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92% of respondents say there is friction in their work environment, including ineffective communication, overly complicated processes, and lack of resources

Dayforce, Inc. (NYSE: DAY; TSX: DAY), a global human capital management (HCM) leader that makes work life better, today released a report, Fighting workforce friction to power productivity, that explores types of workplace friction – staffing, agility, change, and technology - and the consequences of them. Findings show widespread organisational challenges among Australian enterprises are hurting productivity and the bottom line by keeping people from doing the work they’re meant to do.

With a majority (87%) of respondents saying they have faced organisational change in the past 12 months, this new research dives into how friction is experienced by workers, managers, and executives to help leaders drive simplicity at scale and ensure their people are doing work that drives results. Conducted by Hanover Research, the survey included 765 workers, managers, and executives from companies with at least 100 employees. The findings highlight opportunities to enhance speed and agility, while also improving the employee experience.

"Technology disruption and fluid, hybrid work environments are creating friction across Australian organisations, leading to frustrated employees, inefficient workflows and wasted time and resources," said Rob Husband, Head of Revenue – APJ, Dayforce. "At the same time, sub optimal tools aren’t delivering the support that is required. Tackling this complexity crisis requires reducing friction caused by poor communication, mismatched technology, and aligning worker skills with defined roles, which in turn will result in a more engaged, productive staff.

“For leaders, this means creating workplaces which are sufficiently flexible and can withstand change. It’s important to have the right mindset and supportive tools that enable teams to not just survive, but thrive, and that can take care of the underlying processes to ensure they execute seamlessly.”

Rob Husband, Head of Revenue – APJ, Dayforce

The report identified four types of friction organisations need to address:

• Staffing friction: More than two-thirds (69%) of workers said that when someone calls in sick at their organisation, there is often no one to cover their work. Meanwhile, middle managers say that workforce scheduling (31%) and accurately forecasting labour needs (29%) are among their biggest workforce planning challenges. Employing workforce planning technology can help managers by improving staffing flexibility and ensuring that schedules comply with relevant regulations.
• Agility friction: Respondents were clear that in today's environment adapting and optimising their workforce with speed is key to competitive advantage, but more than half (54%) said they could add more value to their organisation in a different role. At the same time, only 39% said their organisation has a structured process of upskilling or reskilling employees. Creating defined career paths and development opportunities can improve agility and retention.
• Change friction: More than half (55%) of respondents say that organisational changes at their company negatively impact employee efficiency and only 45% say their organisation is good or very good at communicating change. Prioritising communication during change management planning can help employees navigate change and focus on important tasks.
• Technology friction: Just under three-quarters (73%) of respondents say their organisation uses too many technology platforms, while 69% at least slightly agree that adopting new technologies at work often reduce efficiency instead of improving it. Reducing complexity with fewer platforms and modern technology can make adoption smoother and get people back to focusing on high-value tasks.

Additional Information

• Download the report: Fighting workforce friction to power productivity
• Read the blog: Growth beyond grind: What new Dayforce research reveals about workplace friction

Survey Methodology

Hanover Research conducted the organisational friction survey from Dayforce online from April 14 to May 1, 2025. The study included 6,178 respondents aged 18+ who work at companies with at least 100 employees across Australia, Canada, Germany, New Zealand, the United Kingdom, and the United States.

Our Organisational Friction Index was calculated based on respondents' answers to nine questions about organisational changes, organisational complexity, and technological complexity. Each respondent was assigned an Organisational Friction Score, and the Index was created by designating those scores as low, medium, or high friction.

About Dayforce

Dayforce makes work life better. Everything we do as a global leader in HCM technology is focused on enabling thousands of customers and millions of employees around the world do the work they're meant to do. With our single AI-powered people platform for HR, Pay, Time, Talent, and Analytics, organisations of all sizes and industries are benefiting from simplicity at scale with Dayforce to help unlock their full workforce potential, operate with confidence, and realise quantifiable value. To learn more, visit dayforce.com.