Navigating Organisational Transformation and Restructure: The Hidden Risks and How to Mitigate Them
- Debbie C.
- Feb 1
- 5 min read
As a business owner or executive in Australia, the moment you realise your organisational structure needs to evolve —through transformation (a strategic overhaul of operations, culture, processes, and strategy) or restructure (more focussed adjustments to roles, hierarchies, locations, or systems) —is often one of the most challenging decisions you'll ever face. These shifts can be triggered by cultural misalignments between departments, financial or economic pressures, technological advancements like AI, business growth or contraction, or even administrative changes such as switching payroll systems or altering payroll cycles (e.g., from monthly to fortnightly).
In the current environment of economic uncertainty, rising corporate insolvencies [1], and new compliance obligations like Payday Super starting 1 July 2026 [2], these changes are often very essential for long-term viability and competitiveness. However, if not handled with care, the consequences can be significant. A single mishandled redundancy, unfair dismissal claim, or breach of consultation requirements can lead to costly proceedings at the Fair Work Commission, erode trust, and potentially jeopardise the business's ongoing success [3]. It only takes one employee to escalate a dispute, creating ripple effects that affect your staff (their own families too) and the business as a whole.
In this post, we'll outline the main triggers, the broader human and business risks (including the often under-appreciated complexities of payroll changes), and practical steps to manage transformation or restructure effectively and compliantly.
Common Triggers for Organisational Change
Transformation or restructure typically responds to pressing internal or external factors:
Cultural Misalignments — Silos, conflicting priorities, or poor collaboration across teams often necessitate role realignments, leadership adjustments, or wider cultural initiatives.
Financial and Economic Pressures — High interest rates, cost-of-living challenges, and ATO debt recovery efforts push many businesses toward cost-cutting measures like downsizing, site closures, or consolidation, with insolvencies continuing to rise sharply in 2025 [4].
Technological Advances (Especially AI) — AI-driven automation is reshaping workflows, prompting role changes, up-skilling programs, or structural overhauls. Estimates suggest up to 26–32% of Australian jobs could be at high risk of automation or significant displacement [5].
Business Growth or Contraction — Expansion demands new layers of management and processes, while slowdowns may require merging roles or closing operations.
Payroll System or Pay Cycle Changes — Upgrading to a new payroll provider for improved compliance, integration, reporting, or efficiency —or shifting the payroll cycle across the organisation —do require updates to processes, contracts, and sometimes roles. These seemingly routine changes can carry outsized risks if not managed properly.
These drivers show that change is often unavoidable, but execution determines whether it becomes a strength or a vulnerability.
The Broader Impacts: Employees, Families, and Business Viability
Organisational change hits people hard (especially executives and business owners, like you). Redundancies, role changes, or site closures can cause immediate financial strain, heightened stress, mental health difficulties, and pressure on all families —partners dealing with secondary effects or children experiencing household disruption. In regional or industry-specific contexts, the impact can even extend to suppliers and communities.
Among remaining employees, uncertainty often leads to "survivor syndrome" —lowered morale, increased absenteeism, reduced productivity, and higher turnover. If the process appears unfair or opaque, it heightens the risk of disputes that consume time, money, and focus.
From a business perspective, even one claim (such as unfair dismissal or inadequate consultation) can result in penalties, back-pay, or reputational damage [6]. Prolonged issues distract leadership and can undermine the very goals (e.g. sustainability, improvement or business growth and ongoing success) the change was intended to achieve.
Spotlight on Payroll System Changes: Why They're Riskier Than They Seem
While payroll updates might feel administrative, they can trigger significant organisational effects:
Contractual and Entitlement Risks — Changing pay cycles (e.g., monthly to fortnightly) typically requires employee agreement, as it affects the timing of wages, leave accruals, overtime, and superannuation payments. Imposing changes which don't allow time for your staff to meet their own personal needs (e.g. mortgage repayments and other direct debits) without consultation can lead to stress and sometimes disputes if not handled appropriately.
