HR Management challenges in Denmark

Sofie Pedersen & Mette Maria Kristensen,

CSR advisors.

Agenda

• HR Management challenges in Denmark • HR Management issues• Organisational changes • Changing perspective within HR Management• Human Rights violations in the supply chain • Differences between Danish and Kenyan

Labour market• Discussion

HR Management challenges in Denmark

• Stress • Work-life balance • Attraction and retention of highly skilled

employees• Gender discrimination

– Women are not making as much money and promotions as men in same position

– Women are not in top management /directors• Bullying• Human and labour rights violations in the supply

chain

Stress among the Danish population

• 23% of the workforce is often stressed on a daily basis.• Long term stress can lead to serious illness such as heart-,

organ-failure and depression.• Development in stress level based on age and gender (2005):

Statistics on working environment

2005-2010: Survey among 10.600 Danish workers about the Danish working environment. Results:

- Falling number of physically demanding tasks.- Rising number of psychically (mentally) demanding tasks

although more support from management. - More workers are experiencing bullying, violence and

threats of violence.- More workers are experiencing passive work (a least ¾ of

working hours is sedentary).- Unskilled and workers with short education are

experiencing less opportunities and influence on the work (highly educated workers are experiencing the opposite)

- No changes in regards to working injuries (young people between 18-24 have highest risk of injuries).

HR Management issues in Denmark

Organisatorial change in Denmark

Changing perspectives within HRM

Old/ present system

• Solve the problems

• Bring in the expert

• Identify the responsible manager

• Find the best solution

• Get a quick solution

Towards the new:

• Create a culture

• Help people to learn

• Involve all

• Find a better solution

• Get gradually improvements

Human and Labour Rights violations in the supply chain

• Will affect image and business performance if detected (many examples in medias)

• Consumers are asking questions• More consumers are buying based on

information, health concerns and political beliefs (no child Labour, organic food, certified clothes and cleaning products)

• Corruption in supply chain can be impossible to avoid but difficult for Danish companies to accept (illegal, losing control).

Labour rights violation:Case of Forenede Service (FS)

• Second biggest cleaning service company in DK• In 2010, the municipality of Helsingør discover that

their cleaning service provider FS, are using sub-contractors (not allowed according to their contract).

• The sub-contractor are hiring illegal immigrants on app. 1/5 of the normal salary.

• In 2011-2012 other municipalities discover that contracts with FS’s are outsourced to sub-contractors (against contract term).

• Police and Tax authorities are involved.• FS are to more than 7 mill. KES

Differences between the Danish and Kenyan labour market

• Long tradition of collective agreements and strong national unions– If the government wants every worker to work 12 more minutes a day

or cancel 2 holidays unions have to agree.

• Very little production and therefore high number og ”knowledge workers” (government paid education).

• Normal workweek in public sector is 37,5 hours (incl. 30 min. lunch) 5 work days a week.

• Right to public pension from 65 years.

Challenge: growing number of people receiving money from government. Such as:– Growing number of old people – Growing unemployment rate (6,2% of the workforce that is around

165.000 people)

Discussion

How do these different country-specific HR challenges affect the partnership between Kenyan and foreign suppliers/buyers?

Labour rights violation:Case of Forenede Service

• Labour is expensive ind Denmark.• Challanges in DK: Some companies in labour intensive

sectors - like service industry - are using immigrants – illegally or/and paying beneath minimum salary.

• Example of Kenya vs. Danish salaries

Prime Minister Doctor (1th year)

Cleaner

KE: 2.5 mill. KES KE: 105.000 KES (Gertrudes)

KE: 9000 KES

DK: 8.1 mill. KES DK: 429.000 KES DK: 110.000 KES