BrightHR report shows rise in HR tech use in ANZ SME market

BrightHR has disclosed findings from its annual Leaders in Tech report, highlighting the growing integration of HR technology across small businesses in Australia and New Zealand.

Data collected from over 40,000 small businesses and their more than 192,000 employees using BrightHR software suggest that the use of HR technology in these regions is increasingly supporting operations and compliance.

Notably, more than 137,000 holiday days were recorded via the BrightHR system in 2024 across Australia, marking a 27.4% rise from the prior year.

Flexible work arrangements continue to be prevalent, with 78% of Australian employers and 81% of New Zealand employers offering such options. This trend persists despite some companies advocating for a return to full-time office work.

Alastair Brown, CTO at BrightHR, commented, "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."

David Price, CEO of BrightHR ANZ, noted the complex legislative changes introduced in 2024 in both Australia and New Zealand, saying, "SMEs are facing a perfect storm of challenges as 2025 approaches, including rising costs, employment law reforms, and an accelerating pace of digital transformation. In 2024, Australia and New Zealand introduced significant legislative updates for employers."

Price further elaborated on these changes, adding, "In Australia, we saw The Fair Work Legislation Amendment, otherwise known as Closing Loopholes No.2, Bill pass parliament, resulting in significant changes including the Right to Disconnect and new definitions for employers and employees. In New Zealand, there's been updates to the minimum wage and enhanced protections for migrant workers, alongside a renewed focus on health and safety laws."

The adoption of e-learning programmes for ensuring compliance is noted as a significant area of growth, with BrightHR's Learning Management System recording over 750,000 courses completed globally—a 1,289% increase from the previous year.

As employee wellbeing becomes a priority, advanced scheduling software and remote clock-in technologies are facilitating flexible work arrangements.

The report mentioned that over 3.4 million clock-ins were registered via BrightHR's Blip app, representing a 40.9% increase year-on-year, and over 168 million hours were managed using their scheduling tools, indicating a 31.2% rise from last year.

Furthermore, the role of digital tools in employee recognition is emphasised, with over 60,000 Praise points shared through BrightHR's tool this year. This focus on employee experience (EX) is seen as crucial to talent retention, supported by Deloitte findings that associate a 25% increase in employee retention with companies prioritising EX.

Looking ahead, Brown stated, "2024 has been a year of rapid transformation, from economic shifts to the growing adoption of AI, and BrightHR has been at the forefront of helping businesses adapt."

"We've launched over 24 major products this year, welcomed more than 20,000 new customers, and empowered businesses to stay ahead of regulatory changes and workforce demands."

He also touched on future developments, indicating ongoing investments to support evolving business needs, "As we look to 2025, we're ramping up investments in payroll, performance management, and new features like our NFC-enabled clock-in kiosks—continuing to deliver tools that help businesses thrive in a complex and evolving landscape."