European workers holding out for economic upturn before seeking new roles: Personio

Employees across Europe have one eye on their next job, while employers are also preparing for an anticipated talent shuffle.

That’s according to the latest report from cloud-based HR management platform, Personio, which surveyed 7,000 employees and 3,500 HR decision-makers in the UK, Sweden, Spain, Germany and the Netherlands.

The Workforce Pulse 2024 report found that nearly half of employees (48%) are planning to look for a new job within the next 12 months, while 48% of employers are anticipating increased employee turnover over the same period.

While half (50%) of HR decision-makers are expecting an increase in hiring, 60% are planning to make redundancies in the coming 12 months.

Talking exclusively to UNLEASH about the research, Personio Chief People Officer, Lenke Taylor, says employee retention is set to become “a greater challenge” for HR leaders across Europe.

“Our data suggests a significant proportion of employees across the continent are disengaged and poised to seek out new opportunities once they feel comfortable to do so,” Taylor says.

With signals that improved economic conditions are on the horizon, HR teams have an instrumental role to play in driving up engagement and retention to minimize unwanted attrition.”With signals that improved economic conditions are on the horizon, HR teams have an instrumental role to play in driving up engagement and retention to minimize unwanted attrition.”

Indeed, HR leaders highlighted that holding onto their talent was top of mind, with 32% citing retaining talent and 30% improving employee wellbeing as key people challenges for the next year.

Additionally, 29% said it was recruiting top talent.

Seeking new opportunities during better times

2024 had been labelled as the year of the ‘Big Stay’, as fewer workers sought out new jobs. However, Personio’s research shows this trend may be coming to an end in Europe.

According to the report, one of the key indicators for employees to seek out a new role is improved economic conditions – particularly in the UK.

Just under half (49%) of UK workers said they were “motivated to leave their jobs once economy improves”, higher than any other nation surveyed.

Meanwhile, 70% said they “will feel more motivated to really leave their job once economic conditions improve”; this figure was also higher than respondents from Germany (66%), Sweden (68%), Spain (56%) or the Netherlands (66%).

Better economic conditions, and a resulting job change, may not be on the cards for UK workers just yet. This is because Prime Minister Keir Starmer’s warning earlier this week that things in the country would "get worse before they get better".

To combat increased attrition, HR leaders need to become “more deliberate in opening conversations” with employees about their experiences of work, Taylor tells UNLEASH.

This can help to identify issues or friction as early as possible.

“The act of soliciting and acknowledging feedback can be a powerful first step in addressing engagement, whether it be through focus groups, surveys or other forums,” Taylor comments.

The real impact will follow when HR leaders together with their leadership teams and employees prioritize and enact change on the most critical areas.”The real impact will follow when HR leaders together with their leadership teams and employees prioritize and enact change on the most critical areas.”