Tradie HR director Leigh Olsen presents some of the key HR trends she saw in 2025, and the strategies you can implement in the New Year.
As 2025 winds down, I’ve been reflecting on the year through the lens of the many trade businesses I work with.
It’s been a real mix. Some teams felt steady and well-paced, while others were hit hard by shifting workloads, tightening pipelines, and a fair bit of stop-start uncertainty. Some businesses felt the squeeze early on, and just as things settled, another wave of restructures popped up in the third quarter.
But across every site visit, Zoom call, and workshop, one thing stood out — even in a tough year, there were valuable lessons. And what impressed me most was how many owners and managers recognised that slowing down, communicating clearly, and taking a fair, lawful approach to the people side of the business made all the difference.
Here are the key HR trends I saw across the country this year, along with some practical takeaways to help you head strongly into 2026.
Rightsizing the right way
Throughout the year and across the country, we’ve seen a lot of restructures happen across the trades. Most were driven by economic hardship due to work dropping off, pipelines thinning, delays, and cancellations.
Very quickly, I saw myself explaining one common area to those restructuring — the need for a contestable process. If you’re reducing a group — for example, six electricians down to three — the law requires a fair, transparent selection process.
Once talked through, most owners understood it quickly and appreciated having clear steps to follow.
Time and again, I saw how understanding staff generally were when they could see a fair and transparent process, especially when there was also a strong existing relationship between staff and managers.
What to do in 2026:
• Seek advice before starting a restructure.
• Follow the correct sequence: Proposal → consultation → consideration → outcome.
• Keep communication open — always!
Slowing down before issuing warnings
Another unfortunate trend this year was managers jumping straight to written warnings without following the proper process. This would often include employers issuing warnings without a meeting, without outlining concerns, and without offering a support person.
Warnings issued this way hold no legal weight, and can open the door to a personal grievance.
Most managers weren’t trying to be unfair — they were busy, overwhelmed, or unsure. Once they understood the correct process, they were relieved to handle things properly.
What to do in 2026:
• Never issue a warning without a formal meeting.
• Ensure employees understand the concerns and have the chance to respond.
• Checking in before acting can save significant time, cost, and stress later.
Tackling medical issues sooner rather than later
On the flipside, there’s been a positive shift in more employers reaching out earlier when employees moved onto long-term sick leave or ACC. Instead of waiting months, many contacted me as soon as it looked like the situation might be long-term.
Regular contact is crucial. I had one client who hadn’t checked in with their employee for nearly six months, and the employee pushed back hard once a process began, understandably feeling forgotten.
A helpful guideline is allowing two to three months before considering a formal medical incapacity process — but always seek advice before taking steps. This ensures fairness while recognising employers aren’t required to hold roles open indefinitely.
What to do in 2026:
• Keep communication open, regular, and documented.
• Request updated medical information early to help make informed decisions.
• Seek guidance before discussing possible next steps.
Exit interviews on the rise — and making a difference
A surprising improvement has been the increase in managers seeing the value in having exit interviews. I conducted a number of exit interviews this year, and the insights were incredibly valuable. When departing employees feel safe to share honest feedback, the learnings can be transformational.
One employee shared that he felt expected to have his phone on at all times. This pressure eventually led to burnout. The owner immediately recognised the risk and removed the expectation for the whole team.
A recurring theme with exit interviews I conducted was about leave. Several employees said they were nervous to ask for annual leave or to phone in sick. Many managers were surprised by this and, to their credit, took the feedback onboard.
These interviews can be a game changer for uncovering the nitty gritty that could be holding your people and business back.
What to do in 2026:
• Treat exit interviews as an opportunity, not a formality.
• Look for patterns — recurring themes reveal root causes.
• Follow through — change only happens through action.
Separating alcohol and the job
Another significant trend was the removal of beer fridges and alcohol from sites. In some businesses, what started as a casual Friday drink drifted into having a beer while packing up tools, or even at lunchtime.
Employers have been increasingly recognising the health and safety risks, and the reputational impact of sign written vehicles parked outside pubs. Many have quietly phased out alcohol on site — a positive shift for safety and culture.
For many owners, the turning point was realising it was far better to disappoint a few employees than to face a WorkSafe investigation. One manager I worked with went further — if there were after-work drinks, he ensured company vehicles were parked up beforehand, and organised transport.
What to do in 2026:
• Review informal practices that may be unsafe.
• Reinforce policy expectations clearly.
• Lead by example — culture follows what leaders allow and model.
Looking ahead
2025 has tested many businesses, but it also strengthened them. I saw owners become more proactive, more aware of their obligations, and more deliberate in how they handled the people side of their business.
Those who slowed down, sought advice early, and approached things with care saw far better outcomes, even during tough patches.
Heading into 2026, there’s a real opportunity to take the lessons from this year and turn them into practical improvements. When you approach the people stuff with fairness and clarity, everything else tends to run more smoothly.
Note: This article is not intended to be a replacement for legal advice.
