Nine parliamentary elections will have taken place across Europe by the end of 2024. An August 2024 survey of HR professionals, many in senior leadership roles, revealed that election-related changes in employment regulations are a major concern.
Besides the European Parliament Election, which was held in June 2024 across all EU member states, several individual countries will hold votes this year. These include France, the U.K., Portugal, Belarus, Austria, Croatia, Georgia and Lithuania.
To better understand the top priorities of HR leaders managing European workforces in a changing legislative environment, the labor and employment law firm Littler conducted its seventh annual European Employer Survey of 627 professionals across various industries. Respondents represented countries including Germany, the U.K., France and more. Their companies varied in size, with 15% employing more than 10,000 people and 25% with one to 100 employees.
Related news and content for HR leaders in Europe
The report found that election-related legislative issues aren’t the only pressing concern for these leaders. Here are some of the top priorities of European HR executives, according to the Littler study.
Social division, economics and mental health matters
Nearly 90% of respondents reported challenges managing political and social divisions among employees, including debates over LGBTQ+ rights, conflicts in Gaza and Ukraine, and sustainability efforts.
Following a trend that accelerated after the COVID-19 pandemic, many European employers reported an increase in mental health accommodation requests over the past year. While 27% saw no change, 42% noted moderate or significant growth. Among large employers, only 13% did not experience an increase in accommodation inquiries.
Economic worries also remain significant, with 63% of HR professionals concerned about how financial conditions might impact hiring and technology investments. Nearly 30% identified economics as the topic of highest concern.
Tech-related concerns for European HR leaders
Regarding technology, 72% of EU HR professionals reported using AI in at least one function. However, rapid adoption brings compliance challenges. More than half (53%) are concerned about adhering to data protection laws like the EU’s GDPR when using AI in HR, and 54% worry about the broader impact of technology transformation in the workplace. Employers in Italy and the U.K. reported the highest use of AI tools in HR and talent acquisition, while Germany showed the lowest levels of adoption among Europe’s major economies.
Despite these concerns, European AI adoption isn’t slowing compared to the rest of the world. According to a McKinsey Global Survey, 65% of organizations worldwide now regularly use generative AI.
Similarly, a comparable percentage of 336 U.S.-based C-suite executives surveyed by Littler in June and July 2024 reported utilizing artificial intelligence in HR functions, drawing attention to the stakes for the responsible deployment of these tools.
Generative AI presents additional risks, according to the Littler European study. While gen AI use is growing, only 53% of Europe-based respondents feel confident that employees are using these tools appropriately. Despite this, less than a third of employers have policies in place to guide employee use of generative AI.
ESG priorities and European legislation
The survey also reveals that European companies remain focused on ESG, particularly for climate-related issues in workplace management. However, there’s a gap between this concern and actual preparedness to meet compliance obligations. Only 23% of respondents say they feel “very prepared” to comply with the new Corporate Sustainability Due Diligence Directive.
The directive mandates corporate due diligence to identify and address human rights and environmental impacts within a company’s operations, subsidiaries and value chains. Large companies must also adopt a climate transition plan that aligns with the Paris Agreement’s 2050 climate neutrality goal, and interim targets set by the European Climate Law aim to achieve carbon neutrality by the year 2050. The Littler survey suggests that while ESG is a priority, many European organizations may need to strengthen their compliance frameworks to meet these regulations.
HR leaders get prepped for pay transparency
The EU Pay Transparency Directive, which took effect in June 2023, requires businesses to disclose salary ranges and report gender pay gaps. Although compliance deadlines are still several years away—2026 for national legislation and 2027 and 2031 for large and small employers, respectively—employers are already preparing.
Nearly 90% of Littler’s European respondents feel at least somewhat prepared for pay transparency, a figure similar to last year’s survey. However, the number of those feeling “very prepared” has dropped by 4 percentage points, with a sharper decline among those feeling “moderately prepared” (33% compared to 40% in 2023).
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