ANZ SMEs embrace HR Tech to navigate challenges: Report

A new report from BrightHR has highlighted the growing adoption of HR technology across small and medium enterprises (SMEs) in Australia and New Zealand. The findings, based on data from over 40,000 small businesses and 192,000 employees using BrightHR's software, demonstrate the increasing role of HR technology in streamlining operations, ensuring compliance, and fostering a positive employee experience.

The 2024 "Leaders in Tech" report, which provides insights into the evolving HR landscape in the region, underscores the continued shift toward digital solutions in managing key aspects of the employee lifecycle. According to the data, SMEs in both countries are embracing technology to help address the challenges of rising costs, evolving workforce needs, and increasing legislative complexity.

In 2024, over 137,000 holiday days were recorded through the platform, reflecting a 27.4% rise from the previous year. This surge indicates a greater reliance on automated systems to track and manage employee time off, simplifying what was once a manual and error-prone task.

The rise of flexible working continues to be a key trend in the region, with a large majority of SMEs offering some form of remote work options. The report revealed that 78% of Australian employers and 81% of New Zealand employers are providing flexible work arrangements, despite pressure from some companies advocating for a return to full-time office-based work. These figures highlight the ongoing importance of work flexibility in attracting and retaining talent, a practice that is increasingly supported by HR tech tools that help companies manage remote work logistics effectively.

Alastair Brown, CTO at BrightHR, commented on the growing reliance on HR technology in a challenging business environment, saying, "As SMEs navigate increasing workloads and financial uncertainty, automating key HR functions is helping them manage operations, improve compliance, and control costs. At BrightHR, we're proud to lead this charge, providing the tools businesses need to succeed and grow in the face of challenges."

The report also delves into the impact of evolving employment laws in Australia and New Zealand. David Price, CEO of BrightHR ANZ, highlighted the complexity introduced by recent legislative updates, calling 2024 a year of significant change for employers. "SMEs are facing a perfect storm of challenges as 2025 approaches, including rising costs, employment law reforms, and an accelerating pace of digital transformation," said Price.

In Australia, key legislative changes like the Fair Work Legislation Amendment, or "Closing Loopholes No. 2" Bill, have brought in new laws such as the Right to Disconnect, which restricts employers from contacting employees after hours. Similarly, in New Zealand, updates to the minimum wage, enhanced migrant worker protections, and increased focus on health and safety have made compliance more complex for employers.

To navigate these regulatory changes, SMEs are increasingly turning to digital solutions for training and compliance. BrightHR reported a massive 1,289% increase in the use of its Learning Management System (LMS), with over 750,000 courses completed globally in 2024. This surge reflects the growing importance of e-learning programs to ensure compliance with constantly changing laws and regulations.

In addition to managing compliance, BrightHR's report emphasizes the increasing importance of employee wellbeing and recognition. The platform's advanced scheduling software and remote clock-in technology are helping companies support flexible work arrangements and better manage employee time. The Blip app, for example, saw over 3.4 million clock-ins in 2024, representing a 40.9% year-on-year increase. Additionally, the company’s scheduling tools managed over 168 million hours of work, reflecting a 31.2% rise from the previous year.

Employee recognition has also emerged as a critical focus area, with BrightHR's Praise tool facilitating over 60,000 points of recognition shared by businesses in 2024. This focus on creating positive employee experiences (EX) is becoming increasingly vital for talent retention. Research from Deloitte has shown that companies prioritizing EX see a 25% improvement in employee retention, a statistic that underscores the value of recognition and engagement in driving long-term loyalty.

BrightHR’s growth has been notable over the past year. The company has launched over 24 major products in 2024, attracted more than 20,000 new customers, and continued to evolve its offerings to meet the shifting needs of SMEs. As businesses face increasing complexity, from regulatory changes to workforce demands, BrightHR remains committed to providing the tools needed for success.