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Your Team Isn’t Disengaged. You’re Disconnected.

President of Mortgage at Southern Bancorp
Jul 23, 2026

Leadership distance can silence strong employees long before it appears in retention or production numbers

Gallup estimates that disengaged employees cost the global economy $10 trillion annually. Organizations respond to that number the way they respond to most problems: they measure it, survey it, hire consultants to analyze it, and schedule off-sites to address it. And then, reliably, the numbers stay roughly where they were.

One in three employees is actively engaged at work. That statistic has been stubbornly consistent for years. Which suggests the problem isn’t a lack of effort or resources. It suggests that organizations are solving for the wrong thing.

The word “disengagement” implies that the employee is the variable. Fix the employee’s engagement, and you fix the organization. But in my experience leading teams through some of the most volatile market conditions in recent memory, disengagement is rarely the source of the problem. It’s where the problem arrives, after traveling a long distance from its actual source.

The source is disconnection. And disconnection lives in the leadership layer, not the workforce.

A Distinction Worth Making

Disengagement is what you measure on a survey. Disconnection is what caused the survey results in the first place.

Disconnection accumulates in the space between a leader and the work they’re supposed to be close to. It happens gradually, often invisibly, and it tends to accelerate as leaders move up. The further up the organizational ladder a leader climbs, the more layers of structure, process, and abstraction separate them from the people doing the actual work. Decisions get made from greater distances. Feedback loops get longer. The human texture of the organization starts to feel like data rather than reality.

By the time disconnection shows up on an engagement survey, it has usually been present for months or years. The survey didn’t reveal a new problem. It confirmed what the workforce had already adapted to.

The signal that disconnection has taken hold isn’t a low survey score. It’s subtler: your best people stop bringing you the hard problems. Not because the problems went away, but because they stopped believing that raising them would change anything. That shift, from speaking up to going quiet, is the real early warning system. And it rarely registers until the trust is already significantly eroded.

The clearest models I've found for closing that distance aren't in business literature or leadership curriculum. They're in three institutions that have been quietly getting this right for generations, that most executives have never thought to learn from them.

What Actually Builds Trust

I spent years chasing the conventional playbook: structured one-on-ones, town halls, open-door policies, culture initiatives with names and logos. Some of it helped. None of it solved the underlying problem, because none of it addressed the root cause.

The organizations and communities I’ve observed that build the deepest, most durable trust don’t do it through programs. They do it through sustained, consistent proximity to the people they serve. And the clearest examples I’ve found aren’t in business literature. They’re in three institutions that have been doing this for generations: the barbershop, the pulpit, and the corner store.

These aren’t metaphors. They’re operational models. And they have a few things in common that most corporate culture initiatives don’t.

Presence Before Pitch

My grandfather used to spend entire Saturday mornings at the barbershop. Given that he was almost entirely bald, the haircut itself was not the point. The point was being there. He was part of a community of people who showed up regularly, without an agenda, and created the conditions for real conversation. People shared things in that barbershop they wouldn’t have shared anywhere else, because the trust had been built over years of low-stakes, consistent presence.

The leadership lesson isn’t complicated, but it is demanding: trust requires presence that predates need. Leaders who only show up when there’s something to communicate, a problem to solve, or a result to drive are training their teams to associate their presence with pressure. Over time, that association makes honest conversation less likely, not more.

In practice, this means creating space for interaction with no deliverables attached. Not a formal check-in. Not a skip-level meeting with an HR-approved agenda. Just genuine, unhurried attention to the people you lead, before you need anything from them. It sounds simple. It requires more discipline than most leaders expect, because the default pull is always toward productivity.

The question worth asking is not “how often do I meet with my team?” but “how often do I show up when there’s nothing on the line?”

Conviction as a Leadership Asset

The second institution worth examining is the pulpit, and what it models is something that organizational leadership rarely discusses directly: the difference between communicating a mission and being visibly committed to it.

A pastor who stands at the front of a congregation every week and says, “I believe this is worth your life” is making a different kind of claim than a leader who puts the company mission statement on a slide deck. The difference isn’t the words. It’s the cost.

Conviction, at its most credible, is visible precisely when maintaining it is inconvenient. Anyone can articulate purpose when things are going well. The question is: what do you protect when they aren’t?

In 2022, the mortgage market didn’t soften. It collapsed. Origination volume fell off a cliff almost overnight, forcing organizations across the industry into rapid contraction. It was, by most measures, the worst operating environment in a generation.

