Littler | 2023 European Employer Survey Report

After years of disruptions from the pandemic, artificial intelligence, shifting regulations and changing employee preferences, are European workplaces finally reaching a consensus on the “new normal”?

To investigate this question and other key issues facing employers, Littler surveyed 780 human resources (HR) professionals, in-house attorneys and business leaders from across Europe. The results, which inform Littler’s 2023 European Employer Survey Report, show the myriad ways in which employers are responding to changes in workplace management, policy and culture.

Flexibility in Work Models Is Here to Stay

While companies have tried a range of tactics to entice employees back to the office, the breakdown of inperson and remote work remains remarkably similar to our 2022 survey. This year’s survey finds 30% of employers are requiring fully in-person work, while the majority (58%) offer hybrid models that require some in-person work, but still provide employees with flexibility. Only 6% say their workforces are fully remote, an indicator of the value placed on in-office collaboration.

Enforcing in-office work requirements, however, has proven challenging for some employers. Only about half of respondents (52%) say their employees comply with in-person work policies to a large extent, with others reporting compliance to a moderate (38%) or small (9%) degree. Resistance to in-person work likely reflects an ongoing  misalignment between employers and employees when it comes to these policies: Only 36% of respondents say that their work models match employee preferences. On the other hand, 43% report that their employees prefer remote or hybrid work to a greater extent than their organisation offers it.

As they navigate a competitive talent market, some employers are going even further in their flexible arrangements. Nearly half of employers responding to the survey (48%) say they allow employees to work remotely from abroad to some degree (known as “wandering workers” or “digital nomads”), while 38% say they are contemplating a four-day workweek. Both work models come with substantial legal, operational and practical challenges.

Others have had to be flexible out of necessity as requests from employees for reasonable accommodations and reasonable adjustments related to health conditions increase, with 44% of respondents saying there has been a surge of requests related to physical health since the start of 2022. Meanwhile, 36% report an increase in requests related to post-COVID or long-COVID conditions. Additionally, 39% of employers surveyed report an uptick in mental health-related requests, though these results vary considerably by country.

Employers Are Divided on Use of AI Tools in HR

As employers parse the risks and benefits of incorporating AI tools into HR functions, differences in approach are emerging between the early adopters and the more risk averse.

Most European employers (61%) say they use predictive AI tools for at least one HR function, with popular applications including customised employee training, workforce automation and recruiting and hiring. A large contingent of respondents (59%) also report using generative AI for HR purposes, with content creation for materials such as job descriptions and onboarding materials the most popular application. Others, however, do not seem inclined to adopt such tools: 39% are not using predictive AI in their HR
departments and 41% have yet to utilize generative AI.

While European employers await specific compliance obligations from the proposed AI Act in the European Union (EU), most of those using AI in the employment context do not seem daunted by regulatory uncertainty. Nearly 70% of respondents say they have not changed their AI usage in response to regulatory proposals—demonstrating the value and efficiency employers are already finding in these tools.

Employers Face Changing Expectations and Regulatory Requirements

Marking another key cultural shift, employers are increasingly under pressure from employees and other stakeholders to respond to divisive social issues both within and beyond the workplace. Many are struggling with how to respond, as evidenced by the 75% of respondents who say they have found it to be at least somewhat challenging to manage expectations surrounding social and political beliefs among employees.

In what follows, we examine these and other key issues impacting European employers, including EU Directives governing pay transparency and whistleblower protections; regulatory frameworks for crossborder data transfers; ESG and supply chain transparency requirements; and the rising focus on workplace legal issues with C-suite executives. We also include U.S. comparisons where applicable, and break out country-specific results for some of Europe’s top economies: Germany, France, Spain, Italy and the U.K.

To read the full report, please click here.

Compliments of Littler – a member of the EACCNY.