Rheinmetall is entering Lithuania: what will this mean for employers in the region, should they be worried?

Businessin 2024 May 7 12:23 p.m

EIMIN photo.

StagesSource: Press release

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As German defense industry giant Rheinmetall is considering building an artillery ammunition factory in the Radviliškis district, the company will inevitably have to fight for employees. However, the National Survey of the Working People of Lithuania shows that the employees of the region are satisfied with their work and do not intend to change it. So what strategy should Rheinmetall choose and how can regional employers maintain their competitiveness?

According to Živilė Valeišienė, director of WitMind, a company that researches the competitiveness of employers, the competitiveness of employers in the manufacturing sector of Šiauliai County is not only equal to the national average, but also slightly higher than it: “It is surprising that the competitiveness of employers in the region’s manufacturing sector is comparable to such highly quoted sectors as finance and energy. In addition, our data shows that the majority of workers in the sector do not intend to change jobs in the coming years. However, the index indicating whether the employee would work again in the same place where he works now is lower than the national average. And this means that people, although they are quite satisfied with their work, are not emotionally attached to the company and would consider changing if a better offer came along,” shares Ž. Valeišienė.

What makes Rheinmetall different?

The National Survey of Lithuanian Employees conducted by the company that researches the competitiveness of employers, during which 3,322 respondents were interviewed throughout Lithuania, thus ensuring a statistically reliable sample in 9 sectors of the labor market, shows that the most important functional benefits for employees in the region are salary, monetary bonuses and optimal workload. The importance of all these functional benefits to employees in the region is higher than the market average.

“Employees of the region’s manufacturing sector value functional working conditions well – many of the most important indicators for employees are met and rated higher than the market average. However, there are values ​​that could strengthen the competitiveness of the region’s employers and, at least for now, it seems that they are not being used in the fight for employees”, says Ž. Valeišienė.

According to her, the most important emotional benefits for workers in the manufacturing sector in this region are respect, the company’s honesty towards employees and the evaluation of employee achievements. Performance on all these values ​​lags behind the market average.

Although the situation is average in terms of emotional benefits, employees in the sector rate the reputation of their employers very highly and the fact that the company employs many professionals. Therefore, the manufacturing sector in the region looks quite competitive in terms of emotional benefits, although the indices are not high. This is because the indices of other sectors, even such as finance or energy, which usually lead in other regions, are not high.

“Employers in the manufacturing sector of the region can also be happy that their employees are proud of their employer, and pride is a very strong indicator of emotional attachment. Among the most proud aspects are the fact that the companies of the region promote Lithuania abroad, the safety of employees is ensured, and environmental requirements are properly implemented. Of course, this is not applicable to all employers, but these indicators among production companies are much higher than the national average,” the expert shares.

Regional companies should not rest on their laurels

An exceptional situation is in the field of environmental protection. Environmental protection is very important to the workers of the sector in the region, while in many other sectors this value is relatively low. Employees of the region’s manufacturing sector highly appreciate how employers fulfill the environmental protection theme – the manufacturing sector has the highest index among all sectors in the region, it surpasses even energy, the state, banks, education and others.

Equal opportunities are very important to regional production workers. The social inclusion importance index among these workers is one of the highest among all sectors. Unfortunately, the implementation of inclusion is rated very poorly by the people, with this index being the lowest among all sectors in the region. This indicates that some people face discrimination in the sector.

“Employers in the region do a good job of providing functional benefits to their employees. In addition, employees are proud of their employer, and proud employees are extremely difficult to lose. Therefore, the German giant Rheinmetall will have to try hard to lure employees from other companies in the region. This will require a strategy. However, regional employers should not rest on their laurels either. Companies in the region’s manufacturing sector have serious competitive gaps, which, if filled, could lead to the loss and shortage of employees,” adds Ž. Valeišienė.

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