Integration of foreign workers into the Icelandic labor market

With the election approaching, it will be interesting to follow the parties' policies on this issue. For example, could we offer an incentive system or tax breaks for companies that demonstrate active integration and training? It is our social responsibility to support immigrants in the workplace and ensure that we treat all our employees equally.

The Organisation for Economic Co-operation and Development (OECD) recently conducted a study on the status of immigrants in the Icelandic labour market. Immigrants play an important role in the Icelandic labour market, currently accounting for around 25% of the country’s workforce. Their number has increased proportionally the most in Iceland over the past decade of all OECD countries, and they occupy low-wage jobs here. The study also shows that proficiency in the Icelandic language has a major impact on their position in the labour market, and that 50% of them plan to settle here.

New challenges

The increase in immigration has led to new challenges in Icelandic society and for Icelandic workplaces. Immigrants often face obstacles in adapting to the culture and workplace, which can lead to increased social inequality and isolation. It is therefore important that the government, society and workplaces help to facilitate the integration of immigrants into Icelandic society.
These challenges require a new approach to management and human resources. It is important that we work together on solutions that help immigrants integrate into Icelandic workplaces, feel welcomed, and have the same opportunities. With the growing number of foreign workers, it is important to adapt and explore new approaches to issues related to inclusion, diversity, and understanding of foreign worker issues.

What can companies do?

Companies can start by opening up a conversation and getting managers to think about different cultures and the needs of employees of foreign origin. At the same time, it is equally important to increase foreign employees’ understanding of the Icelandic labor market and culture.
Workplaces can ask themselves whether they are providing foreign employees with the same services as domestic employees? Is the recruitment process the same, welcoming new employees, career development opportunities and education? Do foreign employees get opportunities for employee interviews and information about company events? What is the company’s policy regarding integration and diversity?
If Icelandic companies are to attract qualified employees, it is important that they offer Icelandic language training to foreign employees during working hours, along with education about the company and Icelandic workplace culture. It is also important that domestic employees are offered education about different cultures and the company’s policy on integration. Such education can increase understanding and empathy in the workplace, which contributes to better collaboration and a more positive work environment. Workplaces can also explore how technology, such as electronic communication channels or educational arrangements, can support integration and make it easier for them to adapt to the workplace.
With the election approaching, it will be interesting to follow the parties’ policies on this issue. For example, could we offer incentives or tax breaks for companies that demonstrate active integration and training? It is our social responsibility to support immigrants in the workplace and ensure that we treat all our employees equally. These actions would not only support the integration of foreign workers, but also increase welfare, cohesion and diversity in the Icelandic labor market.

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