100 Change Management Statistics: Effectiveness, Leadership, and Employee Experience

Change management is a critical aspect of modern business operations, and understanding the latest change management statistics can provide valuable insights into the challenges and opportunities organizations face today. 

This article will look into the most recent and compelling change management statistics, shedding light on the ever-evolving landscape of organizational change. From the impact of technology to the role of leadership, these statistics offer a glimpse into the strategies and trends that shape the way companies navigate change.

Statistics on the Effectiveness of Change Management

Change management is not just about implementing new processes; it's about ensuring those changes are effective and deliver the desired outcomes.

• Approximately 73% of organizations anticipate a rise in the number of change initiatives.²
• A mere 43% of employees have confidence in their organization's ability to handle change effectively.¹
• Utilizing an open-source change strategy, i.e. a collaborative strategy involving the employees, can boost the probability of change success by up to 24%.²
• Implementing an open-source change strategy can reduce the time required for implementation by as much as one-third.²
• Employees can save as much as 12.6 hours per week on change-related activities when organizations adopt an open-source change strategy.²
• Employee engagement can soar by up to 38% when organizations employ an open-source change strategy.²
• Discretionary effort from employees can rise by as much as 19% with the use of an open-source change strategy.²
• The number of employees taking ownership of the success of change initiatives can increase by up to 29% when organizations adopt an open-source change strategy.²
• Only a minority, specifically 26% of employees, believe they effectively altered their work methods to support a recent change.²

• The adoption of open-source principles in change management can reduce implementation time by 33%, boost employee engagement by 38%, and raise the intent to stay by 46%.³
• Communication of change was rated positively by 36% of the employees surveyed, while 26% found it to be inadequate.⁴
• Small changes account for 96% of all the changes that employees experience.⁶
• Predictions indicate that effective change management will be essential as 97 million new roles are anticipated to emerge by 2025.⁶
• 85% of senior leaders have participated in at least two major transformations in the last five years.⁸
• During this period, 67% of those leaders have encountered at least one underperforming transformation.⁸
• Analytics show that six core factors (caring, leading, constructing, empowering, inspiring, and collaborating) can lead to a 2.6x increase in adoption, resulting in a 73% probability of successful transformation.⁸

Attitudes Towards Change in the Workplace

• Concentrating on intricate human factors can boost the likelihood of successful transformations to more than 70%.⁸
• Positive emotions were reported by 79% of employees following a successful transformation.⁸
• Within high-performing transformations, 47% of those surveyed indicated that leaders were receptive to ideas from junior staff, whereas this figure was 29% in low-performing transformations.⁸
• During an underperforming transformation, two-thirds (66%) of employees experienced negative emotions.⁸
• In high-performing transformations, 52% of respondents noted that leaders made decisions for the entire organization, not just their specific areas.⁸
• 47% of respondents in high-performing transformations found the vision to be clear and compelling, in contrast to 26% in low-performing transformations.⁸
• Enhancing emotional support resulted in an average 17% increase in the likelihood of transformation success.⁸
• Successful transformations, according to 48% of respondents, involved their organization making appropriate technology investments to align with their transformation vision.⁸

Effectiveness is the ultimate measure of a change management strategy's worth. The statistics presented here underscore the importance of well-executed change management in achieving desired outcomes.

Statistics on Leadership in Change Planning

Leadership is the driving force behind any successful change initiative. The statistics on leadership in change planning offer a glimpse into the significance of strong leadership, shedding light on the qualities and actions that inspire teams to embrace change and drive it forward.

• Senior leaders in just 25% of organizations are perceived by their employees as possessing a significant strength in managing change.¹
• Roughly 53% of leaders share the belief that the pace of change should be accelerated.²
• Among HR leaders, 66% agree that change should be implemented faster.²
• A significant three-quarters of HR leaders report that change management now demands more of their time compared to three years ago.²
• 73% of CEOs anticipate that changes will be executed at a faster rate than they were three years prior.²
• According to 71% of HR leaders, their organizations employ a top-down approach to change.²
• While 29% of HR leaders claim to use a predominantly open-source change strategy, the actual proportion of organizations employing this approach is only 11%.²
• Approximately 74% of leaders state that they involve employees in crafting change strategy.²
• Being disconnected from the work, 72% of leaders confess that they are unaware of the specific changes employees need to make during periods of change.³
• Despite claims by leaders that they involve employees in creating a change in strategy, only 42% of employees feel genuinely included in the process.³

