The relationship between public administration and the real sector is interdependent, requiring both to work together to strengthen and adapt to modern demands, functioning as partners who provide mutual support and contribute to sustainable development and societal progress.
This was emphasized during the panel “Public and Private Sector – Rivals or Not?” at the “Human Capital Development 2025” conference, organized by the Montenegro Foreign Investors Council (MFIC) and the Chamber of Commerce of Montenegro.
Agron Camaj, Director of the Human Resources Administration, highlighted the need to redefine the attractiveness of public administration as an employer in light of social and economic changes. Traditionally, public sector jobs are seen as stable with secure conditions and benefits, but rapid information flow now poses new challenges. He acknowledged that while public administration offers financial stability, it must overcome misconceptions that government employees do not work hard, pointing to his team’s dedication.
Camaj noted that the Human Resources Administration does not independently hire staff; recruitment requires approval from the Ministry of Finance and the Government. In 2023, there was an increase in candidates for public sector positions. He also stressed that public sector job openings are accessible to private sector professionals, who often serve as trainers for government employees, facilitating knowledge transfer.
Žarko Radulović, co-owner of Montenegro Stars Hotels and President of the Montenegrin Tourism Association, argued that many young workers prefer public sector jobs due to less pressure and a comfort zone. However, he criticized inefficiency, citing that three workers often share one public sector position, leading to stagnation and quality decline. He pointed out a significant increase in public sector employment over the last five years, with the current situation worsening.
Radulović claimed there is no genuine public-private partnership due to lack of goodwill, collaboration, and meritocracy, accusing politics of dominating decisions. He described private entrepreneurs as system “enemies” who pay all obligations but receive little state support, leading to a likely future where foreign workers outnumber locals due to better work discipline.
David Perčobić, Director of the Employment Agency of Montenegro, reported a drop in unemployment to 9.91%, a major achievement. Yet, he highlighted severe labor shortages, especially in coastal and central regions, with near-zero unemployment in Budva, Kotor, and Tivat, and only about 4% in Podgorica. The northern region faces tougher challenges, with many relying on social welfare.
Perčobić emphasized the need for systemic reform and better educational policies to align youth skills with market needs. Notably, the hospitality and tourism sector saw 600–700 fewer job postings in the first half of the year compared to last year, despite employment growth—indicating a mismatch in labor qualifications.
The Employment Agency actively collaborates with employers to hire candidates before unemployment registrations and provides career guidance for youth. Perčobić agreed with Radulović that success hinges on joint efforts between the private sector and government institutions, but warned that systemic issues require urgent, not decade-long, solutions.
Balša Čavlović, CEO of QBIK, stressed that the public and private sectors should act as partners supporting each other. He argued that to determine if they are rivals, the rules of engagement must be equal. Currently, private sector employees face high expectations for productivity and accountability, while the public sector often employs more staff than necessary without proportional output, creating inefficiencies.
Čavlović highlighted the unsustainability of increasing public administration staff without productivity gains, contrasting this with private sector efforts to retain skilled workers through training and advancement. He called for curbing abuses like unjustified sick leaves, which undermine discipline and efficiency.
He warned that hiring extra staff merely for statistics may yield short-term benefits for employees but harms the economy and workforce skills long-term. Raising the value of labor and education across both sectors and supporting private business growth are crucial for overall progress.
The discussion followed a presentation by Srđan Vukčević, Executive Director of Blue Coach, who noted that many current leaders lack long-term effectiveness, with only a few combining rapid advancement and sustained team success. He highlighted regional leadership tendencies towards social belonging, ambition, arrogance, and micromanagement, warning against “status cheating” and the pressures of leadership in unstable environments.
Vladimir Vulić, President of Digitalizuj.me, spoke on leadership in the digital age, comparing today’s business environment to racing in extreme rain conditions. He emphasized that managers cannot afford delays or mistakes, as shown by record CEO turnovers in 2024. Investing in people is no longer optional but essential.
Vulić criticized outdated organizational models and management principles that have not evolved for over a century, limiting innovation and adaptation. He asserted that future leadership requires abandoning obsolete ideas and courageously developing new business models to succeed.
