More Dutch businesses trying to combat staff shortages with AI over wage hikes

Almost two-thirds of companies in the Netherlands are struggling with staff shortages. That is roughly the same as last year, but entrepreneurs are dealing with it differently. Nowadays, more companies are turning to automation, for example, through robotization or artificial intelligence (AI) rather than hiking wages to attract and retain staff, Statistics Netherlands (CBS) reported, based on a study conducted with the Chamber of Commerce (KVK), the Economic Institute for Construction (EIB), and business organizations MKB-Nederland and VNO-NCW.

In total, 64 percent of companies have vacancies that they are unable to fill. Of these, about 30 percent indicate that their main approach to combat this is automation. Last year, being an attractive employer was the main approach. Now, that applies to only a quarter of companies, particularly those in the construction industry.

Large companies with 250 people or more and companies in the information and communication sector are most likely to automate. Entrepreneurs in almost all sectors are focusing more on this. It occurs less frequently only in the culture, sports, and recreation sectors. Among small companies with five to 50 employees, making the work environment more attractive remains the most important measure.

According to CBS, due to the persistently tight labor market, entrepreneurs are also increasingly focusing on improving labor productivity. Over three-quarters of entrepreneurs say they are taking measures to increase productivity, particularly in large companies. Investments in technology and automation, and the implementation of more efficient processes, are the most popular interventions.

Companies also indicate that economic uncertainty hinders them from increasing productivity. Insufficient staff, high costs, and a lack of innovative solutions are also obstacles.