Problems filling vacancies in Lithuanian companies

In 2006, the Institute of Labour and Social Research conducted a survey on labour force demand and the problems of filling vacancies in Lithuanian companies. The questionnaire-based survey of employers in the capital city, Vilnius, aimed to identify specific problems in this regard. The findings revealed that the main reasons for vacancies not being filled include low wages, insufficient practical skills and qualifications of jobseekers, as well as emigration.

About the survey

In 2006, the Institute of Labour and Social Research (Darbo ir socialinių tyrimų institutas, DSTI) carried out a survey on labour force demand and the problems of filling vacancies in Lithuania. The Lithuanian Labour Exchange (Lietuvos darbo birža, LDB) commissioned the survey, which aimed to identify the specific challenges that employers have been experiencing in filling vacancies, as well as the reasons for staff turnover in Lithuanian companies.

In terms of population sample and methodology, 150 employers from the capital city, Vilnius, were directly interviewed in answering the survey questionnaire. About one third (30.4%) of the employers surveyed belonged to the wholesale and retail trade sector and another third (31.8%) represented other services such as transport and warehousing. Some 17.6% of the respondents belonged to the construction sector, 16.9% represented industries and 3.4% were in the agricultural sector. The majority of employers surveyed (58.5%) had 10–49 staff.

Main findings

Problems in filling vacancies

The survey revealed that most Lithuanian employers face problems in filling vacancies in one way or another: 14% of the respondents stated that they regularly faced difficulties, 49.3% experienced it relatively often, 29.3% rarely encountered problems and, for 7.3% of the responding employers, this question was irrelevant.

In the majority of cases, job vacancies in the companies surveyed arose as a result of the voluntary resignation of employees (72.5%); dismissals accounted for a significantly smaller proportion (37.5%). Some 14.2% of the employers reported that they had difficulties in filling their existing job vacancies. In most cases, the employers faced problems in filling vacancies for sales assistants, auxiliary workers, cooks, builders and tailors.

Main reasons for staff turnover

According to the employers surveyed, the main reasons for staff turnover included insufficient loyalty of employees – namely, they moved to other companies – in addition to the employer not being able to pay wages that were high enough to retain employees. These answers were chosen by 46.2% and 44.1% of the respondents, respectively. Employees’ migration to foreign countries was somewhat less frequently mentioned by the employers as a reason for staff turnover (37.2%) (Figure 1).

Main reasons for staff turnover at the companies surveyed, as indicated by employers (%)*

Note: * More than one option could be chosen for an answer.

Source: DSTI, 2006

Main reasons for staff turnover at the companies surveyed, as indicated by employers (%)

Problems at company level

Among the main reasons behind difficulties in filling job vacancies quickly, 50% of the responding employers indicated wage-related problems in their companies, notably employees being dissatisfied with their wages. Insufficient practical skills and qualifications of jobseekers, as well as employees’ migration, were also frequently cited difficulties. In total, 38.7%, 38% and 37.3% of the employers, respectively, identified these issues as a reason for facing problems in filling job vacancies. Two other reasons which were relatively frequently mentioned by the employers were poor career motivation of jobseekers (21.1%) and a mismatch between labour supply and demand (19%). Non-conformity of graduates from training establishments to meet the economic needs of the country was mentioned considerably less often, by as few as 8.5% of the responding employers (Figure 2).

Reasons for vacancy-filling problems at company level, as indicated by employers (%)*

Note: * More than one option could be chosen for an answer.

Source: DSTI, 2006

Reasons for vacancy-filling problems at company level, as indicated by employers (%)

Ways of filling vacancies

In order to fill job vacancies, 86.7% of the employers surveyed apply to regional labour exchanges, 61.3% place job offers in the press, 37.3% notify colleagues and other employers, and 10.7% use private employment agencies. Every second responding employer indicated that they had sufficient information about the specialist personnel who meet the requirements of job vacancies; 46% of the employers reported that this information was sufficient in part and 4% stated that it was insufficient.

Among the preferred ways of receiving information about specialists who fit the requirements of a company’s specific economic activities, responding employers mentioned communication through electronic media in most cases, such as information by phone (50.8% of the respondents), e-mail (44.4%) and internet (39.7%).

Rasa Zabarauskaite, Institute of Labour and Social Research (ILSR)