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HOST:
Welcome to HR2Go by Effective Workplace Solutions. Today we're wrapping up 2025 in the only way we know how — with a rapid-fire look at the year’s biggest HR moments, trends and eye-rolls. From the issues that just wouldn’t quit to the “oh no, not again” moments that kept us on our toes, we’re diving into what 2025 taught us about people and workplaces.
Joining me today are three members of the EWS consulting team. All right, let’s get into it.
The HR Issues That Wouldn’t Quit in 2025
HOST:
Question one: What’s the one HR issue that just wouldn’t quit in 2025? Bonus points if you can name it without rolling your eyes.
SPEAKER 1:
Talent shortages and skill mismatches. It has been relentless. We’re still dealing with labour shortages, gaps in training, and employees who are increasingly selective about where they work. Workforce planning is more complicated than ever because the pace of change is fast, labour supply is shrinking, and training programs aren’t translating into the skills businesses actually need.
SPEAKER 2:
Psychosocial hazards. Managers across the board are struggling with how to identify, prevent and manage psychosocial risk. Employees are more aware of their rights and more willing to take action, so the pressure on workplaces continues to increase.
SPEAKER 3:
Burnout and mental health. Staff are pushing back against wellbeing initiatives because they’re already stretched thin, and many managers avoid hard conversations about workload — which just pushes the issues onto HR. Mental health challenges are real, but they’re hard to measure and often harder to address.
HOST:
Absolutely. Upskilling leaders to have early, tough conversations is going to be critical.
The “Oh No, Not Again” Moments
HOST:
Question two: What’s the biggest “oh no, not again” moment you saw this year?
SPEAKER 1:
Federal court decisions overturning long-held industrial relations norms. Whether it’s WorkPac, Cadbury, or now annualised salary cases — each decision shifts the goalposts. It’s frustrating for practitioners and managers who’ve relied on consistent interpretations for decades, only to have them overturned and then sometimes overturned again.
SPEAKER 2:
Quiet firing. Instead of coaching or performance managing, some workplaces avoided difficult conversations and simply reduced shifts or hours. It’s legally risky, culturally damaging, and completely counterproductive — especially during skill shortages.
HOST:
It’s surprising that businesses still do this when the labour market is so tight. Working with the people you already have — when possible — should be a priority.
“That’s Not Reasonable Management Action”
HOST:
Next question: If you had a dollar for every time you said “that’s not reasonable management action,” how rich would you be?
SPEAKER 1:
I’d have a comfortable coffee fund! Many employees misunderstand what reasonable management action actually means. Managers are entitled to give critical feedback, deny leave, performance-manage staff and address conduct — provided it’s done fairly. Whether an action is “reasonable” depends on how it was delivered, whether it was proportional, private, consistent and procedurally sound.
SPEAKER 2:
We’ve seen a huge increase in workers’ compensation claims linked to this misunderstanding. Many submissions we write to WorkCover rely on the argument that the employer’s actions were reasonable management action carried out reasonably.
What Actually Made Life Easier for Businesses in 2025?
HOST:
What’s one workplace change in 2025 that actually made life easier?
SPEAKER 3:
The Right to Disconnect. It offered clearer boundaries for after-hours communication and helped reduce burnout risk. Both employees and employers now have a better understanding of expectations.
SPEAKER 1:
The only real “win” was the capped superannuation maximum contribution base. It matters only for very high-income earners, but at least it’s one area that got simpler, not more complex.
SPEAKER 2:
For most businesses, though, 2025 was a year of tightening — not easing. The Closing Loopholes reforms added complexity everywhere: wage theft penalties, casual conversion pathways, contractor vs employee tests… it all increased obligations, not reduced them.
The Most Surprising Compliance Conversations
HOST:
What’s the most surprising thing a client or manager said to you this year about HR compliance?
SPEAKER 1:
The classic line: “We’ve always done it this way.” There’s still so much shock when we explain that long-standing practices don’t align with the award or updated legislation.
SPEAKER 2:
A lot of businesses still believe payroll errors are their payroll provider’s fault. They want to “sue the payroll company,” not realising the employer is 100% responsible for paying people correctly.
SPEAKER 3:
Several clients told me they don’t issue contracts or letters of appointment for casuals — because they assumed they didn’t need to. In 2025, that’s a huge compliance risk.
Behaviours We’d Ban in 2026
HOST:
If you could ban one workplace behaviour in 2026, what would you ban?
