Differentiation in the labor market.
Not many weeks ago, we could read in the press and hear in networks and from business partners that things were not going as well as hoped. Of course, this may indicate that hopes and reality do not always meet, but reality has also served up something different than we are used to. In some industries, the heady heights of recent years have been replaced by a more defensive view of everyday business life.
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As a recruitment and staffing agency, we've experienced both calm and storm over the past 12-15 weeks. Fortunately, for us it's been more storm than calm. We've been very busy, especially in the construction industry, where we've been demolishing, renovating, landscaping and building in several parts of the country. And we have been both lucky and skilled enough to have the opportunity to help build some of the larger projects that will mark the future well into the future.
Our reality is largely driven by the industries we supply labor to and the forecasts and approved orders we are brought in to complete. Whether it's the physical completion of projects, or deliveries of bridges, balconies or anchor bolts. We help keep the wheels turning in many industries and in many areas of Denmark. And we're proud of that.
We are also a bit worried, or skeptical, about our shared future. Like many of our great partners, we're finding that the competition for labor is getting tougher and tougher, and the pressure to deliver labor "yesterday rather than today" is becoming more and more challenging. We know that we are at the end of the supply chain and we know that we are expected to deliver the "obvious" from time to time. It's just not the reality we operate in.
Read also: Hiring staff the right way
Attracting foreign workers.
A significant portion of our employees are recruited uniquely for each job they are expected to perform. The higher the level of specialization, the greater the demand for unique skills and personal experience. And the employees we think are best suited for each job are just as well suited for positions in Bergen or Bordeaux as they are in Billund. With skilled labor shortages in most of Western Europe, competition means that the demands on you as a business leader, factory manager or HR manager are increasing, because the job itself is less important than the salary, facilities or location you offer in response to a job posting. There are so many options to choose from that you need to be willing to go the extra mile if you want to have a choice of applicants. Unfortunately, it's not your turn to choose. It's the worker's.
When recruiting for a job, we often have to listen to "I don't want to commit to a salary until I know what they can do...." or "let's see what they're worth first before we agree on a salary...." when it comes to recruitment. This makes our job quite difficult. Not only is it illegal, it's also a blatant misreading of the labor market, where the best question would be "what will it cost me to get a man who can get production going", because that's the worker's market. Not the employers', as there is massive demand and competitive wages in Norway, France and elsewhere.
As an employer, we need to understand that markets are dynamic and that right now it's the employee's market. This may require more mental flexibility than usual. And as a nation, we need to understand that if we are to maintain infrastructure development and prosperity, it may require more social flexibility or acceptance than usual.
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Attracting young people.
While some parts of the press and some of the talk in the corners is about immigration, importing labor and exporting social benefits, the fact remains that the Danish labor market is not balanced and that it is therefore necessary to ask for outside help if we want to maintain development and economic growth.
For a long time, supply has far from matched demand. Neither in terms of number of employees, geography or specific professional skills. It seems that both crafts and industry have forgotten to attract and train employees for the future, while upper secondary education has increased its intake of young people who want a higher academic education - business or academic, where there are not necessarily prospects of jobs or professional interests for a future career.
At the same time, vocational schools are struggling with a lack of applications for craft-based, professionally oriented education. And despite great ambitions in the political system and countless appealing messages in colorful leaflets and on social media, it has been far from successful in convincing the targeted 25% of young people that a career with knee pads, scaffolding or black fingers can be interesting, well-paid and personally developing as a career choice.
There are many reasons why more and more young people are choosing academic education over more practically oriented crafts education. We hear that vocational guidance in primary schools lacks quality when it comes to crafts. We hear that companies don't have young workers who can get to know the industry from the inside. We hear parents recommend "more education", which then translates into academic education, we hear about the harsh tone in the workplace, about wind, weather and physical challenges. And then we hear about the unwillingness or inability of the trades to take on some of the socialization of young people. To accommodate, motivate and retain young people from the "Now generation", the "Why generation" or the "Zapper generation", who have earned a reputation for being independent, fragile and not very rule-bound curling kids. On the construction site, it matters a lot more if an apprentice can't be bothered to punch like clockwork than if a "bookish apprentice" can't be bothered to study or do their homework.
Read also: Tips for when you need a temp
Retaining mature employees.
With Denmark's shortage of skilled labor and the prospect of a growing elderly population and fewer breadwinners, we need to find new ways if we are to continue to have the opportunity for economic growth - or simply maintain the current level. And that requires continued access to labor.
The focus has repeatedly been on the residual group. The citizens who, for various reasons, are still outside the labor market. In this context, there is talk of better integration, professional upskilling, postponing retirement age, flexible retirement, technological development, etc. All relevant, but unfortunately, we have not witnessed much success, whether it has been the stick or the carrot that has been used.
It is a fact that we live longer on average and are expected to be able to function longer than before. This means that costs for pensions, healthcare, etc. are rising. And there are fewer people to pay. In 1973, the late singer Jan Toftlund suggested in "the voice of the people" that "all old people over 65 should be shot, because it's too expensive to keep them alive that long!" Since this is probably not a viable option, we as a society must find other ways, for example by getting the older part of the workforce to contribute more and longer if we as a society are to maintain growth and service levels in the years to come.
