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97% of Australian business leaders feel confident. 42% have already found a payroll error.

That gap has a name. We call it the Confidence Trap.

The 2026 Workforce Pulse Report is our national study into how businesses are really managing their HR, payroll, safety and compliance obligations — and what the gap between confidence and capability is actually costing them.

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Key Findings

What we found beneath the confidence.

42%

have discovered a payroll error – most were confident their payroll was accurate when it happened.

Only 25%

of businesses strongly agree they can identify and manage psychosocial risk, despite it carrying the same legal weight as physical safety.

Only 1 in 3

businesses using AI strongly agree their use is appropriate, safe and beneficial - even as adoption reaches 60% (net).

What's in the report?

Eight areas. One clear picture of where your business stands.

  • HR & people management – are your contracts, policies and processes current?
  • Payroll & wage compliance – is your payroll as accurate as you think it is?
  • Safety & psychosocial risk – are you across your obligations, not just the physical risks?
  • Legal & employment law – have you kept pace with three years of reform?
  • Migration & workforce planning – do you understand the obligations that come with your visa pathways?
  • Technology & systems – are your platforms connected, or hiding errors in the gaps?
  • AI & the workplace – is your AI use appropriate, safe and defensible?
  • Certification & compliance readiness – could your systems withstand independent scrutiny?

Plus, a prioritised action list, expert insight from Citation Group’s workforce specialists, and a breakdown by business size so you know how you compare.

About the research

Senior leaders. Real businesses. Independent research.

510

businesses of every size, across Australia. Every respondent holds direct workforce management responsibility; business owners, C-suite and senior managers. The Confidence Trap shows up across all of them.

36

industries, from professional services and construction to healthcare, retail and aged care. The risks this report identifies aren't sector-specific. They're structural.

8

workforce risk areas examined in depth, from HR to safety, employment law to AI. If it affects your workforce obligations, it's in here.

Research commissioned by Citation Group and independently conducted by Stollznow Research, February 2026. Sample of n=510 Australian senior business leaders, stratified across three business size bands: 5–19, 20–100 and 100+ employees. Methodology compliant with ISO 20252 — the international standard for market, opinion and social research.

Register to receive the report, and we will also send you a link to our recent Compliance Gaps and Confidence Traps webinar.

Tune in to hear our panel of experts discuss the report findings and their implications for modern businesses.

Access it now
“Being confident without the correct knowledge can be a dangerous way to run a business. This report shows exactly where that confidence is being tested – and where it's running out.”
Ilana Kaye Head of Advisory Operations

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Workforce Pulse Check Launching soon!

The report reveals where Australian businesses are exposed. The Pulse Check shows where your business stands.

Complete a short diagnostic and get a personalised results report benchmarked against businesses your size. Most will find at least one gap they didn’t know was there.

Download the report now to get first access when it launches.