Change is inevitable in every workplace, whether driven by technology, restructures, or shifts in business priorities. The way a business manages change can have as a profound impact on employee wellbeing and organisational performance.

Poor organisational change management is recognised as a psychosocial hazard. If not properly addressed it can cause stress, confusion, long-term cultural damage, and can also contribute to other hazards such as poor support, lack of role clarity, and increased job demands.

Beyond the legal obligations that flow from the Fair Work Act, the National Employment Standards, and modern award consultation requirements, employers also have a broader duty of care to manage these risks and protect psychological health.

Control measures for good change management 

Good change management occurs when workplace transitions are handled in ways that reduce uncertainty, support employees, and build trust. Control measures businesses can put in place to enable good change management include:

• Informing and consulting staff early and genuinely about upcoming changes.
• Providing clear explanations of new roles, responsibilities, and reporting lines.
• Rolling out change at a manageable pace, with adequate support at every stage.
• Ensuring communication is ample, transparent, and consistent across all levels of leadership.
• Offering sufficient training and resources to help employees adapt confidently to new processes.

Common oversights in organisational change which contribute to psychosocial hazards

All modern awards include consultation and major change clauses. Despite this, organisations can encounter common challenges when implementing change. These include:

Announcing changes as a ‘done deal’

Leaders sometimes present proposed changes as final decisions. This not only breaches many award-based consultation clauses but also signals to employees that their views are irrelevant. It can trigger disputes, slow implementation, and foster resistance.

Consultation rushed or done as a ‘tick and flick’ exercise

Consultation must be genuine, with employee feedback recorded and taken into consideration. Providing minimal information, inadequate time for feedback, or ignoring employee concerns creates frustration during the process and can increase distrust.

 Poor communication or inconsistent messaging 

Unclear explanations of why change is occurring can create uncertainty. When employees find out about changes through sudden announcements, rumours fill the gaps where leadership communication is absent or inconsistent, leading to disengagement, high stress levels and potential conflict.

The silent system rollout 

When a new system or process is imposed without feedback or training it can result in workflow disruptions, user frustration and potential increased support costs.

To avoid these oversights, ensure you have reviewed your obligations in the consultation clause of your relevant award and create a thorough checklist of steps to follow. This could include:

•  Conducting a psychosocial risk assessment before rolling out major change
• Developing a clear communication plan that prioritises transparency
• Training managers to support staff through transitions
• Creating feedback channels and acting on concerns raised
• Monitoring the impacts of change and making adjustments where needed

Managing psychosocial risks – warning signs to watch out for

Employers should monitor for early indicators that change may be affecting staff, including:

• A spike in grievances or complaints
• Rising absenteeism or staff turnover
• Reports of confusion or unclear responsibilities
• Low morale or increased conflict in teams

If any of these warning signs appear, it is important to address them promptly by taking timely action through open communication, support, and targeted interventions. These actions can help minimise negative impacts, maintain trust, and ensure the change achieves its intended outcomes.

Organisational change doesn’t have to be harmful. When handled well, it can bring innovation, growth, and renewed engagement to your workforce, but if managed poorly, it becomes a psychosocial hazard that can undermine both staff wellbeing and organisational success.

Employers who plan, consult, and communicate effectively not only meet their legal obligations but also create workplaces where people feel supported and valued during times of change.

How can Business Chamber Queensland help?   

Business Chamber Queensland’s Workplace Advisory team can support employers with expert guidance on managing workplace change and reducing psychosocial hazards of all types in the workplace.