New data sheds light on emerging trends and priorities across Australian organisations
Leveraging AI, building flexible multi-generational work models, and strengthening the connection between people strategies and business results – they’re the three pillars of organisational success in 2025. According to ELMO Software’s sixth annual HR Industry Benchmark Report, this is a year of rapid transformation – with HR leaders sitting at the heart of organisational strategy, driving key decisions with tech, data and C-suite backing.
“This is undoubtedly a pivotal time in our industry,” said Joseph Lyons, CEO at ELMO Software. “To thrive, we must not only be prepared for the future but also remain agile in seizing new opportunities.”
But what, exactly, will this future look like? According to ELMO’s report, AI is set to have a huge impact on Australian HR departments, with 32% calling the tech ‘transformative’ and 68% adding that they feel ready for AI adoption in their organisation.
“AI adoption in HR is accelerating, but the real competitive edge lies in equipping teams with the right skills to harness its potential,” said Lyons. “Organisations that integrate AI effectively – while fostering an engaged, adaptable workforce – will lead the way in this evolving landscape.”
At ELMO, they’re harnessing this new age of technology to drive ‘responsible innovation’ – combining technology with human insight to create meaningful, effective HR practices.
“I encourage HR leaders to identify key processes that could benefit from automation – whether it’s recruitment screening, onboarding, or employee query resolution – then research and pilot AI tools in those areas,” added Lyons.
But it’s not just AI that’s reshaping the way we work – there’s a palpable workforce shift that’s having a huge impact on organisations and their strategies. As the Baby Boomer generation moves towards retirement, a new wave of Gen Z employees are making their mark on the workplace – bringing new ideas and innovations in their wake.
For employers, it becomes a question of how do you balance business needs with evolving employee expectations in order to hold on to this top tier talent?
According to ELMO’s report, across Australia, 48% of respondents believe there’s a ‘significant difference’ in work styles between different generations, notably in how people expect to work. For instance, 66% of HR professionals anticipate policy shifts in the next 12 months to cater to these changes, with over half moving to a hybrid model. This adaption and willingness to shift has also spurred on overall workforce growth.
“It’s encouraging to see strong expectations for workforce growth, reflecting the resilience and adaptability of Australian businesses,” added Lyons. “Our research reveals 89% of HR professionals across the country anticipate workforce changes in the next year, with 83% forecasting growth – up 4% from last year.”
In amongst all this growth and innovation, HR leaders are garnering more and more power. ELMO’s report found a strong collaboration between CHRO and other senior executives, with HR-CFO collaboration having grown by 32% in Australia.
This pairing has had hugely positive organisational impacts on ongoing challenges for HR leaders too. So much so that 42% of HR leaders added that their understanding of business goals and HR alignment improved, 43% said their understanding of financial principles and their alignment with HR metrics improved, 37% added that their AI skills improved and 40% said that their ability to predict trends based on HR data improved too.
“The move toward data-driven HR is clear,” added Lyons. “However, analytics maturity varies by business size. Smaller organisations struggle with financial reporting of HR performance, while large enterprises face challenges in translating insights into action. Mid-sized businesses tend to find a balance, reinforcing the idea that agility and scalability are key to effective HR analytics. As AI and automation reshape workforce management, bridging these gaps will be essential for HR teams looking to turn data into impact.”
Want to learn how to supercharge your HR success in 2025? Download ELMO’s HR Industry Benchmark Report here.
