More than 70% of enterprises in Australia integrate Resource Information Systems (HRIS) into their operations, according to one report on the state of the HR technology landscape - and the number will keep going up. 

This widespread adoption is driven by a growing reliance on cloud-based solutions and automation tools that are enhancing operational efficiency, reducing administrative burdens, and streamlining core HR processes such as onboarding, payroll, and compliance.

This digital shift reflects on the one hand recent market activity, and on the other hand changing demand from workplaces. On the industry front, an increasing number of software companies have been either entering the Australian market from abroad, expanding their existing operations, or launching homegrown solutions. Many of the most popular platforms aim to simplify workforce management, reflecting a broader trend, that is Australian businesses are increasingly seeking integrated, cost-effective solutions that support scalability and flexibility.

These developments signal a strong demand for HR systems that go beyond basic functionality. Australian workplaces are not only digitising HR operations — they are prioritising platforms that offer end-to-end automation, local support, and integration across departments. Moreover, the surge in HR tech adoption reflects a shift toward more agile, tech-enabled, and strategically aligned workplaces across Australia.

Market growth and projections

The Australian HR technology market was valued at US$720.0 million in 2024. It is projected to reach US$1,396.7 million by 2033, reflecting a compound annual growth rate (CAGR) of 7.6% from 2025 to 2033, according to a report by IMARC Group. 

“The market is growing because of the increasing adoption of cloud-based solutions and automation tools, which enhance operational efficiency, streamline HR processes like onboarding and payroll, improve decision-making, and reduce administrative burdens, enabling organisations to focus on strategic growth and employee engagement,” the report said. 

Rise of cloud-based HR solutions

The shift towards cloud-based HR solutions is a pivotal factor in the growth of the HR technology market in Australia. These platforms offer scalability, flexibility, and accessibility, allowing companies to adapt to evolving operational demands without the expenses and constraints of on-site systems. Cloud HR tools enable seamless usage across various devices and locations, making them particularly valuable as remote and hybrid work arrangements become standard. HR teams benefit from immediate access to data, facilitating quicker and more informed decision-making.

Automation: Streamlining HR processes

Automation is another key driver of HR technology adoption. “Routine functions like payroll, onboarding, and performance reviews can be handled with minimal manual input, giving HR professionals more bandwidth for long-term planning and engagement strategies,” said the IMARC Group report. These systems also reduce the need for specialised IT personnel and enhance data security measures, making them a viable option for businesses looking to upgrade their HR operations.

How HR tech is shaping Australia’s work environment

Australian workplaces are embracing integrated, automated HR systems, reflecting a shift toward agile, tech-driven, and strategically focused operations. Let’s understand how it impacts the modern workplaces in Australia.  

A shift toward digital maturity: If 70% of enterprise-level organisations in Australia use HRIS, it indicates a move toward digitally mature HR functions. This reflects a strong organisational intent to replace manual or siloed HR processes with integrated, data-driven platforms that support scalable growth.

Prioritisation of efficiency and scalability: The projected CAGR of 7.6% for the HR tech market (2025–2033) shows that businesses are investing in technology to automate routine tasks. The HR function itself is evolving from transactional HR to strategic HR — enabling HR teams to focus on culture, engagement, and workforce development.

Adaptation to flexible work models: Cloud-based HR tools allow employees and managers to access systems across devices and locations, which supports the continued shift to remote and hybrid work. According to the Australian Bureau of Statistics (ABS), about 37% of employed Australians worked from home at least once a week in 2023 — highlighting the relevance of digital HR tools.

Emphasis on employee engagement and retention: Firms are increasingly utilising AI-driven onboarding and performance management to drive employee experience and reduce turnover, especially in sectors where the labour market is tight.

Increasing data-driven decision making: With cloud-based systems, HR teams have real-time access to workforce data. This allows for faster, evidence-based decisions in hiring, learning and development, and workforce planning. However, data accessibility might be improving in private workplaces but still may be lagging in the public sector. 

Pressure to upskill and reskill: Despite growing interest in AI, only 21% of Australian companies describe themselves as ‘mature’ in AI readiness, with the public sector at just 6.25%, according to a report. HR tech adoption is outpacing workforce digital readiness in some areas. This reveals a growing need for digital skills training to make full use of HR technologies.