European companies will face five major human resources challenges in the future, with managing talent being the most critical, according to a survey by The Boston Consulting Group (BCG) and the European Association for Personnel Management (EAPM).

The survey found that the core HR challenges are: managing talent, managing demographics, becoming a learning organisation, managing work-life balance, and managing change and cultural transformation. However, the survey found that only 30% of respondents say they have begun to tackle these challenges.

The research found that different European countries face different people related challenges. Frances Wilson, international adviser at the Chartered Institute of Personnel and Development (CIPD), says: “Managing demographics, for example, is cited as the top future HR issue in Germany, Austria and Switzerland. In Italy, HR managers said that they need to respond to rapid modernisation and increasing global competition; consequently, managing change and cultural transformation and managing globalisation are the top HR issues in that country.”