Workforce Pressures in Slovenia: How Can Businesses Keep Up?
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Ljubljana, 18 February 2025 – With record-high employment and record-low unemployment, Slovenia is facing a critical workforce challenge. Labour shortages are already affecting key industries such as transport, healthcare, hospitality, and high-tech sectors, and demographic trends suggest the situation will only become more pressing in the coming years. As more people retire and fewer young workers enter the labour market, businesses are struggling to find skilled employees. At the latest Tea with Reason, we discussed how Slovenia can attract, integrate, and retain talent in an increasingly competitive global market.
His Majesty’s Ambassador to the Republic of Slovenia Victoria Harrison opened the event by emphasising the UK’s long-standing commitment to diversity and inclusion: "The UK has long understood that inclusion and diversity are not just legal and moral imperatives but economic necessities. The more inclusive a workplace, the stronger and more innovative it becomes. Businesses need to attract and harness diverse talents to create competitive advantages," she explained. The UK government has made economic growth its number one mission, and a key part of that is ensuring that businesses can access the talent they need. Growth is driven by people, by their ideas, skills and expertise. By fostering inclusive cultures, we can drive economic growth in both the UK and Slovenia and build societies that embrace diversity as a strength and focus not only on the present but look to the future.
The first panel, Bridging the Talent Gap – Meeting the Demand for Deficitary Jobs, which was moderated by Jani Zupan, Managing Partner and CEO of Profil, looked at how businesses are adapting to the growing shortage of workers. Greta Metka Barbo Škerbinc, Director General of the Employment Service of Slovenia, provided a macroeconomic outlook, pointing to unfavourable demographic trends as a major challenge. "Right now, we are managing, but in the future, we will face an even worse scenario if we don’t activate all available workforce," she warned. With an aging population and increasing retirements, Slovenia needs to focus on upskilling workers and making the country more attractive for international talent. "We are already proactive in hiring foreign workers, who now make up 16% of our active labour market, particularly from the Balkans."
Industries like transportation are already feeling the pressure. Aleš Šifrer, Managing Director of Arriva, described how the driver shortage has forced the company to rethink its approach to recruitment of drivers from abroad but has faced administrative barriers and long delays: "It took us ten months to bring Filipino drivers to Slovenia, and we were afraid they would find another job in the meantime. We’ve also formed a special integration team within the company to make a friendlier and more supportive environment for foreign employees before they even arrive to Slovenia because we want to keep them within the company," he explained.
Magdalena Otero, Hotel Manager at Eurostars uHotel, noted that younger employees approach the job market differently, which is creating new challenges in recruitment. "Many of them are highly selective about their job conditions, and if an opportunity doesn’t fully meet their expectations, they quickly move on.” The challenge for businesses is not just attracting them, but finding ways to engage and retain them despite these shifting mindsets.
The profound impact of technological transformation on the labour market was brought to attention by Boštjan Čeh, Business Development Manager at Labena: "The green transition, AI, and digitalization are not just reshaping industries, they are requiring entirely new skill sets and this advancement is significantly faster than our education system." Slovenia, Čeh argued, must ensure it remains competitive in attracting skilled professionals for these emerging fields. However, recruiting highly skilled foreign labour is hampered by administrative and financial barriers: "The cost of employing someone from abroad is extremely high if we want to match the net salary of an international talent. Other countries have tackled this issue, and we are far behind. If we want to become a technology hub, we need to rethink what benefits we can offer to skilled workers."
The second panel, Redefining Employee Value – Strategies for Retention, Growth, Engagement, and Integration, which was moderated by Mateja Čotar, Partner at CHR Partners, focused on how businesses can not only attract workers but also ensure they stay and grow within the company. Dr Tjaša Bartolj from the Institute for Economic Research shared insights from the World Economic Forum’s Future of Jobs Report 2025, highlighting the rapid evolution of workforce skills: "Employers expect 39% of workers‘ core skills to change by 2030, mainly due to automation and AI. For Slovenia, the share equals 37%. The fastest-declining jobs will be those replaced by technology, while future success will depend on a mix of hard and soft skills."
With regards to employee retention, the role of the workplace culture and engagement is becoming increasingly important. Mateja Panjan, People and Culture Consultant at Danfoss Digital Services, stressed that retaining employees is not just about salary, but about creating a supportive and inclusive workplace: "Company culture is not just an HR responsibility, it starts with leaders setting the tone and then goes down to the colleagues. Integrating new employees and ensuring they feel valued requires a collective responsibility from the entire organisation."
“Diversity and inclusion are one of the key pillars at Novartis, where structured programs have been developed to support international employees in settling in and creating a sense of belonging”, noted Aymeric Royere, Country President of Novartis Slovenia. Beyond support with housing and administration, the company places strong emphasis on personal and professional development, as well as their successful integration into the workplace community, explaining how they ensure their employees stay and thrive.
For some industries, however, the biggest challenge is not retention, but ensuring that the younger generation has the right skills to step into the workforce. Katja Krajnčič Plajnšek, Senior HR Manager at Steklarna Rogaška, explained how the glass industry is struggling to replace its aging workforce: "Many of our craftsmen are retiring, and they are the only ones within the company who can teach the next generation. Attracting young people is not enough, we need to ensure they actually have the specialized skills required to work in this industry. That’s why we are working closely with vocational schools to keep this craft alive."
The event was concluded with a conversation featuring The Lord German OBE, Member of the House of Lords and Barbara Uranjek, CEO of the British-Slovenian Chamber of Commerce. The entire event was moderated by Mart D. Buh, Business Development Manager at the British-Slovenian Chamber of Commerce.
A special thank you goes to the British Embassy Ljubljana for supporting this Tea with Reason.
Photo highlights are available here.