Denmark's labor shortage, the city government can't retain people, is it all Novo Nordisk's fault?
Novo Nordisk's employee count has increased by 75% in less than three years. The expansion of this pharmaceutical giant has led to a severe talent competition in Denmark, forcing many small businesses to close or relocate as they cannot compete with it. Some manufacturing companies have shifted production outside of Denmark to cope with labor shortages, and even employees from the municipal government have left for this pharmaceutical company
Novo Nordisk's success has not only driven economic growth in Denmark but has also intensified the talent competition in the local labor market. As of September this year, the company has employed approximately 32,000 employees nationwide in Denmark, with the number of employees increasing by 75% in less than three years.
How exaggerated is the talent competition for Novo Nordisk? Many small businesses have been forced to close or relocate because they cannot compete with Novo Nordisk's higher salaries and more attractive career opportunities. For example, the auto service shop Flint Auto in Kallenborg was forced to close due to employees leaving for Novo Nordisk.
The construction-related industry is facing talent loss, with many companies having to refuse orders due to a lack of employees. The clinical microbiology department of the local hospital lost about 10 employees to Novo Nordisk in two years, making it difficult to recruit new staff. Some manufacturing companies have moved production overseas to cope with labor shortages. Previously, Novo Nordisk invested over $8 billion to build a new factory at its production base in Kallenborg.
By the end of 2023, the number of employees at this base had reached approximately 4,500, equivalent to a quarter of the local population. The mayor of Kallenborg stated that even employees of the city government have left for this pharmaceutical company.
Novo Nordisk not only attracts scientists and healthcare workers but also talents from various fields, including mechanics, teachers, and even military personnel. According to Christin Tuxen, head of Nordic SME business at Denmark's largest bank Danske Bank, this situation has made it difficult for many businesses to fill vacant positions.
Finding solutions to the labor shortage is crucial. To alleviate the labor shortage, the Danish government has implemented a series of measures, including relaxing overseas recruitment restrictions, extending tax incentives for foreign employees, and planning further reforms to attract foreign labor. Immigration and Integration Minister Kaare Dybvad Bek stated that attracting and retaining foreign labor is key in a low unemployment rate environment.
Some companies have also taken a series of measures to retain talent, such as increasing compensation, providing training and promotion opportunities, and considering remote work to expand their recruitment scope