From Trust Reforms to Trust-in-Leader: The Role of Employee-Involvement

Trust is a coveted resource in public organizations, fostering innovation, collaboration, and effective problem-solving. Yet, decades of New Public Management reforms have strained vertical trust between leaders and employees. In response, governance reforms—so-called trust reforms—aim to rebuild this trust. While their ambitions and implementation are increasingly studied, their actual effects remain unclear. Using survey data from Danish municipalities, this study examines whether trust reforms are associated with higher trust between employee representatives and leaders in formal collaboration committees. Recognizing that trust-building requires vulnerability, we explore the role of employee involvement in fostering trust in leaders. As trust-development is a two-way street, it depends on both leaders and employees’ willingness to take the risk of showing vulnerability toward each other. Our findings suggest that trust reforms alone do not enhance vertical trust; rather, they are effective only when accompanied by substantial employee involvement, highlighting the importance of mutual engagement in trust-building.