A recent Dutch Chamber of Commerce (KVK) survey shows that entrepreneurs are struggling with staff shortages in 2023.
‘Entrepreneurship in 2023’, was a survey of 1,400 entrepreneurs, 685 of whom are SMEs (Small to Medium Enterprises) with staff. In the survey, they shared experiences such as: “No chance of finding staff”, “Shortage of staff inhibits turnover” and “Succession for retiring staff cannot be found”.
The situation is particularly dire among entrepreneurs with 10 or more employees. 54% of them are currently looking for new people, another 23% expect to have to look for them in the next six months. Among entrepreneurs with 2 to 9 employees, 15% are looking now and another 12% expect to have to recruit in the coming months. Of all entrepreneurs looking for employees, 92% find it difficult or very difficult.
KVK entrepreneurial advisor Gé Gijsen, also speaks to many smaller entrepreneurs who find themselves in big trouble: ‘I just put down the phone after talking to a man who has a car repair business. He has a big job and it has to be finished next week, but he can’t find a bodyshop with any possibility. Together we looked at possible solutions. It’s just really difficult.’
Broad staff shortages
Gijsen explains the shortage further: ‘It is mainly about people who can work with their hands. Mechanics, plumbers, people in refrigeration, central heating installers, those professions. But also in healthcare of course, and anything else to do with automation and ICT. But also people who can do the work in, for example, distribution centres and catering, there is a great shortage of those too.’
More than half (55%) of all SMEs with 10 or more employees mention staff shortages as a major social development affecting their business operations. Subsequently, half of this 55% indicate that this will cause (very) big problems. In total, staff shortages are thus problematic for a quarter of all SMEs with 10 or more employees.
Among SMEs with 2 to 9 employees, 26% state that staff shortage is a development affecting the business. This leads to (very) big problems for 40 per cent of them. So here the total is 1 in 10 SMEs with 2 to 9 employees. One of them: “Employee quit. I have to do all the work by myself and am thus shrinking.”
Wage costs
Another important development for entrepreneurs with 10 or more people on the payroll is higher labour costs. 71% of them tick this, and of these, 38% state that these costs are causing (very) big problems. Overall, then, higher labour costs are problematic for almost three in 10 SMEs with 10 or more employees.
Among SMEs with 2 to 9 employees, 26% call this development important and for 39% of them, a total of one in 10, it causes major problems. For example, one of the entrepreneurs in the survey wonders “how do we get good skilled workers without having to pay a huge amount for them”.
Cocktail of setbacks
Staff shortages and rising wage costs are part of a bigger picture, the survey shows. Entrepreneurs give concise summaries of the cocktail of setbacks they are currently facing: “Rising energy prices, rising raw material prices and higher labour costs” and “Costs are skyrocketing. Revenues are falling due to lagging tariffs and staff shortages, among other things.”
Still positive
Despite acute staff shortages, entrepreneurs are generally positive about how their businesses are doing, with 7.5 as the average rating. Last year, the figure was 7.2. Especially the business services and retail sectors are more positive.
Source & more information (in Dutch):
https://www.kvk.nl/pers/kvk-ondernemers-zuchten-onder-personeelskrapte/
Image: https://unsplash.com/photos/a-group-of-people-in-black-shirts-standing-in-a-room-IYLL5obdJhY
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