Deloitte U.S. human capital chief warns: Broken trust cuts employee motivation by more than half

Deloitte's U.S. Human Capital Practice leader, Simona Spelman, warned at Fortune's Most Powerful Women Summit that broken trust significantly reduces employee motivation. Trust hinges on four pillars: reliability, transparency, capability, and humanity. When any single factor falls short, it can detrimentally impact the entire trust infrastructure.

According to a Deloitte study, 82% of employees are motivated when all four pillars are trusted, dropping to 37% when one is distrusted, 28% when two are distrusted, and just 7% when all four are distrusted. Jennifer McCollum, CEO of Catalyst, highlighted that during times of massive transformation, trust can either be forged or destroyed.

While 68% of leaders claim to have plans for reskilling employees, only 34% of employees believe their organizations offer open AI training. McCollum also pointed out that only 16% of employees feel leaders remain confident and supportive during AI-driven change. Moreover, a hidden double bind arises for women: when they use AI at work, their credibility is questioned, but when they don't use AI, their capabilities are questioned.

Francesca Cornelli, dean of Northwestern University's Kellogg School of Management, emphasized that AI advancements will no longer be a competitive advantage; instead, investment in human capabilities like empathy, curiosity, and judgment will set companies apart. Currently, AI investments largely favor technology (93%), leaving a mere 7% for the human side. Spelman stressed that businesses must prioritize the human aspect to truly benefit from AI.