Building a Culture of Trust: Lessons Learned as an HR Leader

In my journey as an HR leader, I’ve come to realize that trust is the foundation of any successful workplace. And according to SHRM research, employees who experience a positive workplace culture are 68% less likely to consider leaving. But fostering a culture of trust isn’t just about creating a positive atmosphere — it’s about empowering employees to reach their full potential, driving collaboration, and ultimately achieving long-term organizational success.  

I’ve also seen the flip side: the damaging effects of micromanagement, which can quickly undermine trust. Here are two experiences from my career that highlight these contrasting approaches.

The Power of Trust in a Manufacturing Environment

In one of my roles, I was fortunate to work with a manufacturing company that truly embraced trust as a core value. My leadership team was intentional about delegating meaningful responsibilities to our employees. I remember a time when we empowered a group of line workers to redesign a production process. Instead of stepping in with rigid guidelines, we gave them the freedom to experiment and present their solutions. The results were very positive — not only did they streamline operations but their efforts also resulted in significant cost savings.

Open communication was another pillar of our success. We established regular forums where employees could voice their concerns and share ideas. Our leaders made it a point to actively listen, ensuring that every opinion was valued. And when there were mistakes, we treated them as opportunities to learn and grow. This culture of psychological safety provided opportunities for innovation without fear of repercussions.

Looking back, the trust placed in our employees had a very positive impact. Engagement levels were high, turnover rates remained steady at single-digit rates, and the team spirit was very collaborative. 

The Struggles of Micromanagement in a Consumer Products Company

Unfortunately, not all of my experiences have been as positive. Earlier in my career, I worked for a consumer products company where micromanagement was the norm. I vividly recall a manager who insisted on being involved in every decision, no matter how minor. Employees were required to provide constant updates and follow rigid workflows that left little room for creativity.

The effects were palpable. Talented individuals who once brought fresh ideas to the table began to withdraw. The constant supervision conveyed a lack of trust, leaving many people feeling undervalued and frustrated. I saw firsthand how this approach stifled growth — not just for individuals, but also for the whole department. Stress levels were high, turnover was frequent, and morale was low.

It taught me a valuable lesson: Micromanagement not only harms employees but also impedes an organization’s ability to thrive.

Recognizing the Warning Signs of Mistrust

Eroded trust doesn’t happen overnight. It often starts with small frustrations — employees feeling unheard, overly scrutinized, or undervalued because of micromanagement, poor communication, or inconsistent leadership. In my experience, when engagement levels drop and creativity stalls, it’s usually a sign that trust is slipping away. These are warning signs that present an opportunity for leaders to intervene before disengagement turns into disillusionment.  

The good news is that trust, once broken, can be rebuilt. But it requires self-reflection, intentional action, transparency, and a genuine commitment to change.

Steps to Rebuilding a Strong Foundation of Trust

Just as in the consumer products company, where micromanagement stifled innovation, reversing these effects requires a conscious shift toward empowerment and transparency. Here are some ways to rebuild trust in an organization when it’s been eroded:

• Acknowledge the Issues Openly. Instead of avoiding uncomfortable conversations, leaders should recognize past missteps and communicate their desire to rebuild trust. Employees appreciate honesty and accountability far more than silence.

• Create a Culture of Psychological Safety. Just as in the manufacturing company where trust led to innovation, leaders should cultivate an environment where employees feel safe to share ideas without fear of criticism. Establishing open forums for discussions and encouraging various perspectives can reframe team collaboration.

• Empower Employees Through Autonomy. One of the fastest ways to repair trust is by demonstrating confidence in employees. Shifting away from restrictive oversight to giving teams ownership over their work reignites engagement and motivation.

• Prioritize Consistent and Transparent Communication. Trust thrives when employees understand leadership decisions and feel included in the organization’s direction. Keeping employees informed through clear, regular communication helps connect them to the company’s mission.

• Celebrate Wins to Reinforce Positive Change. Recognizing and rewarding efforts to rebuild trust serves as a reminder that the workplace is evolving in the right direction. When employees see their contributions valued, it deepens commitment and strengthens relationships. 

What I’ve Learned

These contrasting experiences have shaped my philosophy as a leader. I’ve seen how trust fosters teamwork, creativity, and resilience, while micromanagement breeds resentment and disengagement. If there’s one takeaway I can offer, it’s this: Trust is a choice we make every day as leaders, and it has the power to transform our workplaces. It’s a continuous journey — one that requires consistency, vulnerability, and a belief in the potential of every employee.  

Lucinda Smith is an executive coach, as well as a SHRM EN Executive Advisor. Previously, she served in C-suite roles, including CHRO, and worked across various global enterprises.