It is particularly highly educated employees on the pay limit scheme who contribute to the Danish economy.

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17-01-19 DI Business News

Faizal, Xi and Megan generate billions for Denmark

Foreign employees create growth for Danish companies and billions in state revenues. They are a boon to us and to Denmark, says Vice President of HR at Kamstrup.

There is reason to celebrate when companies recruit foreign employees to Denmark, because the result is increased revenue and a boost to public finances, new research shows.

Employees from both within and outside the EU who come to Denmark to work generate an average of DKK 76,000 in state revenue, shows research from the Confederation of Danish Employers (in danish).

It is particularly employees from countries outside the EU on the pay limit scheme who contribute to the Danish economy. On average, these employees contribute DKK 280,000 per year. Since 2008, employees on the pay limit scheme have added a total of DKK 8.5 billion to the Danish economy.

“Foreign employees are a boon to our company and a boon to Denmark,” says Michael Stubbe, Vice President of HR at engineering firm Kamstrup, which produces electricity and water meters.

See also: Danes: Foreigners are a boon for our workplaces

International employees can provide specialist knowledge and business development and open up new markets. Linda Duncan Wendelboe, Head of Global Talent at the Confederation of Danish Industry (DI)

Offer a unique perspective

The HR vice president at Kamstrup is often forced to look for highly-qualified employees abroad when recruitment in Denmark is unsuccessful. But that is certainly not a bad thing, explains Michael Stubbe, Vice President of HR at Kamstrup.

“We have an engineer from Australia in our water department who has worked for a water supply company the size of Denmark. Foreign employees like her offer a unique perspective that helps make us even better and more relevant in the global market,” says the HR vice president.

The Confederation of Danish Industry also recognises the value of foreign employees for companies and the Danish economy.

“International recruitment generates enormous value for Denmark in the form of money in the public purse, while for companies it has a positive effect on both employment and growth. International employees can provide specialist knowledge and business development and open up new markets,” says Linda Duncan Wendelboe, Head of Global Talent at the Confederation of Danish Industry (DI).

See also: Why are Danes so weird?

A boon for local communities

Linda Duncan Wendelboe explains that the value added is a result of companies obtaining the labour they require, enabling them to fulfil more orders. Meanwhile, foreign employees often draw less upon welfare services (physician, hospital, school, daycare etc.) than Danes and are not eligible for transfer income from the state. Furthermore, foreign employees on the pay limit scheme contribute to state revenue because they pay taxes on their high salaries.

However, foreign employees are not only a win for companies and the public purse. They also strengthen local communities – especially when municipalities are good at receiving and retaining new residents.

“When companies get the employees they require, there is no need to move production somewhere else with available labour. Retaining production in Denmark benefits local communities by securing jobs for Danes in the future,” says Linda Duncan Wendelboe.

See also: Foreign manager: “Danes aren’t as open as they think they are”

Improve recruitment conditions

At Kamstrup, foreign employees are vital. They offer competencies that can be difficult to find in Denmark, such as development engineers, software developers and other highly-specialised professions.

It is therefore important – and a hobbyhorse for the Confederation of Danish Industry – that international recruitment be a political priority, such that companies can more easily attract and retain qualified foreign labour.

“We must improve conditions for international recruitment by simplifying the recruitment process and focusing on measures such as extending the positive list, lowering the pay limit, removing administrative barriers and making the fast-track scheme more flexible,” says Linda Duncan Wendelboe.

See also: Blog: 5 ways to better retain international employees

Rasmus Emil Gravesen
Written by:

Rasmus Emil Gravesen

Linda Duncan Wendelboe

Chef for DI Global Talent

  • Direct +45 3377 3906
  • Mobile +45 9398 8050
  • E-mail lidw@di.dk
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