Growth from internationalization

Finland, we have a problem. Finland has a shortage of skilled employees, and the domestic population cannot currently satisfy the need. According to a forecast by Statistics Finland, the working-age population will continue to decrease significantly in Finland in the next few decades. One solution to the situation is international recruitment. 

Globalization has brought international markets closer to the operations of every company. Thanks to the digital leap of recent years, the means to internationalize are also better and easier to access than ever before. In many industries, the markets are already international by definition. So why not extend the global mindset to your personnel? International recruitment helps companies to operate better internationally. 

International recruitment brings numerous benefits, some of which are discussed in the Business Benefits of Cultural Diversity in Finnish Companies 2022 study (in Finnish) commissioned by Business Finland.

Growth 

According to the study, companies that employ international experts have, on average, grown faster than companies that do not employ them. 64% of companies that had hired international employees thought that international recruitment had brought growth to the company’s business. International recruitment results in the growth of turnover, new customers, and networks, for example.  

In particular, international professionals hired for higher positions, such as managerial or specialist positions, generate the most growth. The impact also intensifies the longer the company has been recruiting international experts.  

Solving the skills and resource shortage 

International recruitment is necessary for the growth of companies. When companies begin international recruitment, their first step is usually to bridge the resource gap – and international experts satisfy this need, of course. 

However, it is worth thinking further and planning the career paths of the international experts: the growth potential of the company increases when the careers of the experts develop. In other words, invest in the future of your business! 

In addition to a labor shortage, Finland suffers from a skills shortage. There are plenty of experts from various fields on the international market. An international expert does not just fill a vacant post – the benefits are larger. 

New ideas and ways of thinking 

Innovations will increase when the know-how base of the company expands. International experts bring with them new ways of thinking, brainstorming, and working. When international and domestic employees get an opportunity to consider things together from new perspectives, the soil is fertile for innovation. 

New markets, networks, and customers 

International professionals are experts in their own country and culture of origin, and they have direct contacts to the region and potentially to the neighboring regions. With their knowledge and networks, the company can open up new markets and gain new customers. Customer satisfaction also increases when the company can take the diversity of its customer base into account in its products and services. 

Increasing diversity 

Diversity is a benefit in itself. For example, according to the Finnish Government’s publication Success from Diversity: Information and Tools for the Employer (in Finnish), diversity increases workplace well-being and reduces sickness absences. 

Diversity is an advantage for the employer’s brand and profit. International experts make the company more attractive to new international talent, and this expands recruitment opportunities. Diversity also attracts a more diverse customer base. According to a study by McKinsey & Company, cultural and ethnic diversity increases financial performance by 35% compared to other organizations. 

Learn more about diversity on the Work in Finland website.

The 2022 study on the business benefits of cultural diversity in Finnish companies also concluded that the internal internationalization of companies is inevitable. Based on the survey responses, internationalization is seen as a prerequisite for growth, and knowledge of cultures and languages will be an important part of companies’ competence. This is supported by a report by the Ministry of Economic Affairs and Employment, which states that the number of people working in Finland has increased in the 2000s only thanks to international employees. 

Recommended reading on the internationalization of Finnish companies: An interview with Saara Julkunen, Professor of International Sales, on the biit.fi website. 

Read also, how a diverse team produces results at GA Telesis.  Employees from different ethnic backgrounds repairing aircraft engines at Helsinki-Vantaa are a competitive advantage for the company.

The global work culture has landed in Finland, and the benefits of being on board are undeniable. At the heart of growth is the company’s capability for international recruitment and a diverse work culture – develop them! 

Barona’s Employer Survey 2021 (in Finnish) shows that a large number of Finnish companies do not have the capabilities or readiness to hire international talent. International recruitment may be perceived as burdensome, complex, and bureaucratic, and the language question is seen as challenging. Fear not – you can get services, help, and support for the entire international recruitment process! 

For example, you can develop the ability of your managers to lead international teams with IMAGO coaching . Business Finland’s Talent Boost program, on the other hand, works hard on attracting talent and orchestrates an international pool of experts: A skills shortage will not hold back companies’ growth if they take advantage of the pool of experts. 

Start by reviewing the content on this site, which describes the international recruitment process from start to finish and lists international recruitment services and support functions. Let’s boost growth in Finland!