SPEAKER 3:
Group-chat gossip. Screenshots get shared, people get hurt, and it destroys trust. It’s toxic and unnecessary.
SPEAKER 1:
AI-generated claims. We’re seeing workers’ compensation and unfair dismissal claims that are clearly written by AI. It undermines genuine issues and complicates the process.
SPEAKER 2:
Performative compliance — when a workplace does the bare minimum to appear compliant but doesn’t change its culture or practices. It’s window-dressing.
HOST:
And gossip generally. It’s rarely positive, damages teams, and eats away at culture. Managers underestimate how harmful it is, even when they’re not directly involved.
What Businesses Still Get Wrong About Bullying, Harassment & Psychosocial Safety
HOST:
What’s one thing businesses still misunderstand about bullying, harassment or psychosocial safety?
SPEAKER 3:
Many still call it a “personality clash” instead of identifying power imbalances or harmful behaviour.
SPEAKER 2:
Some workplaces assume bullying and harassment are problems “out there,” not within their own teams — even though issues often sit right under their nose.
SPEAKER 1:
Too many organisations treat psychosocial risk as an HR problem instead of a whole-of-business obligation. Workloads, role clarity and job design are WHS responsibilities, not optional extras.
Creative Employee Excuses in 2025
HOST:
Next question: What’s the most creative excuse you heard this year for non-compliance or poor behaviour?
SPEAKER 1:
One that arrived only recently involved a positive drug test for methamphetamine. The explanation?
“My Panadol must have touched my flatmate’s drug baggie.”
It’s inventive, but obviously not credible.
SPEAKER 2:
I’ve had clients respond to compliance issues with genuine shock:
“I didn’t think that applied to us.”
This comes up repeatedly — awards, overtime triggers, personal leave rules, casual conversion — you name it.
SPEAKER 3:
And I had three separate clients who thought they didn’t need employment contracts for casuals. That really surprised me in 2025 — especially with all the legislative changes.
HR Buzzwords of the Year
HOST:
What’s the HR buzzword of 2025 — and should we keep it or kill it?
SPEAKER 2:
“Psychosocial safety.” It’s important, but it gets thrown around without understanding. We should keep the concept, but we need to use it more meaningfully.
SPEAKER 1:
“AI in HR” is another. Everyone’s talking about it, but not everyone understands the implications — especially now that AI-written claims are showing up.
SPEAKER 3:
“Quiet quitting” still lingers, although it’s losing steam. I’m happy for that one to go.
What 2025 Taught Us About People and Workplaces
HOST:
What did 2025 teach us about people and workplaces that genuinely surprised you?
SPEAKER 1:
That outdated workplace behaviours — like gossip, avoidance, and poor communication — are still incredibly common, even in otherwise modern businesses.
SPEAKER 2:
That managers need more support than ever. The regulatory landscape has changed faster than leadership capability in many organisations.
SPEAKER 3:
That employees are far more aware of their rights and willing to escalate issues externally — often before raising them internally.
Looking Ahead to 2026
Where Businesses Should Focus Come January
HOST:
Where should businesses be focusing at the start of 2026?
SPEAKER 1:
Policies. Many workplaces still have outdated or incomplete policies, or employees have never seen them. Annual policy reviews should be standard.
SPEAKER 2:
Payroll audits — particularly classification reviews. Underpayments continue to be the biggest legal and financial risk for most employers.
SPEAKER 3:
Training. Especially sexual harassment, bullying and harassment, and psychosocial safety. Regulators expect evidence of training — and so do investigators.
SPEAKER 1:
And workload and work design. Psychosocial safety obligations now make this a WHS issue, not an HR preference.
HR Predictions for 2026
HOST:
Final question: In one sentence, what’s your HR prediction for 2026?
SPEAKER 1:
A rise in AI-assisted workers’ compensation and HR claims, making investigations more complex.
SPEAKER 2:
More enforcement activity — particularly around psychosocial hazards and wage compliance.
SPEAKER 3:
An increased focus on manager capability. Workplaces that don’t invest in training leaders will continue to struggle.
HOST:
And that’s a wrap on 2025. Thank you to the team for another year of insights, surprises and workplace lessons. We’ll see you in 2026.
Disclaimer:
This content is general in nature and provides a summary only of the subject matter without the assumption of a duty of care by Effective Workplace Solutions. No person should rely on the contents as a substitute for legal or other professional advice.