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Education Insights: 2026 HR Industry Benchmark Report

ELMO Software’s 2026 HR Industry Benchmark Report (HRIB) reveals that HR leaders in education are navigating a fast-moving mix of AI change, employee turnover and economic pressure. Based on a survey of 1,200 HR professionals across Australia and New Zealand, the report highlights key trends and challenges across all industries, and this infographic focuses on what they mean for education organisations.

Education Insights: 2026 HR Industry Benchmark Report
Education Insights: 2026 HR Industry Benchmark Report

    In education, the AI story is notably more positive than in other sectors. It is the only industry where reported AI transformation outpaced the previous year’s expectations, with 38% of organisations saying they experienced AI transformation in 2025, despite only 30% predicting it would happen the year before. At the same time, 82% of HR professionals say AI works for them personally. Still, only 25% say it works extensively across their organisation, and just 30% feel fully equipped to meet leadership expectations around AI.

Education HR teams are also managing significant workforce and financial pressure:

  • 35% see adopting AI into the organisation as their biggest hurdle
  • 24% predict heightened employee turnover will be a major challenge
  • 24% also cite the economic outlook as challenging

The infographic also highlights key industry benchmarks:

  • Education’s average cost per hire is $17,382
  • New education hires get up to speed in around 32 days, about 26% faster than the Australian average
  • Around 4.5% is the predicted base salary increase in the education sector in 2026

Implications for education organisations

The 2026 HRIB findings give education organisations a clear view of where AI, retention and workforce pressures are heading — and where HR can have the most impact.

Understanding these trends, and how to respond, can help you:

  • Introduce AI in a way that supports educators and professional staff, rather than creating confusion or resistance
  • Tackle employee turnover without relying solely on external hiring
  • Manage workforce costs while the economic outlook remains uncertain
  • Build a workforce that can adapt as students’ needs, technology and expectations continue to change

Here are some practical ways education HR leaders can respond.

1. Make AI practical, safe and relevant to the realities of education

With 35% of education HR leaders saying AI adoption is their biggest hurdle, the challenge is no longer whether AI matters — it is how to introduce it in a way that feels useful and responsible.

  • Focus AI on clear, bounded use cases such as drafting communications, summarising policies, supporting recruitment admin or turning HR data into leadership-ready insights.
  • Work closely with school, faculty or operational leaders so AI use aligns with the day-to-day realities of teaching, administration and student support.
  • Set clear guidelines around approved tools, acceptable use and how outputs should be checked, so AI helps reduce workload without increasing risk.

2. Strengthen retention by improving the employee experience

With 24% citing heightened employee turnover as a major challenge, retention needs to be treated as a strategic priority.

  • Review the moments that matter most in the employee lifecycle — onboarding, early manager support, professional development and performance conversations — to identify where employees may be disengaging.
  • Strengthen development pathways so employees can see how they can grow within the organisation, rather than looking elsewhere for progression.
  • Use workforce data to spot turnover trends early and identify where targeted action is needed by role type, team or campus.

3. Balance economic pressure with smarter workforce decisions

With another 24% citing the economic outlook as challenging, education organisations need to make deliberate, evidence-based decisions about where to invest.

  • Use benchmarks such as $17,382 cost per hire and 32 days to productivity to identify where inefficient processes may be increasing cost or delaying workforce readiness.
  • Prioritise automation for repeatable HR tasks so teams can focus more time on planning, coaching and supporting leaders.
  • Link people investment decisions to the outcomes that matter most — reduced turnover, faster time to readiness, stronger employee engagement and better workforce planning.

4. Build confidence and capability around AI

While 82% of HR professionals say AI works for them personally, only 25% say it works extensively across the organisation. That signals a capability gap between individual use and organisational adoption.

  • Treat AI as a capability program, not just a new toolset.
  • Provide targeted support for HR and people leaders on how AI can be used safely and effectively in everyday work.
  • Create simple internal examples and use cases so teams understand where AI adds value and where human judgment remains essential.

5. Use benchmarks to refine your 2026 workforce plan

Education’s benchmarks offer a practical lens on cost, speed and expectations.

  • Compare your own cost-per-hire, time-to-productivity and salary movement to the figures in the infographic to understand where you are ahead, on par or behind.
  • Use those insights to refine your 2026 workforce strategy: where to reduce friction in hiring and onboarding, where to focus retention efforts, and where AI can safely remove low-value work from HR and line managers.

By applying these insights, education organisations can combine AI, people data and human judgment to build HR practices that are more sustainable, more strategic and better equipped for the year ahead.

How can ELMO help?

ELMO is the Complete AI Workforce Platform for mid-sized organisations across Australia and New Zealand. It unifies HR and payroll on one connected data foundation and layers native AI to turn workforce data into insight and action — helping education organisations manage AI adoption, retention and workforce pressure with greater confidence.

Within the platform, specific solutions can help address education’s 2026 challenges:

ELMO HR Core & Payroll – your connected workforce foundation

HR Core centralises employee data and automates manual HR processes, giving education organisations a single source of truth across teaching, operational and support roles. Detailed records, automated workflows and reporting help reduce admin burden and support compliance.

Paired with Payroll, you can manage pay structures, allowances and employment variations accurately, reducing the risk of errors and providing HR, Finance and leaders with a reliable view of workforce costs.

ELMO Recruitment + Onboarding – hiring and ramping up faster

With the cost per hire sitting at $17,382 and new hires taking around 32 days to get up to speed, every hiring decision matters.

ELMO Recruitment helps education organisations find and hire the right people faster, with structured workflows that reduce manual admin and keep hiring managers aligned. Combined with Onboarding, you can create a smoother start for new employees, reduce time-to-productivity and give them the support they need from day one.

ELMO Learning – building AI confidence and continuous development

In a sector where expectations, tools and responsibilities are evolving quickly, ELMO Learning helps you deliver and track learning programs at scale.

You can:

  • Roll out and monitor mandatory and policy-related training
  • Support AI literacy and digital capability across HR, leaders and employees
  • Provide structured professional development that supports employee growth and retention

Centralised reporting helps you understand who has completed training, where gaps exist, and where further support may be needed.

ELMO Performance Management – supporting retention and growth

ELMO Performance Management links goals, feedback and development plans so leaders can have more structured, meaningful conversations about performance and growth.

Performance insights can help you:

  • Identify and support high-potential employees and future leaders
  • Strengthen development conversations that improve retention
  • Inform remuneration and progression decisions with greater consistency and transparency

Real-time reporting gives HR and leaders access to more accurate performance data, supporting better workforce planning and more confident decision-making.

Want to know more?

Explore the full infographic for a visual snapshot of education’s AI readiness, turnover pressures and workforce benchmarks — then use the insights to refine your 2026 workforce and retention strategy.

Complete the form and one of our consultants will be in touch with you shortly to discuss how ELMO’s Complete AI Workforce Platform can support your education organisation.

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