The unemployment rate in Croatia in December 2017 was equal to 12.2 % (Croatian Bureau of Statistics, 2018). However, problems with finding workers in Croatia have been increasingly reported by employers and the media in the last few years. There are many factors contributing to the labour shortages in Croatia: shrinking and ageing population, net emigration, locational and skill gaps and increased demand for labour in recent years. Addressing labour shortages is a key managerial challenge that must consider the unique characteristics of an organisations labour market. This study explores the cultural and social characteristics of the Croatian labour market that impact the selection of workforce management strategies, with the central research questions: How do Croatian manufacturing companies address the challenges of workforce shortage? What workforce management strategies are most effective in the Croatian context? In answering the central research questions, a mixed-method approach was used, which included interviews with managers and a survey of Croatian manufacturing companies. The gathered data identifies their point of view on the following topics: causes, consequences and assumptions about future trends of labour shortages. Furthermore, frequency of use and success of different strategies is evaluated. The suggested strategies can, to some extent, be applied in other industries and other countries. The interviewed employers have also suggested many ways in which the Croatian government could help them deal with labour shortages.