New research has revealed that companies offering flexible working to their employees leads to increased trust in the business.

According to the 5,000 employees surveyed for the second annual Index of Leadership Trust from the Institute of Leadership and Management (ILM), which offers support and information to managers, flexible working was found to lead to employees having more faith in their CEOs.

Where flexible working or working from home was offered to employees rather than involuntary redundancies and office closures, the level of trust was far higher across the board.

Firms which took a more measured approach to the financial downturn, by cutting budgets and allowing employees to work more flexibly, saw trust index scores of 68, compared to a score of 51 in the others.

Companies which responded to the recession with brutal staff cuts saw a sharp drop in CEO trust.

Penny de Valk from the ILM said, "It is clear that the actions of senior managers are scrutinised to a far greater extent during times of crisis, and major cuts are often seen as the direct result of poor management – even when this might be beyond their control."