Australia’s new talent equation: Redefining organisational success in 2026

The question is no longer whether AI will change the workplace, but how leaders can harness it to build a more adaptable, resilient, and future-ready workforce, writes Terry Smagh.

Australia’s workplace has fundamentally evolved from hybrid models to pervasive digital processes. Yet, organisations face a new set of critical challenges, from ongoing talent shortages and complex regulation to rapidly changing employee expectations. Each of these has become a strategic risk for Australian businesses, prompting a complete overhaul of traditional recruitment and talent acquisition strategies.

Even as organisations in Australia report strong business gains from artificial intelligence, the evolution of the technology is predicted to further accelerate change within the modern workplace. The question is no longer whether AI will change the workplace, but how leaders can harness it to build a more adaptable, resilient, and future-ready workforce.

Hiring for transferable skills and long-term value

It is estimated that Australia will need 1.3 million technology workers by 2030 to meet industry demand. Despite a 60 per cent growth in Australia’s tech workforce over the past decade, critical shortages in certain areas are hampering overall business competitiveness. Instead of relying on a knee-jerk approach to hiring, employers are likely to shift their talent acquisition strategy in the new year – moving from hiring for today’s technical skills to hiring for long-term potential – with a stronger focus on soft skills.

Studies have shown that people with broad, solid foundational skills, including reading comprehension, basic maths, and communication skills, tend to learn faster and master complex abilities over time, even as specific technical skills become obsolete. All indications point to talent science becoming essential in 2026, offering a data-driven approach to measuring underlying behaviours and potential, rather than past performance alone.

Reskilling will be the fabric of digital transformation

Upskilling and reskilling will no longer be viewed as optional extras in the coming year. As the pace of change accelerates, education is becoming lifelong, embedded seamlessly into how people work rather than delivered as isolated training sessions. Higher education is also rapidly evolving across Australia, with a growing emphasis on flexible, lifelong learning at both school and university levels.

Research shows that inefficient career transitions and related learning gaps are costing the Australian economy $104 billion annually. This is where AI’s growing role in the classroom can help bridge critical upskilling gaps. Equally, as more workplace technologies are designed to embed learning and development directly into everyday workflows, employees will be increasingly empowered, creating a continuous cycle of skill evolution that maintains pace with changing business needs and technological advancements.

The fluid workforce: Beyond the fixed job description

The concept of a ‘job’ as a fixed set of responsibilities is set to evolve. A blended workforce strategy will be essential to succeed in the age of AI and automation. Research by Capgemini reveals that nearly 80 per cent of organisations used independent workers, freelancers, and crowdsourced talent in the past year – a number only expected to rise. In Australia, the gig economy is already reshaping work, but as we move into a new year (and beyond), people won’t be hired for a single role. Instead, they will fulfil a variety of responsibilities based on organisational needs. To keep pace, companies will need to become far more flexible and agile, managing workforces that are more fluid, with staff potentially working across multiple employers, teams, or departments simultaneously. Technology plays a crucial role in this process, with HR systems shifting from managing a fixed headcount to managing a dynamic skill inventory that aligns with work allocation.

Continuous adaptation will become the new normal

Technology alone will not redefine the workplace. Rather, it is humanity’s ability to adapt and embrace change that will be the single biggest catalyst. Change management is no longer about simply enabling change – it is about empowering people to seek it out and accept that continuous learning and reinvention are essential. Encouragingly, Australian employees increasingly view automation as a catalyst for career advancement rather than a threat to job security.

Even though research shows that AI-led disruption could see 1.5 million Australian jobs transformed by 2030, organisations are not deterred. They recognise the urgent need to equip their people with the tools and insights required for ongoing adaptation, turning change into a strategic advantage, rather than a challenge.

Terry Smagh is the senior vice-president and general manager in Asia Pacific and Japan at Infor.