• Leadership's lack of trust was identified as a factor leading to resistance to change by 41% of employees.⁴
• A significant 74% of individuals believe that leaders should make more effort to understand the reasons behind resistance to change.⁴
• More than a quarter of employees lack the necessary information to comprehend changes.⁴
• Close to half (45%) of respondents suggested that productivity would increase if leaders took a more proactive approach to understanding resistance to change.⁴
• Improved leadership understanding of resistance to change was believed to enhance staff retention by 55% of respondents.⁴
• Increased leadership understanding of change resistance was seen as promoting more collaboration by 43%.⁴
• 45% of respondents believe a better grasp of resistance to change by leadership would have a positive impact on mental health.⁴

Most Important Competencies for Leaders to Improve

• Among individuals experiencing change fatigue, a striking 83% noted that their employer did not furnish them with adequate tools or resources to facilitate their adjustment.⁶
• An overwhelming 93% of employees suffering from change fatigue reported that their employer reversed at least one change that had been implemented during the pandemic.⁶
• Regarding communication from their employers about changes, a third of employees rated it as either "fair" or "poor."⁶
• Approximately 27% of employees stated that their employer infrequently or never sought feedback on changes.⁶
• A significant 42% of employees dealing with change fatigue noted that their employer reversed changes on multiple occasions.⁶

In change management, leadership is the compass that guides organizations through uncharted territory. The statistics on leadership in change planning underscore leaders' pivotal role in shaping transformation efforts' outcomes.

Statistics on Success and Failure of Change Initiatives

Change initiatives can be a make-or-break moment for organizations. Success can lead to growth and innovation, while failure can result in setbacks and stagnation.

• Companies that receive top ratings from their employees for their change management abilities demonstrate markedly superior financial performance compared to those with lower ratings.¹
• Organizations identified as 'change accelerators' experience a 264% increase in revenue growth when compared to companies with subpar change management effectiveness.¹
• Companies that excel in managing change report a three-year revenue growth rate of 3.5% and a profitability growth rate of 4.9%, whereas those with poor change management capabilities experience -3.7% and -3.8%, respectively, in revenue and profitability growth over the same period.¹
• The failure rate for change initiatives is 70%.¹
• Most organizations struggle to adapt to new environments, with only one-third of change initiatives succeeding.³
• The application of open-source principles to change management can elevate the likelihood of change success from 34% to 58%.³
• When implementation planning is shifted to employees, it can increase the probability of change success by 12%.³
• The use of top-down change strategies leads to a decrease in the comprehension of change within the workforce, with percentages ranging from 80% for functional heads to 40% for department managers.³

• While 64% of employees possess the necessary skills for successful change, only one-quarter can effectively alter their work methods when change is managed from the top down.³
• Over 80% of organizations continue to manage change from the top down, despite its increasing disconnection from today's complex organizational workflows.³
• Top-down communication not only fails to enhance employees' understanding of change but also increases resistance.³
• A sense of exclusion during organizational change was reported by 32% of the UK population.⁴
• It is commonly acknowledged that the initial attempt at change programs fails in approximately 70-80% of cases.⁵
• A mere 27% of the individuals surveyed concurred that their leadership possesses adequate training in effective change management. Among this 27%, over half only expressed slight agreement.⁵
• Merely 31% of those surveyed stated that their organization takes measures to prevent employees from becoming overwhelmed by the demands of change.⁵
• Only 32% of respondents mentioned that their organization takes into account the individual's capacity for change in their development plans.⁵

How Effectively Was Change Communicated?

