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Politics and elections pose new challenges for European employers

Politics and elections pose new challenges for European employers

Felicity Glover
| October 9, 2024

Main article

More than eight in 10 European employers, 86%, are facing some degree of difficulty managing politics in the office, including divisive beliefs among employees, a new survey by labour law firm Littler found.

The European Employer Survey Report polled about 630 HR executives, business leaders and in-house lawyers in 13 countries, including Austria, France, Germany, Ireland and Italy. The UK was also included in the survey.

With nine parliamentary elections in Europe either already held or to be held this year, 83% of employers are concerned about employment law changes. Meanwhile, 77% are worried about how November’s US presidential election could impact their business operations.

“European employers’ level of concern regarding the US presidential election indicates just how global the workplace has become,” Stephan C. Swinkels, Littler partner and co-lead of the firm’s global practice, said in a press release.

“Political changes in major economies like the US are having a local impact on organisations across Europe, but this is also a meaningful change in mindset as management takes a global view towards the state of the organisation. What happens across oceans can and does affect their outlook.”

Other economic, geopolitical, and cultural trends are exacerbating the issue, with 63% of survey respondents reporting concerns over financial conditions and the impact it will have on workforce management.

More than five in 10 of those polled, 53%, said they were also worried about social and cultural issues, including employee satisfaction and post-pandemic workplace norms, over the next 12 months, and 37% were concerned about geopolitical risks, such as the war in Gaza and LGBTQ+ rights issues.

“Managing varying beliefs and opinions is becoming a significant employee relations issue for C-suite executives and creating an environment where employers are expected to do more than simply manage their workforces,” Jan-Ove Becker, a Germany-based partner at Littler, said.

“Business leaders are increasingly expected to take positions on divisive topics, and even silence itself can become a stance.”

Meanwhile, the Littler survey found that the use of artificial intelligence in HR processes has created new workforce and compliance challenges.

Most survey respondents, 72%, say their organisations use generative or predictive AI in at least one HR function. However, 53% are moderately or very concerned about complying with data protection and information security laws when using AI in this area, while 38% say the same about the technology’s potential impact on job displacement.

Environmental, social and governance issues remain a focus for European employers, with 79% of executives saying their organisations have increased their ESG efforts over the past year.

“Climate risk is a particular concern, as 76% have placed greater focus in this area over the same timeframe,” Littler said.

“These efforts are being driven by pressure from employees, customers and stakeholders, as well as legal requirements like the EU Corporate Sustainability Due Diligence Directive, which entered into force in July.”