Change is a constant in today’s workplaces. Whether it’s rolling out a new system, restructuring teams, shifting business priorities, or introducing new ways of working, your people are constantly adapting. And while change can bring growth, innovation, and opportunity, it can also create a recognised psychosocial hazard under WHS legislation: poor organisational change management.
As a senior leader, you’re already balancing business goals, operational demands, and the wellbeing of your team. It’s understandable, then, that even the most experienced leaders can find organisational change tricky to navigate, especially on top of an already full workload. Approaching change as a human-centered challenge can also feel like a full-time role in itself.
When change at work isn’t managed well, however, problems can escalate fast, leaving you feeling stretched and unsure where to start. Over time, these impacts ripple out, affecting team performance, morale, and the organisation as a whole.
In this article, we’ll take a closer look at what poor organisational change management looks like, why it matters, and practical steps you can take toward managing organisational change for more positive outcomes.
This is part of a series on understanding psychosocial hazards. Other features in the series include:
- Understanding the risk and impact of poor role clarity
- Understanding the risk and impact of imbalanced job demands
- Harmful behaviour in the workplace and how to navigate it
- Navigating traumatic events or material in the workplace
- The risk and impact of isolated or remote work
Disclaimer: The information contained in this article and on this website is general information only and does not constitute legal advice. Although all efforts have been made to ensure the accuracy and currency of the information presented, Sonder takes no responsibility for any errors or omissions presented. Please contact a legal representative for individual advice.
What is poor organisational change management?
Poor organisational change management happens when there is a lack of planning, communication, and support around a significant organisational shift. Change itself is not the risk; rather, it’s a lack of effective management in navigating the transition.
While there may already be a lot to juggle from a structural point of view during a major shift, the impact on your teams cannot be swept to the side. When change is handled poorly, it can have a profoundly negative effect on your employees.
Individuals may experience anxiety, feel undervalued, and, in some cases, burn out, which can lead to resignations and reputational risk for the business.
Examples of workplace change risks include:
- Changes were rolled out without consulting employees or seeking their input
- Insufficient training or resources for staff to adapt to new systems, responsibilities, or processes
- Confusing or inconsistent communication about what is changing and why
- Overlapping or frequent changes that give employees little time to adapt
- Lack of support from supervisors or the organisation during transitions
- Poor role clarity and high job demands as a result of taking on additional responsibilities
Even well-intentioned changes can become stressful and compromise workplace safety if they are not managed with clarity and support.
What contributes to this hazard?
Leading through a major change is never easy, and it can be tough to identify risks while juggling endless competing priorities. Knowing what to look out for early gives you the chance to address potential issues before they escalate.
When assessing what contributes to this hazard, it’s important to remember that even risks that seem low within a team can combine with other factors to create bigger challenges. Looking at both individual influences and the broader organisational context helps ensure nothing is overlooked.
Some of the key factors that can contribute to poor organisational change management include:
| Risk factor | Context to consider |
| Lack of consultation | When employees are not involved or heard, they can feel undervalued or resistant to change. |
| Inadequate planning | Poorly defined objectives, unclear timelines, or vague processes create uncertainty and stress. |
| Insufficient communication | Mixed messages, irregular updates, or unclear points of contact increase confusion and anxiety. |
| Limited training and support | Employees may struggle to meet new expectations or use new tools without guidance. |
| High frequency of change | Frequent or overlapping changes can amplify stress, fatigue, and disengagement. |
| Misalignment with workload | If changes increase workload without adjustment, employees can feel overwhelmed. |
| Poor leadership visibility | Leaders who are not actively engaged during change may inadvertently reduce trust or clarity. |
Recognising these contributing factors early is key. The earlier you identify stress points, confusion, or gaps in support, the better your chance of preventing negative outcomes.
What is the impact of poor organisational change management?
The impacts of poorly managed organisational change can range from personal stress right through to organisation-wide strain. But what does this look like? Let’s unpack some of the most common issues that can arise from this.
For employees:
- Psychological strain: Anxiety, stress, frustration, and fatigue can increase, sometimes leading to burnout and stress leave.
- Reduced engagement and morale: Employees may feel undervalued, unheard, or disconnected from the organisation.
- Confusion and uncertainty: Without clear guidance, employees may struggle to understand expectations or make confident decisions.
- Decreased performance: Mistakes, inefficiency, or inconsistent delivery can result from unclear roles or insufficient support.
For the organisation:
- Operational inefficiency: Miscommunication or uncertainty can lead to duplicated work, errors, or inconsistent processes.
- Poor workplace culture: Trust and morale may decline, reducing collaboration, creativity, and innovation — and at worst, workplace bullying and harassment.
- Increased turnover: Employees are more likely to disengage or leave when they feel unsupported during change.
- Safety and compliance risks: Failing to manage psychosocial risks during change may breach WHS obligations and create liability.
Poorly managed change can have ripple effects across your organisation, shaping culture, influencing reputation, and making it harder to retain great people. It can also take a toll on productivity, from the cost of presenteeism to the wider business costs of additional hiring and recruitment.
In 2025, Australians are already working record-long hours, contributing to a national productivity slump and compounding risk factor.
How leaders can reduce the risks
Managing this hazard requires thoughtful planning, empathy, and steady follow-through. As a leader, you play a central role in helping people feel safe, supported, and connected throughout periods of change.
You also don’t need to shoulder this responsibility on your own. Protecting your own wellbeing is just as important as supporting your team. Where possible, involve others who can help share the load. And if access to senior leadership is limited, consider empowering someone within your team to act as an advocate and ensure their colleagues feel heard.
Here are our top tips on how to support employees during change and reduce risks:
| Strategy | Implementation |
| Engage employees early | Involve staff in planning changes where possible. Seek input, listen to concerns, and genuinely consider their feedback. When employees feel their voice matters, resistance decreases and engagement increases. |
| Communicate clearly and consistently | Provide transparent, regular updates about what is changing, why it’s happening, and what support is available. Make sure everyone knows who to contact with questions. |
| Provide training and resources | Ensure employees have the skills, tools, and guidance they need to adapt confidently to new responsibilities, systems, or processes. |
| Monitor workload and wellbeing | Keep an eye on stress levels, fatigue, and workload distribution. Adjust timelines, redistribute tasks, or provide additional support when necessary. |
| Encourage dialogue and feedback | Create opportunities for employees to raise concerns, ask questions, and share experiences. Check-ins, forums, or anonymous surveys can all help identify issues early. |
| Stage change thoughtfully | Avoid overlapping or rushed changes when possible. Allow staff time to adapt before introducing additional transitions. |
Start with a short-term plan to tackle immediate issues, then implement a longer-term strategy based on continuous evaluation and improvement
Chief People Officer
How modern-day technology with real people can offer 24/7 support
Poorly managed change is a frequent psychosocial hazard in modern workplaces and a key contributor to stress, disengagement, and reduced wellbeing.
However, with thoughtful leadership and structured support, these risks can be managed effectively. By engaging employees, communicating clearly, providing practical support, and monitoring signs of risk, leaders can help their teams navigate change successfully.
Sonder partners with organisations to make this process easier, giving leaders the tools, insights, and support needed to keep employees resilient and connected during periods of change.
- For leaders, Sonder provides the meaningful data and insights you need to understand the unique challenges impacting your people.
- For employees, they will gain access to wellbeing resources, quizzes, as well as 24/7 medical, safety, and psychological support to improve their daily habits, lifestyle and overall wellbeing.
With Sonder, you can navigate organisational change with confidence, knowing your people are cared for, risks are managed, and that the duty of care is being upheld — without adding extra pressure to their own role.
