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Organizational Change Triggers Increase in Employee Stress

Posted, by Deborah Merkin
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Organizational change often comes with a hidden cost. According to recent research, transitions like restructuring, layoffs, or policy updates raise stress levels, harm well-being, and dampen engagement unless they're managed thoughtfully.

Fresh Insights from 2023 U.S. Studies

1. Change Fatigue is Real

Visier survey of 1,000 U.S. employees revealed that 67% experienced at least one major organizational change—like leadership turnover or layoffs—and two-thirds reported negative impacts during that year. This "change fatigue" correlates with heightened anxiety and declining trust in leadership.

2. Stress at an All-Time High

The American Psychological Association’s “Work in America” report found that 43% of workers feel tense or stressed on a typical workday and 77% reported experiencing work-related stress in the past month. A major contributor? Job insecurity and the mental toll of continuous change.

3. Financial Pressure Compounds Change Stress

PwC’s 2023 Employee Financial Wellness Survey shows that 60% of full-time employees are stressed about finances, with organizational changes often triggering cost-cutting and layoffs. This financial stress isn't just personal; it spills over, reducing productivity and well-being.

What Change Does to Your People

What Works: Support, Structure & Recognition

  1. Measure stress during transitions: Use pulse surveys to track stress, anxiety, and financial pressures tied to change.
  2. Boost autonomy and mental-health support: Granting control over work, such as flexible hours or clear role clarity, directly lowers stress and improves outcomes.
  3. Provide financial resilience tools: Offering budgeting resources, financial coaching, or early retirement options helps buffer the stress of economic uncertainty.
  4. Recognize and reward: Acknowledge individuals and teams who navigate change well—this human warmth goes a long way in rebuilding trust and engagement.

The Role of Gift Card Incentives

The Engage2Reward™ Gift Card Ordering Platform is tailored for this moment of change. It empowers organizations to:

  • Launch real-time “Thank You” campaigns for employees managing heavier loads during transitions.
  • Deliver micro-rewards instantly—no time gap between employee achievements and receiving rewards. 
  • Integrate seamlessly with internal surveys and dashboards via API, offering insight into culture, stress, and well-being.

By embedding recognition and celebration into the flow of change, gift card rewards distributed through the Engage2Reward Platform help preserve morale and engagement—even when structure and roles shift.


Topics: Employee Performance, Employee Recognition, Workplace Health & Wellness, Employee Appreciation, Employee Engagement, Employee Retention, Employee Incentives & Rewards

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