The Psychology of Organizational Change: How Neuroscience Can Help Leaders

What is neuroscience? 

Neuroscience is the study of the brain and nervous system. Behavioral neuroscience is a subset that examines how the brain affects individual perception, emotion, memory, decision-making and behavior.

Most instinctual human reactions are based on evolutionary needs, such as the need to belong, the desire to be dominant (or not to be dominated by others), and the fight-or-flight response. These survival-based needs and reactions are related to and reinforced by the brain and the hormones it produces in the body.

How does neuroscience help leaders?

When managers understand how employees’ attitudes, beliefs and perceptions affect their thinking and behavior, they can learn to get their employees on board with necessary organizational change.

“Neuroscience highlights how workplaces that foster belonging and adaptability outperform others because they align with the brain’s social and cognitive needs,” said Dr. Joel Salinas, a cognitive-behavioral neurologist at the NYU Grossman School of Medicine and founder and chief medical officer of Isaac Health. 

For example, chronic stress can increase the risk of cellular brain injury, which can raise the risk of cognitive decline and impair memory and decision-making, he said. “By designing workplaces that prioritize clarity, support and meaningful communication, leaders can create environments that optimize both performance and well-being,” Salinas explained.

Neuromarketing insights can help managers navigate employee interactions, opinions and behaviors by revealing the following information:

• What motivates employees to behave a certain way 
• Why employees react to stimuli in a specific manner
• Identifying what will motivate employees to change their behavior to align with the organization’s new goals
• The best ways to communicate necessary organizational change to employees
• How to implement policies that support and reinforce the new behaviors
• How executives and managers can shift their behavior to support and reinforce the new goals and encourage employees to do the same
• What to look for in the hiring process to ensure new hires fit the company culture

“The neurobiological perspective offers compelling insights into workplace dynamics and leadership effectiveness,” said Mary Poffenroth, a neuro-hacking biopsychologist and author of Brave New You: Strategies, Tools, and Neurohacks to Live More Courageously Every Day (Workman Publishing, 2024). 

“By learning about the brain’s fear and reward systems, leaders can find ways to make their workers less stressed and more engaged and motivated,” Poffenroth explained. “Leaders who understand these brain processes can make places that are psychologically safe and activate the prefrontal cortex. This makes it easier to solve problems and lessens resistance to change.”

How can leaders use neuroscience to influence employees during organizational changes?

If you need to change your workplace culture, boost customer satisfaction or otherwise improve your organization’s performance, consider the following neuroscience-backed methods to get employees on board.

Give compelling reasons for the change.

The brain is biologically prone to resist change because our ancestors relied on social belonging for survival. Anything that shakes up the existing social structure feels threatening, and the instinct is to resist those changes. 

“Change can feel threatening because the brain is programmed to prefer predictability — it’s how we conserve cognitive energy,” Salinas said. “Leaders can use this knowledge by presenting change as a manageable progression rather than an overwhelming overhaul.”

If leaders can present employees with valid and compelling reasons for the change — especially reasons that benefit employees — it minimizes the perception of threat and allows them to see the change as in their best interests. For example, if you’re planning an office relocation, focus on the potential upsides for your employees, like shorter commutes, better perks and larger office spaces. “This method stimulates the prefrontal cortex, which makes it easier to learn and adapt,” Poffenroth said. 

Salinas explained how focusing on the positive helps employees handle workplace change. “Using ‘incremental wins’ taps into the brain’s reward systems, activating dopamine pathways and motivating employees to stay engaged,” Salinas said. “Additionally, encouraging employees to share their perspectives, teaching them skills in conflict resilience, creates a sense of autonomy, reducing resistance to change and enhancing buy-in.”

Make sure the proposed changes are broadly in line with employees’ values. It’s been well established in psychological research that when people find that their beliefs are inconsistent with their actions, a distressing mental state called cognitive dissonance arises. On the other hand, when people believe in a change’s overall purpose and feel that it aligns with their lives and values, they’ll be more inclined to change their individual behaviors.

Recognize and reduce employee stress.

“Neuroscience provides clear insights into recognizing and reducing employee stress in the workplace,” Poffenroth said. “Stress turns on the brain’s threat circuitry, which makes it harder to be creative, make decisions and do well overall. Leaders who understand these neural processes, on the other hand, can come up with ways to deal with stress that get to the root of the problem.”

