built when everything is easy. It is built through the conversations, decisions and behaviours organisations demonstrate when uncertainty is highest.
Why Organisational Change Often Challenges Employee Trust
Every organisational change creates a degree of uncertainty.
Even positive changes, such as expansion, investment or digital transformation, can create anxiety because they disrupt familiar routines and introduce unknown outcomes.
Psychologists have long recognised that uncertainty increases stress because people naturally seek predictability and control. In workplaces, uncertainty often leads employees to interpret silence or ambiguity as a warning sign, even where no negative outcome exists.
This is particularly true when change affects people's employment, responsibilities, career opportunities or working relationships.
For leaders, organisational change may represent strategic progress.
For employees, it often represents personal uncertainty.
Understanding this difference is the first step towards maintaining trust.
Change Is Experienced Personally
One of the most common mistakes organisations make is assuming everyone experiences change in the same way.
In reality, change affects individuals differently depending on their:
role within the organisation
previous experiences of organisational change
job security
caring responsibilities
disability or accessibility needs
confidence with new technology
cultural background
mental wellbeing
relationships with managers
A restructuring that appears straightforward from an executive perspective may feel deeply unsettling to employees whose responsibilities, support networks or career progression are affected.
Similarly, introducing new digital systems may create excitement for some employees while generating significant stress for others who require additional training or accessibility adjustments.
Inclusive organisations recognise that successful change management requires understanding these different experiences rather than assuming one communication approach will work for everyone.
Why Employees Lose Trust During Organisational Change
Although every organisation is different, several common factors repeatedly contribute to declining trust during periods of change.
1. Lack of Clear Communication
Communication is one of the strongest predictors of trust.
When employees receive limited information, delayed updates or inconsistent messages, uncertainty quickly fills the gap.
People naturally begin asking questions:
"What aren't we being told?"
"Why is leadership avoiding this conversation?"
"Is there something worse coming?"
Often, the absence of communication creates more anxiety than the actual change itself. Employees generally understand that leaders may not have every answer immediately.
What damages trust is when organisations appear unwilling to communicate honestly about what they know—and what they do not yet know.
Transparent communication demonstrates respect.
Silence often creates suspicion.
2. Employees Feel Decisions Are Made Without Them
Many organisations communicate change only after major decisions have already been finalised.
While some commercial decisions must remain confidential, employees often distinguish between being informed and being involved.
Being informed means hearing about decisions after they have already been made. Being involved means having opportunities to:
share concerns
ask questions
offer ideas
influence implementation
identify unintended impacts
When employees feel excluded, they may perceive change as something imposed upon them rather than something they are helping to shape.
This weakens trust and reduces commitment.
Conversely, organisations that seek employee perspectives early often identify practical issues leaders may not have considered.
Employee voice improves both trust and decision-making.
3. Inconsistent Leadership Behaviour
Employees pay close attention to leadership behaviour during uncertainty. If senior leaders encourage openness while avoiding difficult questions, credibility suffers.
Similarly, if managers communicate different messages across departments, employees quickly lose confidence in organisational communication.
Consistency matters.
Employees are more likely to trust leaders whose actions match their words. Trust grows when leaders:
communicate regularly
admit uncertainty
acknowledge challenges
remain visible
follow through on commitments
Leadership behaviour often communicates more powerfully than formal announcements.
4. Previous Experiences Influence Current Trust
Trust does not begin at the start of organisational change.
Employees bring previous experiences with them.
If earlier change programmes involved poor communication, broken promises or limited consultation, employees may approach future initiatives with scepticism.
Likewise, organisations with strong cultures of transparency often find employees more willing to give leaders the benefit of the doubt.
Trust is cumulative.
Every leadership decision either strengthens or weakens it.
5. Different Groups May Be Affected Differently
Organisational decisions that appear neutral can affect employees in very different ways. For example:
Changes to hybrid working arrangements may disproportionately affect carers.
New technology may create accessibility barriers if inclusive design is overlooked.
Office relocations may impact employees with disabilities or long commuting distances.
Communication methods may unintentionally exclude employees without regular digital access.
Inclusive leadership requires considering these varied experiences before implementing change.
Employees are more likely to trust organisations that demonstrate they have considered the potential impact on different groups.
Communication Is the Foundation of Trust
Communication during organisational change is about far more than distributing information. It is about building relationships.
