Change Erodes Employee Trust

A 2025 report from TalentLMS and WorkTango, Organizational Change: Cracks in the Transformation Playbook, reveals that although change initiatives drive innovation and growth, they may negatively affect employee trust and well-being. The research, a survey of 1,200 US-based workers, found that half of employees have lost confidence in leadership due to poorly managed transitions, with more than one-third citing a lack of transparency as a significant issue.

The emotional toll of organizational change is substantial. Nearly 60 percent of employees had increased stress levels, and 64 percent experienced heightened anxiety during transitions, according to the Organizational Change report. Despite those challenges, only 12 percent of respondents had access to mental health resources. Additionally, 46 percent faced heavier workloads, leading to a decline in work-life balance for 34 percent of respondents. "What's more, there's little support available and no tangible acknowledgment of the emotional and cognitive challenges employees face," the report explains.

Furthermore, Edelman's 2024 Trust Barometer Special Report: Trust at Work found a trust disparity between leadership and employees, with associates trusting employers 32 points less on average than executives. Associates are also 2.5 times less likely to trust their CEO than those in leadership positions. The same report notes that rank and file workers have greater difficulty during times of transition, with just 22 percent of employees experiencing change positively compared with 60 percent of executives.

A 2024 Gartner research report indicates that, generally, only 53 percent of the workforce trusts their employer, and only 63 percent of HR leaders say their organization trusts its own people. Mutual mistrust undermines organizational culture and hinders the ability to meet strategic objectives.

One persistent problem is a lack of company support for skills development during periods of change, notes Organizational Change. While 45 percent of employees recognized the need to acquire new skills, 47 percent reported insufficient L&D opportunities.

That neglect has consequences. Thirty- five percent of individuals indicated they were more likely to leave their organization due to recent changes, and Trust Barometer reveals a 39-point gap in economic optimism between executives and staff, affecting performance, productivity, and mental health.

Alter the dynamic by fostering a culture of transparency and investing in employee development and engagement to build a more resilient workforce, Organizational Change suggests.