6. Key insights and learnings from Nordic employers

This chapter presents insights and lessons learned from the experiences of Nordic employers, alongside the findings from the literature review. It offers valuable perspectives on the benefits and challenges and factors that enable the integration of immigrants into the workplace and society. This chapter also offers perspectives from intermediary organisations regarding employers’ experiences of hiring immigrants (see Text Box 7).

Primary motivations and benefits of hiring immigrants

Among the Nordic employers in this study, the most frequently cited motivation for hiring immigrants was as a means of addressing labour shortages. Challenging demographic situations resulting in a shortage of domestic labour – especially in rural areas – coupled with elementary occupations being seen as less attractive by the local population have been the main reasons for the employers to hire immigrants. One of the Nordic employers interviewed noted that employing immigrants is perceived as not only beneficial, but the only viable solution to labour shortages.

The ambition to make a social impact and operate sustainably emerged as another crucial motivation, particularly among larger companies such as Kronan in Iceland and the multinational IKEA in Finland. IKEA emphasised their important role in supplementing governmental integration initiatives with the aim of creating a workplace that better reflects the diversity of society (and their customer base) through the employment of immigrants.

It takes time to integrate in a new culture. Our vision is that by offering jobs, people can get help to integrate in society. They [immigrants] get training on taxes, jobs, salaries, and rights. I think it is very important to help people integrating while not losing their identity. (interview with an employer)

Finally, several Nordic employers emphasised the positive impact of a diverse workforce on the company’s economic performance and working culture. In particular, they mentioned greater flexibility due to the immigrants’ diverse cultural backgrounds, which made them more adaptable to different shifts and holidays. Other benefits mentioned were characteristics such as strong work ethic and loyalty, which positively influence the entire workforce. McDonald’s Visby reported that the inclusion of co-workers from diverse cultures enriched the work environment and helped to foster qualities such as patience and empathy. These findings align with the benefits identified in the literature review.

Overall, the employers interviewed in this study stressed that the long-term advantages of hiring immigrants outweigh the initial hurdles. Several employers pointed out that the experience of hiring immigrants and integrating them into the workplace had been smoother than anticipated. They advised other companies considering hiring immigrants to ‘not to be afraid’ and ‘just give it a try’.

Just open the door and take the time to do it [integration into the workplace] for the first time. It's a great benefit for them, for the company but also for the big picture. I can tell that it makes all the colleagues feel proud of the workplace. (interview with an employer)

Main challenges for hiring immigrants and how they can be overcome

With the exception of Iceland and Norway, employers from the other countries did not point out any structural-level challenges, such as legal or administrative hurdles, as barriers to the employment of immigrants. The HR manager in Kronan highlighted the challenge of requiring work permits for non-EU citizens, which could potentially put refugees and asylum seekers at a disadvantage when entering the labor market.

Consistent with the literature review discussion on organisational-level barriers, several employers noted instances of communication challenges after hiring immigrants. These include potential misunderstandings and conflicts stemming from limited language skills and clashing cultural norms. One concrete illustration of this is different understanding of hygiene and safety standards across different cultures. To address these barriers, all employers interviewed stressed the importance of measures that foster cultural awareness and sensitivity among not only leadership, but the entire workforce. Coupled with language training, these are central components of diversity management. The importance of two-way cultural mediation training to increase mutual understanding between immigrant and local employees was emphasised. This also includes offering support to staff when conflicts arise. In certain cases, like the Andebu care home in Norway and the Kronan stores in Iceland, there has been a focused effort to train managers in cultural sensitivity, and in recognising and managing conflicts among the diverse workforce. One of the employers noted that their limited capacity and time to educate and mentor employees on these matters is a significant obstacle to effective integration.

