The 5 Leadership Habits That Quietly Kill Trust in a Team

In times of crisis, employees pay great attention to what their leader is like. It is in these moments that trust shifts from a “soft value” to a strategic asset that directly affects motivation, retention and even financial results.

Companies with high levels of trust outperform competitors in efficiency by up to 400%, and 93% of business leaders believe that trust directly impacts financial performance.

Yet, the reality is not that great. According to Gallup, only 20% of employees say they trust their leader. Edelman reports that just 19% believe CEOs are honest, while 68% think leaders intentionally mislead them.

Missteps during turbulent times don’t just dent a leader’s reputation — they shake the very foundations of the business. In this article, I reflect on five common mistakes leaders make during difficult times and offer guidance on how to avoid them.

1. Micromanaging

Leaders often believe that being across everything is about quality-checking; in reality, it’s more about a lack of trust in the team.

In a survey of 14,000 employees for Jacob Morgan’s book, Leading with Vulnerability (2023), only 16% reported ever having faced a leader who showed vulnerability, asked for help, or acknowledged mistakes. That leaves the majority feeling undervalued and with no motivation.

Under Bob Chapek, Disney’s leadership became known for excessive oversight. Staff felt that their creativity was being stifled, as leadership was unwilling to delegate. There was also a significant amount of instability and mistrust stemming from internal tension and declining morale among employees.

Empower your team to lead on their responsibilities. Effective delegation enables leaders to focus on broader goals and provides employees with the space to grow.

2. Wearing the “Superman” mask

The instinct to appear unshakable is understandable. Yet it often comes with a risk of emotional burnout, and, ironically, disconnection from the teams. There’s no trust with no authenticity attached. Teams that see a more empathetic leader are more likely to collaborate openly, share ideas and remain engaged.

It’s essential to remind yourself that vulnerability is not a sign of weakness. When Hubert Joly took the helm at Best Buy, he faced lots of challenges from digital competitors. Instead of hiding his doubts, he openly sought advice across the team to co-create solutions. The result was not only a successful turnaround but also deeper trust between leadership and staff.

Leaders do not have to be flawless superheroes. They need to be authentic humans.

3. Lack of flexibility

Everything changes, and leaders now face an average of 3.2 major changes simultaneously. Before 2020, most organisations encountered only two significant shifts per year; today, that number is closer to nine. Yet only 10 % of organizations believe they respond well to such dynamics. A common mistake is clinging to outdated models and processes, even when market signals indicate a shift. Employees quickly lose trust when they see their leader ignoring reality.

When Starbucks experienced slowing sales, they turned to a new CEO, Brian Niccol. He launched a “Bold New Chapter” strategy: simplifying menus, removing extra charges for plant-based milk and re-emphasising Starbucks as a “third place” for connection. As a result, pilot cafes already show improved sales and customer satisfaction.

4. Overlooking small wins

In crises, leaders often focus so intensely on problems that they forget to celebrate progress. Ignoring small wins leaves employees feeling that their efforts go unnoticed, which weakens motivation and trust. A 2025 study revealed that only 19% of employees receive recognition weekly, even though frequent and meaningful praise significantly boosts engagement and productivity.

Be specific, timely, and personal in your praise. It can be as simple as a message in Slack or Teams or a comment in a meeting. Leaders who pay attention to achievements create a culture where people feel valued and motivated.

5. Burning out

According to Vistage, 71% of CEOs regularly face burnout, with a third experiencing it almost daily. Leaders need to prioritize recovery, activities and proper sleep. As the Financial Times noted in 2024, many CEOs now treat rest not as weakness but as a strategy. There are two types of entrepreneurs. Some proudly claim success came from working “day and night without pause”. Others learn to delegate, protect their health and focus on strategy. Both can succeed, but only one builds a sustainable organisation.

A good leader knows that trust of the team is not a “nice to have”. It’s the foundation of performance, especially when the storm hits. The leaders who succeed are not those who strive for perfection, but rather those who are authentic, adaptable and empathetic. They delegate, acknowledge both challenges and wins and care for their own well-being, thus inspiring their teams.