Personio’s annual study, the Workforce Pulse Report, has just been released and you’re amongst the first ones to see it!  Let’s dive into what you can expect: 

This year, workforce productivity is once again at the top of the agenda for HR and management teams at organisations across Europe. The talent shortage and declining labor force participation are a concern not only for employers but also for policymakers as they impact economic productivity at large.

For HR teams, one topic is therefore becoming increasingly important: employee engagement. Below we give you an insight into the challenges that HR leaders and management need to prepare for in order to boost employee motivation and performance and increase team productivity.

Check out the full report, which includes expert advice from business leaders and HR experts to help your organisation navigate these challenges in the year ahead.

1. The recruitment and retention squeeze

   Skills shortages have made recruiting much more difficult in 2024 - that's no secret. 63% of employers report difficulties filling vacant positions, and 71% think that recruiting is far more difficult today than it was five years ago.

   However, our survey shows that hiring new talent is not the only challenge. Employers see employee retention in particular as a central task - after all, nobody wants to lose good employees when it is so difficult to fill these positions again. 

   What's more, almost half (48%) of European employees say they intend to look for a job in the next 12 months.  And 44% say they’d be more motivated to look for a new job when economic conditions improve. 

   An effective way to respond to the skills shortage is skills-based recruiting. The focus here is more on the skills, attitudes and behaviours of applicants. 71% of employers have already adapted their processes in this direction, and 68% believe that degrees and qualifications are now less important than skills and aptitude.

   Find out how you can get started with skills-based recruitment in the report!

    

2. Improving engagement and trust

   Employee engagement is an essential element of any retention strategy, and improving it helps to reduce turnover. Nevertheless, employee engagement is experiencing a dip across Europe. More than a fifth of employers say that employee engagement has been low over the last 12 months, and 60% report that it has deteriorated over the past year. This significant loss of motivation can be attributed to four main reasons, according to employees:

   • Change to a different industry (32%)
   • A stressful working environment (30%)
   • Lack of appreciation (27%)
   • Lack of career progression opportunities (27%)
      

   Three of these reasons are areas that employers can actively influence!

   Employees today have changing expectations of their career and their relationship with their employer. Our Workforce Pulse report examines the following 3 trends in more detail:

   • The prioritisation of work-life balance
   • The rise of squiggly careers
   • The low level of trust in leadership

    

3. Unlocking productivity and motivation

   Workforce productivity remains a key challenge for employers. Almost a quarter (23%) see low productivity as a potential barrier to the success of their business, and 29% have identified increasing productivity as a key issue for the next 12 months.

   Looking at what characterises highly productive and motivated employees, we can see that there are some clear ways that employers can improve productivity and motivation. Here’s what the data showed us:

   1. Trust: Employees who trust their leadership and feel trusted by them are much more likely to be highly motivated and consider themselves productive.
   2. Psychological safety: In a psychologically safe environment, employees can be themselves and express their opinions without fear of negative consequences. Such a safe environment promotes engagement and motivation.
   3. Work-life balance & childcare support: Work-life balance is now a much bigger priority for workers! Employees who say they have a good work-life balance see themselves as some of the most motivated and productive. You can find further advice on promoting a good work-life balance and how people can manage family and work responsibilities in the report! 
   4. Value and recognition: This is particularly important in the working environment. Employees who feel highly valued by their employer are around 50% more likely to be highly motivated!