While none of the Nordic employers interviewed in this study indicated that they had in place a formalised diversity management policy (see Text Box 5), a proactive approach and a positive attitude towards diversity, especially at the leadership and managerial levels, were highlighted as important success factors in integrating immigrants into the workplace. This commitment manifests in distinct hiring strategies and guiding principles. For instance, Region Gotland emphases individual motivation and genuine interest over prior knowledge and qualifications. Scandic Pelagic strives to ensure the respectful treatment of all employees, irrespective of their background. Similarly, IKEA Finland actively promotes diversity in recruitment, taking into consideration factors other than race and ethnicity, such as age, gender and disability. In addition, the presence of managers with immigrant backgrounds was identified as a pivotal strategy for fostering understanding and support among the workforce.

I think it really is about having a fundamental attitude of treating people decently, no matter what. You don’t have to be in HR to do that. It’s contagious, in a positive way. (interview with an employer)

Text Box 5.

Diversity management

Both the interviews with employers and the literature review identified diversity management as a crucial component for the successful integration of immigrants into the workforce. This refers to initiatives and programmes designed to foster the inclusion of employees from diverse ethnic and cultural backgrounds within both formal and informal organisational structures (Council of Europe, 2021). Developing a diversity-centred organisation requires committed leadership and an organisational culture that acknowledges and celebrates the employees’ differences and uniqueness (Fägerlind and Ekelöf, 2001). Diversity management can encompass a wide range of strategies and approaches, such as training in conflict resolution, mentoring, fostering cultural exchanges and communication (e.g. regarding performance expectations and work norms).

Furthermore, there is a pronounced focus on initiatives that promote comprehension of workplace rules, values and norms, as well as providing insights into the Nordic labour market and culture, and core Nordic values such as gender equality. Most employers provide information on these aspects of life, often in partnership with local authorities. For example, Scandic Pelagic, in rural Denmark, highlights the importance of initiatives that facilitate stronger connections between newcomers and the local community, in order to enhance immigrant integration. This strategy is based on the understanding that strengthening such ties increases the likelihood of immigrants deciding to remain in the local community.

Finally, employers interviewed in this study cited limited language proficiency in local languages and English as a key impediment to hiring immigrants. Even in positions that require a low level of education and less specialised skills, the ability to understand essential instructions, safety protocols and hygiene standards remains essential. Nevertheless, several employers have adjusted their language expectations where feasible, and have adopted creative approaches aimed at minimising this challenge. See Text Box 6 for more about different approaches to language training and overcoming language-related barriers.

A lack of language skills cannot be an obstacle to enter the working life, as that is exactly what is needed to learn the language faster. (interview with an employer)

Text Box 6.

Overcoming language-related barriers

For some of the interviewed employers, lowering language expectations proved effective during recruitment. Instead, other strategies were employed, such as engaging interpreters or mediators, translating instructions into various languages, and hiring groups with a shared linguistic background – ensuring that at least one speaks the local language or English. These measures encouraged internal peer support, and enabled employees to help address potential misunderstandings.

Encouraging language acquisition

Although adjusting language requirements can be a short-term solution during recruitment and the early stages of employment, the Nordic employers stressed the importance of mastering the local language in the long term. For many, this remains a top priority – and some considered it a prerequisite for sustained employment and further professional growth. It was emphasised that language learning should be made accessible, e.g. by aligning the timing of language courses with work schedules, to ensure that work and education do not clash, but can be combined, even during work hours. Additionally, offering industry-specific language courses, particularly for sectors like healthcare and social care, can help employees grasp necessary terminologies that are specific to their roles.

Enablers for hiring and integrating immigrants

Collaboration with public authorities

In the interviews with Nordic employers, collaboration with public-sector actors was highlighted as an enabling factor in hiring immigrants and integrating them into the workforce. Employers recognised the significant assistance they received from local authorities and PES. For example, the Blåveis department at Andebu care home valued its collaboration with municipal welfare offices, particularly for their provision of language courses. For McDonald’s Visby, the collaboration with PES proved important for obtaining training support, employment subsidies, administrative assistance and help in matching candidates. Moreover, coordinating with municipal authorities was vital for aligning language course timetables with individual employees’ work schedules. The manager of the the Nordic hotel chain in Molde emphasised that without the assistance of NAV municipal welfare offices, which provide language training and financial support during the workplace introduction process, it would not have been financially feasible to hire immigrants. Specific individuals within these organisations made significant contributions, which were highlighted as key success factors, underscoring the vital importance of interpersonal relationships and connections.

