The Case for European HR Tech: Adapting to Geopolitical and Economic Disruption
- Bo Vialle-Derksen
- Apr 6
- 4 min read
Updated: Apr 23
We are living through one of the most dramatic shifts in the global geopolitical landscape since the Cold War. Economic realignment, rising protectionism, demographic pressures, and questions of sovereignty are fundamentally reshaping how work gets done—and where. As the BBC recently put it, “This is the biggest change to global trade in 100 years.” Entrepreneur Richard Branson went even further, predicting that future historians will mark this period as the moment Western nations began to lose trust in America as a business partner. Against this backdrop, resilience for European businesses isn’t just a concept—it’s a business mandate. For HR leaders and executives, this means rethinking workforce strategies and investing in HR technologies that are robust, reliable, and supportive to current realities.
Europe’s business landscape has entered a new era of disruption—one that arguably began with Brexit and was accelerated by the war in Ukraine. From shifting trade alliances and rising tariffs to evolving EU regulatory frameworks, organizations are now navigating a complex web of geopolitical, economic, and legal challenges. These forces are reshaping supply chains, talent flows, and the very nature of workforce mobility.
What’s not being talked about enough is the critical role HR leaders should be playing in this business evolution. In the face of mounting uncertainty, HR leaders should take on a dual mandate: sustain productivity and ensure compliance, while also building the infrastructure for business continuity. This requires more than just adaptability—it calls for the right technological foundation.
The end of Silicon Valley as the default
For decades, global HR tech giants have been the go-to partners for large organizations—offering cutting-edge innovation, scalability, and global reach. But today, that trust is being reevaluated. While these platforms have occasionally stumbled on GDPR compliance, the bigger challenge lies in navigating complex issues like AI ethics, data sovereignty, and regulatory transparency. With shifts in the U.S. political climate and growing uncertainty around federal policy direction, it would be odd for European business leaders not to question their reliance on U.S.-based vendors.
This isn’t just about values misalignment—it’s about risk management and long-term business continuity. In today’s volatile regulatory environment, sudden changes in U.S. law can create real operational disruption. As a result, digital sovereignty is moving to the top of the agenda. European companies looking at their Tech stacks are likely beginning to explore regional HR tech providers that are not only compliant with EU standards, but also offer the kind of resilience, ethical governance, and ownership of data that is desired in a rapidly changing world.
European Tech as a solid alternative
I expect this is going to be the “Zoom” moment for European technology companies. During the COVID-19 pandemic, Zoom experienced explosive growth as remote work, virtual learning, and online socialization became the global norm. The platform's daily meeting participants skyrocketed from 10 million in December 2019 to over 300 million by April 2020. Zoom’s revenue reflected this surge, growing from $622 million in fiscal year 2020 to $2.65 billion in fiscal year 2021. Its rapid adoption turned Zoom into a household name and a symbol of pandemic-era communication. Likely a similar thing will happen to European technology companies.
And a new generation of European HR technology firms is ready to take on the challenge. Companies like Personio in Germany, Cegid in France, Sympa in Finland, and Factorial in Spain are delivering tools that are compliant by design and keep the data local.
Five tactical moves for HR and business leaders
In times of volatility, great organizations don’t react: they adapt. The most resilient companies are preparing for more disruption today. Here’s how forward-thinking HR and business leaders can act now:
Prepare for more disruption
This is the new normal—never normal. Instead of reacting, get ahead. Create a clear, cross-functional plan (HR, IT, legal, finance) to stay alert and adapt as things change.
Double down on Leadership Development
In this current state of permacrisis, you need leaders who can keep their heads cool and focus on the right things. Train leaders at every level to be ready to think on their feet, make quick decisions, and support your employees.
Understand where you’re vulnerable
Take a hard look at the global risks that could impact your business, such as trade issues, geopolitical tensions, and supply chain challenges. Develop contingency plans for areas like hiring, payroll, and remote work so you’re ready for anything.
Test your tech flexibility
Your tech infrastructure needs to support fast changes. Do an audit:
What is your current critical infrastructure?
Can you quickly shift data and systems if needed?
Are you dependent on outdated systems that could slow you down?
Get real about data security and compliance
With operations across borders, security is critical. Understand risks to data privacy and compliance. Regularly review your current tech stack and identify where you're most vulnerable.
Future proofing European businesses
As businesses look to the future, the decision to invest in regional, compliance-first HR tech solutions isn't just a tactical move—it's a strategic imperative. Now is the time to recognize that the next wave of technological innovation in HR isn't going to come from Silicon Valley alone. European companies that embrace this shift, harnessing the power of local HR tech with built-in regulatory compliance, will not just navigate the storm—they'll set the course for the future. With digital sovereignty, resilience, and ethical governance top of mind, Europe’s HR tech innovators are positioned to lead the charge in redefining how global businesses work, adapt, and thrive.
This is not just about surviving the next wave of disruption. It's about positioning your business to shape the future of work, all while keeping a watchful eye on the complexities that will continue to unfold across borders, policies, and industries. Now is the moment to think strategically, invest wisely, and ensure your tools are built for both today’s complexity and tomorrow’s challenges.
If you found this article helpful, feel free to share it with your network or join the conversation in the comments below. For anyone evaluating new HR technology or planning for business continuity, these insights are more than just timely—they’re essential.
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