Employers underestimate impact of change on employees

American adults who have been impacted by change at work are more likely to report chronic work stress, less likely to trust their employer, and more likely to say they plan to leave the organization within the next year compared with those who haven’t been affected by organizational change, according to a recent survey by the American Psychological Association. www.apaexcellence.org

The Executive summary notes: “Underlying employee reactions to organizational change may be their perceptions of the motivation behind those changes and the likelihood of success. Almost a third of U.S. workers said they were cynical when it comes to changes, reporting that they believed management had a hidden agenda (29 percent), that their motives and intentions were different from what they said (31 percent) and that they tried to cover up the real reasons for the changes (28 percent). Working Americans also appeared skeptical when it comes to the outcomes of organizational changes. Only 4 in 10 employees (43 percent) had confidence that changes would have the desired effects and almost 3 in 10 doubted that changes would work as intended and achieve their goals (28 percent each).”

Other key findings include:

• Although 78 percent of workers reported average or better levels of engagement, one in five employees reported low or very low levels. Workers who felt they were treated fairly by their employers were more than five times as likely to report high or very high levels of work engagement, compared with employees who didn’t feel treated fairly. Other important factors affecting engagement were employee involvement, growth and development opportunities, and health and safety efforts.
• Although most employed adults (71 percent) felt that their organization treats them fairly, one in five said they did not trust their employer.
• Trust and engagement play important roles in the workplace, accounting for more than half of the variance in employee well-being.
• Workers reported having more trust in their companies when the organization recognizes employees for their contributions, provides opportunities for involvement, and communicates effectively.

David W. Ballard, PsyD, MBA, head of APA’s Center for Organizational Excellence noted that change is inevitable in organizations, but when not managed properly, can undermine success.  “To build trust and engagement, employers need to focus on building a psychologically healthy workplace where employees are actively involved in shaping the future and confident in their ability to succeed.”