With 2025 looming on the horizon, workplace leaders across Australia are preparing for significant changes as new trends emerge within the human resources (HR) and workforce management (WFM) sectors. This is not merely about adapting to the current environment; it signifies one of the most disruptive shifts seen across both industries for years.
A key focus is on compliance issues, particularly concerning wage theft and underpayment. Beginning January 1 of this year, employers face grave consequences for intentional underpayments, including fines reaching as much as three times the amount owed and potential jail time. Many businesses have not previously prioritized this pressing concern. According to Jarrod McGrath, founder and CEO of Smart WFM, "Employers will be criminally penalised for intentional underpayments now... meaning fines of up to three times the value of the underpayments, as well as potential jail time." This shift compels companies to re-evaluate their payment practices and integrate cooperation among various departments such as HR, accounting, and technology.
Such widespread lack of regulatory compliance has highlighted the need for companies to open new communications lines and build bridges between processes and technologies to facilitate accurate payments. Technology interventions are also surfacing, with compliance solutions increasingly offered by new operators, yet no standout solution has gained prominence as of yet.
Meanwhile, productivity growth across Australia has faced challenges over decades, reducing from 1.5% growth over 30 years to just 1.2% over the past two decades, as outlined by reports from the Treasury. Despite increased spend on technology — trending from approximately $94 billion in 2019 to $133 billion anticipated by 2024 — the disconnect between deployed technologies and their user base persists. Various factors contribute to this slowdown, including outdated training and differing workplace mindsets, which undermine the very technology investments made.
McGrath asserts, "AI is bringing new hope for tech's ability to solve our productivity woes." Many leaders acknowledge the necessity of deploying AI applications to optimize performance. Nevertheless, if businesses continue to navigate technology without requisite systems, data, training, and, critically, buy-in and trust, they risk AI becoming yet another underutilized tool. He cautions, "AI can only learn from us at this stage — bad systems in, bad outcomes out.".
Employers also need to focus on the experiences of their workforce. Despite the dampened economy, there remains clarity among the workforce about their expectations and desires from their employers. The dynamic — where employees align their personal and professional missions — is becoming increasingly important. For successful talent acquisition and retention strategies, leaders must remain responsive to the shifting workforce culture and needs.
Disruption is the keyword for these trends, fundamentally transforming workplace environments. McGrath explains, "I believe we'll see full 'digital workers' and robots deployed... we’ll reach a stage where we’ll be able to ask our digital worker team member about compliance, how to upskill, and how we can improve our experience, just as we might do with our human peers today." The implication is clear — as these technological shifts gain traction, HR and WFM strategies must evolve accordingly. The pressing question now becomes: how do organizations measure and evaluate the performance of these digital entities? How will traditional KPIs and performance reviews adapt to incorporate AI-driven contributions?
The time for preparation is now, as all indications point toward growing integration of AI within teams and what it means for organizational cultures and functions. Amid these transformations, organizations need to embrace change actively if they hope to thrive and navigate the uncertain labor market of the future.