Australian execs brace for impact from right to disconnect law

A survey conducted by Dayforce has revealed that more than two-thirds of Australian executives believe the country's new right to disconnect legislation will significantly impact their operations.

The legislation, effective from 26 August 2024, protects employees from being required to monitor, read, or respond to employer contact outside of working hours, unless refusal is deemed unreasonable. The initiative aims to foster a better work-life balance in the digital age, but businesses may need to reassess their operational strategies to comply.

According to the survey, only 28 per cent of respondents believe that the legislation will improve work-life balance for employees. Furthermore, just 14 per cent think it will bolster employee retention and reduce turnover.

The survey also highlighted several other concerns affecting human resources leaders, including compliance complexity, flexible working arrangements, recruitment challenges, and diversity, equity, and inclusion (DEI) initiatives.

Compliance requirements emerged as a significant barrier, with 30 per cent of organisations citing it as the most considerable obstacle to high performance. Almost two-thirds of respondents pointed to labour laws and regulations as the primary challenge, followed by data privacy and security concerns, accounting for 26 per cent.

On the subject of flexible working, a majority of organisations (52 per cent) reported no significant change in productivity. However, 36 per cent noticed an increase in productivity, while only seven per cent experienced a decline.

The role of digital technologies and artificial intelligence (AI) is increasingly prominent in shaping the future of work, according to 57 per cent of organisations surveyed. Shifts in employee expectations were noted as the second most significant factor, cited by 18 per cent of respondents.

The job market appears stable, with 52 per cent of organisations actively hiring for multiple roles. However, finding employees with the right skills and experience remains challenging for 50 per cent of respondents, with another 26 per cent reporting general labour shortages.

DEI continues to play an essential role in organisational success. The survey indicated that 51 per cent of respondents see creating an inclusive culture as the most critical DEI initiative, followed by enhancing diversity in leadership at 22 per cent and addressing pay equity at 15 per cent.

"These results highlight the growing complexity crisis that Australian employers are navigating, including increasing compliance risk and the expectations of a boundless workforce," said Brian Donn, Managing Director, APJ at Dayforce. He further emphasised the importance of fostering strong connections between organisations and their employees, and investing in efficient processes and innovative technology to mitigate these challenges.

The survey sampled responses from 86 professionals attending Dayforce Daybreak in Sydney, both online and in-person, between 22 August 2024 and 10 September 2024. Of the respondents, 85 were from Australia, and one was from New Zealand. The group included individuals ranging from C-level executives to associates.