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A master's thesis from Aalborg University
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The multilayer challenges that underpin Danish SMEs while recruiting and retaining an international/culturally diverse workforce and strategies to overcome/mitigate them.

Author

Term

4. Term

Publication year

2022

Submitted on

Pages

55

Abstract

Many Danish companies lack qualified workers. According to DI’s 2020 report, this shortage leads firms to look abroad. International hires bring skills and know-how that can boost company growth and benefit the Danish economy. Several reports also point to a link between global talent, higher competitiveness, and economic growth. At the same time, recruiting internationally raises practical and cultural questions—especially for small and medium-sized enterprises (SMEs). This thesis makes the topic more accessible. It highlights key steps companies should take: understand legal requirements, clarify why they are hiring internationally and what they expect, decide whether internal communication should be in Danish or English, and allocate resources for onboarding and long-term retention. The thesis contributes to International Human Resource Management (IHRM), which concerns managing people across borders. The target audience is Danish SMEs that recruit, manage, and retain expats (employees working outside their home country). The research focus is motivated by interest in internationalizing to India, a context with high “psychic distance.” Psychic distance refers to perceived differences between markets—such as culture, language, religion, education, politics, economy, market structures, and business practices—that can create uncertainty when entering new markets. Despite the benefits of a diverse workforce, there is often a gap between IHRM theory and day-to-day practice in Danish SMEs due to multiple, layered challenges. The thesis examines these challenges in recruiting and retaining an international and culturally diverse workforce and outlines strategies to overcome or mitigate them, helping SMEs prepare for global growth.

Mange danske virksomheder mangler kvalificerede medarbejdere. Ifølge DI’s 2020-rapport får mange derfor øje på udlandet. Internationale medarbejdere bidrager med nye kompetencer og viden, som kan styrke både virksomheders vækst og dansk økonomi. Flere rapporter peger også på en sammenhæng mellem globalt talent, øget konkurrenceevne og økonomisk vækst. Samtidig rejser international rekruttering en række praktiske og kulturelle spørgsmål – især for små og mellemstore virksomheder (SMV’er). Dette speciale gør emnet mere håndgribeligt. Det peger på vigtige skridt, virksomheder bør tage: kende de juridiske krav, afklare hvorfor man vil ansætte internationalt og hvilke forventninger man har, overveje om arbejdet internt skal foregå på dansk eller engelsk, og afsætte ressourcer til både onboarding og langsigtet fastholdelse. Specialet bidrager til feltet International Human Resource Management (IHRM), som handler om, hvordan man leder og udvikler medarbejdere på tværs af landegrænser. Målgruppen er danske SMV’er, der rekrutterer, leder og fastholder expats (medarbejdere, der arbejder uden for deres hjemland). Valget af forskningsområde er motiveret af interesse for internationalisering til Indien, hvor den såkaldte “psykiske distance” er stor. Psykisk distance betyder de oplevede forskelle mellem markeder – fx kultur, sprog, religion, uddannelse, politik, økonomi, markedsstrukturer og forretningspraksis – som kan skabe usikkerhed ved markedsindtræden. På trods af de mange fordele ved en mangfoldig arbejdsstyrke er der ofte et gab mellem IHRM-teori og praksis i danske SMV’er, fordi de møder flere lag af udfordringer. Specialet undersøger disse udfordringer i rekruttering og fastholdelse af en international og kulturelt mangfoldig arbejdsstyrke og skitserer strategier til at overvinde eller afbøde dem, så SMV’er bedre kan udnytte global talent til vækst.

[This apstract has been rewritten with the help of AI based on the project's original abstract]