Jakob Riis: If we look beyond COVID-19, what key strengths do you consider important and which areas need to be further improved to sustain Denmark’s competitiveness?
Claus Jensen: Despite recently published numbers for the Danish productivity and exports, which showed a positive development, I have to point out that the public approach to new technologies is completely wrong. It should be considered a means to increased productivity, to efficiency gains, and to moving the workforce up the value chain. That is the case in the private sector, where new technology is (mainly) successfully introduced, supported by necessary training of the workforce and joint effort by the employer and employees. However, that is not the case in the public sector. It seems almost like an obstacle that has to be “managed” or avoided. The key issue is the lack of support and motivation from the public sector as an employer and the focus on the joint effort between the employer and the employees. Without this, it will never succeed. That is a shame. I think, because we miss out on all the benefits previously mentioned. This is obvious in the care sector: Why haven’t we installed automatic flush bidets at the hospitals and at rest homes? I know it is a low-tech example – but also a low-hanging fruit. I am sure that the employees would also consider this a positive development of their daily tasks, leading to a higher job-satisfaction and engagement and in the end a reduction in sick leave. When more technology is applied, I am sure this will have positive effect in the private sector as well. Increasing demand for smart solutions, more fruitful Public-Private Partnerships, joint responsibility for constantly developing employees to future demands, etc. I heard about private technology/robot companies giving up on selling to the public sector as it is too cumbersome.
Adding more labor will increase costs and is therefore not a sustainable option. Different thinking is needed. Innovative thinking.
Jakob Riis: What would it require to change this?
Claus Jensen: A change of mindset. The public sector would in many ways benefit from applying the thinking of an exporting company, also in other areas than technology. More than half of the nurses worked less than fulltime in 2018 in a period with a shortfall of this workforce. In 2019, every 7th nurse was working in the private sector. Something has to be done. Add the expected increase in healthcare expenses due to change in demographics and diseases. In 2019, OECD projected the health spending to outpace GDP growth in 2030. Adding more labor will increase costs and is therefore not a sustainable option. Different thinking is needed. Innovative thinking. Having said that, I do think Denmark has an image-problem that hinders attraction of foreign labor and we need to do something about this, too.
We need to take a closer look at our educational system and ask ourselves if the conditions for vocational adult education and training are good enough.
Jakob Riis: Thanks Claus – very clear. Do you have an additional piece of advice?
Claus Jensen: Yes, in order to ensure that our workforce stays relevant, I think we need to take a closer look at our educational system and ask ourselves if the conditions for vocational adult education and training are good enough. According to a 2019-report from The European Commission, the participation in adult training is at a high level, but also a larger share of proportion of low-educated adults need further training. I think we should open up for more of this, as it will ensure a better readiness for the future ways of working. I think this is the employer’s responsibility, but the right conditions must be there.
Jakob Riis: So, if you were to summarise with a piece of advice to the Danish Government on how to strengthen our competitive advantage, what would that be?
Claus Jensen: To strengthen our competitiveness, I would provide the following advice:
- Apply innovative thinking (incl. use of technology) in the public sector. This will create ripple effects.
- Rethink the system for adult education in order to ensure a workforce in constant development.
- Improve Denmark’s image to attract foreign labor.
And my last piece of advice is actually to the CEO’s: Keep raising your voices in the public debate. It is important and it leads to changes necessary for us to stay competitive.
