European HR services sector facing both challenges and opportunities
HR Services Europe Spot On
The HR sector in Europe is having to deal with shifting dynamics in the light of talent shortages, rising wages and changing employment patterns.
Our latest Spot On takes an in-depth look at both the challenges facing the industry and wider economy, and the significant opportunities arising for HR services as a result of the tight labor markets and increased employment costs that businesses are confronting.
The HR sector is adapting to shifting labor market dynamics as companies navigate talent shortages, rising wages and changing employment patterns. With protectionist measures spreading across global markets, geopolitical tension and continued higher energy prices in Europe, major industrial economies like Germany are under pressure and tempering the growth forecast for Europe’s economy. The service sector, however, remains a key outperformer. What’s more, as inflation continues to cool, GDP growth is still positive and central banks’ rate cuts drive further monetary relaxation, the external geopolitical risk can be balanced. At the same time, a tight labor market and sharp wage increases are making it harder for businesses to secure talent, driving demand for external staffing, workforce mobility solutions and strategic hiring models to offset increasing costs.TOM VAN DE MEIRSSCHE, HR SERVICES EUROPE SPECIALIST, OAKLINS
Elsewhere in the report we explore M&A activity in the HR sector and provide a summary of recent transactions across the continent. In addition, there’s an overview of valuation trends and two case studies where Oaklins played a key role in closing the deals.
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