Most organisations are investing in workplace transformation, but many are struggling to translate those initiatives into meaningful business results. A 2026 study by Deloitte and Workplace Intelligence found that 70% of surveyed executives believe their latest large-scale change initiatives failed to deliver the expected value.
The findings highlight a significant challenge for organisations managing transformation: achieving business objectives without placing excessive pressure on employees.
The 2026 Deloitte Change Management Study, based on responses from 1,000 C-suite and executive leaders involved in large-scale change, found that 69% said recent change initiatives had increased employee workload and burnout. A further 68% reported observing at least one form of employee resistance during these initiatives.
The results suggest that organisational transformation can create considerable workforce challenges when employee impact is not adequately considered.
Poor Change Management Can Affect Employee Retention
The consequences of poorly managed change can extend beyond temporary disruption or lower productivity.
According to the study, 66% of respondents said poorly managed change initiatives had resulted in employee departures. The associated turnover-related expenses were estimated at an average of $20.5 million.
For initiatives involving AI transformation, the reported average increased to $25.5 million.
The findings also point to concerns about the speed of technological change. Around 61% of respondents said their organisation's AI transformation was progressing too quickly for employees to keep up.
When employees struggle to understand changing responsibilities, adapt to new processes or manage additional workloads, organisations risk losing experienced talent during periods when continuity and institutional knowledge are particularly important.
AI Transformation Adds to Change Management Challenges
AI investment is becoming an important part of organisational transformation, but the study highlights a gap between investment and workforce readiness.
Only 41% of change leaders reported seeing a strong positive return on investment from their AI initiatives. Meanwhile, 59% said the overuse and overload of AI had negatively affected employees.
These findings underline that introducing new technology does not automatically translate into improved performance. Organisations also need to consider how technology changes employees' responsibilities, workloads and day-to-day working practices.
The study further found that 83% of respondents believed poor change management had contributed to unrealised business value in their recent initiatives.
Measuring the Human Impact of Organisational Change
The research raises questions about how organisations prepare employees for significant workplace changes and measure the results.
One finding is particularly relevant for HR teams: one in five organisations do not formally measure the human impact of their initiatives or assess workforce readiness before implementation.
This can make it difficult to identify concerns early, understand employee resistance or determine whether the organisation has the capabilities needed to support the transition.
Deloitte's findings also highlight the potential business value of investing in change management. The study associated every $1 invested in change management with approximately $4 in realised business value.
For HR leaders, the findings reinforce the importance of involving employees in transformation planning, assessing the impact of new processes on workloads, and monitoring workforce readiness throughout implementation.
As organisations continue to restructure operations and introduce new technologies, the ability to manage the human side of change may be just as important as the transformation itself.
