The event, titled Planning Economic Success in an Era of Polycrisis and Demographic Challenges, was organised by Slovenia’s Institute for Strategic Solutions (ISR) alongside the Slovenian Embassy in Zagreb and the SLO-CRO Economic Chamber. Speakers highlighted how geopolitical shifts, technological advancements, and evolving labor dynamics are reshaping corporate strategies and regional economic stability.

Around 80% of job postings in Slovenia and Croatia target workers with less than a fifth-level education (typically vocational training), yet nearly all younger generations in both countries pursue university degrees, creating a stark mismatch. “The situation is extreme and will remain so for at least five years, barring a major crisis,” said Tilen Prah, Director of recruitment firm Kariera.  

Prah noted that young workers increasingly face a dilemma: emigrate for better opportunities or stay home but hit career ceilings due to tax policies that disincentivise higher earnings. “Employees most often leave due to poor workplace relationships, inadequate management, and poor labour organisation. Dissatisfaction with pay and unfulfilling work follow,” he added.  

Business leaders say the rules of hiring have changed, as young workers begin to want more than just a stable paycheck. They’re looking for jobs that offer room to grow, meaningful work, and the freedom to shape their own careers.

“Today’s workforce has completely different priorities,” one executive noted. “We can’t keep running our companies the way we did a decade ago. The new generation wants to know not just what they’ll be doing, but why it matters and how they can make their mark.”

A crisis of confidence

The labour crisis is compounded by a broader erosion of trust in institutions. A study cited by Velimir Srića, a Croatian management and IT consultant, found that 40% of CEOs believe their companies won’t survive without significant changes – yet two-thirds aren’t ready to make those shifts.

According to Srića, the region is witnessing institutional disruption, with people losing faith in family, the state, entrepreneurs, media, science, religion, and the nation.

The old way of doing things just doesn’t seem to cut it anymore. He contrasted traditional MBA programs, which he claimed deliver 11% profit growth, with entrepreneurial training focused on mindset changes, which he said boosts profits by 30%. Today’s leaders need faster reaction times and a departure from traditional decision-making, he argued.

The benefits and pitfalls of (excessive) regulation

The forum also touched on the dual role of regulation: safety net or innovation killer?

Ante Žigman, Head of Croatia’s Financial Supervisory Agency (HANFA), stressed that robust oversight ensures market stability and consumer protection, pointing to cryptocurrency volatility as a cautionary tale. He argued that without sufficient regulation, high risk and price swings encourage reckless behavior.  

However, Gorazd Čibej, Director of Slovenia’s Insurance Supervision Agency, warned that excessive EU regulations – 21,000 currently apply in Slovenia alone – risk stifling innovation.

Stjepan Orešković, entrepreneur and majority owner of Bosqar Invest, echoed concerns about the EU’s lag behind the U.S. in scaling up startups. Citing a report by former Italian Prime Minister Mario Draghi, he urged the EU to create an ecosystem supporting 500 high-growth firms shielded from foreign takeovers.

Companies are looking for adaptability

Ivana Vrviščar, board member at the Slovenian postal service, explained that their company follows a strategy enabling a modern approach to talent acquisition. “We recognise that new generations have completely different expectations. We focus heavily on mentoring programmes and integrating new employees into our processes and company culture.”

Telemach CEO Adrian Ježina noted that their company now experiences significantly higher staff turnover compared to a decade ago. They’ve made employee satisfaction a key priority, which has proven to be a successful strategy. “We’re looking for talented professionals who truly master their field,” he explained. “We particularly value those who show an entrepreneurial spirit and approach their work as if they were running their own business.”

The business landscape demands increasingly versatile employees, according to Vilma Učeta Duzlevska, CEO of Triglav Insurance Croatia. “We look for people who can adapt to rapid changes and strategies, as volatility is now a fundamental part of today’s business world,” she explained. Digital savvy is a must, she notes, but so is taking initiative – more often than not, just one motivated employee can uplift an entire team.

For digitally transformed companies, finding quality talent remains a major challenge, according to Renata Vujasinović, Country Director of Visa Croatia. She believes satisfied and goal-oriented employees make the best company ambassadors. “It’s crucial to strengthen teamwork while building a culture where success is both recognized and valued,” Vujasinović said. “But we must also ensure our expectations remain realistic.”

