What’s Next for ANZ Manufacturing? Insights Every HR, Operations, Finance, and Payroll Leader Should Know

Manufacturers across Australia and New Zealand are entering a new era with new challenges, from shifting employee priorities to the rise of AI. But with every challenge, comes an opportunity. Our latest UKG ANZ Manufacturing Report delves into these changes, and provides insight on business leaders across functions should respond. 

For HR Leaders: Building a Workforce That Thrives on Flexibility and Growth

Frontline workers value flexibility as much as pay, yet fewer than half of manufacturers currently offer it. HR leaders need to consider how to redesign work to meet both operational and human needs.

Priorities for HR in 2025:

1. Introduce frontline flexibility: Offer shift swapping, compressed workweeks, or staggered schedules to support wellbeing while maintaining production.
2. Invest in skills and development: 59% of New Zealand manufacturers prioritise reskilling, and 45% focus on cross-training to build long-term capability. Critical labour shortages are due to rise, but investing in employee development can help your business stay ahead while keeping your workforce engaged.
3. Expand inclusive hiring: 61% of Australian and 63% of New Zealand manufacturers are hiring people with no prior industry experience, to broaden the talent pool and fill labour gaps.

For Operations Leaders: Leading With Efficiency and Humanity

Operational excellence now depends on empathy, connection, and smart use of technology.

Actions for Operations leaders:

• Empower frontline managers: Automate administrative tasks and use real-time insights to help managers lead more effectively.
• Build connection on the floor: 46% of Australian and 54% of New Zealand employees say colleagues and managers are key reasons they stay, yet employees still feel a divide between corporate and frontline cultures.
• Prioritise recognition and communication: Celebrate team wins and ensure constant and communication across functions.

For Finance Leaders: Turning Workforce Investment Into Growth

Investing in people drives measurable returns and strengthens business continuity.

Strategies for Finance:

• Support training programs: Back apprenticeships, mentoring, and upskilling to stabilise operations and future-proof talent pipelines.
• Champion ESG initiatives: Paid volunteer days and community partnerships boost and reputation.
• View workforce spending as investment: Programs that prioritise people yield both financial and cultural rewards.

For Payroll Leaders: Strengthening Trust Through Pay Transparency

Pay builds trust when it is transparent, accurate, and human-centred.

Focus areas for Payroll:

• Adopt AI tools: Integrate AI tools to minimise human error in pay functions, whilst simultaneously freeing-up time for your staff so they can focus on more pressing tasks.
• Provide digital access: Give employees real-time visibility into pay, scheduling, and accrual information.
• Offer financial literacy tools: Include budgeting and education resources to reduce stress and increase retention.

Key Questions Leaders Are Asking: 

1. What are the biggest workforce challenges facing ANZ manufacturers in 2025?
Labour shortages, skills gaps, and the demand for flexibility remain top concerns as employers strive to balance production and people needs.

2. How can manufacturers attract younger talent?
By refreshing perceptions of the industry. Apprenticeships, education partnerships, and site tours for school children and university students showcase the innovation and career diversity within manufacturing.

3. What role does technology play in workforce transformation?
AI and automation elevate human performance by increasing efficiency, safety, and engagement on the factory floor.

4. How can HR, Operations, Finance, and Payroll work together?
By aligning around one goal: creating a workplace where flexibility, inclusion, and growth fuel performance. Each function plays a vital part in this people-first strategy.

The Way Forward

Manufacturing across Australia and New Zealand stands at a turning point. The organisations that lead with people will lead in performance.

Download the full UKG ANZ Manufacturing Report 2025 to learn how manufacturers across the region are creating workplaces where people and productivity thrive.