The three ways to develop high-trust leadership
Trusted leadership increases performance and well-being in companies
by Nicola Chighine*
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In its recent publication European Workforce Study 2025, the company Great Place to Work highlighted how high-trust leadership is crucial for creating widespread well-being and high performance in organisations today.
One statistic is more striking than others: in companies where leadership based on trust is lacking, the rate of employee retention stands at 11 per cent. In organisations where trust is widespread and recognised, the percentage rises to 84 per cent. But what do we mean when we talk about trust? The dictionary defines it as an attitude towards others or oneself that arises from a positive assessment of facts, circumstances and relationships, and which generates security and peace of mind. In the company, trust translates into collaboration, a sense of belonging and motivation. Without trust, teams slow down, coordination costs increase, bureaucracy grows, and fear of failure and silent obstructionism spreads. With trust, on the other hand, execution speed increases, a safe environment in which to take risks and innovate develops, and people stay and contribute with energy.
The components of high-trust leadership
What are the elements that build trust around a leader? I have identified four basic ones:
- Competence: a leader must be, and show himself/herself to be, competent. Imagine that you have to board a plane flown by an untrained and inexperienced pilot: would you trust him/her? Competence is the cognitive basis of trust, that which allows one to believe that a person is capable of facing the challenges that the position requires.
- Common good: organisations live with tensions, trade-offs and dilemmas. A leader generates trust when he or she uses the common good as his or her compass, even when it does not suit him or her personally or requires unpopular decisions. It is the difference between those who lead with ego and those who lead with purpose and wisdom.

