Across Europe, workers have endured a seemingly endless cycle of disruption: the energy crisis that sent utility bills soaring in Germany, strikes paralysing transportation in France, political instability in Italy with five prime ministers in seven years, and inflation rates reaching double digits in Baltic states. Against this backdrop of persistent uncertainty, organisations face the challenge of maintaining stability while simultaneously navigating necessary transformations.
Data from Perceptyx’s Center for Workforce Transformation has confirmed what many leaders already assumed: Change & Innovation has emerged as the top driver of engagement globally, with, "Change is handled effectively" and "feeling supported in adapting to change" ranking as the two most significant factors influencing employee engagement.
This prominence of change management isn't surprising given the tumultuous events of recent years. With stubborn inflation eroding purchasing power, significant political realignments including recent elections in Germany, and AI transforming entire industries, European organisations find themselves adapting at an unprecedented pace.
The European Change Experience
In September/October 2024, Perceptyx collected data from workers across major European economies to help us better understand the changing landscape in that region. The findings revealed that more than 4 in 10 European workers have had recent communication that their organization is experiencing a change or disruption — notably lower than the 6 in 10 reported in the US. Change appears more prevalent in larger European economies, with approximately half of workers in Germany, Spain, and the United Kingdom reporting some degree of organisational change.
This regional variation reflects Europe's unique economic and political context. The transition of political leadership in key nations — Angela Merkel's departure after 16 years as German Chancellor, Labour's victory ending 14 years of Conservative governance in the UK, and pension reform protests in France — has created a backdrop of societal change that inevitably affects organisational dynamics.
Communication: The Critical Factor
The research clearly demonstrates that how change is communicated dramatically impacts the employee experience. When senior leaders clearly communicate change, employees are 4.1x more likely to be extremely confident in leadership's ability to guide the organisation through transitions. They're also 4.5x more likely to believe their organisation can create a culture that adapts easily to change compared to employees who report unclear communication.
Furthermore, when employees have extreme confidence in senior leadership's change management abilities and receive clear communication, they are:
- 4.4x more likely to believe leaders communicate a clear vision,
- 4x more likely to believe change is handled effectively, and
- 1.9x more likely to believe the company competes effectively.
These findings reinforce what many European workers already know from experience: transparent communication during periods of change isn't just a “nice-to-have” — it's a business imperative that directly impacts how employees view their organisation's competitiveness and future direction.
The Central Role of Direct Managers
While senior leadership communication sets the tone, direct and middle managers often serve as the primary conduits for change initiatives. These managers simultaneously disseminate information downward and channel questions and concerns upward, making their effectiveness critical to successful change management.
The data shows that when employees are extremely confident in their direct manager's ability to handle change, they are:
- 3.3x more likely to say senior leaders communicate a clear vision
- 3.2x more likely to believe change is handled effectively
- 1.8x more likely to believe the organisation is competing successfully
These multipliers highlight the magnifying effect managers have on change perception. In European workplaces, where organisational hierarchies can be more pronounced than in other regions, empowering middle managers becomes particularly crucial for bridging communication gaps between leadership and frontline workers.
Change and Retention Challenges
Perhaps most concerning for organisations is the connection between change and job-seeking behaviour. Approximately 60-70% of European employees experiencing change report engaging in job-seeking activities — a significant retention risk.
However, the data reveals a more nuanced picture regarding their intention to stay. Among employees where change has been clearly communicated, 68% intend to remain with their company for the next 12 months — the same percentage as those reporting no organisational change. In contrast, when change communication is unclear, only half of employees intend to stay.
This suggests that change itself doesn't necessarily drive turnover — poor communication does. This finding aligns with European workplace values that often emphasise stability and transparency, making clear communication particularly important during transitions.
Engagement data reinforces this conclusion: employees experiencing well-communicated change are as fully engaged as those experiencing no change, and are notably more engaged than those dealing with poorly communicated change.
Impact on Business Outcomes
While change can disrupt operations, it's often driven by the need to adapt, survive, and compete in evolving markets. The research shows that when change is communicated effectively, 9 in 10 employees report making at least one significant innovation over the past 12 months. This drops to 8 in 10 where no change is occurring, and further falls to 6.5 in 10 where change communication is unclear.
Interestingly, employees in organisations with no change are 1.5x more likely to report making no significant innovations — suggesting that some level of change may actually stimulate creative thinking and problem-solving.
Productivity results show mixed patterns. Employees experiencing well-communicated change are 50% more likely to report increased productivity compared to the previous year. When communication is unclear, they swing the other way at 50% more likely to report productivity declines.
In contrast, employees experiencing no change are significantly more likely to report unchanged productivity levels — indicating that change, even when well-communicated, creates productivity volatility.
Well-Being Considerations
Well-being indicators follow similar patterns. When change is communicated effectively, employees are about twice as likely to report improved mental and physical health compared with those experiencing no change.
However, poor change communication correlates with decreased physical and mental health. Additionally, those experiencing any type of change — whether well-communicated or not — are more likely to engage in unhealthy behaviours at least two days per week compared to those in stable environments.
For European organisations already navigating complex workplace regulations and cultural expectations around work-life balance, these findings emphasise the importance of supporting employee well-being during organisational transitions.
Recommendations for European Organisations
Our research offers clear guidance for leaders working across Europe:
- Prioritise transparent communication: Even when delivering difficult news, clear communication about change yields better outcomes than ambiguity or silence.
- Invest in manager development: Equip direct managers with the skills and information needed to effectively lead their teams through change.
- Monitor well-being indicators: Recognise that change periods may require additional well-being support and resources for employees.
- Consider regional context: Acknowledge that European workers may have different expectations around job security, communication, and organisational stability than their counterparts in other regions.
- Leverage change as an innovation catalyst: Well-managed change can stimulate innovation and fresh thinking, potentially giving organisations a competitive advantage.
Perceptyx Can Help Your Organisation Navigate Change
Effective change management requires clear insight into how employees are experiencing organisational transitions. Perceptyx's comprehensive listening solutions provide the data and analysis needed to understand employee perceptions and take targeted action to improve change outcomes.
To learn more about European workforce trends and how Perceptyx can help your organisation build change resilience, download our Trends in Employee Engagement: A European Perspective special report or schedule a meeting with a member of our team.
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