Change is often inevitable for businesses as they grow. But change can also be difficult to accept, especially for employees. A new report by TalentLMS and WorkTango suggests that organizational change can sometimes fuel distrust among employees.
The survey included 1,200 U.S.-based employees whose companies went through organizational changes, including layoffs, new CEOs, or company downsizing, restructuring, or reorganization. Half of the employees said trust in their company’s leadership was negatively impacted by these changes.
Trust is crucial during transition — it’s up to leaders to build and foster trust during these times, the report said. Small businesses have an advantage here, as they’re typically close with employees and flexible enough to support them during times of uncertainty.
How change can drive distrust
More than a third (34%) of employees cited a “growing atmosphere of distrust” as their main challenge during organizational change in their workplace, according to the report.
Nearly 40% reported experiencing a “lack of transparency from leadership” during the transition, and 36% of the workers polled weren’t confident that leaders could manage the changes effectively.
This affected employees in several ways: 40% felt less motivated, and 30% were less engaged. They also reported being anxious, stressed, and burned out.
While some people are generally resistant to change, just 14% of employees surveyed admitted that was the case for them. However, 45% of leaders attributed employee resistance as a challenge to organizational change.
Moreover, 40% of employees said they weren’t offered appropriate support and resources during the transition, but other workers reported having access to Q&A sessions and town hall meetings and receiving regular updates from leadership.
The survey also revealed that 46% of employees said they weren’t asked for feedback on the changes. Among those who shared their thoughts, 15% said their feedback was used in meaningful ways, while 21% said their feedback wasn’t acted on at all.
Trust is crucial during transition — it’s up to leaders to build and foster trust during these times, the report said. Small businesses have an advantage here, as they’re typically close with employees and flexible enough to support them during times of uncertainty.
How to maintain trust amid organizational change
Previous research has shown that employee trust is crucial for businesses. It fosters engagement, satisfaction, and retention, and it helps businesses thrive.
Maintaining trust during times of organizational change is especially important to reap these benefits. The TalentLMS and WorkTango report offered five tips for businesses to support employees during transition:
Give frequent updates
Using town hall meetings, Q&As, and surveys will keep the lines of communication open so employees know what’s going on as changes happen. Be transparent and upfront about what’s changing and staying the same and why. Reiterate how it supports a larger purpose or direction for the business. Transparency is crucial for engagement and retention.
Ask for feedback
Set up a structured process for employees to share their thoughts on organizational changes, and listen to what they say. Workers often have an insider’s view of what is (and isn’t) working. Make employees part of the transition initiatives by surveying them along the way to ask their thoughts, and respond to address their worries.
Provide resources and support
To prevent employees from feeling uncertain and uneasy, establish clear expectations and job duties for them. Be open to questions and address any concerns. Also, offer support for mental health, well-being, and work-life balance.
Include learning and development
Employees will need training on new software systems, tools, and job duties. Offering learning opportunities sets them up for success in times of change. It will also help businesses focus on long-term growth.
Track sentiment
Keep tabs on how employees are feeling throughout the transition process, as well as the impact of changes as they happen. This enables businesses to understand how employees are adapting and feeling about the organization.
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