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Workforce Pulse 2025

The agile people leader: Smarter decisions for the future of work

Change is nothing new for HR leaders. What sets this year apart is the pace and impact of transformation, and the unique opportunity for scaling businesses to lead the way.

The acceleration of AI, decision science opportunities, and demographic shifts marks a pivotal moment: those who adapt to harness these forces will set the pace — while others risk being left behind.

Backed by insights from 3,000+ senior HR decision-makers and 6,000+ employees, this workforce trends report draws on the largest survey of HR leaders in Europe 1. The result is an unparalleled view into the priorities, challenges, and opportunities shaping the future of work.

Our workplace research reveals that while enterprise organisations pour millions into transformation, small and mid-sized businesses have a unique opportunity: to outpace their larger counterparts not through mass investment, but through agility, experimentation, and smarter people strategies. Those that thrive will do so by navigating three powerful, interconnected forces:

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1

Decision Intelligence

Transforming people decisions from reactive to predictive, blending intuition with evidence to drive strategic advantage.

2

AI integration

Redefining roles and workflows, demanding new skills and frameworks for both leaders and teams.

3

Demographic shifts

Reshaping workforce composition and expectations, intensifying the urgency around knowledge transfer and future talent pipelines.

This report is more than a snapshot of the trends people teams face today — it's a playbook filled with actionable frameworks and cross-market benchmarks, designed to inform board-level conversations on growth, inclusion, and technology. For HR leaders ready to experiment with new ways of working, and to redefine the role of their function in the business, the path to measurable competitive advantage starts here.

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Key findings at a glance

£235,107

Average cost per organisation from preventable turnover, mis-hires, skills gaps, bad learning investments, and poor workforce planning in the last year

2x

Employees who feel trusted to work remotely are more than twice as likely to be highly motivated and less likely to leave

21pt

The number of HR leaders expecting to make redundancies dropped 21 points year-on-year (from 60% to 39%)

51 %

of employees plan to look for a new job in the next year or have already found one

39 %

of HR leaders say employee engagement has deteriorated over the past year

36 %

of employees say they get adequate AI training; 44% want more support

35 %

Employees who want more support with AI in the workplace are 35% more likely to be job-hunting

7 %

of HR leaders are truly “advanced decision makers” — using people data strategically and documenting decisions

65 %

of HR leaders prioritise skills-based hiring; 66% say skills matter more than degrees

Foreword

If you work in HR, you're used to hearing that “everything is changing.” But this year, the scale of transformation truly stands out — not just in technology, but in the expectations, ambitions, and needs of people at work.

At Personio, we've always believed that 'scaling' businesses have a unique advantage: agility. This year's Workforce Pulse data underscores just how important that capability will be in the months and years ahead. While enterprise organisations may have bigger budgets, we see their smaller counterparts as well-positioned to move faster, test smarter, and adapt more boldly to the forces shaping the future of work.

The findings in this report make it clear: the convergence of Decision Intelligence, AI, and demographic shifts isn't just theory — it's playing out in real time for teams across Europe. Engagement is at risk, and the cost of preventable people problems is staggering. Yet, our research also shows that organisations that invest in their people, empower teams with data and technology, and focus on skills — not just CVs — are already seeing measurable gains in performance, engagement, and retention.

HR leaders today have an opportunity to set the pace for their organisations. By blending data with intuition, embracing new skills and mindsets, and building cultures where trust and flexibility aren't perks but expectations, people teams can help their organisations thrive. The path forward still carries uncertainties, but it will reward those who act with intention and agility.

I hope this year's Workforce Pulse gives you both a clear-eyed view of the challenges ahead and practical insights to help you embrace and overcome these challenges. The future belongs to those who are ready to shape it — one decision, one experiment, and one team at a time.


Lenke Taylor

Lenke Taylor

Chief People Officer at Personio

1Based on publicly available methodology statements for surveys of European HR-leaders published since 2022.

Unlock the full report

Smarter strategies for the future of work. See how top HR teams are making better decisions with data, AI, and new approaches to talent.

  • Insights from 3,000+ HR leaders

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  • Recommendations to improve engagement and retention

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