Why Confidence in Employers Is Falling - and How to Rebuild It

Confidence is a crucial indicator of organisational health. In the workplace, confidence (or a lack of it) isn’t just an individual trait; it’s a measurable factor that can significantly affect business performance, employee engagement, and overall productivity. Rather than viewing confidence as something an employee must “fix” on their own, leaders should recognise falling confidence as an early warning sign of wider cultural or operational challenges.

The 2026 Modern Families Index (MFI) reveals how employees are currently feeling as they balance work with caring responsibilities, highlighting the growing trend of flatlining confidence. It also outlines practical steps employers can take to rebuild trust, and create an environment where employees feel supported, valued, and able to perform at their best.

Confidence: What does it really mean?

What do we really mean when we talk about confidence? Is it simply how someone carries themselves or how well they perform in their role? In a business context, confidence is far more complex. It’s not just about how employees feel about their skills, capabilities, or performance. It’s also about their confidence in their employer.

The latest findings from the MFI show that employee confidence can be understood from a few angles: confidence that their organisation will support their family and caring needs, confidence in talking openly with their employer about this support, and confidence in their prospects for career progression.

Confidence is the foundation of engagement. This means that when confidence starts to erode, the effects ripple through a business, impacting morale, productivity, and retention. For leaders, understanding and supporting employee confidence is essential for building a resilient and high‑performing workforce.

Why is confidence flatlining?

The latest findings from the MFI reveal several contributing factors for this flatlining confidence. Post‑COVID optimism rose steadily until 2023, but this trend has reversed, with confidence in employers plateauing at just 63%.

The MFI shows that employees thrive in environments where conversations about caring responsibilities are normalised, safe, and led by supportive managers. However, this sense of confidence and psychological safety can’t depend on individual line managers alone. To make this consistent across the organisation, leaders must ensure managers are properly trained and equipped to handle these conversations with sensitivity, confidence, and consistency.

Right now, there are clear gaps between policy and practice. Many organisations have family‑friendly policies in place, but they’re not always applied consistently or tailored to the increasingly diverse range of family types in today’s workforce. This disconnect is only contributing to the lack of trust employees have. These gaps not only damage engagement but also drive retention challenges, as employees who cannot rely on consistent support often begin exploring alternative roles.

The MFI provides further insights into the reasons behind this drop in employee confidence, offering valuable guidance for employers committed to rebuilding engagement and strengthening workplace culture.

Confidence disproportionately affects groups

Carers, particularly women, are reporting lower confidence, often linked to concerns about progression opportunities, and the long‑term impact of taking on caring responsibilities. Women continue to shoulder the majority of childcare and eldercare, and this imbalance directly affects confidence in their careers.

The sandwich generation is also at heightened risk. These employees are juggling care for ageing parents while raising children, and the pressure is difficult to sustain long‑term. As we are already seeing in the workforce, when employers cannot meet the support needs of these employees, confidence takes a significant hit. This lack of trust can lead to employees feeling they have no choice but to step back, reduce hours, or leave their roles entirely.

Is hybrid the solution?

Hybrid working is another key area explored in the MFI, especially as workplace arrangements continue to shift following the post‑COVID return‑to‑office push. While many employees still have the option to work in a hybrid model, a significant number have now returned to the office five days a week.

Hybrid working has delivered clear benefits for some, particularly in relation to efficiency and work-life balance. Working from home can allow parents and carers to reclaim time, reduce commuting pressures and costs, and spend more time with family. However, the MFI highlights that hybrid working alone does not resolve stress. In fact, the data reveals interesting findings about stress levels and the ability to switch off amongst those working in hybrid patterns.

So how does this connect to confidence? Hybrid working may be one form of flexibility, but it is not a complete solution. For working parents and carers, hybrid options help, but they are not enough. They need broader flexible working solutions that genuinely support the realities of modern family life. Organisations that rely solely on hybrid arrangements and label themselves “flexible” risk waning employee confidence.

So, what can employers do?

The impact of declining confidence in the workplace is significant - and costly. When employees lose confidence in themselves, their organisation, or their leaders, it appears gradual through y quiet withdrawal, reduced performance, slower career progression, and eventually, higher levels of attrition.

Download the 2026 MFI for data‑led recommendations to strengthen trust, improve retention, and support your workforce more effectively.