Organizational change is everywhere—whether in the form of restructuring, layoffs, M&As, or leadership shakeups. With artificial intelligence (AI) and, specifically, generative AI (GenAI) shaking up workflows and market shifts demanding agility, most companies are deep in transformation mode.
But as companies plan their strategies, they’re at risk of missing the human costs involved.
Organizational Shifts Can Erode Trust
New research from TalentLMS and WorkTango spotlights that cost. In a survey of 1,200 U.S. employees who’ve recently gone through major workplace changes, half of the respondents said their trust in leadership took a hit.
And that’s just the beginning.
“This research serves as a reminder, and opportunity, for leaders to show up differently during times of change,” said Nikhil Arora, CEO of Epignosis, parent company of TalentLMS. “When people feel informed, supported, and given the chance to grow, change becomes something they can lean into, not fear. It’s not just about getting through transitions — it’s about helping teams come out stronger on the other side.”
A Look at the Data
The data backs him up. When impacted by organizational change:
- 64% reported increased anxiety.
- 52% felt burned out.
- 39% experienced a diminished sense of belonging.
- 45% reported lower job satisfaction.
- 43% felt their job security had declined.
The emotional toll is real—and it’s costing companies. Poorly managed change doesn’t just dampen morale, it hurts retention. Employees who feel left out or unsupported are more likely to walk.
Communication is Key
One major issue? Lack of communication and involvement.
Nearly half of employees said they weren’t given opportunities to provide feedback during transitions. Others noted a skills gap—45% felt they needed new competencies to navigate the changes, yet many weren’t offered learning or upskilling support.
Trust and transparency are everything during times of uncertainty. Leaders who communicate openly and provide a clear path forward help employees feel both secure and empowered.
For companies navigating change, the takeaway is simple: Don’t treat employees as afterthoughts in the change process. Bring them in early, listen to their concerns, and invest in tools to help them adapt. That’s how you turn disruption into progress—instead of a revolving door of burned-out, disillusioned workers.
The full report can be viewed here: TalentLMS Organizational Change Research.
Lin Grensing-Pophal is a Contributing Editor at HR Daily Advisor.