Introducing the Workforce Pulse report: Key trends shaping the world of work and how to navigate them 🫧

Personio's Workforce Pulse is a new annual report that explores key trends in the world of work along with expert advice for organizations navigating these trends. Our first edition dives into talent shortages, employee engagement, and productivity challenges, equipping HR teams with the data and context they need to succeed in the year ahead.

Personio’s Chief People Officer, Lenke Taylor, shares six of the key insights from the report that stood out to her. 

The workforce is undergoing a seismic shift. Talent shortages are a continued thorn in the side of hiring teams, employee expectations are evolving rapidly, and the traditional model of work is being redefined. 

This perfect storm is forcing organizations to rethink their strategies for attracting, retaining and engaging top talent.

In the first edition of our new annual report, the Workforce Pulse, we surveyed 7,000 employees and 3,500 employers (HR decision-makers) across Europe to evaluate the most pressing people challenges and evolving workforce trends. Then, we spoke to experts in the world of work to gather actionable, practical advice for HR teams responding to these trends. 

Here, I’ve highlighted six top takeaways from the 2024 Workforce Pulse report that I think organizations should focus on.

For an in-depth look at the challenges on the horizon — and how organizations can turn them into opportunities for unlocking productivity and fostering a thriving workforce — download the full report.

1) We may be on course for the ‘Great Resignation 2.0’ 🫧

The data suggests that we could see a repeat of the post-Covid “Great Resignation”, with a wave of people moving jobs once they and employers feel more optimistic about the economy. 48% of employees are planning to look for a new job in the next 12 months, and 44% of employees will feel more motivated to leave their job when the economy improves. 

With this in mind, it’s more important than ever for employers to focus not just on recruitment and retention, but also on how they can engage and motivate their people — as a means to safeguard their top talent, and boost productivity in the process. 

2) We’re in a low spot for employee engagement 🫧

Employee engagement is an essential element of any retention strategy, and improving it helps to reduce turnover. 

But now is a bad time for employee engagement in Europe. Over a fifth (22%) of employers say engagement has been low over the past 12 months. And an eyebrow-raising 60% say it has deteriorated over the past year.

This creates a clear imperative for organizations to understand what drives engagement in their business. Run employee surveys to get a wider picture, and organize focus groups or one-on-one discussions to get qualitative feedback to enrich those findings, building a holistic picture of how you can increase employee engagement. 

3) There’s a trust gap in many organizations 🫧

High levels of trust go hand in hand with a good company culture and happy employees — but with today’s employees now expecting more from leadership when it comes to transparency, fairness and respect, trust can be hard to win and easy to lose. Just a fifth of employees trust their CEO (21%) or senior leadership team (20%) to a great extent.

Critically, the data reveals a mismatch between how employers and employees view trust and psychological safety — with employers much more optimistic than employees. 

With high levels of trust going hand-in-hand with high levels of motivation and productivity, finding out whether this is an issue for your organization and what’s driving it is essential. The causes will likely vary from organization to organization, and even from team to team, so gathering data by talking to your people is a must. 

Building trust takes time — you have to do it piece by piece. But communicating well throughout the process on the why, the how, and the results will help you get there.

4) ‘Squiggly careers’ are the new norm 🫧

While almost four in 10 (39%) European employees say that they work in their dream job or industry, around an equal number (40%) want to switch to working in a new career or industry. A third would even take a lower salary for a more interesting or engaging job.

HR teams should, of course, bear this in mind for their retention strategies for the coming year — but they can also think of it as an opportunity for reaching previously untapped talent pools. 

We’re seeing an increase in skills-based hiring as organizations focus more on the skills and aptitudes needed for a given role rather than experience. 

There’s also an opportunity to think about internal job hopping as a benefit to your organization as employees seek variety in their careers. 

Organizations often rely on external hires to come in and question processes with fresh perspectives, but that same benefit can come from internal colleagues — and focussing on this could help speed up execution as these colleagues will also have valuable institutional knowledge to give them a head start. 

They may also create opportunities for those around them to learn from their previous experience, creating positive momentum in their new team. 

5) Workforce productivity is holding businesses back 🫧

Workforce productivity remains one of the most important challenges employers face. Nearly a quarter (23%) of employers surveyed say low productivity is a potential barrier to their organization’s success, and 29% identify improving productivity as a key people challenge they need to address in the next 12 months.

Our research reveals a strong correlation between trust, psychological safety, and employee productivity. By creating a supportive environment that prioritizes work-life balance and offers opportunities for growth, organizations can boost employee engagement and performance.

6) Keeping top performers on board is essential 🫧

High performers are the lifeblood of any organization. And our research shows that, overwhelmingly (95%), these individuals believe there are actionable steps companies can take to keep them on board. The challenge lies in identifying who these top performers actually are.

The precise criteria will differ for each organization, but, essentially, top performers excel in two key areas: delivering results and aligning with your company culture and values.

To identify these high-flyers, start by analyzing your performance cycles. Successful new hires can also provide valuable insights into the qualities your top performers possess. However, to get a truly accurate picture, ensure performance evaluations are consistent across the board.

It's crucial to gather feedback from multiple sources beyond just the manager. Input from peers and colleagues can offer a comprehensive view of an employee's contributions to the overall company culture. 

By understanding what exceptional performance looks like, you can clearly communicate these expectations to the entire organization, encouraging employees to incorporate these behaviors and goals into their development plans.

The year ahead

The year ahead will be characterized by rapid change, increased competition for talent, and evolving employee expectations. Organizations that can adapt to these trends will emerge successful. 

And HR leaders will play a pivotal role in driving this transformation by prioritizing employee experience, fostering a culture of trust, and leveraging data-driven insights. The full Workforce Pulse report goes deeper on specific challenges and how organizations can meet them. You can find it here.