The people science experts at Energage uncovered a shocking discovery: while 90% of senior managers have confidence in their company’s leadership team, only 77% of team members agree. This stark disconnect raises important questions about the perception and effectiveness of leadership within organizations.
We invite you to explore why confidence in leadership is critical to success, get practical tips for improvement in both the short and long term, and learn what to watch for to ensure employees feel confident in your organization’s leadership.
Why confidence in leadership matters
To achieve great things, organizations need great leaders – those who can steer the ship, inspire employees, and make tough decisions. Employee confidence in those leaders is critical to achieving success, as they must trust leaders to steer them safely. When leaders instill confidence, it motivates employees to work harder, encourages innovative ideas, and enhances retention.
Employees confident in their leaders also feel more secure in the future of the organization and their place in it, and that trust can be a boon when the organization faces more turbulent times. All of this translates to a stronger culture and stronger company performance.
Confidence in leadership at Top Workplaces vs. other organizations
Aspiring organizations are those striving to become Top Workplaces, and they generally have stronger cultures than average. While 69% of employees at aspiring organizations responded positively to the Confidence in Leadership statement on the Workplace Survey, the number jumps to 82-97% at Top Workplaces.
- 69% Aspiring Organizations
- 82% Top Workplaces
- 97% Top 10% Top Workplaces
New insights on confidence in leadership
Several new statements have been added to the survey as part of Energage’s commitment to evolving the Workplace Survey to meet the changing needs and expectations of organizations and their employees. One of these new statements addresses confidence in leadership:
I have confidence in the leadership team of [this company].
While the Workplace Survey previously included a statement on confidence in a leader, it focused on a single individual, which makes the results sensitive. This new statement assesses confidence in senior leadership more generally. It is less sensitive and allows us to treat it the same as all our other standard items and directly contribute to the Workplace Experience Score as part of the “Closely Aligned” theme.
Since the Leadership statement was formally introduced as a research statement in Fall 2024, we have collected over 680,000 responses. Here are some quick stats that we’ve seen so far:
- 79% of employees rated their organizations positively on this topic. This number increased to 82% for Top Workplaces and dropped to 69% for Aspiring organizations.
- While 90% of senior managers have confidence in the leadership team of their company, only 77% of team members agree.
- New hires are very positive on the topic, with 85% responding favorably. Following typical response patterns, middle-tenure employees scored lowest, at 77% favorable for those working at their organizations for 1-10 years.
Highest scoring sectors:
- Advertising & Marketing (85%)
- Real Estate (84%)
- Distribution, Logistics, & Freight (84%)
Lowest-scoring sectors:
- Government (71%)
- Healthcare (71%)
- Utilities & Telecommunications (73%)
Supporting confidence in leadership
Leaders
When it comes to confidence in the leadership team, leaders have the most power to build confidence – and to shake it. They must be transparent in communications and take accountability for actions, decisions, and commitments.
Managers
Managers can help foster confidence in leadership by keeping their team informed about organizational decisions and changes, and proactively addressing any concerns employees have about leaders. They should also avoid speaking negatively about leaders with their team.
Employees
As they tend to be the most removed from leaders, employees may struggle to have confidence in them. By seeking information on the organization’s strategy, getting to know leaders better, and learning about their priorities, employees can better understand and have confidence in the leadership team.
Best practices for confidence in leadership
Getting started
Listen to employees
…and act on their feedback. Employees are often willing to share their concerns about work and areas of improvement. Clearly expressing that employees were heard and taking action to improve in some areas goes a long way. This is particularly important if employees believe that leaders are unaware of or unconcerned about an urgent issue.
Take accountability
Leaders must acknowledge their failures, mistakes, and any ethics violations. This builds a foundation of trust, as employees feel better-informed and can see leaders being vulnerable and begins the conversation of how to address the issues and do better going forward.
Model values and ethics
Leaders should set the standard for the behavior and values they expect of employees. This is particularly true when it comes to potential issues of integrity – both their own and how they address integrity lapses from others.
Improve two-way communication
Build channels and opportunities for open, candid communication between leaders and employees. Leaders should strive to keep employees well-informed, while also leaving room for employees to share concerns.
Big picture plans
Set a vision and strategy
Employees have more confidence when they know where the organization is trying to go and how to get there. By clearly communicating a vision and strategy for the future, leaders can help employees see the bigger picture, how their work fits into it, and how leaders plan to achieve that vision.
Grow your leaders
Provide access to leadership development opportunities, fostering the skills leaders need to lead effectively. This may include training on decision-making, people management, communication, and more.
Address major problems
If the organization’s performance is struggling, has significant cultural issues, or high turnover, employees are likely going to look to leadership to take responsibility and action. It’s difficult to be confident in a team that is unable to address significant problems.
Management style
Ensure leaders empower managers and employees to perform their role without unnecessary interference. Micromanagement and authoritarian leadership styles are often frustrating to employees, who perceive a lack of confidence in their abilities and may lose confidence in leaders in return.
Confidence in leadership: What to watch for
Unfair treatment
When leaders play favorites, it can undermine employee trust and confidence in leaders’ fairness. It may also lead to employees questioning if favoritism plays a role in how leaders are selected, if leaders are truly competent, and whether there are broader ethical issues at work.
Mismanaged misconduct
How is misconduct addressed? Employees may lose faith in leaders if managers and employees are allowed to misbehave. This same rule applies if leaders themselves are caught behaving unethically without clear action to redress the situation and hold the guilty party accountable.
Lack of transparency
Communicate the ‘why’ behind decisions and communicate decisions as early as possible. By keeping the decision reasoning hidden, employees are likely to have questions and to come up with a story to fill in the blanks. By sharing the truth, employees can have more confidence in the decision and the people who made it.
Perceived incompetence
Leaders may lack necessary skills, expertise, or experience to lead the organization in their role. Whether real or imagined, it’s important to address real or perceived skill gaps, especially if the organization is facing new challenges or undergoing high-stakes changes.
How to measure confidence in leadership at your organization
Understanding confidence in leadership is not only essential but also a proactive step toward cultivating a thriving workplace. Implementing a third-party, confidential survey is a powerful way to gauge the current landscape within your organization. By doing so, you gain invaluable insights directly from your employees, allowing you to identify strengths and areas for improvement. This data-driven approach enables you to create a tailored roadmap for improving confidence in leadership.
