Australian workplaces face productivity losses from friction

A new report by Dayforce examines friction in the Australian workplace and its impact on productivity and organisational outcomes.

Widespread workplace friction

According to the report titled "Fighting workforce friction to power productivity," 92% of surveyed respondents in Australian organisations acknowledge experiencing workplace friction. This friction often arises from ineffective communication, overly complicated processes, and a lack of resources, all of which are contributing to reduced productivity and performance.

The research, conducted by Hanover Research, gathered insights from 765 workers, managers, and executives at companies with at least 100 employees. It explored how workplace friction presents itself in daily operations and the consequences it holds for both employees and overall business outcomes.

"Technology disruption and fluid, hybrid work environments are creating friction across Australian organisations, leading to frustrated employees, inefficient workflows and wasted time and resources. At the same time, sub optimal tools aren't delivering the support that is required. Tackling this complexity crisis requires reducing friction caused by poor communication, mismatched technology, and aligning worker skills with defined roles, which in turn will result in a more engaged, productive staff.

An overwhelming 87% of respondents said they had faced organisational change within the past year. The report found that change, along with other persistent workplace issues, is causing employees to spend less time on meaningful work and more time addressing organisational challenges.

"For leaders, this means creating workplaces which are sufficiently flexible and can withstand change. It's important to have the right mindset and supportive tools that enable teams to not just survive, but thrive, and that can take care of the underlying processes to ensure they execute seamlessly."

Types of friction

The report identifies four key types of friction affecting Australian organisations: staffing, agility, change, and technology.

Staffing friction emerges notably in situations where unplanned absences occur. Sixty-nine percent of workers said that when someone calls in sick, often no one is able to cover their work. For middle managers, workforce scheduling (31%) and accurately forecasting labour needs (29%) are significant challenges. The report suggests that improving staffing flexibility and ensuring compliance with regulations through workforce planning technology can ease these issues.

Agility friction surfaces in terms of job roles and workforce adaptability. While 54% of respondents felt they could add more value in a different role within their organisation, only 39% said their company has a structured approach to upskilling or reskilling employees. The report concludes that better-defined career paths and regular development opportunities can support agility and improve employee retention.

Change friction involves disruptions associated with organisational change. More than half (55%) of respondents said such changes negatively affect employee efficiency, and only 45% said that their organisation is effective at communicating change. The report highlights the importance of clear and regular communication during the change management process to help employees focus on primary tasks.

Technology friction relates to the way employees interact with office technology. Seventy-three percent of respondents stated their organisation uses too many technology platforms. Additionally, 69% at least slightly agreed that adopting new technologies often reduces, rather than improves, efficiency. Reducing the number of platforms and simplifying systems are suggested as ways to improve productivity and focus on more valuable tasks.

Implications for leaders

The findings point to a need for business leaders to critically assess the sources of friction in their workplaces. The research indicates that untangling complexity, aligning technology to actual needs, and prioritising clear communication are vital steps to reducing friction and enabling better organisational performance. The report also stresses the potential benefits to employee engagement and retention when friction is addressed effectively.

The survey forms part of the broader Organisational Friction Index, which measures levels of complexity and technological challenges faced by employees, categorising organisations as experiencing low, medium, or high friction based on responses to key areas including organisational change and technology use.