In a rapidly evolving job market, North Macedonia faces significant workforce development challenges, primarily driven by skills mismatches, demographic trends, and the changing demands of industries. The recent HU-CA-Thon report, spearheaded by Darko Petrovski, Founder of the Talent Business Incubator StepUp and President of the Macedonian Human Resources Association, sheds light on key talent acquisition and retention trends. This article explores how enterprises, vocational education, and innovative HR practices are shaping the future of workforce development in the region.
Understanding the Workforce Challenges
According to the HU-CA-Thon report, 70% of companies in North Macedonia struggle to find a qualified workforce, while 30% have found effective solutions.
“Contrary to popular belief, there is no shortage of workers in North Macedonia,” says Darko Petrovski. “The real issue lies in the mismatch between available skills and job market demands, as well as a lack of mobility within the formal labor market.”
The rapid pace of technological development, shifting business environments, generational changes, and negative demographic and migration trends exacerbate these challenges. The need for a stronger link between education and employment is evident. Additionally, with the global economy evolving rapidly, local businesses must find ways to adapt and remain competitive by attracting and retaining top talent. Many industries in North Macedonia are already feeling the impact of automation, requiring employees to develop new competencies to stay relevant in the job market.
Dual VET: A Key to Addressing Skills Gaps
Dual vocational education and training (VET) is proving to be a powerful tool in aligning workforce skills with industry needs.
“Trained students are what every employer seeks. Dual VET ensures that young people gain real-world experience, making them immediately employable in roles aligned with their studies,” Petrovski explains. He recalls his own experience with a similar system in the former Yugoslavia, which effectively prepared skilled workers for both local and international markets.
To strengthen the link between education and employment, enterprises need to play a more active role in shaping VET programs. This includes tailoring curricula, providing necessary equipment, hosting guest lectures, and organizing practical training sessions in company premises. Programs such as apprenticeships, internships, and scholarships are crucial in ensuring that students develop relevant skills and are ready for the job market.
Furthermore, businesses that actively participate in educational development tend to benefit from a pipeline of highly skilled workers who are familiar with industry-specific processes and expectations. Schools and training centers must work closely with enterprises to continuously update curricula, ensuring that students learn the latest industry trends and technological advancements.
Petrovski emphasizes that “by working hand in hand, companies and educational institutions can create a seamless transition from learning to employment.”
Innovative Talent Acquisition Strategies
The report highlights how successful companies in North Macedonia have adapted their hiring practices beyond traditional job advertisements.
“Companies that thrive in talent acquisition are those that proactively engage with candidates through social media, job fairs, and collaborations with universities,” Petrovski states.
Platforms like LinkedIn and Instagram have become key tools in reaching potential employees, alongside structured internship programs that introduce students to real work environments early on.
One standout example is StepUp’s scholarship program, which has been successfully sourcing, recruiting, and developing top talent for seven years.
“We ensure that students graduate with not just academic knowledge, but also the business and soft skills necessary to quickly become key employees and future leaders,” Petrovski confirms.
Additionally, companies must leverage employer branding strategies to attract top talent. Candidates today prioritize workplace culture, professional growth opportunities, and flexibility. Organizations that showcase these attributes through digital platforms and networking events gain a competitive edge in the job market.
Retaining Skilled Workers: The Role of Corporate Culture
The report underscores that “people don’t leave companies, they leave bad work environments.” To retain talent, companies must invest in positive corporate cultures that extend beyond salary packages.
“Employee satisfaction hinges on workplace flexibility, good communication, and professional development opportunities,” Petrovski notes.
Modern retention strategies include:
- Performance-based rewards that go beyond fixed salaries.
- Non-cash benefits such as private health insurance and childcare.
- Career development opportunities through mentoring and coaching.
- Investing in leadership skills and replacing outdated management styles with supportive, team-oriented approaches.
Moreover, fostering a sense of purpose within the workplace is key. Employees who feel that their work contributes to a meaningful cause are more likely to stay loyal to their organizations. Companies should encourage open communication, provide platforms for feedback, and cultivate an environment that values employee contributions.
“If we want to keep young talent, we need to provide more than just a job—we need to offer a career path that is engaging, challenging, and rewarding,” Petrovski asserts. Organizations that fail to nurture employee engagement risk higher turnover rates and lost productivity.
The Future of Workforce Development in North Macedonia
The next five to ten years will see continued shifts in workforce development strategies.
In near future Petrovski predicts that “companies will need to invest more in training and upskilling their employees, as many current roles will evolve due to technological advancements.” In this regard the report highlights modern learning methods, including microlearning and learning circles, as effective tools for ongoing employee development.
In addition, lifelong learning will become a key component of career success. Professionals will need to continuously enhance their skills to keep pace with digital transformation and new industry demands. Employers should integrate continuous learning opportunities into their business models, offering employees incentives for completing training programs.
For companies and educational institutions looking to strengthen their talent pipelines, Petrovski offers this advice: “Always discuss challenges openly, listen to each other, and collaborate strategically. The youth is our future, and our investment in them today will determine the success we achieve tomorrow.”
By embracing dual VET, innovative hiring practices, and employee-centered retention strategies, North Macedonia can build a more resilient workforce, better equipped to meet the demands of a dynamic and competitive labor market. The key to long-term success lies in collaboration, adaptability, and the commitment to continuous development. If stakeholders work together, the workforce of North Macedonia can thrive in the face of change.
The HU-CA-Thon report was developed by a group of over 50 human resources professionals from more than 20 Macedonian companies and was supported by the Macedonian Human Resources Association, the bilateral chambers of commerce of Austria, Belgium, Bulgaria, UK and the Netherlands and the OEMVP Northwest Chamber of Commerce and four socially responsible companies Sparkasse Banka, Replek, Teleperformance and Uni Banka. The full HU-CA-Thon report can be requested here.
