Australian firms seek flexibility & tech for productivity boost

Research conducted by workforce management platform Rippling reveals significant insights into the strategies Australian businesses are employing to enhance productivity and achieve growth amidst current economic challenges. The Rippling report, based on a Censuswide survey involving 500 Australian business leaders, highlights the priorities and obstacles businesses are encountering as they navigate the fiscal year 2025.

Principal among the findings is the commitment to flexible working practices. A substantial proportion of respondents advocated for work-from-anywhere policies (67%), a four-day work week (66%), and the right to disconnect (65%) as methods to boost productivity. Despite this endorsement, actual implementation remains limited, with only 25% of companies considering or adopting the four-day work week and 20% putting into practice the right to disconnect.

Australian businesses are eyeing global markets as a primary avenue for growth. Approximately 65% of companies plan to expand internationally within the next year, particularly to the United States and the United Kingdom. Nevertheless, 19% of respondents expressed concern about potential negative perceptions of Australian productivity. Key challenges identified include the costs associated with expansion (35%), managing teams across diverse time zones (32%), and navigating local laws and regulations (29%).

The survey also discloses a strong inclination towards hiring international talent, with 69% of businesses intending to recruit globally in the coming year. The main drivers for this trend are not lower labour costs (cited by 36%), but support for international expansion (44%) and productivity enhancement (43%). The complexity of current industrial relations reforms, such as the Right to Disconnect, was noted by 37% of respondents as an additional motivation for hiring globally.

Matt Loop, Vice President and Head of Asia at Rippling, commented on the findings: "The spectre of stagnant business productivity continues to cast a long shadow over the Australian economy, but improving efficiency and output will be key to overcoming businesses' economic and market pressures in FY25." He added that technology will be instrumental in driving this transformation. "Technology will play a key role in facilitating this change, whether that be making it easier for companies to consider global expansion or improving efficiency and eliminating the time burden of administrative tasks. But we're now seeing working practices become central to the conversation. Companies are beginning to understand that greater flexibility in work is not about employees wanting to work less - it's about them wanting to work differently."

The role of technology in bolstering productivity is also underscored. Three-quarters (74%) of survey respondents agree that technological investment can significantly enhance productivity. The top objectives for technology investments were improving security (35%), increasing operational efficiency (34%), and reducing costs (34%). The sectors most likely to benefit from technological advancements include IT (41%), HR (28%), Finance (27%), and Marketing (26%).

However, traditional methods of enhancing productivity remain preferred. Training and upskilling (76%), employee reward schemes (75%), and overtime pay (74%) still hold substantial support among businesses. This suggests a balanced approach where both innovative and conventional methods are employed to achieve optimal productivity outcomes.

The report concludes that while there is clear enthusiasm for new working practices and global hiring, the pace of implementation varies. Australian businesses are poised to explore and experiment with flexibility and technology to address their productivity challenges, optimise growth, and maintain competitive advantage in a dynamic global market.