In 2025, Australia’s tech sector is navigating an era of relentless disruption, where decisions made today can have immediate and lasting consequences.
As companies adjust to market shifts, economic uncertainty, and emerging technologies, organisational change has become both unavoidable and high-risk.
Poorly managed redundancies and restructures are driving talent loss, psychological injury claims, reputational damage, and costly litigation.
This report outlines the critical risks tech leaders must address and offers strategic recommendations to ensure resilience, compliance, and competitive advantage. For forward-thinking firms, mastering change management is no longer optional. It's a leadership imperative.
Key risks
Talent Drain: Poor redundancy management leads to losing key employees.
Workers’ Compensation: Poorly handled changes increase psychological claims.
EPL Claims: Rising allegations of unfair dismissal and discrimination.
Reputation Damage: Mishandled redundancies harm the employer brand.
Culture and Productivity: Poor communication disrupts morale and innovation.
Legal and Regulatory: Non-compliance with Fair Work laws risks costly litigation.
Ignoring these risks can severely impact financial, operational, and reputational health. Immediate attention safeguards resilience and long-term competitiveness.
Recommendations
Prioritise transparent, empathetic change management.
Use data analytics for strategic workforce planning.
Engage HR legal advisors early for compliance.
Balance AI investments with human oversight.
Regularly review D&O and EPL insurance.
Ensure clear communication and timely escalation of issues.
Proactive management of these areas strengthens organisational resilience and market advantage.
How winning tech firms manage change management
In today’s dynamic tech landscape, redundancy and organisational change are sometimes necessary, but they are never risk-free.
When handled poorly, they create a ripple effect far beyond operational disruption. For Australian tech firms navigating market fluctuations, economic uncertainty, or rapid scaling, the stakes are higher than ever.
Change management planning is a strategic inflection point. Tech leaders who manage it poorly risk long-term damage to innovation, culture, and competitiveness.
Those who lead with foresight, transparency, and purpose can help keep their organisation resilient.
Human-centred change management: They treat change as a people-first issue. That means transparent communication, inclusive planning, and empathetic leadership throughout the process.
Data-driven planning: Top performers use workforce analytics and scenario modelling to identify areas for efficiencies without undermining core capability or culture.
Scenario-ready workforce strategies: Rather than treating redundancy/business change management as a reaction to crisis, high-performing organisations build flexible workforce plans that can scale up or down while retaining critical IP and talent.
Proactive legal and risk engagement: Engage with HR legal advisors early to ensure compliance, minimise risk exposure, and align redundancy execution with corporate values and local employment law.
Focus on rebuilding trust: After organisational change, leading firms invest in rebuilding psychological safety through leadership visibility, targeted engagement programs, and strategic internal communications.
Bottom line for boards
Directors and Officers remain liable, even as political landscapes shift.
The smart play is early action: review cover, update policies, and prepare for more complex people risk exposures in 2025.
Download today
For the full insights, download our Beyond the hype: Managing the silent risks of business change management (on the right for desktop and below for mobile).
Contents of this publication are provided for general information only. It is not intended to be interpreted as advice on which you should rely and may not necessarily be suitable for you. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. Lockton arranges the insurance and is not the insurer. Any insurance cover is subject to the terms, conditions and exclusions of the policy. For full details refer to the specific policy wordings and/or Product Disclosure Statements available from Lockton on request.
