Background
A large corporation, highly regarded in its industry, recently faced a stark decline in productivity and employee morale. An external consulting firm traced these issues directly to a breakdown in leadership trust and employee empowerment.
Rather than trusting directors and managers to lead their teams, C-level leaders micromanaged day-to-day operations and constantly moved employees into unrelated positions.
One employee expressed the impact of poor leadership trust:
“It took me 18 months of working 12-16 hour days to finally feel competent in the new role they forced me into — and it wasn’t even in my field of study.”
These words underscore a deep misalignment between leadership behaviors and employee well-being.
Symptoms of a Failing System on Trust and Employee Empowerment
Instead of practicing trust-based leadership, executives insisted on close oversight and abrupt role changes. As a result, employees lost confidence, felt devalued, and struggled to find motivation.
To address declining productivity, leaders launched a superficial “productivity initiative,” posting words like “Empower” and “Trust” on office walls. However, without real employee empowerment, these were hollow gestures. Employees quickly saw that leadership’s promises lacked authentic action, undermining trust in leadership further.
Meanwhile, cost-cutting measures targeted experienced, high-performing employees — not based on actual performance metrics but on salary alone. This approach signaled a deep disregard for employee empowerment and a lack of respect for their contributions.
The Car Analogy: A Misaligned Machine
Imagine a company as a car. In Driving Engagement (Liechty & Williams, 2022), leadership is compared to the engine of a high-performance car, while employees are the wheels, suspension, and other vital parts. When executives micromanage instead of empowering, it’s like trying to steer a car by forcing the wheels manually instead of using the steering wheel — a sure path to breakdown.
Cars need fuel or charging to function; likewise, employees require leadership trust and empowerment to fully engage and be productive. Leaders who fail to fuel their teams properly drain their energy and hinder performance.
When leadership focuses on control instead of trust, they creates friction, akin to driving with the parking brake engaged. In contrast, trust-based leadership allows each team member to perform their role seamlessly, creating a smooth, high-speed journey toward organizational goals.
Underlying Causes
1. Lack of Leadership Trust
By over-managing and frequently shifting employees, leaders communicated a deep distrust in employee capabilities. Without leadership trust, psychological safety diminishes, innovation stalls, and engagement declines (Edmondson, 2018).
2. Absence of Authentic Employee Empowerment
True employee empowerment requires more than slogans — it demands consistent support, resources, and autonomy. Without it, motivational words ring hollow.
3. Short-sighted Cost-Cutting
Laying off seasoned, high-performing staff instead of evaluating real productivity shows a transactional mindset that undermines both leadership trust and employee empowerment (SHRM, 2023).
Proposed Solution
To rebuild leadership trust and employee empowerment, leaders must return to two fundamental principles: organization and communication.
Organization
Executives must understand and respect their strategic roles, trusting managers and employees to execute operational tasks based on their skills and experience. Just as an engine trusts the wheels to handle traction, leaders must empower staff to do what they were hired to do.
Communication
Transparent, consistent communication is essential for trust-based leadership. Leaders should support professional development, recognize contributions, and create an environment where employees feel genuinely valued.
As Driving Engagement emphasizes, high-performing teams depend on “fuel” in the form of trust and empowerment, not intimidation or superficial slogans.
Why It Matters: People as the Ultimate Investment
Employees are the organization’s greatest investment — not merely financially but emotionally and culturally. A focus on leadership trust and employee empowerment treats individuals as valued partners rather than replaceable costs.
When leaders operate from a place of fear and control, they stifle creativity and productivity. Conversely, trust-based leadership fuels a thriving culture, allowing employees to excel as part of a well-oiled machine on an open road.
Recent Supporting Research
- Gallup State of the Global Workplace Report (2025): Only 21% of employees feel engaged worldwide. Micromanagement and lack of trust are top contributors to disengagement.
- Society for Human Resource Management (SHRM) Report (2023): Organizations with strong leadership trust climates outperform others by up to 50% in productivity.
- Amy Edmondson’s Work on Psychological Safety (2018): High psychological safety — rooted in trust and empowerment — fosters innovation and reduces turnover.
Conclusion
This case shows the vital importance of leadership trust and employee empowerment. Leaders must act as strategic drivers rather than controlling mechanics. By empowering employees and building genuine trust, organizations create a culture that accelerates success, just like a finely tuned sports car racing confidently toward its destination.
References
Edmondson, A. C. (2018). The Fearless Organization: Creating Psychological Safety in the Workplace for Learning, Innovation, and Growth. Wiley.
Gallup. (2025). State of the Global Workplace Report. State of the Global Workplace Report – Gallup
SHRM. (2023). The High Cost of a Toxic Workplace Culture. https://www.shrm.org/hr-today/news/hr-magazine/winter2023/pages/the-high-cost-of-toxic-workplace-culture.aspx
Liechty, E. & Williams, M. (2022). Driving Engagement. Williams & Co. Publishing.
