As an American working in people analytics and talent intelligence, I’ve had the privilege of collaborating with companies based in Europe as well as a variety of global, multi-national companies with operations in the EU. While I wouldn’t dare claim to be an expert in European practices, I’ve gained enough exposure to notice some fascinating differences—differences that reveal how our assumptions in the United States often fail to translate across the Atlantic.
These differences aren’t obstacles; they’re opportunities to learn. For my American friends, understanding these nuances can help us broaden our perspective and navigate the global business landscape tactfully. Here are some key areas where Americans might need to recalibrate their thinking about talent intelligence and skills in Europe.
Business Is Conducted Differently
Before discussing talent intelligence and skills, we must first understand the operational environment. American business culture often emphasizes speed, efficiency, and individualism. In Europe, however, business is often more relationship-oriented and methodical. Meetings may start with personal conversation rather than diving straight into the agenda. Decision-making can involve more stakeholders, taking into account broader consensus and alignment. For an American, this can feel slower—but it often results in more aligned outcomes.
Works Councils and Employee Representation
One of the most significant differences in the European regulatory environment is the presence of works councils. These employee representative bodies play a major role in decisions affecting workers, including layoffs, changes in work conditions, and even the introduction of new technologies.
In the US, although some industries have experience with industrial relations and unions, talent intelligence often focuses on optimizing headcount or streamlining recruitment processes with minimal direct employee input. In Europe, however, you’ll need to consider how these insights align with the interests of works councils. Gaining approval from these bodies is not just a regulatory requirement—it’s a demonstration of respect for employee voices and the employee experience altogether.
Employee-Employer Contracts and Wages
In Europe, employment contracts are typically far more detailed and binding than in the US, where “at-will” employment is the norm. These contracts often specify roles, working hours, termination conditions, and even wage increases tied to inflation or collective bargaining agreements.
For talent intelligence professionals, this means a greater emphasis on understanding labor market trends and the legal frameworks governing employment in specific countries. Predictive models for workforce planning must account for these fixed contractual obligations and longer-term commitments. This point is key: decisions made to improve talent and skill related decisions in the EU must be focused on the long-term. Interoperability, skill acquisition, and agility have a premium in that environment.
Laws and Privacy Regulations
Europe’s approach to data privacy, led by the General Data Protection Regulation (GDPR), fundamentally changes how talent intelligence operates. In the US, we’re accustomed to leveraging data with fewer restrictions. In Europe, every piece of employee data used in analytics or intelligence must pass rigorous standards of consent, purpose limitation, and security.
For Americans, although we may have laws like the CCPA, GDPR might feel a little more expansive at first, but it pushes us to think more creatively and ethically about how we use data. For example, anonymized benchmarking or skills gap analysis—rather than individual-level tracking—might be more appropriate in European contexts.
Unique Use Cases for Talent Intelligence in Europe
While Talent Intelligence has universal applications, some use cases are particularly relevant in Europe:
Cross-Border Workforce Planning: With free movement of labor within the EU, organizations need intelligence on how to attract and retain employees across multiple countries. Understanding cultural and legal nuances in each market is critical. Understanding the talent flows of where talent is arriving, leaving, and being grown from within on a country-by-country or market-by-market basis is key.
Language Skills Mapping: Many European roles require multilingual capabilities, especially in customer-facing or global positions. Talent Intelligence can help identify and develop these skills. Tagging language skills to different geographies and worker populations can provide unique insights into how businesses operated in the EU.
Sustainability and Diversity: European companies often have stricter reporting requirements on diversity and sustainability. Talent Intelligence can play a role in tracking progress and aligning with ESG goals. Interestingly, whereas US laws require the sharing of ethnicity data, this type of data is expressly forbidden to collect in the EU.
Embracing Happy Differences
The differences between how Talent Intelligence is practiced in the US and Europe are not roadblocks—they’re opportunities for growth. By adapting to Europe’s unique cultural and business environments, American skills professionals can not only improve their global acumen but also create winning strategies for success.
