As organisations accelerate AI adoption and workforce transformation, Australia’s HR leaders are placing greater emphasis on data-driven decision-making, commercial outcomes and employee experience. Ahead of the Australian HR Awards 2026, two finalists for HR Director of the Year have shared how analytics, leadership capability and organisational culture are reshaping the role of human resources in an increasingly technology-driven workplace.
The evolving role of HR as a strategic business function has taken centre stage ahead of the Australian HR Awards 2026, with two finalists for Australian HR Director of the Year highlighting how workforce analytics, AI readiness and organisational transformation are redefining modern people leadership.
Sarah Novelli, Executive Director of People and Culture (APAC) at BGIS, and Kate Ludwig, Chief People Officer at Story House Early Learning, outlined the initiatives that earned them nominations while reflecting on the challenges HR leaders are expected to face in the coming year.
Although their organisations operate in very different industries, both executives pointed to a common trend: HR is increasingly expected to deliver measurable business value while guiding organisations through rapid technological and workforce change.
HR’s shift from support function to strategic business partner
For Novelli, the past 18 months have centred on repositioning HR as a commercial driver rather than a traditional administrative function.
At global facilities management company BGIS, the people and culture team has worked closely with Deakin University to combine workforce data with operational performance metrics, enabling leaders to identify productivity trends and make evidence-based investment decisions.
Instead of focusing solely on employee engagement or compliance, the approach links workforce insights directly to business outcomes, helping determine where organisations can improve efficiency, optimise talent investments and support long-term profitability.
The initiative reflects a broader evolution within enterprise HR technology, where workforce analytics platforms are becoming central to executive decision-making. Modern Human Capital Management (HCM) systems increasingly integrate employee data, operational metrics and predictive analytics to provide leaders with deeper visibility into organisational performance.
Novelli believes this capability will become even more important as AI transforms workplace operations.
She argues that HR leaders must develop stronger data literacy or build teams with advanced analytical expertise capable of translating workforce information into strategic recommendations aligned with business objectives.
AI is reshaping leadership expectations
Beyond technology adoption, Novelli believes AI will fundamentally change leadership itself.
As organisations pursue leaner operating models and seek productivity improvements, leaders will need new capabilities to manage teams whose roles increasingly evolve alongside automation and intelligent software.
Rather than viewing AI as simply another workplace technology, she sees it as a catalyst for organisational redesign, requiring investment in leadership development, workforce planning and continuous skills transformation.
The perspective aligns with broader enterprise trends. Companies including Microsoft, Google, Salesforce and Workday continue embedding generative AI into HR platforms, enabling automation across recruitment, workforce planning, performance management and employee support. However, industry analysts consistently note that technology alone does not deliver transformation without effective leadership and organisational readiness.
Building culture through industry disruption
While BGIS has focused on commercial workforce analytics, Kate Ludwig has navigated a different challenge: leading organisational transformation within Australia’s early learning sector.
As Chief People Officer at Story House Early Learning, Ludwig has overseen people strategy during a period of sustained industry change marked by workforce shortages, evolving employee expectations and operational pressures.
She attributes her HR Director of the Year nomination to building a strong organisational culture and employee value proposition (EVP) while implementing people programmes across a geographically dispersed workforce.
Story House’s workforce is approximately 95% female and operates across multiple Australian states, requiring HR initiatives that balance consistency with local workforce needs. Designing inclusive programmes for distributed teams has become an increasingly important capability as organisations expand across regions while maintaining employee engagement and organisational culture.
Data and culture becoming complementary priorities
Although Novelli and Ludwig approach workforce transformation from different perspectives, their experiences illustrate how modern HR leadership increasingly combines commercial insight with employee experience.
Today’s HR executives are expected to manage organisational culture, support digital transformation, oversee leadership development and provide workforce intelligence that informs executive decision-making.
According to Gartner, HR leaders are prioritising workforce planning, leadership effectiveness and AI-enabled productivity as organisations adapt to changing business conditions. Meanwhile, McKinsey & Company reports that companies generating the greatest value from AI combine technology investment with workforce capability development, organisational redesign and continuous learning.
These priorities are reshaping expectations of Chief People Officers and HR Directors, positioning them as strategic business leaders responsible for enabling organisational performance rather than managing personnel processes alone.
As the Australian HR Awards approach, the finalists’ experiences reflect a wider shift occurring across enterprise HR: success increasingly depends on balancing analytics, technology and commercial strategy with employee engagement, culture and leadership development.
For organisations investing in digital transformation, that combination may prove essential as AI, workforce analytics and changing employee expectations continue redefining the future of work.
Market Landscape
Enterprise HR is undergoing a significant transformation as AI, workforce analytics and cloud-based Human Capital Management platforms reshape how organisations manage talent. HR leaders are increasingly expected to deliver measurable business outcomes through data-driven workforce planning while maintaining employee engagement and organisational culture.
Technology providers such as Microsoft, Workday, SAP SuccessFactors, Oracle and Google Cloud are embedding AI into HR platforms, enabling predictive workforce analytics, intelligent recruitment, skills management and employee self-service. As these technologies mature, organisations are placing greater emphasis on leadership capability, data literacy and workforce transformation to maximise business value.
Top Insights
- HR leaders are increasingly using workforce analytics to connect people strategy with productivity, profitability and organisational performance rather than focusing solely on traditional HR operations.
- Sarah Novelli highlighted the growing importance of workforce data and AI readiness, arguing that HR executives must strengthen analytical capabilities to support commercial decision-making.
- Kate Ludwig’s transformation work demonstrates how employee experience, organisational culture and strong employer value propositions remain critical during periods of industry disruption.
- AI adoption is expanding leadership responsibilities, requiring organisations to invest in workforce planning, skills development and change management alongside technology implementation.
- The Australian HR Awards finalists reflect a broader shift towards HR leadership that combines business strategy, digital transformation and employee-centric organisational design.
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