As we move into 2026, Australian workplaces are navigating a period of rapid transformation. From the rise of generative AI to new compliance obligations and evolving workforce expectations, HR leaders face both unprecedented challenges and exciting opportunities. Here’s what’s shaping the future of work—and what your organisation needs to do now.
- Generative AI Becomes a Daily Workplace Tool
AI has shifted from novelty to necessity. A remarkable 84% of Australians in office roles now use AI at work, with over a quarter using it daily. Most employees see AI as a way to enhance—not replace—their roles, but there’s a significant generational divide in confidence and proficiency. While Gen Z leads in AI skills, only 35% of all workers have received formal training, and 72% fear breaching data or regulatory rules. Organisations must close these capability gaps by auditing AI usage, introducing clear Acceptable Use Policies, and delivering practical, inclusive training.
- Increasing AI Regulation
Global and local AI regulations are tightening, led by the EU AI Act. While Australia’s 8 AI Principles are currently voluntary, mandatory guardrails for high-risk AI are on the horizon. HR systems—especially those used in hiring—may soon be classified as “high-risk” and require robust documentation and oversight. Now is the time to build an AI governance framework aligned with international standards.
- Cybersecurity at Work
Cyber threats are escalating, with human error remaining the top cause of data breaches. The new Cyber Security Act 2024 and the Notifiable Data Breaches scheme increase HR’s accountability for employee privacy and data handling. Regular training, strong technical controls, and incident response plans are now business-critical. Cybersecurity is no longer just an IT issue—it’s a whole-of-business capability.
- Skills Become the New Career Currency
Skills are overtaking degrees as the basis for hiring and promotion. A staggering 94% of organisations say skills-based hires outperform those chosen by degree. HR must shift from job-based thinking to skill-based workforce management, mapping current capabilities and future needs to stay competitive.
- Rise of Micro-Credentialing
Employees are turning to fast, targeted micro-credentials to stay employable. Flexible, modular learning is now expected, and organisations should support priority micro-credentials in AI literacy, leadership, and data skills.
- Hybrid & Flexible Work
Hybrid work is now the default operating model for many organisations. New “Right to Disconnect” laws are changing after-hours communication expectations. Clear rules for availability and response times are essential to ensure compliance and protect employee wellbeing.
- Gig & Platform Work
Gig work continues to grow, especially in specialist and on-demand roles. From February 2025, “employee-like workers” can lodge unfair deactivation claims, and businesses face new compliance duties. It’s crucial to review all contractor and gig engagements for fair rates and proper classification.
- Psychosocial Risk Intensifies
Psychosocial hazards—like job demands, conflict, and remote work—are a top WHS concern, with rising claims and complaints. Organisations must conduct regular psychosocial risk assessments and act on identified hotspots to protect health and culture.
- Ageing Workforce
Older workers now make up almost 1 in 5 employees, but age discrimination remains widespread. Organisations risk losing critical knowledge as retirement ages rise. Flexible retirement pathways and formal mentoring programs can help capture and retain expertise.
- The Leadership Skills Crisis
Middle managers are under pressure from hybrid work, compliance, AI rollout, and wellbeing demands. Yet, only 28% of employers invest in leadership capability. Practical, hands-on leadership training and reducing administrative burdens are now essential to support leaders and drive organisational success.
Key Takeaways for 2025 into 2026
- AI and digital skills are essential, but so are human skills like communication and adaptability.
- Compliance and risk management are rising priorities, especially in AI and cybersecurity.
- Flexible, inclusive, and skills-based approaches to work and learning will define the most successful organisations.
By proactively addressing these trends, your organisation can build resilience, attract and retain top talent, and thrive in the evolving world of work.
Please contact Harrisons if you’d like to know more about any of these trends and what you need to do as an employer.
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.
