Finland’s workforce crisis: Why businesses need to rethink everything

Sauli Holappa.
Sauli Holappa.
1 min

Finland’s labor market is shifting in ways that businesses can’t afford to ignore. Younger generations are rejecting traditional workplace expectations, AI is reshaping job structures, and labor shortages are becoming a serious issue. Meanwhile, international talent remains underutilized, despite the growing demand for skilled workers.

At the Future Workforce seminar during EnergyWeek 2025, industry experts dissected these trends and their impact on Finnish workplaces. Companies that fail to adapt risk falling behind, while those that embrace change will have the advantage.

Young workers want flexibility, not just a paycheck

Sauli Holappa, Senior Advisor at Technology Industries of Finland, described how younger generations are approaching work differently than their predecessors. They don’t live to work, and they are not primarily motivated by money.

His own experience with summer workers confirmed this shift. In previous years, they asked about overtime opportunities to earn more. Now, they want to know about cultural benefits, such as tickets to festivals. Compensation matters, but it is no longer the defining factor in job decisions. Instead, sustainability, workplace culture, and personal well-being are bigger priorities.

Holappa also pushed back against the idea that remote work should be regulated. While some companies are trying to impose uniform policies, fairness does not mean treating everyone the same. Workplace rules need to be tailored to the role itself, rather than applying rigid structures across the board. The balance between individual needs and collective workplace requirements must be considered case by case.

Looking ahead, Holappa warned that Finland’s labor shortages will only intensify. AI will not just be useful—it will be necessary. However, it will not replace the need for human interaction and leadership. Office tasks may be automated, but supporting and motivating a team will always require people.

Commitment exists, but loyalty is changing

Susanna Kultalahti, Doctor of Science in Economics at the University of Vaasa, addressed the evolving expectations of younger employees and the growing concern among employers about their perceived lack of loyalty. The reality, she explained, is more nuanced. Young workers are not necessarily disloyal, they are just committed in a different way than previous generations. They will invest in their jobs as long as they feel engaged, challenged, and valued.

Susanna Kultalahti.
Susanna Kultalahti.

She also pointed out that young professionals often enter working life with high expectations but limited real-world experience. Many have never worked summer jobs or internships, which means they might struggle with the realities of daily work. Employers, she argued, need to take this into account and actively guide younger employees into working life rather than expecting them to figure it out on their own.

A significant source of tension in workplaces today is the clash between differing values and work styles across generations. Some employees place a strong emphasis on professionalism, structure, and being on time, while others prioritize personality and maintaining little separation between personal and professional life. This difference in priorities can create friction if companies do not address it properly.

Rather than trying to force a one-size-fits-all approach, Kultalahti suggested that HR practices need to evolve. Instead of rigid structures that assume all employees have the same needs, workplaces should move towards a dynamic, fairness-based leadership model. Employees today want leadership that is more akin to coaching—a workplace where they are supported in their personal and professional growth, rather than simply managed for efficiency. In this sense, modern leadership should function more like a “personal trainer for life”, helping employees navigate their careers rather than just monitoring their performance.

Ultimately, Kultalahti’s key takeaway was that workplaces must stop asking whether young people are loyal and instead start asking how they can create an environment where people actually want to stay.

Finland needs international talent—but isn’t using it

Suvi Pulkkinen, Senior Advisor at the Finland Chamber of Commerce, outlined a problem that Finnish businesses can no longer ignore: Finland is running out of workers, and international recruitment is the only real solution.

The numbers are hard to dispute. In 15 years, Finland will have 200,000 fewer births, 100,000 fewer workers, and 300,000 more retirees. The labor market is shrinking, yet many Finnish companies still hesitate to hire international talent.

Suvi Pulkkinen.
Suvi Pulkkinen.

Pulkkinen highlighted a striking contradiction: as a group, foreign job seekers in Finland are statistically more highly educated than native Finns, yet they still face significant barriers to employment. One of the biggest obstacles is as simple as having a foreign name.

“This is discrimination, and we can’t afford it,” Pulkkinen said. Finland’s labor market is in no position to turn away skilled professionals.

This is discrimination, and we can’t afford it.

She also dismissed concerns that workplace diversity has gone “too far.” Hiring international talent is not about ideology, it’s about business. Companies that continue to ignore global talent will struggle, while those that embrace it will expand their markets and strengthen their teams.

Pulkkinen also addressed the hesitation some workplaces have around cultural differences. She compared it to the shift in Finland’s restaurant industry, where many workers now communicate in English. At first, customers were confused when they couldn’t order in Finnish. Now, they have adjusted. The same applies to other aspects of workplace diversity, such as religious accommodations. A prayer room in an office is only complicated if companies make it ideological—otherwise, it’s just a practical solution.

Businesses that adapt will have the advantage

The seminar ended with a panel discussion and audience Q&A, reinforcing a common theme: Finland’s workforce is changing, and businesses must evolve with it.
Companies that recognize new workplace expectations, use AI strategically, and tap into international talent will be better positioned for the future. Those that resist these changes will struggle to compete.

The workplace is no longer a one-size-fits-all environment. Businesses that embrace flexibility, fairness, and innovation will be the ones that succeed.

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