In its recent survey, Företagarna notes that there is a significant need for new hires and skills development throughout Sweden. There are some differences when comparing the counties, and Norrbotten stands out as the county with the greatest need for new hires.

In the report CTRL ALT DELETE, Företagarna the ongoing challenge companies face in finding suitable workers. The survey was conducted between October 30 and November 22, 2023, and is based on nearly 5,000 responses from small business owners (1–49 employees).

The report reaffirms that there is widespread demand for new human capital and skills development among Swedish companies, with more than half of them indicating a need for new hires or skills development. At the same time, one in three companies has experienced difficulties recruiting staff to meet their needs over the past year. These challenges have been constant and recurring since 2016, indicating a long-term and persistent problem.

The main obstacles to effective recruitment that companies encounter include:

• Challenges in finding candidates with the right experience.
• Challenges in identifying candidates who possess the right personal qualities and attitudes.
• The cost of having employees.

These challenges have proven to be consistent over time and continue to pose obstacles for companies in their recruitment processes. There are certain differences between various industries and regions, and Norrbotten stands out as a region where the need for new hires is greatest (43 percent say they need to hire new employees in the next twelve months).

When it comes to recruiting new employees, more than eight out of ten companies rely on their own networks and contacts. While this approach is understandable, it can also limit the diversity and range of candidates considered.

“This isn’t a viable approach,” says John Mannberg, Business Developer at ByHart. First, friend-based recruitment is often a far cry from a skills-based hiring process, which means that companies ultimately hire the wrong people and do so unsustainably; second, this fuels a form of cannibalism where we continue to swim in a pond of candidates who do not help companies and regions grow.

Interestingly, nearly half of all companies seek candidates with a vocational high school education when they recruit. However, it is concerning that the number of students choosing this type of education is declining. Although vocational high school programs now better prepare students for higher education, it is the traditional national programs that remain the most popular.

“In general, companies need to be more daring when it comes to looking beyond county borders and even expanding their horizons internationally,” John Mannberg continues. “For many, this is an unfamiliar way of working, and it’s not always easy to know where to start, but that’s precisely why we exist—to help our clients fill positions with the right talent, regardless of where the candidates live.”

Learn more about how we approach long-term workforce planning.

Overall, there are currently around a quarter of a million job openings in the private sector, which translates to potential tax revenue of 2.7 billion kronor.

To address these challenges, Företagarna proposes the following measures.

At the national level

• Introduce mandatory workplace-based training (APL) for all high school programs.
• Reform the Swedish Public Employment Service.
• Lower employer contributions to reduce personnel costs.

At the local level

• Promote cooperation and partnerships between schools and local businesses to foster work experience and training.
• Support and encourage young entrepreneurs by promoting Young Enterprise (UF) and entrepreneurship.
• Provide subsidies for summer jobs and internships, including for small businesses, to help young people gain valuable work experience.

About the survey

The survey coverssmall businesses with 1–49 employees.

Types of companies:corporations, partnerships, and limited partnerships.

Survey period: October 30 to November 22, 2023.

A total of4,753business owners respondedto the survey (response rate: 22%). The survey was conducted via an online questionnaire sent to 25,801 members of Företagarna.

The survey was conducted byNovuson behalf ofFöretagarna(all respondents answered anonymously).

The sample was highly representative of the target population, meaning that the survey resultsare representative of small businesses in Sweden.

Source: The Entrepreneurs