While executive turnover can cause uncertainty, it also provides an opportunity to improve engagement and reinforce confidence in leadership. Organizations that manage transitions proactively through clear communication, structured onboarding, and a well-defined vision can minimize disruption and create lasting momentum.

How Leadership Changes Affect Employee Trust

Seventy-four percent of employees who responded to DHR’s survey expressed trust in their senior leaders, while 43% said they trust them deeply and 31% said they trust them somewhat. But when a C-suite executive leaves, it can disrupt that trust. Other key findings:

• 52% reported operational disruptions, such as delays and confusion over ownership of projects.
• 34% questioned their organizations’ stability.
• 33% felt uncertain about their organizations’ strategic direction.

Despite these challenges, leadership changes can also inspire employees. Nearly 63% of employees said executive transitions increased their engagement, showing that a well-managed transition can reignite enthusiasm for a company’s future.

Successful Executive Transitions: Insights from Talent Advisors

Navigating leadership changes successfully requires more than filling an empty C-suite seat – it demands a strategic approach that prioritizes transparency, stability, and alignment. DHR Partners shared their insights on how organizations can manage leadership transitions while maintaining trust and engagement.

Ensure Leadership Continuity With a Thoughtful Transition Plan

Supriya Dikshit, Managing Partner, Asia Pacific Industrial Practice; Managing Partner, Singapore

C-suite transitions are inevitable and often driven by succession, market shifts, underperformance, or changes in ownership or stakeholders. When an executive departs, speculation can cause uncertainty among employees. Clear, transparent communication from management and the board is essential to reinforce stability and prepare the organization for new leadership.

A structured onboarding process is also key to a smooth transition. New executives must quickly understand stakeholder dynamics, company operations, and culture. Setting clear short- and long-term expectations, while allowing flexibility, helps them align with business goals. Providing data-driven tools, internal support, and a structured mentorship program accelerates integration and strengthens leadership effectiveness. A strong mentor-mentee network encourages collaboration, reinforces alignment, and enhances executive confidence.

Some organizations take a proactive approach by defining success parameters before hiring. I’ve seen companies seek “ready-now” or “future-ready” executives within set timeframes, ensuring seamless leadership transitions with clear road maps. In family-owned businesses and conglomerates, strong board and promoter support is crucial. From my experience, hands-on guidance in the early phase helps executives build credibility, gain trust, and cultivate a deep sense of belonging – leading to stronger engagement and performance.

Create Stability Through Open Dialogue

Sara Garlick Lundberg, Managing Partner, North America – Nonprofit

Change often brings uncertainty, which can create anxiety, especially during executive transitions. However, boards can take proactive steps to ease concerns and maintain stability. Implementing a comprehensive communications and engagement plan is the first step. Clearly sharing updates and key milestones reassures employees and builds confidence in the process.

For example, a nonprofit client recently faced the sudden departure of their CEO, leaving the organization in a state of uncertainty. Internal leaders stepped up quickly, galvanizing staff and turning what could have been a crisis into a moment of unity. Their leadership and commitment helped rally the team, shifting the focus from uncertainty to shared purpose and renewed momentum.

Enhance Onboarding to Maximize New Leader Success

Kristi LeBlanc, Managing Partner, Global Consumer & Retail Practice

With any C-suite transition, it’s crucial for the executive leadership team (ELT) to stay aligned as a unified force, driving the organization forward in line with its overarching strategy, mission, vision, and goals. Focused and consistent communication across all levels of the organization is essential to reinforce priorities and progress and to maintain momentum. As new C-suite leaders step into their roles, thoughtful and comprehensive onboarding plans – guided by experienced executive coaches – can significantly enhance their integration and effectiveness.

Prioritize Open and Honest Communication

Tricia Logan, Managing Partner, Global Consumer & Retail Practice

C-suite transitions signal change, and without careful management, change can be disruptive. Transparency from the CEO and board during leadership changes is essential to building trust and openness across the organization. New C-suite leaders should establish early and ongoing communication with their teams, sharing strategic priorities while actively seeking input. This approach strengthens alignment and encourages collaboration. Additionally, a unified C-suite that supports the new leader, rather than operating in silos, helps reinforce stability and advance the organization’s broader goals.

Evaluate Leadership Potential at Every Level

Justin Menkes, Ph.D., Partner, Leadership Consulting

Leading organizations actively assess talent at all levels, with a strong focus on the C-suite. A thoughtful and comprehensive succession plan helps retain and develop top performers who can advance into senior roles. Often the best hires come from within the organization, building a culture where people can witness strong performance being rewarded.   

Prioritize Culture Fit When Selecting a New CEO

Frank Smeekes, Managing Partner, Europe

In a world of disruption and uncertainty, C-suite transitions should be as predictable as possible. The best transitions are planned and communicated clearly – whether due to retirement, ownership changes, or market shifts. Long-term succession planning requires board and stakeholder engagement, ensuring a seamless leadership shift.

In 2024, we supported two post-merger integrations involving European-headquartered global companies that U.S. counterparts acquired. Despite operating in different industries, both acquirers respected the culture they inherited, reinforcing that a new chapter had begun. By assessing internal competencies and market needs, they restructured for greater competitiveness.

Both transitions followed a structured plan for the organizations and their CEOs. Communication and transparency aligned teams and enhanced trust. Board members played a key role, while experienced chief human resources officers brought essential post-merger integration expertise. Their collective efforts positioned the new CEOs for long-term success.

Recognize Past Leadership While Embracing New Ideas

Lisa Walker, Managing Partner, Global Industrial Practice

A seamless leadership transition requires a delicate balance. It’s crucial to recognize and honor the outgoing leader’s accomplishments and precedents while simultaneously empowering the successor to bring fresh ideas and innovation. This principle applies, regardless of whether the new executive is an internal promotion or an external hire.

Harnessing the new leader’s unique skills and expertise is key. Often, these skills will complement those of their predecessor, as exemplified by Tim Cook succeeding Steve Jobs. This approach helps the organization address evolving industry demands and strengthens internal capabilities.

A successful example of an outside CEO transitioning into a family-owned business demonstrates this approach. The executive effectively integrated into the organization, gaining the team’s trust and support. He achieved cost savings without resorting to layoffs, worked closely with the family owners to secure their backing for long-term investments, and drove substantial top-line growth. Importantly, this CEO struck a balance between promoting internal talent and bringing in external expertise, capitalizing on the strengths of existing employees while attracting top talent to achieve outstanding results.

Boost Employee Confidence in Times of Change

Leadership changes will always be a part of business, but how organizations manage them makes all the difference. A well-planned transition that prioritizes communication, employee engagement, and leadership alignment can strengthen trust rather than erode it. By taking a strategic approach, companies can turn executive turnover into opportunities to reinforce stability, refocus their vision, and inspire confidence in the future.