European companies face severe talent crunch
Slovenian and Croatian companies will face severe labour shortages for at least another five to ten years, with demographic challenges, educational mismatches, and shifting workforce expectations exacerbating the crisis, according to experts at a ISR’s regional business forum in Zagreb.
The Adriatic Team
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.