A fifth of SMEs expect turnover to fall this year due to a large staff shortage. This is shown by the business monitor of the insurance company Interpolis. In addition, almost twenty percent of SMEs expect the number of labor disputes with employees to increase in the coming year. ‘There is a vicious cycle,’ says Annette Kranenborg, Business Manager at Interpolis.

Vicious circle

There is a personnel shortage in many sectors and SMEs feel this in their wallets. Turnover decreases when staff are absent while costs rise. Kranenborg recognized the vicious circle. ‘We see that personnel shortages and personnel losses play a major role in the expected decline in turnover among employers.’

At the same time, the trust of manufacturers, the trust of SME entrepreneurs, is not bad. “Employers are very hopeful about 2023 and their opportunities,” said Kranenborg. But the demand for more staff is high and many employers are therefore committed to recruiting new workers. According to Kranenborg, it is not easy.

Higher salary

In addition, the challenge is not only finding new recruits, staff must also be maintained. Inflationary pressures require higher wages, which must be paid if you are to retain staff. Kranenborg saw that some employers increased wages partially or completely.

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‘We also see that entrepreneurs have creative solutions to these problems. For example, some SMEs compensate partly in salary and partly in allowances for the year,’ said the Business Manager at Interpolis.

But not every businessman is financially capable of taking such actions. ‘Employers who are unable to do so should pay close attention to work processes, planning, insights and supply and demand in the short term,’ advises Kranenborg. ‘See what can still be done without overwhelming the existing staff.’