Compliance Challenges — New systems must correctly manage Single Touch Payroll (STP), super guarantee, tax withholding, and Award conditions. Transition errors can cause underpayments, ATO or Fair Work penalties, or back-pay obligations —especially relevant with Payday Super obligations commencing 1 July 2026, requiring super to be paid on payday [7].
Role and Process Impacts — As we are very clearly observing now with AI, automation in a new system often will reduce manual tasks, which potentially lead to redundancies. Poorly communicated or executed transitions can cause delays, frustration, and unfortunately sometimes very unintended widespread claims. Such claims are incredibly expensive to a business and have flow on affects to other staff too (e.g. no pay rises in the following year is just one example).
Why Expert Advice Is Essential — Payroll affects every employee in your business and is tightly regulated. Mistakes amplify risks during broader transformation or restructure. Independent, specialised advice will always help you select the most suitable, compliant solutions, compare vendors, and navigate integrations without hidden issues.
Engaging expert guidance early —before any announcement —will greatly reduce exposure and support you with a much smoother rollout overall.
Practical Steps to Manage Transformation and Restructure Risks
Use these high-level, actionable tips to navigate change with compliance and care:
Assess and Plan Early
Develop a solid business case detailing the rationale (including payroll updates), anticipated benefits, and risks. Engage HR, legal, or payroll specialists to ensure alignment with the Fair Work Act, Awards, and obligations like consultation [8].
Consult Transparently
Inform affected employees as soon as possible about proposed changes. Share written information on impacts, discuss alternatives (e.g., redeployment), and genuinely consider input. This satisfies legal requirements and fosters trust [9].
Explore Alternatives First
Before confirming redundancies, actively review redeployment or adjustment options. Document everything to bolster your position against potential challenges.
Support Your People
Provide clear details on entitlements (notice, redundancy pay under NES if applicable, accrued leave). Offer access to Employee Assistance Programs (EAP), outplacement, or financial counselling where possible.
Handle Payroll Transitions Carefully
Thoroughly test new systems, communicate timelines clearly, and provide training. Leverage resources from the Fair Work Ombudsman or independent advisors to confirm compliance and prevent disruptions.
Monitor and Rebuild
After implementation, gauge team sentiment through surveys or check-ins. Reinforce the new direction, clarify structures, and document lessons for continuous improvement.
Final Thoughts: Protect Your Business (and Therefore Your People)
Organisational transformation or restructure —driven by strategy, technology, economics, or payroll efficiency —is rarely straightforward. With true empathy, clear communication, and strict compliance, however, you can minimise harm and position your business for stronger performance. Unfortunately, it sometimes only takes one oversight to heavily escalate your business costs, stress, and risk —but proactive planning and having experienced support right by your side can make all the difference in success.
If you're preparing for or navigating change, RUNPAY™ offers independent payroll system comparisons, integration expertise, and executive-level guidance to ensure compliant, seamless transitions. Ready to discuss your next steps? Contact us today for tailored advice that safeguards your business —and therefore your people.
What's your biggest challenge with organisational change right now? For many, it is facing the realities of AI. We're here to support Australian Business Owners and Executives like you. Reach out.
References
[1] Reserve Bank of Australia, Financial Stability Review – April 2025; ASIC Insolvency Statistics (various reports 2025).
[2] Australian Taxation Office, "About Payday Super" (updated November 2025); Fair Work Ombudsman, "Payday Super: New rules starting 1 July 2026" (December 2025).
[3] Fair Work Act 2009 (Cth), s.389 (genuine redundancy requirements).
[4] ASIC data via Accountants Daily (June 2025) and Ashurst (December 2025) reports on 2025 insolvency trends.
[5] Pearson research (2025); International Labour Organisation indices; PwC AI Jobs Barometer 2025.
[6] Fair Work Ombudsman, "Redundancy" overview.
[7] ATO and Fair Work Ombudsman guidance on Payday Super (2025–2026).
[8] Fair Work Act 2009 (Cth), consultation provisions.
[9] Fair Work Ombudsman, consultation requirements for major workplace changes.
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