1. Talent shortage and skills gaps 

European companies, especially in tech and engineering sectors, are facing a serious talent shortage due to a growing gap between industry needs and available skills, as well as rising competition. As a result, many businesses are turning to international markets to find the right candidates.  

A recent study even shows that 80% of UK firms struggle to hire skilled IT professionals, while Germany relies on approximately 288,000 foreign workers each year to sustain its economy. 

"Hiring internationally and having experts who understand the unique recruitment demands of each country has become essential for a successful recruiting strategy. I’m also proud that GoodCall has grown into a European talent acquisition hub, helping companies efficiently secure top talent across markets,” says Milan Novák, CEO at GoodCall. 

2. Pressure to compete with industry leaders

Big companies with strong employer branding are attracting top talent, making it harder for smaller businesses and startups to compete with them. Their reputation alone often makes them the first choice for job seekers.

"Companies like Google, L'Oréal, and Netflix are leaders in employer branding but not always driven by specific efforts. Rather, many of them have naturally strong reputations that draw in a lot of candidates," notes Blake Wittman, Chief Growth Officer at GoodCall. "To stay competitive, smaller businesses should focus on building their own unique employer branding with targeted campaigns and initiatives."

However, our research conducted in the Czech Republic shows that only 34% of companies have a well-defined employer branding strategy. Another 37% engage in branding activities sporadically, without a clear plan. The remaining 29% do not invest in employer branding at all.

Find out how GoodCall can enhance your employer branding.

3. Lengthy and complicated recruitment processes

Hiring is slowing down, and businesses are paying the price. On average, filling a position now takes 44 days. To put that into perspective, candidates wait over a month to hear a final decision.

Long approval processes, multiple interview rounds, and slow communication don’t just frustrate candidates – they push them straight into the hands of faster-moving competitors.

"A slow recruitment process doesn’t have to be the norm. Our RPO team always starts collaborating with European clients by setting up a recruitment process that meets the company’s needs while ensuring a smooth and positive experience for candidates. We don’t start recruitment without this," explains Aneta Kořínková, RPO Expert at GoodCall.

4. Pressure on diversity, equity, and inclusion (DEI)

Despite rumblings in the United States, European companies are still under pressure to enhance diversity and inclusion, driven by EU regulations such as the Equality and Diversity Law and CSRD, as well as increasing expectations from investors and employees. To keep up with these demands, many businesses are rethinking their recruitment strategies.

Yet, despite their efforts, only 7% of organizations are actively working towards a truly inclusive culture.

"Companies like Sodexo and Novartis understand the importance of DEI in the workplace, and hopefully, more will follow in their footsteps, not just because it’s the right thing to do, but also because it opens the door to talent that has been underserved," says Wittman.

5. High candidate expectations and demands for work-life balance

Candidates today expect more than just a paycheck. Over 70% of EU workers prefer to work remotely at least a few times a month and companies that offer development opportunities see 34% higher employee retention.

But many businesses in Europe still fail to meet these demands, which makes it harder for them to attract and keep skilled people.

"Recently, we had an intense discussion with a client about filling financial roles for a business center in Prague. After revising their offer to include a couple home office days, the number of candidates increased by dozens each week," concludes Kořínková.

Do you need guidance on recruitment in Central and Western Europe? Contact our RPO team. We'll provide the support you need.