• During the COVID-19 pandemic, a significant 71% of surveyed U.S. employees expressed feeling overwhelmed by the level of change in their workplace.⁶
• Change affects young and old workers similarly with 86% of individuals aged 16 to 24 and 86% of individuals aged 65 and older experiencing change fatigue.⁶
• In the case of women, this percentage stands at 79%, while for men, it is slightly lower at 70%.⁶
• Employees at organizations with 101-1,000 staff members are experiencing change fatigue at a rate of 80%.⁶
• Regarding communication from their employers about changes, a third of employees rated it as either "fair" or "poor."⁶
• Employees’ inability to handle technology accounts for 14% of organizational change failures.⁷
• Inadequate definition of objectives contributes to 17% of organizational change failures.⁷
• A deficiency in effective communication leads to 20% of organizational change failures.⁷
• Insufficient project management skills are responsible for 32% of organizational change failures.⁷

The statistics presented here highlight the high stakes involved in change management. Organizations must carefully consider every aspect of their change initiatives to increase the likelihood of success. 

Statistics on Employee Experience in Change Management

Employees are at the heart of any change initiative, and their experiences can make or break the success of such efforts. Understanding how employees perceive and respond to change is essential for organizations striving to create positive workplace environments.

• The full potential of the employee experience is harnessed by only 37% of companies.¹
• An estimated 74% of employees express their willingness to adapt to support organizational change.²
• Only a minority, specifically 26% of employees, believe they effectively altered their work methods to support a recent change.²
• Merely 17% of employees agree that they swiftly adjusted their behaviors to back a recent change.²
• There's a risk of 71% of employees misallocating their efforts toward the wrong tasks because the change plans created by leaders don’t align with their daily responsibilities.²
• Approximately 64% of employees wait for directives from leaders when navigating change.²
• About 28% of employees resist change because top-down communication triggers feelings of anger and anxiety.²
• However, just 42% of employees affirm that they are actively engaged in the development of change strategy.²

• Within the UK workforce, change has been experienced by 91% of employees aged 16 and above within their organizations.⁴
• Resistance to change is evident in 37% of the surveyed individuals.⁴
• Among respondents, 41% attributed their resistance to change to a lack of trust in the organization.⁴
• Lack of awareness regarding the reasons for change was cited by 39% of respondents as a factor contributing to resistance.⁴
• Fear of the unknown was identified as a cause of resistance to change by 38% of those surveyed.⁴
• A change in job roles was reported as a reason for resistance to change by 27% of respondents.⁴
• Approximately 23% of participants expressed a feeling of exclusion from decisions related to change.⁴
• It was agreed by 43% of respondents that their workplace is ill-prepared to effectively manage change.⁴
• In their organizations, 29% of respondents indicated that change is not communicated clearly.⁴
• A sense of exclusion during times of change was reported by 29% of respondents.⁴

Employee Expectations of Change

• 32% of employees dealing with change fatigue have reported a decline in their productivity.⁶
• Nearly half, specifically 48%, of employees grappling with change fatigue have expressed feeling more tired or stressed while at work.⁶
• More than half, specifically 54%, of employees experiencing change fatigue are contemplating searching for alternative employment.⁶
• A substantial 78% of employees anticipate that ongoing, continuous change will become a regular aspect of their job in the future.⁶

Employee experience is a critical factor in the success of change initiatives. The statistics shared in this section offer valuable insights into the factors that impact employees' perceptions and attitudes toward change. 

Organizations that prioritize their employees' experience during change can foster a more engaged and adaptable workforce, ultimately contributing to the success of their initiatives.

Frequently Asked Questions

Successfully Navigate Organizational Change

Change management is crucial in business. And as technology like generative AI increases the pace of change, it is likely to play an even more prominent role in the success of organizational transformation. 

However, as the statistics in this article show, there is room for improvement. Top-down approaches to change management can hinder employees’ understanding of the change, which risks increasing resistance.  Employees need to feel included in the process in order to better grasp the objectives and adapt to the change.

HR software like flair can help company leaders and HR teams to take a more employee-centric approach to change management. Starting with flair surveys, employers can gain first-hand insights from their workforce regarding upcoming change projects and measure employee sentiment throughout the transformation. flair’s performance management features also give managers and their teams a platform to discuss goals and results before, during, and after a major change project.

Don’t leave change to chance. Whether you’re planning a change project or simply need a more efficient way of managing your workforce, flair can help. Speak to one of our product experts to see what flair could do for your organization.

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Sources

1. WTWCO
2. PWC (Open Source Change Full Study)
3. Gartner (Changing Change Management)
4. OAK (Change Report)
5. ChangeSynergy
6. Capterra
7. PMI
8. EY

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