Article

Managing organisational change with compassion

Resources and tips to support leaders managing organisational change.

5 November 2025

NHS workforce leaders are navigating urgent asks to make cost savings and workforce reductions against a backdrop of ongoing uncertainty, challenge and service delivery pressures. We know many are working at pace to support their staff through large scale organisational change. Informed by our engagement with workforce leaders across providers and integrated care boards (ICBs), we have collated resources and tips to help strengthen local employment practice. 

Embedding compassionate cultures that promote psychological safety and wellbeing

We understand that managing organisational change compassionately is essential during this challenging time. Creating a culture where staff feel psychologically safe, included, and able to speak openly without fear is vital to maintaining morale and wellbeing. In modelling compassionate leadership, employers can cultivate a working environment where everyone feels included, safe to ask questions and able to work without fear of retribution or retaliation. Clear, open and transparent communication are vital, as well as the provision of meaningful engagement where staff voices matter and are listened to. 

Training line managers to have regular, supportive conversations with their teams will ensure staff know where to find help. Employers should also consider evidence-based change frameworks to help with designing their activities, such as Kotter’s eight step change model or Lewin’s change management model. Whichever change process is adopted it should be appropriate for the intended change or desired outcomes. Ensuring those delivering the change programme are meaningfully and compassionately engaging with staff early on and throughout the process, is essential.   

Financial education and wellbeing

Staff affected by organisational change may experience increasing worries about managing their financial wellbeing and security. Providing your workforce with access to good financial education and wellbeing advice will help them to access the support they need and to plan for the future. It’s important to cultivate cultures that empower staff to seek help and challenge the stigma surrounding financial wellbeing conversations. 

    • What is financial wellbeing? - this downloadable infographic demonstrates the value of good financial health for both the organisation and the individual.
    • Financial wellbeing guide - this guide provides you with a four-step approach to implementing a financial wellbeing strategy in your organisation.
    • The Royal College of Nursing has teamed up with Money Helper to offer a range of pensions planning and financial wellbeing support, including tools and calculators.
    • UNISON Living work with a range of trusted suppliers to help staff get the most out of their money. 

Supporting colleagues through redundancy

As changes continue to unfold across the NHS, we recognise that many teams are navigating a period of uncertainty and complexity. This includes the reality that some colleagues will be facing redundancy. We understand the emotional and practical challenge this brings for both staff and managers. Therefore, we want to ensure that NHS employers feel supported in guiding teams through this transition.

To help you have informed and compassionate conversations, we're signposting to a range of resources designed to:

  • support staff in exploring future employment opportunities
  • provide guidance on navigating redundancy
  • offer tools to maintain wellbeing and morale during this time.

We know that working in these circumstances can be emotionally demanding, and we want to acknowledge the impact this may have on you and your teams. Support is available to assist you in navigating these conversations with sensitivity and assurance. 

Exploring flexible retirement options

We know that exploring all available options is important during this time. Flexible retirement can offer a valuable alternative that supports both staff wellbeing and organisational needs. It allows employees to reduce their hours or responsibilities while accessing part of their pension, offering financial stability and a better work-life balance during periods of uncertainty.

This approach helps retain experienced staff, preserving essential skills and knowledge. It supports succession planning, reduces recruitment and training costs, and ensures continuity of service during periods of change. Flexible retirement also complements other change programmes, offering an alternative to voluntary redundancy and enabling phased reductions in salary or hours.

Employees benefit from a smoother transition into retirement, with options to wind down through reduced hours, step down into less demanding roles, or take partial retirement to access pension benefits whilst continuing to work. These pathways can help ease the emotional transition away from full-time work and colleagues while maintaining engagement and financial security.

By maintaining critical roles and offering flexible working arrangements, organisations can better manage workforce reductions and service demands without losing valuable expertise.

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