Human Resource Challenges in Albania

Human Resource Challenges in Albania

Technology advancement and competitiveness create the need for readjustment of human resource in business. Meanwhile updated human capital serves to enhance productivity, innovation and competitive advantage.

Where does Albania stand? 
Based on the “Extent of Staff Training” sub index, Albania holds an average above mean 4.00 meaning that on a range 1-7, (1 = not at all, 7 = to a great extent) companies invest on training and development of human resource.
Another challenge for companies, is the ease of finding skilled workers fitting their requirements. According to World Economic Forum, “Ease of finding Skilled Employees” sub index is below the averaged mean with 3.7 on an extent to 1-7 (1 = extremely difficult, 7 = extremely easy). Although the situation lies better compared to Turkey, Serbia and Macedonia. 


The recent trend preferred by companies is hiring foreign labor force due to international component, knowhow, language proficiency and package of skilled required. Surprisingly Albania is positioned 6th among 141 countries leaving behind many developed countries in terms of Labor Regulations that support foreign labor get hired in Albania. What remains a struggle for human resource is the proportionality of pay with labor productivity. Currently Albania is positioned above the mean with 4.4 based on “Pay and Productivity” sub index, having above Macedonia FYR and leaving behind Bulgaria, Romania and Montenegro.

Empirical results show that according to this sub index, Albania is in 32nd place compared to Germany 39th and Luxembourg 42nd among 141 countries. The issue underlined is that in well developed countries HDI (Human Development Index) and Standard of Living and Technology Advancement are high, imposing by default a higher wage that doesn’t necessarily reflects employee’s productivity.

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