The new playbook for acquiring talent

Regional executives are having to navigate complex workforce dynamics, with traditional retention strategies showing diminishing returns.

At Triglav Insurance, Miss Učeta Duzlevska emphasises organizational culture shifts. “Creating a business culture that encourages education and new skills is essential,” she notes, pointing to a combination of financial and non-financial incentives as critical tools.

The challenges extend beyond compensation packages. Miss Vujasinović identifies a fundamental misalignment between corporate structures and workforce expectations. “Most young people today see themselves as future business owners,” highlighting a growing tension in traditional career development models.

Even state-affiliated institutions are adapting. Miss Vrviščar, from Slovenia’s postal service, describes the pressure on large organisations to attract talent capable of handling increased responsibility. The company’s recent AI agent trial for customer service operations is but the first step on the road to broader transformation efforts across traditional sectors.

SPIRIT Slovenia’s current strategic priorities rest on three pillars: competitiveness, innovation, and sustainability. The agency is dedicated to helping local businesses expand their international presence while attracting foreign investment. Collaboration is essential, as the agency works closely with various stakeholders to provide comprehensive support for entrepreneurs, especially in sectors that align with Slovenia’s development goals.

To stay relevant in a rapidly evolving global economy, the agency has adopted a proactive approach to adapting its strategies. SPIRIT Slovenia engages actively with businesses to understand their evolving needs and annually assesses interest in participating in international trade fairs and business delegations. In 2025, the agency will focus on a healthcare tradeshow in Dubai, a defence tradeshow in Abu Dhabi, connectivity in Barcelona, as well as exploring opportunities in the U.S. space industry and Germany’s logistics and food sectors. The agency has also set its sights on Asian markets, including China, Japan, and Vietnam, with EXPO Osaka being the key project for 2025.

Further expanding global outreach, SPIRIT Slovenia recognizes the importance of combining business and sports. The agency plans to host North Macedonian businesses and follow up with a Chinese delegation in the context of business events during the Ski Jumping World Cup Finals in Planica.

Regional growth

SPIRIT Slovenia is expanding its efforts to help Slovenian companies in the Adriatic region. New networking initiatives and business delegations are in development, and preparations are underway for EXPO in Belgrade in 2027. Business clubs in Croatia, Serbia, and the newly established one in North Macedonia are being leveraged to build deeper connections between Slovenian firms and regional partners.

The push to strengthen regional ties comes amid a decade of growing economic trade between Slovenia and its Adriatic neighbours. This growth reflects a more robust exchange of goods compared to 10-15 years ago, when trade primarily relied on traditional sectors. Technology, logistics, and sustainability now dominate cross-border trade, bolstered by improved infrastructure at the Port of Koper, which has made trade operations smoother and more efficient.

Despite the strong economic relationship, there remains room for improvement. Whilst Italy and Croatia dominate in trade and investment volumes, Bosnia and Herzegovina and Montenegro have balanced, though smaller, economic exchanges with Slovenia. Albania shows the weakest economic relationship but also the most potential for future growth. Trade volumes typically exceed investment levels, though Montenegro stands out where investment outpaces trade. This shift indicates growing recognition of Slovenia as a strategic business partner.

There is also untapped export potential in the region, particularly in medicaments, electrical energy, and motor vehicles. Medicaments consistently show the largest untapped potential in absolute value terms, underlining the importance of these sectors in further boosting Slovenia’s regional trade footprint. This aligns closely with the country’s broader strategy to attract foreign investment in high-value sectors.

Key sectors

According to the government’s Programme for the Promotion of Investments and Internationalisation, five key sectors are set to drive Slovenia’s economic growth: advanced automotive and mobility, electronic equipment manufacturing, smart and sustainable technologies, wood industry innovations, and sustainable tourism. The agency is targeting investors whose projects not only exceed the national average in added value but also positively impact the economic ecosystem, enhance workforce skills, and promote balanced regional development.

Slovenia’s push towards smart manufacturing and sustainability in these sectors is a key differentiator in its investment strategy. According to recent data, 32.8% of foreign direct investment (FDI) in Slovenia is in the manufacturing sector, including automotive parts and electronics. Financial and insurance activities account for 20.6% of FDI, whilst wholesale and retail trade (including vehicle repairs) represents 19% of Slovenia’s foreign investment.

