As businesses evolve at breakneck speeds, the mental and emotional toll on employees is becoming increasingly evident. This phenomenon, known as “change fatigue,” is a growing concern for organizations and their bottom lines. To combat this, companies are adopting more measured, thoughtful strategies to manage transformation while protecting employee well-being.
The ancient wisdom of Heraclitus, who asserted that “change is the only constant,” has taken on new urgency in today’s fast-paced corporate environment. Yet, while change has always been a part of business, the relentless rate at which it occurs today is outpacing the ability of many organizations to manage it effectively.
Change fatigue—long recognized as a serious business issue—can lead to high employee turnover, decreased adaptability to future changes, and lower productivity. In fact, it can even jeopardize the sustainability of the workforce. As Hilary Richards, Vice President of Advisory in the Finance Practice at Gartner, puts it, “Change fatigue should be seen as a business risk.”
Recent studies reveal alarming statistics. Over 75% of companies revise their business models every two to five years, according to WalkMe, a San Francisco-based SaaS company. However, the toll on employees is undeniable, with many struggling to keep up with constant transformation. This is especially evident in corporate finance, where departments are adapting to digital transformations, AI integration, and the restructuring of core processes.
Change Fatigue: A Crisis in the Making
Richards points to the mounting pressure on CFOs, who are expected to manage growth while simultaneously navigating financial transformation. Yet, despite these efforts, the success rate for corporate change initiatives is dismal. Only one-third of change projects are successful, and a staggering two-thirds of employees report experiencing burnout during these transitions. Furthermore, workplace stress is a major contributor to national healthcare costs, accounting for roughly 8% of U.S. spending.
In fact, 38% of CEOs have admitted they would rather resign than lead a major corporate transformation, according to a report from Orgvue, a London-based organizational design firm. This stark reality highlights the growing strain on leadership in a business environment that demands constant reinvention.
A History of Strain and Accumulation
The concept of change fatigue first began to take shape in 2017, recalls Jenny Magic, founder and CEO of Build Better Change, a consultancy based in Austin, Texas. Magic, who co-authored Change Fatigue: Flip Teams from Burnout to Buy-In, saw firsthand how employee capacity to manage change began to erode as the demands of transformation outpaced the resources and support available to them. Her firm’s most recent report confirms that the situation has not improved—indeed, it appears to have worsened.
Gartner’s research underscores this trend, revealing that the average employee experienced 10 planned organizational changes in 2022, compared to just two in 2016. Meanwhile, employee willingness to support change has drastically decreased, from 74% in 2016 to just 38% in 2022. As change becomes more frequent, the workforce is increasingly resistant to it.
The Shift Toward Thoughtful Transformation
In response to these challenges, many organizations are exploring more creative and measured approaches to managing change. Companies such as Danone and Liberty Mutual are leading the way by incorporating change management consultants who offer expertise on how to mitigate burnout while facilitating transformation. These consultants are not only advising top executives but also offering training, hosting conferences, and producing articles to guide firms through complex transitions.
Experts in the field have identified two distinct types of change: large-scale, high-speed transformation and the slow accumulation of small, incremental changes. The former is often a reaction to significant external events like economic crises or advancements in technology, such as the rise of AI. Yet, Oliver Shaw, CEO of Orgvue, argues that rapid, large-scale transformation can be counterproductive, leading to high severance costs and reduced productivity. Instead, Shaw advocates for a more gradual approach to organizational change, which avoids the traumatic impacts of mass layoffs.
In 2023, Fortune 500 companies spent $32.7 billion in severance payments due to large-scale workforce restructuring. This figure highlights the financial risks of aggressive transformation strategies. By contrast, Danone’s decision to overhaul its HR processes and shift from annual to quarterly planning exemplifies a more sustainable approach. The company’s leaders recognized the importance of understanding labor demand over time, rather than resorting to drastic layoffs.
Similarly, Klarna, a Swedish fintech, avoided the costs of layoffs in 2023 by outsourcing jobs and adopting AI-driven solutions. Shaw notes that organizations like Danone and Klarna view their operations as systems and leverage internal resources—such as employee attrition and reassignments—to drive change without causing unnecessary disruption.
Slowing Down to Move Forward
C3 Risk & Insurance Services, a San Diego-based broker, faced significant integration challenges following a merger. Employees struggled with uncertainty, and decision-making became chaotic. Eric Brown, CEO of Imperio Consulting and a veteran of the U.S. Special Forces, was brought in to facilitate the integration process. Drawing on his military background, Brown introduced a “crawl, walk, run” approach to the transformation, which allowed employees to gradually adapt to changes without feeling overwhelmed.
C3’s leaders took to heart Brown’s advice to “slow down now, so we can speed up later.” By focusing on team-building exercises and fostering open dialogue, the company was able to navigate its integration process more smoothly. In 2023 and 2024, C3 was recognized as one of the best places to work, reflecting the success of this approach.
C3’s experience highlights the need to manage both large-scale transformation and the cumulative impact of smaller, frequent changes. These “small” changes, when accumulated without adequate recovery time, can erode an organization’s structural integrity, leading to burnout and higher turnover. Companies like Liberty Mutual are addressing this by implementing proactive measures, such as engaging employees in change workshops and feedback sessions to identify and address underlying concerns before they escalate.
Conclusion: The Path Forward
To mitigate the risks of change fatigue, organizations must rethink their approach to transformation. Rather than pushing for rapid, sweeping changes, leaders should aim for a balance—recognizing that change is necessary but should be introduced gradually, with employee well-being at the forefront. As businesses continue to navigate an era of constant change, those who prioritize thoughtful, well-paced transformations will be better equipped to foster resilience and avoid the burnout that so often accompanies today’s relentless corporate shifts.
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