As Finland’s talent shortage continues to create bottlenecks for companies, one paradox is becoming increasingly clear: the country is simultaneously experiencing a shortage of skilled workers and an underutilization of the very international talent already living within its borders.
According to a recent study by the Economic Policy Council of Finland, there are thousands of highly skilled international professionals residing in Finland who remain unemployed or underemployed due to cultural mismatches, lack of local language skills, and systemic barriers. In fact, the Ministry of Economic Affairs and Employment found that unemployment rates among non-native residents are double that of native Finns.
This untapped talent pool represents a missed opportunity for companies struggling to fill roles. However, bringing in new talent from abroad isn’t a guaranteed solution either. When companies relocate new employees to Finland, they face unique challenges that, if not addressed properly, can turn promising hires into costly failures. Without effective integration support, these international hires may experience the same issues as their counterparts already living here – cultural isolation, lack of local connections, and eventually, early turnover.
The bottom line? Simply relocating someone to Finland is not enough. To fully leverage international talent, companies must invest in comprehensive relocation and integration support that goes beyond the initial move.
The Numbers Don’t Lie
The current demographic and labor market trends in Finland paint a worrying picture for the future of talent acquisition:
Fastest Aging Population in Europe: By 2050, nearly 30% of Finland’s population will be over 65, leaving a significant gap in the workforce.
Dwindling Domestic Labor Pool: Finland’s working-age population is projected to decline by over 300,000 in the next three decades, according to Statistics Finland.
Talent Shortage Across Key Sectors: Nearly 59% of companies in 2023 reported difficulty finding suitable employees, especially in sectors like tech, healthcare, and engineering - Chambers of Commerce.
Nearly 66% of Finnish companies report that a shortage of skilled workers is hindering their growth and business development, according to a recent survey conducted by the Chambers of Commerce.
A Solution Hiding in Plain Sight
While the talent shortage is a pressing issue, there’s another side to the story: Finland is home to a large, highly qualified international talent pool that remains largely untapped. Many of these professionals have been in Finland for years, bringing with them valuable expertise and global perspectives – yet they remain outside the workforce due to factors such as:
Cultural Barriers: Misunderstandings around work culture and expectations often lead to international talent being seen as “unfit” for the role.
Lack of Local Language Skills: Although 90% of Finns speak English fluently, many positions still require Finnish proficiency, creating a hiring barrier.
Limited Professional Networks: Without a strong local network, many internationals struggle to access the hidden job market, making it difficult to find opportunities that match their skill sets.
When companies relocate new employees to Finland, they face a similar scenario. Relocated employees often enter the country with high expectations, but if their experience in the workplace and the broader Finnish society does not meet those expectations, they can quickly become disengaged. The result? Poor retention and a high cost to the business.
By investing in relocation and continuous integration services, Finnish companies can bridge these gaps, ensuring that both incoming talent and the international talent already here are fully engaged, productive, and likely to stay.
Why Long-Term Planning Resonates with Finnish Leaders
Finnish decision-makers are known for their pragmatic, stability-focused approach. They are not easily swayed by quick fixes or flashy solutions. What they want to see is:
Efficiency: Solutions that save time and reduce inefficiencies.
Predictability: Processes that minimize risk and create stable outcomes.
Long-Term Value: Investments that align with strategic business growth and stability.
Relocation and integration services may seem like an added cost, but when framed correctly, they represent a risk management strategy that ensures smooth transitions, long-term employee retention, and a healthy return on investment.
How to Frame Relocation Service Needs for Finnish Decision-Makers
1. Emphasize Cost Efficiency and Risk Mitigation
Failed relocations are costly, both financially and operationally. A failed hire can cost a company up to 1.5 to 2 times the annual salary of the position, including recruitment costs, lost productivity, and the need to rehire. For high-salary markets like Finland, these numbers add up quickly.
Argument: By investing in structured relocation and integration support, companies reduce the risk of early departures, avoid rehiring costs, and ensure smooth team dynamics, ultimately saving more than they spend.
2. Bridge the Gap Between Talent Shortage and Untapped Potential
Companies are scrambling to find talent abroad while overlooking the potential within Finland’s existing international community. An effective relocation and integration strategy can connect these dots, helping companies leverage this pool and reduce the costs associated with international recruitment.
Argument: By refining integration processes and offering ongoing support, Finnish companies can turn this “untapped” international talent into a valuable asset, addressing skill shortages faster and more effectively.
3. Focus on Employee Satisfaction and Retention
According to a study by Mercer, companies that offer structured integration support have a 29% higher retention rate among relocated employees. Given the high cost of turnover, investing in employee satisfaction is a long-term strategy that aligns well with Finnish business values.
Argument: Happy, engaged employees are more productive, more loyal, and more likely to become ambassadors for the company, creating a strong return on investment.
4. Strengthen Employer Branding and Competitiveness
In a small, tight-knit market like Finland, employer reputation is everything. A company that invests in relocation and integration is seen as forward-thinking, inclusive, and globally competitive – a significant advantage in a market where talent is scarce.
Argument: An excellent relocation experience increases your employer brand, making your company more attractive to both local and international talent.
Building a Business Case: Speak the Language of ROI and Stability
How do you translate these benefits into a compelling narrative for your leadership team?
Quantify the Impact: Use data to show the financial benefits, such as reduced turnover costs and higher productivity. For example, replacing a failed international hire can cost between €30,000 and €50,000 depending on the role and seniority.
Leverage Local Examples: Highlight Finnish companies that have successfully implemented these services, such as Nokia, which has built its global success on integrating talent from over 60 countries.
Present the Long-Term Picture: Position relocation services not as a “nice-to-have” but as a strategic investment that strengthens the company’s workforce, enhances stability, and supports long-term growth.
Final Thoughts
The challenge for Finnish businesses isn’t just attracting international talent - it’s retaining it and making it feel like home. This requires a shift in mindset: relocation isn’t just about moving people; it’s about creating a sustainable foundation for future growth. By framing relocation support in terms that align with Finnish values of efficiency, stability, and long-term impact, you can make a compelling case that resonates deeply with decision-makers.
Are you ready to unlock Finland’s full talent potential? Contact us to find out how we can help you craft a winning strategy for your company.
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Best Autumn wishes,
Intero's team
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