HR Management challenges in Denmark Sofie Pedersen & Mette Maria Kristensen, CSR advisors.

Agenda HR Management challenges in Denmark HR Management issues Organisational changes Changing perspective within HR Management Human Rights violations in the supply chain Differences between Danish and Kenyan Labour market Discussion

HR Management challenges in Denmark Stress Work-life balance Attraction and retention of highly skilled employees Gender discrimination –Women are not making as much money and promotions as men in same position –Women are not in top management /directors Bullying Human and labour rights violations in the supply chain

Stress among the Danish population 23% of the workforce is often stressed on a daily basis. Long term stress can lead to serious illness such as heart-, organ-failure and depression. Development in stress level based on age and gender (2005):

Statistics on working environment : Survey among Danish workers about the Danish working environment. Results: -Falling number of physically demanding tasks. -Rising number of psychically (mentally) demanding tasks although more support from management. -More workers are experiencing bullying, violence and threats of violence. -More workers are experiencing passive work (a least ¾ of working hours is sedentary). -Unskilled and workers with short education are experiencing less opportunities and influence on the work (highly educated workers are experiencing the opposite) -No changes in regards to working injuries (young people between have highest risk of injuries).

HR Management issues in Denmark

Organisatorial change in Denmark

Changing perspectives within HRM Old/ present system Solve the problems Bring in the expert Identify the responsible manager Find the best solution Get a quick solution Towards the new: Create a culture Help people to learn Involve all Find a better solution Get gradually improvements

Human and Labour Rights violations in the supply chain Will affect image and business performance if detected (many examples in medias) Consumers are asking questions More consumers are buying based on information, health concerns and political beliefs (no child Labour, organic food, certified clothes and cleaning products) Corruption in supply chain can be impossible to avoid but difficult for Danish companies to accept (illegal, losing control).

Labour rights violation: Case of Forenede Service (FS) Second biggest cleaning service company in DK In 2010, the municipality of Helsingør discover that their cleaning service provider FS, are using sub- contractors (not allowed according to their contract). The sub-contractor are hiring illegal immigrants on app. 1/5 of the normal salary. In other municipalities discover that contracts with FS’s are outsourced to sub-contractors (against contract term). Police and Tax authorities are involved. FS are to more than 7 mill. KES

Differences between the Danish and Kenyan labour market Long tradition of collective agreements and strong national unions –If the government wants every worker to work 12 more minutes a day or cancel 2 holidays unions have to agree. Very little production and therefore high number og ”knowledge workers” (government paid education). Normal workweek in public sector is 37,5 hours (incl. 30 min. lunch) 5 work days a week. Right to public pension from 65 years.  Challenge: growing number of people receiving money from government. Such as: –Growing number of old people –Growing unemployment rate (6,2% of the workforce that is around people)

Discussion How do these different country-specific HR challenges affect the partnership between Kenyan and foreign suppliers/buyers?

Labour rights violation: Case of Forenede Service Labour is expensive ind Denmark. Challanges in DK: Some companies in labour intensive sectors - like service industry - are using immigrants – illegally or/and paying beneath minimum salary. Example of Kenya vs. Danish salaries Prime MinisterDoctor (1th year) Cleaner KE: 2.5 mill. KESKE: KES (Gertrudes) KE: 9000 KES DK: 8.1 mill. KESDK: KESDK: KES