This focus on manufacturing and sustainability is complemented by various investment incentives that make Slovenia an appealing choice for foreign investors. These include a favourable corporate tax rate of just 19%, one of the lowest in the European Union. With additional deductions for research and development, machinery investments, and strategic employment, the effective tax rate can be as low as 13%. Municipal incentives and grants for large-scale projects further enhance the appeal for foreign investors, with grants available for projects exceeding EUR 12 million in manufacturing and EUR 3 million for service or R&D projects.

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.”

So far this year, the police have received around 1,600 attack reports, amounting to €25.5 million in damages – nearing last year’s total. Companies and organisations are becoming increasingly aware of the importance of data security. When the University of Maribor was attacked, one of the first questions raised was whether their data had been compromised and who had access to it, explains ethical hacker Milan Gabor. “We have two types of organisations: regulated ones, such as banks and insurance companies, which must ensure data security and have well-established systems for protecting data.”

Small and medium-sized enterprises, adds gabor, are also attractive targets due to their valuable data, but often have weaker protections. Gabor highlights the so-called rebound attack, where hackers target someone who collaborates with a large company or financial institution and has weaker security, thus gaining access to their data. This, in turn, provides hackers with easier access to the source code of large organisations.

Thorough reviews must be a constant

Gabor argues that vulnerabilities are compounded by the growing range of services developed by companies, which increase the likelihood of data theft. He emphasises that greater data accessibility also brings higher risks of attack, especially with the rapid development of new technologies. Therefore, it is crucial for companies to conduct regular, thorough reviews. Investment in infrastructure is key, and this is often driven by incidents. “When an attack happens and it hits the headlines, investment increases, but then it drops again until the next incident. That’s why companies must continuously invest in cybersecurity,” Gabor advises.

At the Slovenian Sports Lottery, which primarily organises sports betting, data is used for analysis, business optimisation, and strategic decision-making. Unstructured data is processed and transformed into valuable information, according to director of IT and technology, Jani Ravas. Contrary to popular belief, most data doesn’t come from football but from tennis, with up to 1.3 million data points per hour, he reveals. The risk with such data is that it could be breached, altered, and exploited for profit. As a result, the company handles data carefully and responsibly, ensuring secure processing, say Ravas. When it comes to personal data, player safety, privacy, and responsible usage are top priorities.

According to Ravas, users are increasingly aware of the importance of data security noting that younger people are less hesitant to share their data, while those over 30 tend to ask why certain information is needed. “Some users are extremely security-conscious, sending data in compressed files or passwords up to 15 characters long, showing that they really understand data security.” To protect this data, the Sports Lottery uses advanced security measures, including two-factor authentication, and collaborates with payment systems like Flik to ensure comprehensive protection. They encourage users to verify security codes, understand privacy policies, and be aware of their rights. The data is stored in various secure locations across the country.

New types of protection

Cybersecurity has become one of the key issues in the corporate world. “Passwords are the gateway to our digital identities and, consequently, a (trove of) vast amount of data. Microsoft and other major operators are moving increasingly toward digital credentials, which will allow us to verify our identity before accessing data,” Gabor explains, adding that the awareness process will be gradual. As users acquire new knowledge and digital skills, trust in institutions that hold our data – such as governments, banks, and healthcare organisations – will grow. This process will take time, and the government must take the lead. This will, in turn, increase overall security, according to Gabor.

While technology advances and threats evolve, the key question remains how users will assess the credibility of digital data and content. Gabor highlighted the dangerous discrepancy between the digital and real world and the often excessive trust in it. “Passwords lead to our digital identities and consequently to large amounts of data.” He added that the awareness process will unfold gradually and that the state must drive it forward.

Many companies are still seeking a balance between digitalisation and data security, but Športna Loterija represents an example of a successful approach to managing user data. “Our company receives very positive feedback, as players consistently express trust in our security policies and data management,” explained Jani Ravas, Director of IT and Technology. The company builds user trust on multiple pillars, from proactive security policies with regular security audits and certifications per international ISO 27001 and ISO 9001 standards to implementing advanced technological solutions such as data encryption and two-factor authentication.