Research consistently finds that employees value honesty over certainty. Leaders often delay communication because they want complete answers. Ironically, this delay frequently increases anxiety.
Employees appreciate messages such as:
"Here's what we know today."
"Here's what we're still working through."
"We'll update you again next Tuesday."
These conversations demonstrate transparency while acknowledging uncertainty. Regular communication also reduces rumours, misinformation and speculation. Importantly, communication should not only happen when significant announcements are made.
Frequent updates (even when little has changed) help reassure employees that leaders remain engaged.
Involving People Creates Ownership
Trust grows when employees believe their perspectives matter.
Inclusive organisations create opportunities for meaningful participation throughout change. Practical approaches include:
Listening Sessions
Facilitated discussions allow employees to share concerns, identify barriers and contribute ideas before implementation.
Anonymous Feedback
Some employees feel uncomfortable raising concerns publicly.
Anonymous channels encourage honest feedback while protecting psychological safety.
Employee Networks
Staff networks often provide valuable insight into how change may affect different communities across the organisation.
Their perspectives can identify unintended consequences early.
Inclusion Impact Assessments
Considering how proposed changes may affect different employee groups helps organisations anticipate barriers before they occur.
Rather than viewing inclusion as a separate initiative, organisations can integrate inclusive thinking into everyday decision-making.
Recognising That Change Affects Everyone Differently
Inclusive change management recognises the human experience behind organisational transformation.
Leaders should consider questions such as:
Who may find this transition most challenging?
Are our communications accessible?
Have we considered neurodiversity?
Have we consulted disabled employees?
Will different working patterns create unequal impacts?
Are managers equipped to support wellbeing?
These questions help move organisational change beyond process management towards people-centred leadership.
Employees notice when organisations genuinely seek to understand their experiences. That understanding strengthens trust.
Accountability Builds Credibility
Trust cannot be maintained through communication alone. It requires action.
Employees assess organisational credibility by observing whether leaders follow through on commitments.
This includes:
acting on employee feedback
acknowledging mistakes
correcting poor decisions
sharing progress updates
explaining why certain suggestions cannot be adopted
Accountability demonstrates integrity.
Organisations that admit when aspects of change have not gone as planned often strengthen rather than weaken trust.
Authenticity creates credibility.
Inclusive Leadership Makes Change More Sustainable
Inclusive leadership is sometimes viewed as separate from organisational change. In reality, it strengthens every stage of the change process.
Inclusive leaders:
seek diverse perspectives
encourage psychological safety
communicate openly
listen actively
recognise different employee experiences
make evidence-informed decisions
balance business priorities with human impact
This approach creates stronger engagement because employees feel respected rather than managed. Trust becomes an outcome of consistent leadership behaviour rather than a communications exercise.
Practical Actions Leaders Can Take Today
Building trust during organisational change does not require perfect communication or complete certainty. It requires consistency, openness and genuine engagement.
Leaders can strengthen trust by:
Communicating early, even when all answers are not yet available.
Explaining the rationale behind decisions.
Providing regular updates to reduce uncertainty.
Creating opportunities for two-way dialogue.
Seeking input from employee networks and representatives.
Assessing how changes may affect different groups.
Equipping managers to have honest, empathetic conversations.
Acting on feedback and explaining decisions transparently.
Admitting mistakes and demonstrating accountability.
Embedding inclusion into everyday leadership practices rather than treating it as a separate initiative.
These actions help employees feel informed, respected and involved throughout periods of change.
Making Change Work for People
Periods of organisational change will always involve some degree of uncertainty. However, uncertainty does not have to result in declining trust.
Employees are remarkably resilient when they understand why change is happening, feel their perspectives are valued and believe leaders are acting with honesty and integrity.
Trust is built through everyday leadership decisions, through transparent communication, meaningful consultation, accountability and a genuine commitment to inclusion.
Organisations that place people at the centre of change are better positioned not only to navigate uncertainty but also to strengthen culture, improve engagement and build lasting organisational resilience.
As workplaces continue to evolve, inclusion should not be viewed as an additional consideration. It should be recognised as one of the most practical ways to build trust, navigate complexity and support people through change.
Change is inevitable, but uncertainty does not have to define the employee experience.
At Communicate Inclusively, we help organisations strengthen workplace culture, improve communication and embed inclusive leadership into everyday practice. By building trust through transparency, accountability and meaningful employee engagement, organisations can create environments where people feel valued, supported and able to thrive, even during periods of significant change.