Collaboration with third-sector actors

Several Nordic employers emphasised the value of collaborating with third-sector actors in various instances. For example, IKEA Finland partnered with the NGOs Startup Refugees and the Finnish Refugee Council to match job vacancies with refugee candidates. The Finnish Refugee Council also provides language courses. For Scandic Pelagic in Denmark, the partnership with local Red Cross and other civil-society actors had positive outcomes on immigrants’ wellbeing and integration into the local community. The interview with Snellman in Finland and the the Nordic hotel chain identified the role of staffing agencies as facilitators during the hiring process. However, the extent of other Nordic employers’ collaborations with such agencies remains unknown.

We collaborate with [other] companies, the civil society, local authorities and essentially the state as well, represented by the integration department. Every time we do something, we talk to each other within the network. (interview with an employer)

Text Box 7.

Key insights from intermediary organisations

The insights below are based on interviews with intermediary organisations that operate in Denmark, Finland and Sweden. These include staffing agencies, NGOs and associations that serve as facilitators between jobseekers and employers. By focusing on immigrants and refugees, they help streamline the recruitment process, improve skills matching, and offer additional training or support when necessary. These organisations were asked about their observations and perspectives on the challenges that employers encounter when hiring immigrants, as well as the support that employers need during this process.

Partnership with the public sector. One interviewee noted that many companies have expressed interest in hiring refugees but found it difficult to locate them. According to the interviewee, there is a lack of trust in the public system to match employers with suitable refugees. Among the other potential hurdles to hiring immigrants were the slow responses from municipalities or employment services with regard to specific hiring requirements.

A positive shift in employers’ attitudes. According to intermediary organisations, there has been a noticeable shift in employers’ attitudes towards hiring immigrants following the influx of refugees from Ukraine. Moreover, in the case of refugees from Ukraine, employers have been generally more open to hiring individuals irrespective of language proficiency. This shift in attitude is also evident in the employers’ efforts towards diversity and inclusion, mirroring the growing global emphasis on social sustainability agendas, such as the UN’s Sustainable Development Goals.

Overqualified candidates. Based on staffing agencies’ observations, while many available jobs have low entry requirements, immigrant candidates applying for these positions are often overqualified. The language barrier is a significant challenge that makes it hard for immigrants to secure jobs that match their skills and experience.

Reassessing language criteria. Several intermediary organisations pointed out that some employers, perhaps unintentionally, might set language proficiency requirements that are higher than those demanded by the actual job. It may therefore be beneficial to reassess these language criteria. Lower language requirements have been particularly helpful for refugees from Ukraine.

Language barriers from the employers’ side. Some employers’ hesitation to hire individuals with limited proficiency in official languages stems not from concerns over the applicants’ language skills, but from the employers’ own difficulties with English.

Rural versus urban employers. The intermediary organisations have observed no significant geographical differences in employers’ hiring practices regarding immigrants. However, employers in small towns tend to emphasize the importance of immigrants settling into the community and contributing to the local economy and tax base.

Staffing agencies take on the ‘risk’. In Nordic countries like Sweden, strong employment protection laws, which make dismissing employees challenging, may deter employers from hiring immigrants. In such cases, staffing agencies can assume the ‘risk’ of hiring immigrants and then outsource them as consultants to employers. This provides employers with the flexibility to terminate the contract easily, thus offering a flexible and efficient solution.

Challenging negative narratives and enhancing knowledge-sharing. Highlighting success stories of employers who have thrived by hiring immigrants can inspire other employers to take similar steps. Knowledge-sharing among companies from the same sector or industry may be particularly impactful.

Developing guidelines. Several intermediary organisations observed a need for more structured guidelines and resources to support employers in navigating legislative requirements and providing accurate information on hiring in different languages.