Talent shortages are reshaping careers
Europe’s talent shortage is no longer a temporary constraint, it’s a structural reality.
Nearly half of all companies (46%) say they are struggling to find the right people. For some, this is a skills issue. For others, it’s about expectations—how people want to work, and where.
The organisation is faced with a shortage of workers to get the job done.
The organisation will increasingly face a talent shortage in the coming years.
In response, career models are loosening. A majority of organisations (58%) now support flexible career paths, recognising that linear progression no longer reflects how many people want to grow. Meanwhile, 36% of companies are hiring across borders, rising to 54% among international firms. Talent has become borderless. The systems around it have not.
The organisation supports flexible career paths.
To expand its talent pool, the organisation is actively seeking talent across borders in other countries.
Flexibility is at the heart of this evolution.
Employees are gravitating toward hybrid models, non-linear hours, and new formats like four-day weeks. But while many employers believe they’re adapting, the data tells a different story.
Only 39% of employees feel they have more than adequate flexibility. And 41% of employers say these new schedules are creating headaches for payroll. The friction between workforce expectations and operational systems is becoming increasingly visible—and increasingly risky.
Which of these flexible working arrangements do you prefer, regardless of whether you currently have them?
Flexible hours
Hybrid work
Remote work
Four-day workweek
6-hour workday
Compressed workweeks
Part-time work
Job sharing
Other
None of the above
of remote employees are encouraged to return to the workplace.
of remote employees are required to return to the workplace.
This disconnect also plays out in return-to-office strategies.
Many employers still underestimate how strongly employees resist being pulled back to traditional routines. The risk here isn’t just disengagement, but departure.
Talent strategies can’t be built on assumptions. They must reflect how people actually move, choose, and stay. That requires more than new policies; it calls for a cultural shift toward mobility, flexibility, and listening.
“Success in 2025 depends on rethinking what we mean by talent. Too often, companies look outside when the talent they need already exists internally — it’s just untapped”
says Nick De Schamphelaire, Customer Success Manager at SD Worx. “Strong internal mobility and flexible career design don’t just improve retention. They turn your own people into ambassadors.”
Supporting this evolution means embracing non-linear paths. “Start with broader role definitions. Open space for exploration,” Nick advises. “Let people shape roles around their strengths — that’s how you build real engagement.”
The same applies across borders.
As cross-border hiring increases, so does complexity. Legal differences, communication delays, and cultural mismatches all pose challenges. But, as Nick puts it, “Being deliberate matters. Define values and expectations clearly, and back them up with inclusive systems.
Talent strategies for HR Leaders
Too often, we treat talent shortages as a hiring issue, when in reality, it’s a visibility issue. Many organisations simply don’t know what capabilities they already have.
If you start by mapping internal skills and ambitions, the real gaps and the real opportunities become much clearer. Internal mobility isn’t just a retention tool. It signals to your people that they matter and that there’s a future for them within the company.
That kind of trust creates loyalty, resilience, and a stronger employer brand. But it doesn’t happen by accident. Leaders need to build both the infrastructure — such as career dialogues, mentoring, or internal gigs — and the cultural readiness to support real movement.
When it comes to hiring externally, especially across borders, it’s not just about expanding reach. It requires intention, along with operational alignment and cultural fit.
Whether you’re navigating flexible career paths or managing global teams, the mindset should always be this: what do we need to grow, and who can help us get there?”
Nick De Schamphelaire,
Customer Success Manager, SD Worx Compass