My team stayed. Not all of them, but the core- the people who had been with me through multiple market cycles- didn’t leave. And when I reflect on why, the answer isn’t compensation or job security. It’s that they believed what we were doing mattered beyond the market conditions of any given quarter.

We had spent years building around a clear mission: expanding access to homeownership for communities that had been systematically underserved. That mission didn’t become less relevant when the market contracted. In some ways, it became more relevant because the people still actively trying to buy homes were disproportionately first-time buyers and low- to moderate-income families. The work got harder, and the team leaned in rather than checking out.

This is what genuine conviction does inside an organization. It converts the relationship between a leader and their team from a transactional to a more durable one. People will tolerate uncertainty, difficulty, and even sacrifice when they believe in the purpose behind the work. What they won’t tolerate indefinitely is difficulty in the service of nothing they actually believe in.

The question leaders rarely ask themselves honestly is whether their team’s belief in the mission is genuine or performed.

Performed belief is surprisingly easy to spot from below. It shows up in the gap between what a leader says in all-hands meetings and what they actually prioritize when resources get tight. The pulpit has no tolerance for that gap. Neither, eventually, do the people you lead.

The Cost Of Distance

The third institution is the corner store, and what it models is something increasingly rare in large organizations: proximity close enough to actually see what’s happening.

My Aunt Teresa ran a small store in a cinder block building directly across the street from my elementary school. Squeaky floors. A bell on the door. I used to sit on a stool behind the counter and watch the life that moved through that place. She knew her community the way that only sustained proximity makes possible. She knew which families were stretching to make it to the end of the month before they said a word, because she was close enough to see it in the small things. The items they put back. The hesitation at the counter. She extended credit quietly, slipping something extra into bags without fanfare, running a quiet tab for the families who needed it. Nobody had to ask. She already knew.

She didn’t have a customer insights strategy. She had proximity. And proximity told her everything a survey never could.

I think about Aunt Teresa often when I consider the decisions I’ve made that I later wished I’d made differently. The ones I got wrong weren’t the result of bad analysis. They were the result of distance. I was working from reports, summaries, and filtered feedback, and I was missing the texture that only comes from being physically present in the spaces where your people actually work. The first time I sat down with a loan officer in a branch I rarely visited and just listened, without an agenda or a deadline, I heard three things within an hour that changed how I structured our support model. None of those things had appeared in any report. They weren’t hidden. I just hadn’t been close enough to hear them.

That experience, and others like it, taught me something about how distance operates inside organizations. It doesn’t just limit the information available to leaders. It limits their empathy. And leaders who lack empathy for the daily reality of their teams don’t make worse decisions because they don’t care. They make worse decisions because they are operating on an incomplete picture of what they are actually deciding.

The decisions that most damage team trust are rarely the ones that are clearly wrong. They’re the ones that would have been made differently if the leader had been close enough to understand what they were actually deciding. By the time that gap shows up in an engagement survey, it has usually been visible to everyone except the person making the decisions.

The practical implication is straightforward: identify where your team actually does their work, where the friction lives and where the real conversations happen, and go there. Not to inspect or present, but to listen. Leaders who do this consistently make better decisions and build stronger teams, not because they’re more talented, but because they’re working with more accurate information about reality.

What The Numbers Reflect

These aren't abstractions. Over the past several years, I've tried to run my organization by each of these principles, and the results have been concrete. Over three years during the worst market contraction in a generation, in an industry where annual turnover exceeds 40%, we lost zero producing members of our sales team. Starting from a small regional base, we saw eightfold production growth and over forty percent growth in first-time homebuyer business, the segment that requires the most trust to serve because the customers have the least experience and the most to lose.

I don’t attribute those results to a culture program or a retention strategy. I attribute them to the cumulative effect of leaders who showed up consistently, genuinely believed in what they were building, and stayed close enough to the work to understand it.

Presence, purpose, and proximity aren’t values. They’re disciplines. And like any discipline, they produce results in proportion to how consistently they’re practiced.
 

About the author
President of Mortgage at Southern Bancorp
Jeremy Ray Davis is the President of Mortgage at Southern Bancorp, a five-billion-dollar Community Development Financial Institution, and a keynote speaker on trust, culture, and leadership. He is a 2025 HousingWire Vanguard…
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