Australian HR leaders gathered at the 2025 Australian Financial Review (AFR) Workforce Summit, to discuss the trends bringing unprecedented disruption and opportunity.
In a room filled with some of Australia's most prominent HR leaders, one thing was clear: the industry is grappling with a tectonic shift in the workforce, driven by a number of factors — from the lingering impact of Covid and ongoing return-to-office debate, to the transformative power of agentic artificial intelligence (AI) and evolving skills landscape.
As AFR Editor Cosima Marriner eloquently framed in her opening remarks, the real question is how we can leverage these disruptions to cultivate a more engaged workforce, and a more prosperous economy. As I reflect on the vibrant discussions and insightful presentations from the event, I'm struck by a few common themes that impact us all as we navigate the future of work.
An issue discussed in almost every session throughout the day was the need to increase national labour productivity. Simon Tate, APAC President at Workday, addressed this in his keynote, stating unequivocally that the days are gone where the ability to lift productivity is driven by employee capacity. We must instead increase 'yield per employee', by focusing on skills.
This skills-based approach takes on even greater significance when we consider the generational diversity within today’s workforce. As Tate noted, we are about to enter a time when the age of the Australian workforce will span from 18 to 80, presenting a unique opportunity to unlock productivity by harnessing the distinct skills and perspectives of each generation.
However, this generational tapestry also presents complexities. Communication styles, tolerance for legacy technology and professional development are all impacted by the 'Five-Gen Effect'. Tate urged organisations to leverage the digital fluency of Gen Z and Gen Alpha — only two years away from joining the workforce — to address the digital skills shortage.
But the nuances of generational preferences extend beyond technology. A compelling panel discussion featuring HR leaders from Telstra, SEEK, and Google explored how to get the most out of Gen Z employees, noting their unique preferences for work-life balance and flexible working, as well as in-person collaboration and social programs.
Managing people effectively in this multigenerational environment also requires a shift in leadership skills. Karen Lonergan, Chief People Officer at PwC Australia, aptly noted that leaders need to be comfortable with ambiguity and move away from older 'command and control' leadership styles that don't reflect the nuances required in modern, hybrid workplaces.
The introduction of AI agents, which can autonomously complete specific goals, will fundamentally shift the way HR leaders approach strategic workforce planning and talent management.
The transformative power of AI was another dominant theme. After all, it's not just humans that will make up the workforce of the future. The introduction of AI agents, which can autonomously complete specific goals, will fundamentally shift the way HR leaders approach strategic workforce planning and talent management.
AI agents share many similarities with a human workforce. They require onboarding, training, feedback, support, allocation to specific tasks, and more. This makes it a workforce challenge — not just a technical one — and HR leaders need to think carefully about the roles in their organisation, how they will shift, and how they will support their people through this change.
Crucially, every speaker at the event underscored that human skills will remain indispensable. Belinda Speirs, Chief Executive of People, Legal & Corporate Services at Suncorp, illustrated this with a powerful example of how AI enabled Suncorp teams to proactively support their people and customers on the ground during a recent cyclone in Queensland.
I shared my own example from Workday, where the use of agentic AI has allowed us to shift the role of recruitment coordinators towards a focus on more valuable recruitment work. This highlights the need for strategic workforce planning, so we can invest in our people in a way that helps them thrive, while leveraging the power of agentic AI to focus on lower value tasks.
As HR leaders, it's up to us to embrace a culture of continuous learning and adaptation, so we can take a human-centric approach that builds trust, transparency and fairness at all times.
For many people, combining a digital and human workforce sounds like science fiction. But it is a reality that will transform the Australian labour force in the years ahead. As HR leaders, it's up to us to embrace a culture of continuous learning and adaptation, so we can take a human-centric approach that builds trust, transparency and fairness at all times.
The summit also delved into the evolution of flexible working, acknowledging the profound impact of the past five years on collaboration and learning. Sarah McCann-Bartlett, CEO of the Australian HR Institute, stressed that while hybrid working patterns have now stabilised, many organisations still need to actively cultivate a sense of collaboration and community.
Kathryn van der Merwe, Group Executive of People, Culture & Communications at Telstra agreed. She admitted that while Telstra has had a flexible working policy for over a decade, it's still a 'big experiment'. She suggested HR leaders still put effort into becoming great, noting that it can't be a set and forget approach.
While we won't know how Gen Alpha will impact working patterns for another few years, all speakers agreed that the key to designing a great workplace is to be intentional. This includes consideration of each organisation's unique operating rhythms, roles, ways of working and office space. This approach ensures teams can thrive, and support customers in the best way possible.
This intrinsic link between employee experience and customer success was underscored in a conversation between The AFR's Anthony Macdonald and Catherine Walsh, Chief People Officer at Qantas Group. As the first people leader to sit on the executive leadership team, Walsh is dedicated to ensuring the voice of Qantas Group's 29,000 employees are front and centre.
Walsh is a strong advocate for visible leadership and believes people leaders must spend time listening to employees and visiting their workplaces, to deeply understand their role and what their experience is like on a day-to-day basis. This direct engagement has been crucial in understanding what truly matters to employees at Qantas, beyond wages.
She also emphasised the importance of visibility at a leadership level, noting that while many people say people are their most important asset, it's not true unless there's a HR leader sitting on the executive leadership team. At Qantas, this ensures she is contributing to every aspect of decision making, while also understanding the commercial realities of the business.
This visibility has been instrumental in rebuilding relationships with customers. "When you talk to customers, they say 'it's the people that I come back for', so if we don't pay attention to that then we're missing that opportunity," Walsh said, highlighting how investments in employee wellbeing can directly impact customer-driven metrics.
Despite the many challenges facing HR leaders in 2025, I am struck by a profound sense of optimism at the opportunities that lay before us.
Despite the many challenges facing HR leaders in 2025, I am struck by a profound sense of optimism at the opportunities that lay before us. But we must continue to have these conversations, and foster a collaborative ecosystem where business, education and government continue to share insights like these, and forge partnerships that drive innovation.
The future of work is not a distant concept; it is unfolding before us. Most importantly, it's exciting and not something to be afraid of. By investing in skills, embracing AI, upskilling leaders to manage a multigenerational, hybrid workforce and focusing on the employee experience, we can create a productive, equitable and fulfilling future for all Australians.
Photo credit: Oscar Coleman, AFR Workforce Summit 2025
Workday leaders predict the top AI trends for 2025, including the growing importance of human-machine collaboration, strategic AI investments, and the need for uniquely human skills in the age of automation.
More Reading
Talent density is becoming a defining factor in how high-performing teams operate and grow. In this article, we explore what it means, why it matters, and how to build it with intention.
From productivity enhancements to personalized experiences, AI is quickly reshaping how we work.
AI is reshaping the enterprise risk management landscape, helping businesses anticipate threats, prevent fraud, and streamline compliance at scale.
