New report: Finnish small and medium enterprises need foreign workers

A recent study shows that, for some small and medium-sized enterprises (SMEs) in Finland, hiring foreign workers appears to be the only way to secure labour. For other companies, international recruitment is a means to enhance competitiveness. The City of Helsinki promotes labour immigration in diverse ways and aims to be the potential hometown for an increasing number of international professionals.
Ihmisiä talvisessa Helsingissä. Taustalla Senaatintori ja Tuomiokirkko.
The City of Helsinki recognises SMEs' needs and challenges related to the recruitment of international labour. Photo: Teina Ryynänen

The labour needs of SMEs vary by industry, states the research report from the Small and Midsize Enterprises and Foreign Workforce in Finland (PIKEUS) project published on Tuesday. However, different enterprises share a common experience: the positive impact that an increasingly international work community has on business performance and workplace atmosphere. However, the workload and bureaucracy involved in recruitment processes place a significant burden on entrepreneurs.

"Helsinki's ambition is to provide businesses with opportunities for growth, and we want to help them make use of the benefits offered by international recruitment," says Director of Migration Affairs Glenn Gassen from the City of Helsinki.

Helsinki aims to be an attractive hometown for international professionals

The City of Helsinki recognises SMEs' needs and challenges related to the recruitment of international labour, which is why Helsinki is developing its international recruitment services based on the published report and other studies. The development work is done both internally in the City organisation and in cooperation with other large cities and with Helsinki Partners, the Work in Finland services of Business Finland and the Helsinki Region Chamber of Commerce.

The City of Helsinki aims to attract international professionals and their families and professionals moving from other parts of Finland. The Helsinki action plan to strengthen immigration based on work, study and entrepreneurship (2022–2025) supports the achievement of the targets set in the City Strategy and the economic development policy based on the Strategy. One of the main goals in the action plan is that Helsinki will be the potential hometown for an increasing number of international professionals, businesses and investors.

Diverse cooperation aims for matches between work and workers

In 2024, the City of Helsinki Immigration Unit and Employment Services, the City's subsidiary Helsinki Partners and the Employment and Economic Development Office of the Uusimaa region have formulated an international recruitment service model for Helsinki. The aim is for key operators in the City to effectively and productively support employers who wish to recruit international professionals both locally and from abroad, and for employers to easily access services that add value for them.

At a national level, the six largest cities cooperate closely with the central government to promote efforts to attract and employ international professionals in Finland. During this government term, the aim of the six cities is to get 1,000 employers involved in the services that support the matching of jobs and employees through international recruitment. The six cities also collaborate with Work in Finland and form partnerships with business associations, the private service sector and local operators.

Interviews with entrepreneurs from various industries and regions

The report released on Tuesday is the main publication of the PIKEUS project and the study that it involved. The project consortium included the cities of Helsinki, Espoo, Tampere, Kuopio, and Lahti; Business Finland’s Work in Finland programme; the real estate and construction sector consortium KIRA; and E2 Research, who carried out the study.

The study involved interviews with 40 SME owners or executives from various sectors across Finland, all of whom have foreign employees. The interviews explored experiences in hiring foreign personnel and collected best practices for recruitment, onboarding, and managing diverse teams.

Project aimed to support SMEs in international recruitment

The PIKEUS project aimed to support SMEs in their international recruitment efforts by examining companies' experiences and sharing their best practices on a national scale. The project also provided recommendations for improving international recruitment services for businesses and enhancing cooperation with educational institutions.

Among the companies included in the study, approximately 40% hire employees for positions requiring higher education, while about 60% recruit for operational roles. The businesses represent 25 different industries, with many interviewees from fields such as architecture, property services, construction, healthcare, IT and software development, agriculture, metalworks, hospitality, and textile maintenance. 

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