The future of work: Navigating AI, hybrid teams and talent shortages

The future of work is evolving rapidly, and Australian businesses must adapt to stay competitive. Our deep dive into Australian data from our global research highlights significant challenges ranging from artificial intelligence (AI) adoption to hybrid workforces and ongoing talent shortages. How organisations respond to these shifts will determine their future success.

Is your team truly productive?

AI is reshaping how we work. Our findings reveal that while 44 per cent of Australian workers use AI tools, many are not fully capitalising on the potential of this technology. On average, AI saves 56 minutes per day, yet much of this reclaimed time is still spent on routine tasks. 

To fully harness AI’s potential, organisations should ensure this extra time is not spent on mundane tasks. Instead, they should empower employees to focus on strategic work that drives business growth, for example by building entrepreneurial teams to improve customer impact, or by providing direction on work projects or skills training that will be valued. 

This requires a degree of guidance on an organisation’s future strategic direction. Our research shows that without this guidance, employees’ use of their extra time might not further the organisation's objectives and build capability. 

Businesses must also invest in leadership development to ensure leaders have the skills and confidence to manage AI integration, foster team collaboration and sustain productivity. 

Hybrid work: Flexibility as a strategic imperative

Our research highlights the rise of hybrid work as both an opportunity and a challenge for Australian businesses. While 67 per cent of workers now have flexible work arrangements, managing remote and in-office teams requires new leadership approaches. Leaders must develop the skills to keep their teams engaged, productive and connected across different work environments.

When managed well, hybrid work enhances employee engagement, drives innovation and improves work-life balance. However, there is increasing demand from many organisations for employees to return to the office. We understand that each organisation has its own strategy behind this decision. But if you're adjusting your workplace flexibility, it’s crucial to equip leaders with the tools to communicate these changes effectively and handle difficult conversations.

Failing to communicate or adapt to employees' expectations around hybrid work can put organisations at risk of losing top talent. Employees now prioritise flexibility, and businesses that do not offer it may struggle to attract and retain their best people over time.

Talent shortages: The need for internal mobility and upskilling

Talent shortages continue to challenge Australian businesses. With 45 per cent of employers struggling to fill key roles, organisations must look inward. Focusing on internal mobility and upskilling to bridge the gap takes the pressure off external hiring and creates a greater sense of engagement and better value proposition for current employees. Career development and reskilling initiatives are no longer optional; they are essential for retaining talent and preparing the workforce for future demands.

Our research shows that 77 per cent of Australian workers believe their employers should invest in their professional development. Additionally, more than half of employees are already taking steps to upskill outside work. Organisations that fail to prioritise talent development risk losing employees to competitors that offer clearer career progression opportunities.

Internal mobility is a powerful strategy. Providing employees with opportunities to grow within the organisation will help to retain top talent, reduce recruitment costs and build a workforce that is agile and ready to meet evolving business needs.

The future of work: Preparing for what’s next

AI is transforming workplaces, but adopting new technologies alone will not guarantee success. To thrive in this new landscape, businesses must also invest in leadership development and talent mobility. Australian organisations must ensure their leaders are equipped to integrate AI effectively, manage hybrid teams and foster a culture of continuous learning.

In this rapidly evolving environment, strong leadership will be a key differentiator. Organisations need leaders who can drive change, inspire teams and ensure employees are prepared for the future of work. By prioritising leadership development, businesses can create an agile and innovative culture that will help them succeed, even in uncertain times.

The future of work is already here, and organisations that invest in their people today will succeed tomorrow. The future isn’t something to fear—it’s something to prepare for.