Global Leadership Trust Falls as Gen Z Demands Authenticity

Trust in leadership is weakening across much of the global economy, with growing consequences for employee engagement, organizational culture and long-term performance. Recent surveys show a broad erosion of confidence in institutions, including business, as a majority of respondents say leaders often mislead them, according to the World Economic Forum (WEF).

Inside companies, the impact is tangible. Lower trust is linked to disengagement, internal fragmentation and pressure on leadership pipelines. Research from the Oliver Wyman Forum, based on surveys conducted over the past five years with roughly 300,000 respondents across 20 countries, highlights a persistent disconnect between leaders and their workforces. Nearly three-quarters of executives believe they understand the concerns of frontline employees, yet only about one in five workers agrees.

The gap is particularly evident among younger employees. Many cite limited transparency, weak alignment with personal values and a lack of authenticity as core leadership failures. These perceptions have contributed to a broader view that prevailing leadership models are no longer fit for purpose, affecting morale and weakening innovation across increasingly multigenerational teams.

The data also points to a rise in dissatisfaction tied directly to leadership quality. According to the Oliver Wyman Forum, the share of employees identifying poor leadership as a top workplace concern has increased by about 60% since 2023. Nearly half of respondents say their organization’s leadership approach feels outdated, especially in environments shaped by artificial intelligence, hybrid work and faster decision cycles.

Generational differences add complexity. Younger workers are significantly more likely than baby boomers to expect leaders to demonstrate a clear sense of purpose and to prioritize employee needs. They also tend to favor more inclusive decision-making that incorporates input from lower levels of the organization. Older cohorts, by contrast, often prefer clearer hierarchies and decision authority concentrated at the top. Efforts to balance these expectations frequently leave both groups dissatisfied.

Communication has emerged as a central fault line. More than 70% of employees surveyed point to failures to listen, show concern or make sound decisions for teams as defining leadership shortcomings, with the figure rising above 80% among Generation Z respondents. While transparency around company challenges is seen by many younger workers as a key driver of morale, nearly half view it as an area where leaders underperform. The research suggests a “bravery gap” between the level of openness employees expect and the caution leaders feel when communicating difficult trade-offs.

Emotional intelligence has also become a defining requirement. Globally, employees rank it among the most important leadership traits, and demand for genuine interaction with senior leaders has increased sharply since the pandemic. Many workers say they value direct, candid engagement that explains the reasoning behind decisions, rather than scripted communications or symbolic visibility.

Amid these trends, developing markets stand out as an exception. Employees in emerging economies report higher trust and satisfaction with leadership, scoring senior leaders significantly above their counterparts in developed markets. They are also more likely to believe management decisions benefit the broader workforce and to feel that their input is valued. While faster growth and broader institutional trust may play a role, the research points to more frequent communication, clearer strategic direction and visible investment in employee development as contributing factors.

As companies integrate AI more deeply into operations, the surveys suggest that trust will become an even more critical differentiator. Technology can improve efficiency, but rebuilding confidence in leadership depends on human behavior and systems designed to support openness, accountability and follow-through. In that context, trust is increasingly viewed not as a byproduct of success, but as a capability that leaders must actively cultivate.