Two in five UK employers say they don’t have enough staff to get the work done

Two in five UK employers say they don’t have enough staff to get the work done, according to new research from European HR and payroll services provider SD Worx. The study surveyed 5,936 HR decision-makers and 16,500 employees across 16 European countries, including 305 UK employers and 1,000 UK employees. The latest findings show 43.3% of UK employers say their teams are faced with a shortage of workers to get the job done. 

As employers face pressure to maintain services and control costs, workforce planning has become a top priority for UK businesses. Nearly 60% (59.7%) of UK organisations now consider workforce planning a critical or high priority, marking its transition from an HR 'nice to have' to an operational necessity. 

And it’s not just a hiring challenge. As organisations look to redesign how work gets done, nearly a third (30.4%) of UK organisations cite preparing for automation and AI as a driver for workforce planning, higher than the European average (26.1%). 

When asked why workforce planning matters now, UK organisations most commonly point to the basics of keeping work moving, with 53.8% citing ensuring adequate staffing levels and scheduling efficiency. But the pressure is not only about filling shifts, it’s also about performance and budgets. Half (50.0%) cite improving service continuity and customer experience, while 40.3% cite optimising workforce costs. 

The employee findings suggest the resourcing challenge may be reinforced by retention pressures. 34% of UK employees say they are looking for jobs with another organisation. Meanwhile, 14.4% cite job security and stability and 14.3% cite fair pay as additional priorities, highlighting the importance of workforce planning that supports both workforce stability and engagement. 

Although many employers discuss becoming 'skills-based organisations', most UK businesses are still transitioning. According to the research, 54.9% of UK organisations base workforce planning on both job roles and skills, not skills alone, indicating many still use a job-title approach. 

This matters, because the employee data suggests capability is being missed, and motivation is there to do more.  

While 23.3% of UK employees feel their talent is underused, 64.2% are eager to grow, highlighting the need for better skills mapping and internal mobility to match people to roles based on capability. 

However, the data reveals that skills development is also under strain. 33.9% of UK employees say they require additional training or learning opportunities, but 48% don’t feel they have the time, underlining why workforce planning needs to do more than forecast demand and also create the space for learning and progression. 

The findings also reveal that workforce planning is broadening beyond permanent headcount as organisations adapt to changing workforce models and uncertainty. In the UK, 66.8% say workforce planning includes freelancers, contractors and temporary staff, rather than treating them separately. Around 60% (59.1%) also say their organisation uses scenario planning to anticipate future workforce needs and challenges. 

SD Worx, the leading European HR and payroll services provider, supports small and large organisations with their HR and payroll challenges. To keep its finger on the pulse of employers and employees, SD Worx regularly conducts in-depth surveys across Europe. The analysis of the latest ‘HR & Payroll Pulse’ survey offers organisations valuable insights to sharpen their HR and payroll strategy and make it future-proof. 

The survey was conducted between January 27 and February 20, 2026, by the SD Worx Research Institute in 16 European countries: Belgium, Germany, Finland, France, Ireland, Italy, Croatia, the Netherlands, Norway, Poland, Romania, Serbia, Slovenia, Spain, the United Kingdom, and Sweden. A total of 5,936 HR decision-makers and 16,500 employees were surveyed. The results provide a representative picture of the labor market in each country.