How are Nordic defense organizations securing people capabilities

Nordic defense organizations face growing workforce demands and securing people capabilities is critical to translating ambition into readiness.

In brief

• Nordic defense organizations face growing demands due to a shifting security landscape, geopolitical uncertainty and increased defense spending.
• Securing the people and skills needed to meet these demands is becoming a strategic challenge across the Nordic defense sector.
• A new EY report identifies shared Nordic workforce challenges and five areas that can help organizations strengthen people capabilities and readiness.

Geopolitical tensions and increasing uncertainty continue to reshape the global landscape and drive defense spending across the Nordics and wider Europe. In turn, approximately 130,000 additional jobs will be needed across the Nordics, increasing the pressure on defense organizations to attract and hire personnel, build critical skills, retain and renew personnel as well as enable the defense workforce¹. This report explores how Nordic defense organizations are working to secure the people capabilities required to meet the current and medium-term needs over the next three to five years. People capabilities refer to the skills and organizational capacity required to sustain performance.

The report is based on a qualitative study conducted across Denmark, Finland, Norway and Sweden. Insights have primarily been gathered through interviews with organizations that play an important role in the Nordic defense ecosystem, including both public authorities and private sector companies. The ambition with the report is to contribute to a more informed discussion on how Nordic defense organizations can strengthen and in the long term build their people capabilities and create the conditions required to meet future defense demands.

Nordic findings: people capability patterns shaping Nordic defense

The Nordic findings are structured across four key areas: attract and hire, build critical skills, retain and renew, and enable the workforce. The findings below highlight the main patterns identified across the Nordic countries.

Attract and hire
Candidates show growing interest in contributing to national security and defense. Long recruitment processes, with security clearances, limited role transparency and unclear career paths slow conversion from interest to hiring.

Build critical skills
Advancements in digital technology and AI are reshaping workforce requirements and driving demand for specialized skills in areas such as AI, drone systems and advanced defense equipment. Securing these skills is a challenge due to labor market competition. While many organizations invest in development, closing skill gaps requires time, structure, and prioritization for employees to engage in development in practice.

Retain and renew
Retention is strongly supported by purpose and work stability but is uneven across roles and constrained by unclear career paths and limited internal mobility, primarily in public defense organizations, and competition with other sectors, especially for specialized roles.

Enable the workforce
Fragmented systems and security requirements constrain organizations’ ability to plan workforce needs, forecast gaps and use workforce data proactively. Furthermore, limitations in physical spaces, restricted remote work conditions and lack of digital collaboration tools create friction in how employees work.

Direction: from ambition to readiness in securing Nordic defense people capabilities

To increase defense readiness, prioritize five areas:

1. Strengthen strategic workforce planning around skill needs.
2. Broaden learning investments utilizing the wider ecosystem.
3. Clarify career paths and internal mobility opportunities.
4. Leverage digital technology and AI as enablers.
5. Enable modern work experience.

The organizations that act now — with clear workforce planning, investment in critical skills, deep ecosystem collaboration, clear and compelling career opportunities, integrated technology foundations and a modern work offering — will be better positioned to convert defense ambition into readiness.