With critical regulatory deadlines looming in Europe and U.S. policy shifts sowing widespread confusion, European employers face new challenges in managing key workplace issues—from artificial intelligence (AI) usage and inclusion, equity and diversity (IE&D) programmes to pay transparency and in-office work policies.
Littler’s eighth annual European Employer Survey Report delves into how businesses are responding to these issues and preparing for what’s to come. The survey was completed by more than 400 business leaders, in-house lawyers and HR executives from across Europe, 64% of whom hold C-suite or leadership positions.
2026 is shaping up to be a watershed year for European regulations impacting the workplace; however, the survey data shows that businesses may face readiness challenges. Just 18% of respondents say their organisations are very prepared to comply with the European Union (EU) AI Act, while 20% indicate they are not at all prepared. As for the EU’s Pay Transparency Directive, only 24% say their organisations are very prepared to comply. Preparedness levels for both regulations are relatively static when compared to last year’s survey results.
This year’s survey also reveals that European employers are not immune to the effects of U.S. policy changes in areas like immigration and IE&D. Of the approximately two-thirds of respondents with U.S. operations and/or a U.S.-focused workforce strategy, a striking 75% say they have taken at least one step to update that strategy as a result of these policy developments—including cancelling or reducing business travel to the U.S. (25%) and reducing U.S. operations (25%). Additionally, nearly 70% of those with IE&D programmes say they are considering new or expanded rollbacks as a result of heightened scrutiny from the Trump administration.
In addition to the above, the survey report addresses the ongoing push for in-office work and other hot-button issues facing European employers, while spotlighting important differences among respondents from various countries and company sizes.
Disclaimer:
The survey questions and their resulting findings cover issues that are governed by differing rules from European governments and certain actions may not be permissible depending on the country. The content does not convey or constitute legal advice, nor is it intended to be acted upon as such.
