As we step into 2026, Australian workplaces are facing one of the fastest periods of transformation in recent memory. From technological disruption to shifting workforce expectations and major legislative reform, employers must be more proactive than ever to stay compliant, competitive and people-centred.
In today’s Harrison’s Webinar, Managing Director Claire Harrison unpacked the 12 most important HR and workplace relations trends shaping the year ahead – along with the actions leaders need to take now to stay ahead. This article highlights the key themes covered and provides 10 priority recommendations for employers
1. The Rise of Generative AI
AI has officially shifted from novelty to necessity.
84% of Australians in office-based roles now use AI at work, with one-third of them reporting savings of four or more hours per week through automation and augmentation. Yet despite this rapid adoption, workplace readiness lags behind: 72% of employees fear breaching data rules and only 35% have received any formal AI training.
The message for employers is clear—AI adoption is high, but guardrails, governance and capability have not caught up.
2. Tightening AI Regulation
Globally and locally, AI regulation is accelerating.
Australia has released eight voluntary AI principles, with mandatory guardrails for high-risk AI expected soon. The EU AI Act remains the leading global model, and it is anticipated Australia will mirror much of its risk-based approach. HR systems, recruitment platforms and talent tools will be classified as high risk, requiring documented oversight and governance frameworks.
This means organisations must get ahead of regulatory change now—not wait for enforcement.
3. Cybersecurity at Work
Cybersecurity remains one of the fastest-growing organisational risks, and human error continues to be the number-one cause of breaches. New obligations under the Cybersecurity Act 2024, and tighter privacy expectations, mean HR holds increasing accountability as custodians of sensitive data.
Hybrid work and BYOD policies further blur the line between personal and workplace digital environments, lifting the exposure risk for employers.
4. Skills Over Degrees
Skills-based hiring is overtaking traditional qualifications, with 94% of organisations reporting that skills-based employees outperform degree-based hires. Employers must map current capability against future needs and rethink how they identify, measure and grow workforce capability.
5. Micro-Credentialing on the Rise
Employees are prioritising flexible, modular learning pathways—micro-credentials, short courses and stackable qualifications—especially in high-demand areas like AI literacy, leadership and data skills. Platforms such as National MicroCred Seeker, AHRI and DataCamp continue to grow rapidly.
6. Remote & Hybrid Work is Now Standard
Hybrid work is the default operating model for many organisations.
Three to five days in the office remains the most common pattern, but new Right to Disconnect laws mean employers must now clarify expectations for after-hours communication and response times.
7. Increasing Regulation of Gig Work
From February 2025, “employee-like workers” gained new rights, including the ability to lodge unfair deactivation claims. This means employers using contractors or gig-style labour now face tighter compliance duties and must review all contractor engagements.
8. Psychosocial Risks Remain a Top WHS Concern
Job demands, conflict and remote work are the biggest contributors to rising psychosocial hazard complaints. Employers must implement proactive assessment frameworks—not reactive responses—and treat psychosocial risk with the same seriousness as physical WHS hazards.
9. The Ageing Workforce
Nearly one in five workers are over 50, and yet 25% of them report experiencing age discrimination, and 40% of employers still avoid hiring workers aged 65+. Organisations risk losing critical knowledge unless they redesign pathways for mature-age work, including phased retirement and mentoring programs.
10. Leadership Skills Crisis
Middle managers are overwhelmed—balancing hybrid teams, compliance, wellbeing, workplace changes and AI rollout. Yet only 28% of organisations invest in leadership capability. This gap is driving burnout, poor culture and turnover. Leaders need structured development, coaching and role clarity more than ever.
11. Gender Equity Progress, but Still Too Slow
While Australia has climbed to 13th place globally for gender equality, only 27% of organisations have achieved gender balance (40/40). The gender pay gap remains 11.5% for full-time workers and 21.8% on a total remuneration basis in private sector. New WGEA reporting obligations mean employers must set clear gender equity targets for 2025–26.
12. Tightening Workplace Laws
Major reforms occurred across wage theft criminalisation, right to disconnect, casual conversion, limits on fixed-term contracts, superannuation payment timing and significant changes to awards—including new classification structures and record-keeping requirements.
The Woolworths/Coles ruling means annualised salaries can no longer offset entitlements across a 12-month period. Employers must ensure employees are fully compensated every pay period and maintain accurate time and attendance records to avoid underpayment liability.
Top 10 Priority Actions Employers Should Take in 2026
- Conduct an AI usage audit to understand where, how and by whom AI is being used.
- Develop or update an AI governance framework aligned with the EU risk model.
- Implement cybersecurity training and technical controls, including strong password protocols and phishing-resistant practices.
- Review HR, payroll and recruitment systems for embedded AI features and ensure compliance with emerging regulations.
- Map organisational skills and future workforce needs, shifting focus from roles to capability.
- Expand micro-credential learning pathways, particularly in AI, leadership and data literacy.
- Refresh hybrid work and Right to Disconnect guidelines to clarify expectations and protect wellbeing.
- Conduct psychosocial risk assessments and create a proactive mitigation plan.
- Review contractor, gig and casual arrangements for compliance with new laws and fair engagement standards.
- Audit pay, awards, employment contracts and gender equity data to ensure compliance, equity and risk mitigation.
How Harrisons Can Help
Navigating these changes can be complex, time-consuming and high-risk—but you don’t have to do it alone.
Harrisons specialises in supporting Australian employers by providing a thorough range of HR/ER advice and support, including:
- Award and pay audits
- Employment contract reviews
- Leadership capability programs and coaching
- Gender equity analysis and WGEA reporting
- Psychosocial hazard assessments and mental health first aid training
- HR policy reviews and workforce planning
- HR advisory, outsourced HR support and tailored consulting
Whether you need help preparing for upcoming legislation, strengthening your leadership team, or ensuring your organisation is future-ready, our team is here to support you.
Book a HR planning session with Claire today, or reach out Harrisons to discuss how we can partner with you in 2026.
Claire Harrison is the Founder and Managing Director of Harrisons, a flourishing HR consulting business that sprouted in 2009 from Claire’s passionate belief that inspiring leaders and superstar employees are the key success factor to any business. With over 20 years’ experience, Claire has worked as a HR Director of multi-national organisations, as a Non-Executive Board Director, and a small business owner. Claire’s corporate career includes working with companies such as BHP, Westpac, Fonterra and Mayne Nickless.