Team members who frequently have high workplace stress levels tend to have increased employee absenteeism, higher burnout rates and lower productivity. This stress can give them a negative association with their workplace. “Stress leaves a physiological fingerprint — elevated cortisol levels, increased heart rate, decreased activation of the brain’s frontoparietal system for deliberative thinking, and heightened activation of the brain’s more primal limbic system,” Salinas said.

When someone is stressed, the brain releases the hormone cortisol, which speeds up the person’s heart rate and breathing. Over time, elevated stress levels wear down biological systems, leading to fatigue and poor health. Stressed employees are unlikely to have the motivation, patience or energy to change their processes and habits.

Poffenroth said leaders should use techniques that lower cortisol levels and encourage the release of neurotransmitters such as serotonin and dopamine to help lessen workplace stress. She said leaders can use activities that align with the brain’s natural reward pathways to make the workplace engaging and less stressful. 

Salinas agreed, noting, “Interventions such as mindfulness training and structured decision-making frameworks reduce likelihood of what we call limbic irritability (propensity for big negative emotional reactions), helping employees regulate emotions.”

Leaders should understand that change is stressful for employees because they may be unsure about their job security, workload and working conditions. Approach employees with the understanding that the transition may be stressful, and emphasize that the company and managers will take steps to alleviate the stress related to the change.

Ask for feedback.

Employees don’t react well when leaders present new procedures as a “take it or leave it” situation. This attitude can give employees the impression that management is asserting dominance over them, much like a dominant lion intimidates its opponents into submission. Employees may react with anger and push back, protest, quit or refuse to comply with the new way of doing things.

Poffenroth said the old “take it or leave it” way of giving feedback turns on the amygdala, the brain’s “fear center,” which makes people less likely to accept feedback and adapt to the new workplace. 

“Collaborative feedback methods, on the other hand, that include employee input stimulate the prefrontal cortex, which makes it easier to learn and adapt,” Poffenroth said. “Leaders can create feedback systems that work with the brain’s natural tendencies by understanding these neural mechanisms. This will encourage a growth mindset and give employees the tools they need to reach their goals.”

Present organizational changes as new ways to help achieve specific goals. It’s crucial to ask for employee input in these situations. In addition to gaining valuable insight into what’s working and what isn’t, asking for feedback removes the confrontational nature of having something forcefully imposed on employees.

Reinforce and reward.

Once employees have made even incremental changes, leaders should acknowledge this both one-on-one and in group settings. Because change can be complex and jarring, employees may still have reservations even if they’ve done as you’ve asked. A new way of doing things can conflict with already established patterns and cause distress even if employees comply. Salinas explained to business.com that the concept of the “bigger, better offer” — like a reward — can shift behavior patterns.

“The brain’s reward system, driven by dopamine, reinforces behaviors by linking them to positive outcomes,” Salinas said. “The orbitofrontal cortex evaluates the value of these rewards, guiding decision-making. Effective workplace reinforcement involves timely, specific and meaningful rewards that resonate with individual employees. Social rewards, such as recognition and praise, activate the brain’s reward circuits, including the ventral striatum and prefrontal cortex, enhancing motivation and engagement.”

To ensure that your employees don’t feel underappreciated, reward them through praise and individual and group recognition. Thank them, and share how their efforts are making a difference in achieving specific company goals. Where appropriate, consider giving employee bonuses or nonmonetary rewards, like a department pizza party.

Poffenroth explained how reinforcement and rewards encourage positive behavior. “Research shows that the brain responds most positively to immediate, specific recognition and reward,” she said. “With this knowledge, leaders can create reinforcement schemes that maximize their efficacy by matching them with the brain’s natural reward circuits. Employee motivation, job satisfaction and loyalty all rise when rewards stimulate the dopamine and serotonin systems in the brain.”

When a company’s goals for new behavior are not appreciated and reinforced, employees are less likely to adhere to the new system. 

Take a scientific approach to organizational change

It is possible to change employee behavior to implement necessary organizational changes. However, without a nuanced understanding of how the brain reacts to various situations and stimuli, organizational change initiatives will likely falter or fail. 

A top-down, “my way or the highway” approach won’t work. Instead, focus on respectful communication and on giving compelling reasons for the change. Empathize with your team, and show that you recognize that change is stressful and takes time. Be sure to elicit feedback and reward success.

Amanda Clark contributed to this article.