STRENGTH UNDER PRESSURE
Jan Tomše
“Where will we find researchers, doctors, IT staff, teachers, and social welfare professionals if our generations are becoming increasingly modest?” asks Vesna Vodopivec, Assistant to the Management Board and acting head of HR at NLB, the largest financial group with headquarters in Southeastern Europe, in an interview with The Adriatic. As the region aligns closer to the West, adopting more Western characteristics, the question of retaining young talent and growing human capital becomes ever more pressing.
The Adriatic region faces significant demographic challenges, including declining populations, low fertility rates, and an ageing society. Over the past three decades, the region has experienced significant population loss due to high emigration rates, low birth rates, and high mortality. For example, Bosnia and Herzegovina has one of the world’s lowest fertility rates, at just 1.26 children per woman. Projections suggest that countries like Serbia and Croatia could see population declines exceeding 20% by 2050.
While countries like Hungary and Georgia have successfully tackled demographic issues, the Western Balkans remains focused on curbing youth emigration without addressing the deeper causes of this trend. “Is immigration the solution? To some extent, yes, but the region lacks a clear plan to manage it. Other cultures will increasingly populate our region, and we need a vision for integration,” says Vodopivec.
Serbia’s model for talent retention
When it comes to retaining talent, Vodopivec believes Serbia outperforms Slovenia. “Serbia is actively working to keep its talent by strengthening its IT education programmes. However, they still struggle to recruit as many professionals as needed.” Serbia graduates about 1,500 IT professionals annually. Recognizing the growing demand, the government aims to increase this to 5,000 through increased training programmes and educational infrastructure. Currently, 35 higher education institutions in Serbia offer IT-related degrees, contributing to a growing talent pool.
Slovenian companies, by comparison, have called on the government to produce at least 5,000 new IT professionals per year, unfortunately we haven’t been successful. Vodopivec supports making IT education compulsory in primary schools, emphasising the need for early exposure to technological skills. “Young people must understand the technological direction the world is heading in – it’s a field offering great opportunities,” she says.
However, she also warns against overreliance on digital engagement. “I’m not a proponent of children spending excessive time on computers and phones. They need to be active, learning healthy competition rather than living in a world of likes and virtual validation. Creativity and potential manifest in many fields, not just IT.”
New generations, new challenges
HR departments today face challenges that differ vastly from those of the past. “Today’s youth possess undeniable skills, but they often struggle with stress management – a crucial trait for navigating the pressures and KPI-driven demands of modern business,” Vodopivec explains.
Onboarding has become a critical phase for retaining new employees. “The onboarding process is more sensitive than ever. If companies get it wrong, they risk losing staff within two years. Exit interviews often reveal the same issue: promises made during hiring weren’t kept, leaving employees unfulfilled,” she says.
What characterises young professionals joining large companies like NLB? “It’s not just about the money. They want personal development and opportunities to grow their potential. Salary is a motivator but only in the short term. Young people are less patient than older generations; they seek faster success. Work environments need to adapt to these expectations while ensuring cross-generational collaboration.”
Hybrid work as competitive edge
NLB Group recruits an average of 200 new employees annually, including many IT professionals. Vodopivec credits their success partly to embracing hybrid work. “Work-life balance is vital to young people. Every time a company shifts away from remote work, I see it as an opportunity for us. Hybrid work demands more from managers, but it’s worth the effort.” At NLB’s HR department, 80% of employees work from home. Weekly in-person meetings help maintain relationships and resolve issues efficiently.
A key success story is NLB’s DigIT hub in Serbia, employing 80 staff and connecting 11 companies across six countries. Vodopivec notes that EU membership for these countries would ease challenges like visas and work permits, increasing the group’s flexibility and competitiveness.
Honest dialogue is essential
Slovenia currently enjoys high employment and robust social rights, but Vodopivec warns of potential challenges ahead. “Economic fluctuations could reverse the labour market’s stability. To ensure sustainability, we need broader reforms across all state subsystems.” She advocates for an incentive-based tax environment, improved education, and a quality healthcare system to support an ageing population and extend working years. “The social contract must be revisited to align rights and responsibilities. Honest dialogue with citizens is essential, and this requires courage—whether we have it is another question.”
Looking ahead to 2025
Vodopivec predicts that economic uncertainty may drive workers to seek secure roles in stable companies. NLB plans to continue offering opportunities for personal and professional growth, with a focus on artificial intelligence and digitalisation.
“At NLB, our mission is to improve lives in the region. This motivates people to join us. When disasters like the recent floods in Slovenia and Bosnia strike, we act swiftly because this is our region, and we want to make a meaningful impact. Our contribution extends beyond banking—it’s measured in multipliers.”
