Considerations for your HR strategy in 2025

The skills shortage in Europe remains a key issue for many employers. This makes your retention strategy all the more important. An open dialogue about your employees’ needs and good planning are important cornerstones.

We have a crisis in Europe: a staggering 75% of employers cannot find workers with the right kind of skills according to the European Commission.
And here is another number, this time from the recent World Employment Confederation’s ‘The Way we Work’ report we worked on as long-term members, together with FT Longitude: 80% of business leaders say talent planning has never been more difficult than today.

In other words, Talent Shortage is one of the most serious problems we’re facing in the European labour market right now. It is a structural issue that we cannot overlook, even if we’re currently facing a negative phase in the economic cycle.

Technology often takes the bulk of the blame in this crisis, but demographic shifts – a rapidly ageing population combined with declining birthrates – and changing attitudes to work all play their part as well. External partners can add real value to help you navigate this complex landscape and implement a successful formula.

So, what are some of the actions businesses should take?
Let’s look at retention first, which also informs your attraction strategy: take a skills-based approach to your organisation. Invest time to identify your employees’ knowledge gaps. Understand what kind of upskilling or reskilling is needed. Staffing partners are key especially if you don’t have these resources in-house. Keep an open dialogue with employees to identify the best work models.

As for attraction, research overwhelmingly shows that jobseekers – younger candidates in particular – want greater meaning from their workplace.  Pay and compensation are still important, but workers equally value flexibility, global mobility, continuous learning, and well-being support. Crucially, they are also more likely to work at a company if it acts on social issues, like healthcare access, gender equality and climate action.

What does this all suggest? An inclusive and diverse retention strategy that both invests in its employees’ continuous learning and acts on societal challenges is crucial to tackling the shortage.

This is about SustainableWork.

Gi Group Holding offers a wide range of HR services, including training and consultancy.

About the Autor

Article published on LinkedIn in November 2024 by Stefano Colli-Lanzi, CEO and founder of Gi Group Holding.