Organizational Change and the Changing Workforce Psychology: Implications for Organizations and Leaders

Organizational Change and the Changing Workforce Psychology
HI

Human Intelligent (HI) Workplace
Helping Leaders Help Themselves

April 3, 2025

For some time now organizations have been going through quite a bit of change by reorganizing, restructuring, downsizing, rightsizing, re-engineering, outsourcing, and racking and stacking their employees in order to remain competitive. And while one can understand the organizational changes for the sake of improvements, it has not exactly left the workforce with a warm and fuzzy feeling as to their long term viability.

As if this was not enough, then came the Pandemic that put many to work remote and shifted the paradigm on the workplace as we once knew it.  Now there is a big push by organizations to have workers return to office (RTO). I also believe the pandemic caused reflection by many on what was really important in life and in turn a change in worker psychology.

Constant change is having an effect on today’s workforce. 70% of today’s workforce are tired of being overworked, 72% are reporting sleeping difficulties, and 54% are engaging in unhealthy eating habits. In the book “Dying for a Paycheck” work is cited as the 5th cause of death due to stress. More of today’s workforce prefer wellbeing over a cutthroat environment, they want to be appreciated (a simple thank you), and crave meaning and purpose in life, which they are not finding at work. Leaders are not exempt, with 71% reporting significant stress since stepping into management and 40% considering stepping down.

Increasingly more are preferring to work remote or hybrid and even 4-day workweeks, which they believe will lead to better health and work life balance/integration. Some countries and organizations have tried the 4-day work week with success. While remote work has become a controversial topic, there is research highlighting the increased productivity that remote or hybrid workers can have. Yet more managers believe working remote leads to less productivity and promotability (out of sight out of mind syndrome).

So while I have presented a glass half empty so far, there is hope. It turns out when managers demonstrate effective leadership behaviors, it can lead to positive results. A Gallup study highlighted that when managers are more engaged, it leads to workforce engagement. When managers actually listen (one study found only 8% of leaders were effective at listening and communicating), were empathetic, and compassionate it led to innovation, increased engagement, and retention.

Being more effective in interpersonal skills, along with creating a psychologically safe environment can lead to happier employees, less time sick, less absences, more loyal, and increased productivity. Bottom line managers need to create a trusting environment, be more transparent, and truly care about their workers.

The questions for those in management is to consider the following:

  1. Are you demonstrating effective leadership behaviors (not just managing)?
  2. How do you know, have you checked with your workforce?
  3. Are you taking care of yourself and in turn taking care of your workforce?
  4. How would you and your workforce describe your organizational culture? Culture reflects leadership.

Remember, today’s workforce has different expectations. It’s increasingly multi-generational and multi-cultural and they need a leader who creates a safe and healthy workplace, especially with so much change. One who communicates well, is transparent, trustworthy, and caring. Are you up for this?

ABOUT THE AUTHOR
Edwin Mourin᷁o – Ruiz, Ph.D.

Dr. Edwin Mouriño is an Air Force veteran, author, Human Capital, and DEI practitioner and speaker. As a human capital practitioner, Dr. Mouriño’s focus has been on helping leaders and organizations help themselves. He is an experienced professional with many years of leading and/or supporting key elements of organizational change projects. Dr. Mouriño is an Air Force veteran who began his career in Diversity  Equity and Inclusion (DEI) as a graduate of the DOD-Defense Equal Opportunity &  Management Institute (DEOMI) and has also been a speaker.

He brings broad industry experience that includes Fortune 100 companies. He is the founder and president of Human Intelligent (HI) Workplace, an organization focused on helping leaders help themselves through leadership, team development, and executive coaching. He has been and continues to serve as a college professor. He is also a  Senior Fellow with the Conference Board on the DEI and Leadership Steering  Committees.

He has extensive experience and thought leadership on Human Capital issues and supported organizational change efforts through Leadership Development, DEI,  Executive Coaching, Team Development, Executive Retreats, Personality  Assessments, and Organizational Change. He has spoken at numerous professional  venues and written numerous articles on human capital trends impacting organizations, specifically addressing DE, and is the author and co-editor of several books.

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