More than half (54 percent) of UK employees are considering changing jobs in the next year as employers struggle to deliver on expectations around flexibility, AI training and career development.
The “growing disconnect” between demand and delivery was revealed in the annual Workforce Pulse survey of 6,000 employees and 3,000 HR decision-makers across Europe, conducted by tech firm Personio. The firm said this mismatch is “putting pressure on HR leaders to rethink hiring, leadership development, and retention strategies”.
The survey found the main reasons employees gave for changing jobs were to boost pay (33 percent), leave stressful working environments (29 percent), improve poor work-life balance (29 percent) and sidestep limited career progression (27 percent).
This disconnect is an issue for employers as talent shortages are still a concern. Nearly four in ten (38 percent) HR leaders said it was the biggest threat to their organisations.
Interestingly, the proportion of employers expecting to make redundancies fell from 56 percent in 2024 to 41 percent this year. Researchers highlighted that misaligned workforce planning and business needs, such as mis-hires, skills gaps and preventable turnover, had cost employers that were trying to expand an average of £233,686 over the past year.
Early-career hiring struggle
Employers are also struggling to attract younger candidates, with 49 percent of HR saying under-30s are difficult to attract and recruit. In addition, nearly six in ten (59 percent) report that entry-level employees are less prepared than before the pandemic, with 72 percent reporting that they have had to adjust their onboarding processes and now offer clearer career paths.
In another shift in HR practice, the survey showed 76 percent of UK HR put more emphasis on skills and potential than on academic qualifications when hiring. Almost three-quarters (74 percent) said junior talent is central to workforce strategy.
This shift comes as the working-age population in Europe is shrinking. Data shows that the EU’s old-age dependency ratio is forecast to nearly double by 2070.
AI training gap
AI is becoming a focal point for both workers and employers.
More than half (51 percent) of employees want more workplace AI training.
Seven in ten employees believe their skills will stay relevant as AI develops, but only 43 percent feel they receive sufficient training from their current employer. Among those aged 25-34, 69 percent are already building AI skills independently.
The report suggests inadequate training carries risks. Employees without access to AI support are 22 percent more likely to consider leaving their jobs. As a result, 52 percent of HR leaders have identified AI and automation tools as their top investment priority over the next year, ahead of learning and development (50 percent) and recruitment (45 percent).
Office expectations
Working patterns also remain contested. A majority of younger workers view the traditional 9-5 as outdated, with 62 percent saying they prefer flexibility in how they structure their time. Among 25-34-year-olds, 60 percent say they already have flexibility to work during their most productive hours.
But office attendance requirements are still a point of friction. Nearly four in then (39 percent) younger employees would consider leaving if expected to attend more than three days per week. Older workers are less likely to face such demands, with just 28 percent of over-55s required to be in the office that often.
Lenke Taylor, chief people officer at Personio, said: “Talent shortages already make hiring and retention difficult, and this study shows that the challenge is growing. HR leaders have a critical opportunity to align people’s skills with business needs and create workplaces that are engaging, productive, and rewarding. That means investing in development, trusting employees to work flexibly, and hiring for potential – not just on their credentials.”
