Are Leaders Change-Ready for the Next Wave of Disruption?

Authors: Lara Gibbs Ben Warren Pepper Krach

While leaders focus on transformation and business outcomes, employees often ask a different set of questions: What does this mean for me? How will my role change? Do I have the skills I need? Change is experienced differently across the organization.

Leaders today are expected to guide organizations through economic uncertainty, workforce transformation, AI adoption and shifting employee expectations, often all at once. But to effectively lead through disruption, the right set of communication skills and support structures must be in place. And above all, leaders need the trust of their people to sustain change over the long term.

The question is no longer whether change will occur. It's about whether leaders are equipped to help their colleagues adapt — and whether they have the right strategy to create and maintain trust.

Transformation starts with people, not technology

Before introducing AI, redesigning benefits or integrating teams following a merger, organizations need to understand employee concerns such as communication gaps, cultural realities and operational challenges.

Transformation efforts often struggle not because people resist change, but because organizations underestimate the preparation required to support it.

This requires more than a roadmap. The onus is on leaders to communicate openly, address concerns and create confidence in the path ahead. That said, as Lara Gibbs, national practice leader, People Development & Insights at Gallagher, points out, "People don't expect leaders to have every answer, but they do expect honesty, clarity and follow-through."

Three of the most common challenges leaders face include:

Creating clarity without oversimplifying complexity
Ensuring that enterprise-wide transformation aligns with local needs
Managing uncertainty, resistance and employee concerns

Trust shapes how employees respond to change

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Trust is what allows people to step outside their comfort zone and embrace transformation.

Pepper Krach, North America Small & Mid-Market Communication leader, Gallagher

Organizations with high levels of trust tend to experience lower stress, stronger employee engagement and greater resilience during periods of change. To build that trust, leaders must communicate openly and consistently demonstrate the behaviors they want others to adopt.

Gallagher's 2026 US Talent Benchmarks report highlights that 29% of employers view concerns about employee trust as a barrier to AI adoption. Trust also influences an organization's ability to adapt and respond to disruption.

In a culture of trust, individuals are more willing to share ideas, provide honest feedback, experiment with new approaches and support new initiatives, even when outcomes remain uncertain.

Communication: A critical leadership skill

A successful communication strategy extends beyond HR and requires a cross-functional approach. As Pepper Krach, North America Small & Mid-Market Communication lead at Gallagher, explains, "Organizations need a cascading communication model, where leaders communicate key messages and managers provide context and reinforcement. Employees must have opportunities to ask questions, share feedback and be part of the conversation."

This ongoing exchange helps create alignment and ensures concerns can be addressed before they become larger challenges.

Organizations that communicate early and often are better positioned to build that trust and maintain momentum throughout the transformation process.

Sector focus: Boosting retention in biotech

Gallagher partnered with an organization that was facing high levels of employee attrition. A clear focus on an internal communication strategy proved to have a direct impact on results.

Background

Following a merger and rebrand, a US biotech company with 1,400 employees was concerned about low employee retention and initially sought a short-term communications campaign focused on newly hired employees.

Solution

We helped the organization uncover a broader challenge: a gap in establishing internal communications to support their newly formed enterprise. We recommended an enterprise-wide communication strategy focused on transparency and consistency to build greater trust in organizational leadership. Understanding that high trust in leadership results in greater organizational success.

Outcome

The organization created a dedicated global director of internal communications role, elevating communication to a strategic business priority.

Managers: The most important change agents

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Even the best transformation strategy can fall short if managers aren't equipped to provide context, answer questions and reinforce change in day-to-day conversations.

Lara Gibbs, national practice leader, People Development & Insights, Gallagher

While senior leaders set direction, employees experience change most directly through their managers. They help translate strategy into action, answer questions, address concerns and reinforce priorities during periods of uncertainty.

Managers also play a critical role in helping employees make sense of change at a local level. As Lara Gibbs notes, "People are generally more willing to embrace change when they understand the purpose behind it and the role they play in its success."

Organizations that invest in manager capability will be better able to create alignment, sustain engagement and maintain momentum during transformation efforts. By reinforcing key messages, encouraging dialogue and supporting employees through change, managers help turn strategy into action.

Building confidence in AI adoption

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Human oversight isn't just good practice; it's a critical requirement for trust and risk management. The most effective implementations use AI to augment human expertise rather than replace it.

Ben Warren, managing director, Data, AI and Innovation, Gallagher

AI is becoming a larger part of workplace conversations, but many organizations are still in the early stages of adoption. According to Ben Warren, managing director, Data, AI and Innovation, "The greatest value comes from treating AI as an organizational transformation rather than a technology deployment."

The same talent report also found that almost 3 in 4 (73%) of employers expect to increase AI use in HR by 2028, despite many still reporting limited use today.

Successful adoption depends not only on technology, but also on leadership, communication, governance and workforce capability. "The most difficult part isn't implementing technology. It's changing the organization around it," Warren adds.

Combating change fatigue

Organizations often view resilience as a standalone capability, but it's built when employees trust their leaders, feel safe collaborating and are prepared to adapt to change.

According to Pepper Krach, "It's trust that opens up opportunities for collaboration and gives employees the confidence to use new tools, step outside their comfort zones and work together in new ways."

People are more likely to adapt successfully when they have:

Clarity about expectations
Confidence in leadership
Opportunities to contribute
Access to support and development
Psychological safety to ask questions and share concerns

This matters because change fatigue is becoming a growing concern for employers. Organizations are asking employees to absorb new technologies, changing business priorities, cost pressures and evolving ways of working, often simultaneously. It helps when employees understand that change is organizationally focused and not targeted at individual employees. As humans, we begin to create our own stories when we don't understand the bigger organizational picture.

Turning employee feedback into action

Surveys, listening sessions and workshops can uncover communication gaps, capability challenges and areas of uncertainty before they become barriers to adoption.

As Lara Gibbs emphasizes, "Gathering feedback is only part of the process. Organizations also need to demonstrate how employee input has influenced decisions and actions."

When employees see that their voices are heard, trust and engagement are more likely to increase. "The most effective organizations treat feedback as an ongoing dialogue, using it to strengthen communication, build trust and adapt their approach as change progresses," she adds.

Leading through change: The 5 things to consider

Treat change as a permanent capability, not a temporary initiative
Invest in managers who connect organizational strategy with employee experience
Build trust through transparency, consistency and follow-through
Create meaningful opportunities for employees to share feedback and influence outcomes
Communicate consistently and regularly to create clarity