'People are willing to take a loss, as long as the process was fair': how HR can help navigate C-suite uncertainty
Prime Minister Justin Trudeau’s announcement that he will step down as Liberal Party leader has thrown Canada’s political landscape into uncertainty.
“It has become obvious to me, with the internal battles, that I cannot be the one to carry the Liberal standard into the next election,” Trudeau said at a press conference Jan. 6, acknowledging that struggles within his political party contributed to his decision.
Similarly, leadership transitions at the highest levels of an organization can create uncertainty in a workplace, requiring HR professionals to implement strategies that ensure stability and fairness.
C-suite changes disrupt organizational culture
Internal struggles at the top can lead to trickle-down effects of unrest, affecting employees throughout an organization, according to Jean-Nicolas Reyt, associate professor of organizational behaviour at McGill University.
Leadership transitions are more than personnel changes—they can represent a shift in company culture and strategic priorities.
“One of the main reasons is because culture starts at the top, and so that means that the personality of the person who's at the top of the organization is determining a lot of how things are happening, and ... how decisions are made and how to get ahead,” he says.
“The issue when you have a shuffling of people is that it's not just a shuffling of people, it's also a change, a potential change in the system.”
Role of management in leadership transitions
A change in leadership often means a shift in values, expectations, and even how employees are evaluated. Employees in corporate settings often experience pressures when a change in leadership upends the established order, creating anxiety about job security and performance expectations.
“When you have a change of leadership in an organization… [people] worry that the rules are going to change, and how decisions are made are going to change, and everything that was a good thing before might not be a good thing anymore,” Reyt says.
In a corporate environment, the sudden loss of a trusted executive can cause panic among employees, highlighting the importance of strong middle management as a stabilizing force to maintain a sense of continuity.
“Culture comes from the top, but [it] also comes from middle management,” he says.
“If you have a strong middle management, then you have pockets of culture where people can feel safe, that this is not going to change, because we still have the same people.”
Fairness in transition: the importance of procedural justice
One of the most significant factors in managing leadership transitions is ensuring that the process is perceived as fair.
Conservative Leader Pierre Poilievre criticized the process, arguing that “now they want to trick voters by swapping in another Liberal face to keep ripping off Canadians for another four years.”
In business settings, similar skepticism can arise when leadership changes appear to lack transparency.
“The whole cornerstone of this is procedural justice, and procedural justice is not about what you give to people or what deal they get – it's about how you decide what deal they get,” Reyt says.
“In the process of selecting the new person and the process of implementing the new leadership, the process needs to be perceived as fair by everybody. And if the process is perceived as objectively fair, people are willing to take a loss, because they understand that you don't always win. Where you have a problem is when people believe that the process is unfair.”
Employees are more likely to accept change if they believe the selection and transition process was conducted with transparency and fairness, says Reyt, stressing that HR professionals must take proactive steps to communicate openly about the selection process and decision-making criteria.
Communication and transparency mitigate uncertainty
Trudeau’s departure has left some politicians calling for an immediate election, while others argue for a structured leadership race.
Similarly, in organizations, rushing a leadership transition can lead to instability. A well-planned approach that includes open forums, anonymous feedback mechanisms, and clear messaging can mitigate problems and help prevent employees from becoming “troublemakers,” says Reyt.
Employees should have multiple opportunities to voice their questions and concerns, and HR teams should actively listen to their feedback. Crucially, trying to control or quell employees from discussing internal leadership unrest will likely backfire.
“Being prescriptive about what employees can talk or not talk about, I think it's doomed to fail,” he says. “Because, at the end of the day, if people believe that something wrong is going on, they're going to talk about it … because you didn't open any opportunities for them to give you feedback.”
Many employees, fearing reprisals or making themselves vulnerable during the shifting sands of leadership changes, will keep silent during the process, Reyt says. Providing regular updates and involving employees in discussions can help to prevent simmering resentment.
Identifying, mitigating risks during leadership transition periods
During Trudeau’s final months in office, political infighting and shifting alliances became increasingly visible. Reyt explains that in business as well, leadership transitions can create opportunities for disruption among colleagues as some may grab the opportunity to make competitive – sometimes cutthroat – moves.
“These shufflings, they can create opportunities for bad actors, there is a proportion of people, in every single organization, that have narcissistic tendencies, that have anti-social tendencies … it's an opportunity for them to get ahead,” he says.
“Some people will get out of the woods and will try to get ahead using that. But most people will just be worried.”
