Littler, the world’s largest employment and labour law firm representing management, has released its seventh annual European Employer Survey Report, providing key insights into the challenges employers across the continent are facing. The survey, which gathered responses from nearly 630 HR executives, business leaders, and in-house lawyers, reveals how organisations are responding to a range of pressing issues, from the rise of artificial intelligence (AI) in the workplace to political and environmental concerns.
With more than half of the respondents holding C-suite positions, the report offers a valuable snapshot of employer priorities during a year of significant political and economic uncertainty.
Political concerns dominate
As elections loom across Europe and the United States in 2024, political issues are a growing concern for European employers. According to the report, 86% of employers say they are grappling with the challenge of managing political differences among employees. This is a notable increase from last year, when 75% reported difficulties in this area.
The concerns extend beyond the workplace. Eighty-three per cent of respondents worry about potential employment law changes resulting from upcoming elections in Europe, while 77% are also concerned about how the U.S. presidential election could affect their business.
Stephan C. Swinkels, Littler Partner and co-lead of the firm’s global practice, highlighted the globalised nature of today’s workforce: “European employers’ concern regarding the U.S. election illustrates how interconnected the world has become. Political changes in one country can significantly impact businesses across oceans.”
Economic pressures, social debates, and geopolitical risks further complicate matters, with employers reporting substantial concern about financial conditions (63%), social and cultural issues (53%), and geopolitical risks (37%).
Jan-Ove Becker, Littler Partner in Germany, noted the growing political tensions in the workplace. “Ongoing cultural debates—such as the war in Gaza and LGBTQ+ rights—are making it increasingly difficult for C-suite executives to navigate employee relations. Business leaders are being called upon to take stances on divisive topics, and even remaining silent can be viewed as taking a position.”
AI adoption sparks compliance challenges
The use of AI in human resources (HR) has surged over the past year, with 72% of organisations now employing generative or predictive AI in at least one HR function. This marks a sharp rise from last year when only 60% of respondents reported using AI.
Despite its benefits, AI use comes with its own set of challenges. More than half of respondents (53%) are concerned about complying with data protection laws when using AI, while 38% are worried about the potential for AI to displace jobs.
Generative AI, in particular, is proving difficult to manage. Only 53% of respondents are confident that employees are using such tools appropriately, and fewer than a third (29%) have a formal policy guiding employee use of AI.
Deborah Margolis, Senior Counsel at Littler in the UK, emphasised the need for tailored AI policies. “There is no one-size-fits-all approach. The most effective policies will be those aligned with an organisation’s broader business objectives.”
ESG initiatives under pressure
Environmental, social, and governance (ESG) issues remain a priority for European employers, with 79% saying their focus on ESG initiatives has increased over the past year. Climate risk, in particular, is a key area of concern, with 76% of respondents noting a heightened focus.
This shift is driven by growing pressure from stakeholders, as well as legal obligations such as the EU Corporate Sustainability Due Diligence Directive, which comes into full force by 2026. Many employers, however, are already preparing, with 85% reporting they are at least somewhat ready for the new compliance demands.
The report also revealed that 73% of employers have seen a rise in mental health accommodation requests from employees, reflecting the growing importance of wellbeing in the workplace.