In the wake of the political campaign for "Arne" and differentiated retirement, a movement has emerged that pulls in the opposite direction, namely by invoking age discrimination in the labor market and by pointing out the obvious fact that the prerequisite for being able to benefit from the skills and experience of older employees for longer is that there are companies that actually want to hire and retain older employees. It requires a change in perception that 50 is no longer the "least sustainable age" and even more so that 55 is not the "last day of sales" when it comes to contributing to the continued development of society.
Companies need to change the perception that typical recruitment patterns don't match the labor shortage. Neither for young people entering the labor market, nor for older people who may have had the misfortune of falling off the job merry-go-round, but actually have the skills, professionalism, experience and motivation to continue contributing if a new, meaningful and relevant job can be found.
The difference between young and older employees.
Avisen.dk described in 2011 that young people are innovative, adaptable and technologically skilled, but at the same time unreliable, easily stressed and poor at interacting with other people, while the older part of the workforce struggles with technology, innovation and adaptability, but is more loyal, meticulous, socially competent and better at leadership.
In short, this means that people are different depending on where we are in life. This shouldn't come as a surprise. It's also no surprise that it's the "gray gold" that loses the most when recruiting employees based on the applicants' date of birth, even though it's illegal to reject applicants based on age alone, according to the Danish Discrimination Act.
But actually, it's not just the elderly who lose out. It's also the companies who fail to attract employees - young and old - and who lose competitiveness because the production apparatus apparently can't be operated by the available employees. And ultimately, society loses because there are too few employees who contribute and too many who don't.
Company culture.
Even though society is changing rapidly and continuously, there are still companies that cling to a "few days old" behavior. This may be fine as long as it works, but the risk is that by the time it becomes clear that it's time to change, it may already be too late. The attitudes, values, production apparatus, production methods and workforce may be so entrenched that competitiveness has been compromised and that competitors, who are more opportunity-oriented, aware of professional and technological developments, consumer trends and market adaptation, have gained advantages that cannot be caught up with.
It's now rare for employees to celebrate their 15th, 25th or 30th anniversary. And maybe that's a sign of health. It may not be healthy for either the employee or the company to stay together for too long. There is a need for development and renewal on both sides of the table. But at the same time, we face a need to retain young employees long enough for them to gain work experience, professional insight and an understanding of the value of persistence and community with others than "themselves and their own". And an equally important need to retain older employees for longer. It makes sense to move from a retirement culture to a retention culture.
This calls for change. First and foremost, there is a need for a break with habitual thinking. The ability and willingness to treat people differently because people are different. The ability and willingness to create cultures of recognition in the workplace so that each employee finds it meaningful to stand up and make an effort.
Workplace design.
Central to the debate about "Arne" was the very different levels of wear and tear experienced by different employees in different industries. And of course there are differences in the degree of wear and tear, but it doesn't only have to be a question of physical wear and tear. There can also be psychological wear and tear that can affect an employee's ability or desire to stay in the labor market.
Technological developments and the specific work environment can have an impact on the extent to which employees are able to remain productive as life changes. But before we get to that point, it may be useful to examine work culture, management and employee motivation, and the "little things" that have such an impact on the ability to retain employees in active employment for longer. Perhaps these are some of the same factors that already have an impact on whether a company is able to attract employees in today's increasingly competitive labor market.
Job design.
As previously described, there is a big difference between employing young and older employees because skills, interests, engagement and behavior are different. Because people are simply different. Therefore, it can make sense to pay a little attention to how jobs are organized. For example, older people can have it easier because there are more and more jobs that are less physically demanding than before. There's less heavy lifting, fewer tasks where employees are exposed to repetitive work (EGA) and less stress because technological developments can help and protect employees.
In the face of technological advancements, the older workforce faces new and different challenges. Because technological development requires continuous personal updating, professional development and adaptability. These are challenges that were not among the core competencies of older workers.
And here we come to another issue that affects our overall competitiveness, namely that there are groups of employees who are simply not able to invest in continuing education. Monday Morning wrote in 2017 that "Danes don't take enough continuing education" and pointed out that although the need is increasing, fewer and fewer Danes are participating in continuing education, simply because the education system is not good enough and because it is not fashionable to educate oneself, especially among the unskilled and older workers. This is, of course, particularly problematic. Especially when it is precisely these groups of employees that we need to upskill and retain in the labor market if we are to maintain, and preferably increase, our welfare, which in the future will be paid for by fewer and must benefit more people.
More flexibility in the labor market.
In recent years, we in Denmark and elsewhere in the world have tried to put a band-aid on an underperforming or insufficient labor market by importing labor. In several countries in Western Europe, we have benefited from the fact that it has been attractive for Eastern European workers to pack their bags and head west, where there has been an almost insatiable demand for labor, attractive wages and a welfare system that has made it possible to trade the deprivation of friends and family for material and social quantum leaps.
As prosperity has increased in the home country of temporary workers, it has become more difficult to attract the necessary number of employees. So while we wait to find the next country to fish for labor, we've wisely started looking for other opportunities within our own ranks. Perhaps not only for those reasons, but the exercise is useful nonetheless.
If it is still true that "he who has the ability, also has the duty", it may make sense to adjust how the labor market works so that more and more people can have the opportunity to utilize their abilities and be useful. Whether it should be with carrots or sticks is for others to decide.
At Procur, we provide flexible labor. And we believe that increased flexibility can be useful in creating opportunities for more people. Just as better and more training for employees, managers and organizations can be helpful.
If you want to know more about flexible labor, you are always welcome to call us on 3215 1010
