Workplace tech issues cost Aussie firms time, money & talent
Australian businesses are facing significant financial and operational pressures due to poorly functioning workplace technology, with new industry research indicating that technical breakdowns are undermining staff productivity and morale. The latest study into the effects of so-called 'digital friction' found that employees are losing an average of 1.3 workdays each month to IT-related disruptions, and almost two in five companies say these inefficiencies have resulted in revenue losses.
Productivity loss
The report surveyed 4,200 employees and managers across nine countries, with 81% of Australian respondents stating they are impacted by digital friction every month. This phenomenon encompasses frequent technology glitches and slowdowns that prevent people from performing their roles effectively.
Over half of respondents noted that tech inefficiencies have led to delays in critical projects or business operations. Likewise, 53% said that persistent technology frustrations reduce their overall job satisfaction, and 28% have contemplated leaving their jobs due to these challenges.
Business impact
More than a third-37%-of companies reported experiencing tangible revenue loss due to IT inefficiencies. The study also pointed to the knock-on effects on staff turnover, with nearly three in four employees believing that digital friction contributes to attrition rates within their organisations.
"Given the number of challenges business leaders are navigating today, it's understandable that IT issues can go unnoticed - but when they do, the financial impact is significant. Technology sits at the core of every modern organisation. When it underperforms, the cost is immediate - in efficiency, customer satisfaction, and ultimately in competitiveness," said Oliver Steil, CEO, TeamViewer.
Remote gaps
Hybrid work has become the norm for many organisations, but the report identified clear disparities in IT support between remote and on-site employees. Over half (51%) of respondents observed a gap in the quality and speed of technical assistance, with office-based staff often receiving faster and more hands-on support. Furthermore, many employees (38%) reported circumventing company systems by using their own devices or applications to overcome digital friction, a practice that can heighten cybersecurity risks.
Generational differences
The study highlighted differences in how digital friction is experienced across age groups and job roles. Globally, Generation Z employees lose an estimated 1.5 workdays per month to technical issues, in contrast to 0.7 days for Baby Boomers. Additionally, 40% of Gen Z workers have considered resigning over poor workplace technology, compared to only 12% of Baby Boomers. On organisational hierarchy, 56% of non-managers believe IT issues critically impact staff turnover, while only 36% of managers share this view.
AI opportunities
The research indicates a growing receptiveness to deploying artificial intelligence (AI) as a solution to persistent technology issues. Almost half of respondents expect AI to help resolve digital friction and improve overall workflow in their organisation, with 53% open to AI handling routine IT tasks such as troubleshooting and password resets. Anticipation is especially high, with 52% expecting AI to have a significant impact on their digital employee experience over the coming year.
"Technology should empower people, not hold them back," said Andrew Hewitt, VP of Strategic Technology at TeamViewer. "With productivity such a huge focus for Australian businesses right now, there's a real opportunity to turn everyday tech frustrations into progress. Our findings show that reducing digital friction can have an enormous impact on both performance and morale. When organisations embrace AI-powered workplace solutions and smarter IT systems, they can remove barriers, give people back valuable time, and create a smoother, more rewarding work experience."
