Employee Wellness Remains Key HR Challenge

Research from SD Worx reveals that 50% of European employees find their job mentally demanding.

By Maggie Mancini

For the second year in a row, employee well-being is the biggest HR challenge for European employers (28%), according to research from SD Worx. Employee retention and turnover (25%) and recruiting new talent (24%) rank second and third, while employee experience and engagement (23%) and compensation complete the top five. About half of European employees find their job mentally demanding, the report finds.  

Yet there are also HR challenges that employers mentioned more often in 2025 than in 2024, the report finds. For example, 17% of European employers consider compliance with labour laws and regulations a major challenge, up from 14% in 2024. Payroll optimisation (14% in 2025 compared to 11% in 2024) and internal mobility and career management (13% in 2025 compared to 11% in 2024) are also on the rise.  

When it comes to employee wellness, many organisations struggle with the issue of mental health. Four in 10 (39%) European employers see this as a challenge, and this is reflected in employees, 38% of whom claim not to feel healthy or fit while at work. In addition, significantly more employees (56%) find their job mentally demanding and stressful.  

Nearly one in five (18%) workers stayed home from work due to mental health problems, the report finds. This is more common among younger employees.  

Although employers see retention as the second biggest challenge, many employees remain loyal to their jobs and employers. Only 13% are actively looking for a new job with a new employer, while another 13% want to change jobs laterally.