The Danish labour market is characterised by flexibility, a well-educated workforce and high productivity coupled with competitive salary levels in a European context.
In Denmark, you will experience a flat organisational hierarchy and employees who are active in shaping their roles and tasks. In addition, it is easy to scale your business up or down according to strategic priorities and commercial needs.
The flexibility in adapting your business is unique to the Danish labour market model, where you combine the flexibility of hiring and firing with a safety net for employees. This enables businesses to pursue opportunities and ensures the right talent is there to deliver, while mitigating risk for both parties.
An integrated approach that simultaneously enhances flexibility and security in the labour market is the winning formula. This is possible through a combination of personal taxation, unemployment benefits and securing three-year collective agreements in the public sector. It reconciles employers’ need for a flexible workforce with workers’ need for security while simultaneously promoting stability and adaptability.
The combined approach offers a high flexibility in hiring and firing practices, which is unique in Europe. Provided a valid reason exists and legal notice is given, the employer is entitled to dismiss any employee at any time, without incurring costs, making it easier for an individual business to adjust the size of its workforce in Denmark.
At first sight, Danish salary levels may seem high compared to other European countries. The competitiveness of Danish labour costs is, however, visible when considering both salary and non-salary related costs, as employers have a lower aggregated cost burden in terms of social security, labour taxes and more.
This makes the overall gross labour cost very competitive without compromising employees’ rights and benefits. As such, Denmark offers a high level of social security for people who get ill or lose their job, but the employer’s direct contribution to social security is minimal.
Denmark has a highly educated population with excellent foreign language skills. In fact, we are ranked among the top countries for English proficiency on the EF English Proficiency Index and it is easy to find multi-lingual staff in Denmark.
The Danish workforce is perceived as highly motivated by foreign companies operating in Denmark. Denmark is characterised by a flat hierarchical structure and a team-oriented approach, where employees play an active role in problem solving. This breeds ideas and innovative solutions, integrating user-centered design and processes.
A high level of education combined with independence and flexibility makes the Danish workforce capable of taking on tasks, which elsewhere would be reserved for management.
Invest in Denmark provides a range of relevant resources for your reference when searching for investment opportunities in Denmark. Our selection includes fact sheets, publications and reports on key industries and business opportunities in Denmark.
If you want to know more about the Danish labour market, please do not hesitate to contact our dedicated advisors:
Title: Director
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Area: Aarhus
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Title: Special Advisor - Tech
Area: Aarhus
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Title: Special Advisor - Life Sciences
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Phone: +45 2856 8540
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Area: Aalborg
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Title: Special Advisor - ICT & Cleantech
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Title: Senior Investment Manager - Cleantech & Life Sciences
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Title: Investment Manager – Life Sciences & Food
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Title: Investment Manager – Life Sciences & Food
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Title: Investment manager - Cleantech
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Title: Director for North America
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Title: Deputy Director, North America & Senior Investment Manager - Life Sciences & Location Denmark
Area: New York
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Phone: +1 (917) 497 1300
Title: Investment Manager - Food & Location Denmark
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Phone: +1 (212) 705 4928
Title: Life Science Production Coordinator – Life Sciences
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Area: Bangalore
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Area: Shanghai
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Title: Investment Manager in Cleantech, Tech, Life Science, Food & Maritime
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