Only 46% of employees trust their leaders, BCG partner says

Nearly 90% of CEOs say they are confident or very confident that their employees trust their leadership, but only 46% of employees agree, according to The BCG CEO Insomnia Index. In an essay for Fortune, a BCG partner argues that the gap is less about grand strategy than about how leaders show up every day, and that the fix is simpler than many executives assume.

The author frames daily work as a product that employees choose to consume or not, each day. That product includes the rhythms of completing tasks, the culture, administrative processes, interactions with managers, and how the CEO and senior leaders engage with staff. Like any product, the author writes, it must be good enough that people choose it again tomorrow. Analysis of employee needs, the author says, shows that the most important features are emotional rather than functional. Pay, benefits, and flexibility matter, but they are table stakes. What drives enjoyment, loyalty, and performance is feeling that one's work matters and feeling respected, supported, and connected to colleagues.

The author points to Dropbox as an example of a company that redesigned work after the Covid pandemic. Through its "Virtual First" approach, the company used customer discovery and design thinking to build a remote-first work model. It tested flexible workdays instead of rigid schedules, clearer windows for collaboration, simpler meeting rules, better ways to share and document work, and more deliberate reasons for in-person gatherings. Rather than rolling out finished answers, the company tried ideas with employees, observed how they worked, adjusted, and tried again. According to Dropbox's internal data cited in the essay, the share of employees who said they felt "successful at work" rose from 48% to 92% after Virtual First was implemented. Offer acceptance rates rose, attrition fell, and many candidates now cite the model as a reason to join.

A second example involves a BCG client seeking to improve operational productivity without major spending. Analysis of frontline manager performance showed that some teams significantly outperformed others, and the difference came down to how frontline leaders inspired, motivated, and coached their teams. To spread those practices, the team worked with a small group of top frontline leaders to change daily routines. Shift handover meetings were redesigned so leaders would explain the reasoning behind directions, recognize someone for something good done during the shift, and encourage team members to help one another rather than bring every question to the leader. According to the essay, this reduced the bottleneck on leaders' time and built a stronger sense of community, and the results were significant enough that the company's CEO cited the change as a driver of financial performance in its Annual Report.

The author concludes that the difference between workplaces that feel transactional and those where work works usually comes down to small daily behaviors. Among the practices highlighted is celebrating people: telling colleagues promptly and specifically when their work stands out, rather than waiting for an annual review. Another is getting out to where the work actually happens and offering practical help. The essay argues that these actions cost little, while their effect on culture, motivation, and value creation can be substantial.

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Connor Quincy

Technology Reporter

Connor Quincy covers public affairs, politics, business, culture and daily news for Core Memo. The role focuses on verification, context, and clear explanations for readers.

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