Low Change Readiness Will Cost You

The graph below shows that as an organisation’s change readiness increases, the costs of change decrease. The opposite is also true – the lower your organisation’s change readiness, the more you pay and the less you get.

costs of change

Organisations with low change readiness are more than twice as likely to fail at change compared to change-ready organisations. FAILURE – that’s a pretty big cost. Failure is disruptive, expensive, lowers morale, and damages careers.  But, unfortunately, the costs don’t stop here.

Increased Costs, Increased Risks

When change readiness is low, failure is linked to 3 other costs of change.

The Financial Cost

  • According to the Society for Human Resource Management (SHRM), the cost of replacing a technical/leader-level employee is around 250% of their salary. In other words, it could cost the business up to $312,500 to replace a single employee on a salary of $125,000 (including benefits).

Salary $125,000
Cost of Employee Replacement $312,500

According to Gallup, 17.2% of the workforce are actively disengaged and only 13% are actively engaged. Gallup estimates that for every $10,000 in worker salaries, $3,400 is lost to disengagement in the workforce. Over a third of the payroll is lost to disengagement. To be precise, one disengaged manager on a package of $125,000 costs the business $42,500 in lost productivity.

You Pay $125,000
You Get $82,500 Worth of Value

The Human Cost

  • Change resistance, change fatigue, disengagement, and increased staff turnover

The Cultural Cost

  • High levels of resistance, disengagement, apathy, change fatigue, and staff turnover results in employees losing commitment to the organisation and looking for other employment. The stress and disengagement produces negativity and can create long-term damage to the organisation’s culture.

How Change Readiness Will Help

  • ensure stakeholders understand and buy into the case for change, have enduring commitment to it, and remain engaged throughout the change journey
  • ensure strong change leadership and effective change management for the current change project and those to come
  • help your people become less fearful of change, less fatigued by it, more willing to step outside their comfort zone, and become a more agile, productive & engaged team of employees
  • identify and leverage individual change strengths, develop areas of need, and work together as a resilient team
  • maximise your long-term success rate with change 
  • Why The Change Gym?

    Research & Science

    Our methodologies for assessing your organisational change readiness are all based on the latest research and science, particularly the research of Armenakis, Lewin, Kotter, and Barlow & Barlow. We focus on the 3 key areas of change readiness – the psychological capacity of your people to succeed at change, their readiness to embrace change, and the readiness of your leadership team to effectively manage change. We use a number of proprietary, online survey tools and other research methods to achieve this.

    Experienced Team

    Steve Barlow – Steve is a Director of The Change Gym. He holds a PhD in change readiness. Steve and his team have developed a variety of research-based tools to measure change readiness, and, based on the findings, he helps leaders make better decisions around change, people-management, and communications. Steve also teaches organisational change/change readiness to post-grad students at the University of Tasmania.

    Therese Wales – Therese brings a wealth of experience and expertise managing complex change projects across diverse cultures and countries. Beginning in finance and, as former HR Director of Procter & Gamble (a global Fortune 100 company), Therese spent 24 years at the forefront of the HR industry. She knows from experience the challenges of managing change in complex environments. Now, as a consultant and coach, she works with a diverse range of organisations such as Royal Canin, Hilti, Mad Paws, Honestbee, and Youth Off the Streets.

    Minimal Intrusion

    You may be thinking that something like this audit will take hours or even days of your time and your employees time, time you can ill afford. Well think again. Each of the three online audits can be completed in less than 30 minutes, in fact two of them will take less than 10 minutes. Presentation back to leadership 1-1.5 hours depending on the findings. That is a very small investment of time for huge rewards.

    Value For Money

    It costs money to conduct a change readiness audit, but it is far more expensive to change when you’re not ready for it. Why put your business or your career at risk? With packages starting at $4995 (ex-GST), why take the chance?