HR Management
challenges in Denmark
Sofie Pedersen & Mette Maria Kristensen,
CSR advisors.
Agenda
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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
Towards the new:
• Solve the problems
• Create a culture
• Bring in the expert
• Help people to learn
• Identify the responsible
manager
• Involve all
• Find the best solution
• Find a better solution
• Get a quick 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 subcontractors (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