HR and payroll functions in Europe are under increasing pressure from talent shortages, rising costs, regulation and AI. Drawing on insights from the 2026 HR and Payroll Pulse, this blog examines the ten most pressing HR challenges organisations face in 2026.

Workforce planning has become a priority for European organisations facing rising costs, talent shortages and increasing automation. Drawing on insights from the 2026 HR and Payroll Pulse, this blog examines the most urgent workforce planning trends in 2026 and where HR teams remain underprepared.

Employee satisfaction in 2026 is closely linked to how organisations approach reward, recognition and financial well-being. Drawing on findings from the 2026 HR and Payroll Pulse, this blog explores what employees across Europe value most and where gaps remain. It outlines how clearer, more flexible reward strategies can better support people at work.

AI adoption in the European workplace is accelerating, but many organisations struggle to turn experimentation into lasting impact. In this interview, Professor Jason Pridmore shares insights on how AI is reshaping HR, payroll and the nature of work, drawing on findings from the 2026 HR and Payroll Pulse. The article explores trust, skills and the role HR can play in guiding responsible AI use

Payroll is becoming more closely connected to how organisations manage people, data and trust. This blog explores five key payroll trends for 2026, drawing on insights from the 2026 HR and Payroll Pulse and SD Worx expertise. It outlines what HR teams across Europe should consider when shaping future payroll strategies.

Mid-market organisations across the UK and Europe face similar challenges. As they grow, HR and payroll processes become more complex, systems become fragmented and teams spend increasing amounts of time managing administration rather than focusing on people.

When organisations evaluate HR technology, the first question is often simple:

What's the return on investment?

The answer often goes far beyond software savings. The biggest returns typically come from reducing inefficiency, improving workforce visibility and eliminating the risks created when HR, payroll and workforce management systems fail to work together.

For years, some payroll have viewed as an administrative function that sat quietly in the background of the business.

Today, it plays a much bigger role.

Payroll sits at the point where people, pay, time and compliance come together. It depends on accurate information flowing from HR, workforce management and scheduling processes, which means disconnected systems can quickly create operational risk beyond the payroll team itself. 

As workforce complexity increases, more organisations are beginning to view payroll not simply as a process, but as a critical part of business infrastructure.

HR's role is changing.

According to the latest SD Worx HR & Payroll Pulse research, 68% of organisations now see HR as part of strategic decision-making, while workforce planning has become a critical or high priority for nearly 60%. HR leaders are increasingly expected to support business growth, shape workforce strategy and provide greater insight into organisational performance.

The challenge is that many organisations are still trying to support these strategic objectives using disconnected systems, fragmented workforce data and manual processes.

Most organisations think about recruitment, onboarding, performance and retention as separate processes.

Employees experience them differently.

To them, every interaction with the organisation is part of a single journey. When those experiences feel disconnected, employees notice. When they feel joined up, engagement, productivity and retention all benefit.

At a time when employee wellbeing, retention, recruitment and employee experience remain among the biggest priorities for HR leaders, creating a more connected employee journey has become increasingly important.

HR has become a strategic function. According to the latest SD Worx HR & Payroll Pulse research, 68% of organisations now see HR as part of strategic decision-making, while workforce planning, employee experience, compliance and retention continue to climb the agenda. Yet many HR teams are still expected to deliver against these priorities using disconnected systems, fragmented data and manual processes.

The result is not simply inefficiency. It is reduced visibility, increased operational risk and less confidence in workforce decisions.

Is your organisation looking to change payroll providers, or thinking of starting a new payroll transformation project? Our simple to use RFP (Request For Proposal) template contains all the relevant questions you need to ask, to help your team analyse and compare providers.

The template includes 250+ questions to help you design a clear and effective supplier evaluation process, and can be personalised to ensure it is relevant to your project needs.