The hidden drag on productivity — and what leaders can fix first in 2026

January is when leaders refresh strategies, realign priorities, and return with high expectations for a more focused and productive year. Yet in many large organisations, that momentum fades faster than expected.

Within weeks, calendars fill up again. Approvals slow. Systems fragment. People find themselves busy with work that feels constant, but not impactful. Productivity doesn’t collapse overnight — it slips quietly through the cracks. Not because people lack capability or commitment, but because workforce friction creeps into how work gets done.

Whether it’s searching for information across platforms, navigating unclear decision paths, or spending leadership time on low-value tasks, these hidden blockers drain energy and attention long before meaningful work begins. Repeated at scale, their impact compounds quickly.

As organisations reset for the new year, reducing workforce friction can be one of the most effective ways to lift productivity. This reflects a broader productivity conversation underway across Australia, where leaders are recognising that sustainable gains come from enabling people to focus on high-value work. It’s not about asking people to do more with less — it’s about removing the barriers that stop them from focusing on the work that matters most.

What is workforce friction – and why leaders can’t afford to ignore it

Workforce friction is anything that unnecessarily slows work down. It’s the inefficiencies, distractions, and disconnects that prevent people from doing their best work.

Not all friction is bad. Strategy-setting, creative tension, and robust debate should feel challenging. But when friction shows up in the wrong places — chasing approvals across multiple systems, attending meetings with no clear purpose — it stops adding value and starts taking it away.

And while friction isn’t always obvious, the cost is very real. In Fighting workforce friction to power productivity, Dayforce surveyed over 6,000 employees across Australia, New Zealand, the US, Canada, the UK, and Germany, including more than 1,000 from Australia and New Zealand. The findings showed that 50% of executives in New Zealand and 39% of executives in Australia report spending less than half their day on their most important tasks.

How to spot workforce friction

One of the most common signs of friction is reaching the end of the day feeling like nothing on your priority list moved forward. Instead, time is consumed by meetings, unexpected issues, and constant operational demands.

Other indicators include:

• Delays in decision-making
• Repeated complaints about systems or processes
• Workarounds and shadow systems
• Higher absence, attrition, or grievances
• Drop in employee engagement or NPS scores

As workforces stretch to keep up with change, even small inefficiencies start to compound, turning everyday friction into a drag on performance and morale.

Where leaders should focus first to reduce friction at scale

Reducing friction goes beyond time management skills or building capability. It requires leaders to identify and address the systemic barriers that shape how work gets done.

Communication breakdowns

In ANZ, 41% of respondents say ineffective communication is a major source of friction in their daily work. The disconnect becomes even clearer during periods of change: while 63% of executives rate their organisation’s communication as good or very good, only 35% of employees agree.

How fragmented communication slows decision-making

In many organisations, information is fragmented across email, Slack, Teams, apps, and the intranet. People don’t know where to go or what to prioritise, and messages can easily get lost.

Beyond the tools, culture also plays a role. When teams are rewarded for individual success over collective outcomes, silos form. Information stops flowing and assumptions form, leaving the door open to miscommunication and potential conflict.

How to reduce communication friction

• Audit your channels. Streamline where information lives and how it’s shared.
• Focus on clarity. Use short videos, mobile-friendly updates, and clear “what you need to know” formats.
• Create feedback loops. Leader listening labs, quick pulse surveys, and regular check-ins foster two-way communication.
• Model transparency. Share decisions, direction, and context while inviting input.

The price of overwhelm

Globally, the pace of change is dragging productivity, with 52% of executives, 43% of managers, and 32% of workers saying it’s holding them back.

How leadership focus impacts productivity at scale

High-performing leaders tend to approach change differently. Rather than resisting it, they accept it as inevitable and focus on what they can control. What sets them apart isn’t just skill — it’s mindset. These leaders:

• Align around clear business priorities
• Focus on high-impact activities
• Stay connected to their teams and clients
• Build awareness of the systems and structures that impact performance
• Protect their time ruthlessly

How to reduce executive friction

• Prioritise with discipline. Be clear on what matters now and align the leadership team with it.
• Lead with intent. Culture shifts start at the top, and leaders must model the focus and clarity they want to see.
• Create space for strategic work. Protect your time and push back on low-value requests.
• Support with systems. Use tech, process, and data to reduce systematic friction.

Technology overload

Technology is meant to simplify work, but the opposite is often true. 69% of employees and executives say their organisation uses too many platforms. Meanwhile, 66% say new tools have reduced efficiency, and 49% say outdated systems make their job harder.

How fragmented systems create workplace friction

Every new app or platform promises better productivity, but in reality, each new tool adds complexity. Context-switching between systems impacts focus, and poor integrations waste time.

How to reduce technology overload

• Align around tech decisions with business impact: HR, operations, and the business must be involved in all technology decisions.
• Collaborate cross-functionally: Understand the pain points, define roles, and agree on shared outcomes.
• Simplify the tech stack: Focus on platforms that integrate well and solve core problems.
• Invest in change management: Successful rollouts foster trust, capability, and confidence, helping employees embrace new tools.

The biggest gains from technology, such as AI, go beyond finding ways to work faster or cheaper — they come from reimagining how work gets done. It’s about the people, processes, and culture change that is enabled by technology. Be clear about the problem you're solving, what productivity means, and how you can build your people's capability and confidence to use AI in transformative ways.

Learn how you can turn workforce AI buzz into ROI in the 16th Annual Pulse of Talent report.
Download report

The path to a low-friction, high-impact workplace

Reducing workforce friction doesn’t require fixing everything at once. The most effective changes often come from focusing on a few critical pressure points—the systems, behaviours, culture, and decisions that shape how work actually gets done day to day.

This is where productivity becomes tangible. When leaders simplify processes, clarify priorities, and support people with the right systems and capabilities, they create conditions for sustained performance even amid constant change.

As organisations navigate another year of transformation, those that tackle friction with intent will be better positioned to move faster, adapt more easily, and get real value investments in technology and AI. Ultimately, productivity isn’t about doing more work — it’s about designing work so people can do what they’re meant to do.