Three quarters of business owners aiming to boost productivity
Labour productivity refers to the value added per hour worked. In advanced economies, productivity growth is the most important source of economic growth over the longer term. Previous research has shown that productivity is structurally higher in large firms (those with 250 employees or more) than in medium-sized firms (50 to 250 employees). It is the lowest in small firms (5 to 50 employees). Since 2020, productivity has also been increasing more rapidly in large firms than in small and medium-sized firms.
| Investing in technology and automation (% firms) | Introducing more efficient work processes (% firms) | Providing training and development for staff (% firms) | Optimisation of working environment and facilities (% firms) | Other (% firms) | |
|---|---|---|---|---|---|
| Total | 35.7 | 35.2 | 21.5 | 24.0 | 7.1 |
| Small firms | 26.4 | 26.0 | 15.8 | 24.4 | 8.7 |
| Medium-sized firms | 37.0 | 35.2 | 23.7 | 26.1 | 7.8 |
| Large firms | 44.7 | 45.2 | 25.9 | 22.0 | 5.0 |
| Source: CBS, EIB, KVK, MKB-Nederland, VNO-NCW | |||||
| 1) Business owners could choose a maximum of two options | |||||
Large firms are more likely to be taking steps to improve productivity
The proportion of business owners trying to boost their productivity is lower among small firms (just over 65 percent) than it is among medium firms (over 78 percent) and large firms (nearly 84 percent). Large firms are also more likely to report that they are seeking to improve productivity in more than one way. The steps they mention the most often are investing in technology and automation, and making processes more efficient. Training for staff is mentioned the least often, at just over 21 percent. Optimising the work environment and facilities is the only measure that large firms mention less frequently than small and medium-sized firms.Manufacturing firms most likely to be taking action to boost productivity
The proportion of business owners taking steps to boost productivity varies between industrial sectors. Manufacturers are the most likely to say they are aiming to improve productivity, at just over 81 percent. The share is lowest in culture, sports and recreation, at 54 percent. Investment in technology and automation is mentioned the most often in the manufacturing sector. It is mentioned the least often in the accommodation and food services sector, where business owners focus mainly on optimising the working environment and facilities. Providing training for employees is mentioned the most frequently in the car trade and repair sector, and least frequently in agriculture, forestry and fisheries.
| Investing in technology and automation (% firms) | Introducing more efficient work processes (% firms) | Optimisation of working environment and facilities (% firms) | Providing training and development for staff (% firms) | Other (% firms) | |
|---|---|---|---|---|---|
| Total | 35.7 | 35.2 | 24.0 | 21.5 | 7.1 |
| Manufacturing | 40.7 | 40.7 | 27.5 | 24.4 | 6.8 |
| Construction | 37.5 | 35.8 | 33.0 | 20.3 | 5.5 |
| Mining and quarrying | 38.0 | 55.8 | 17.5 | 11.5 | 5.4 |
| Information and communication | 38.3 | 34.5 | 22.3 | 23.2 | 7.0 |
| Transportation and storage | 40.3 | 47.2 | 17.5 | 14.3 | 5.9 |
| Wholesale and commission trade | 36.6 | 37.7 | 24.0 | 18.5 | 8.1 |
| Car trade and repair | 28.0 | 36.3 | 20.2 | 27.1 | 11.3 |
| Business services | 37.7 | 27.4 | 21.5 | 23.8 | 9.7 |
| Retail trade (excl. cars) | 35.4 | 38.2 | 16.2 | 24.3 | 3.8 |
| Other services | 22.9 | 30.7 | 17.7 | 26.6 | 12.8 |
| Agriculture, Forestry and fisheries | 38.4 | 25.6 | 24.8 | 6.0 | 9.6 |
| Real estate activities | 40.6 | 27.7 | 11.1 | 17.0 | 5.3 |
| Accommodation and food services | 13.5 | 24.6 | 28.7 | 23.0 | 7.9 |
| Culture, sport and recreation | 13.6 | 25.3 | 19.9 | 19.8 | 5.9 |
| Source: CBS, EIB, KVK, MKB-Nederland, VNO-NCW | |||||
| 1) Business owners could choose a maximum of two options | |||||
Staff shortage is the main obstacle
Lack of staff is the main impediment to increasing productivity for nearly 40 percent of business owners. This is mentioned the most frequently in the car trade and repair sector. External factors, such as economic uncertainty, are the main obstacle for more than 17 percent of business owners, with those in the mining and quarrying and construction industries indicating this relatively often. Just over 13 percent of business owners mentioned a lack of financial resources as the main obstacle to increasing productivity. Firms in the agriculture, forestry and fisheries sector frequently mention this, in relative terms. Just over 36 percent of business owners say they experience no obstacles or are taking no steps to increase their business productivity.
| Shortage of staff (% firms) | External factors such as economic uncertainty (% firms) | Lack of financial resources/costs too high (% firms) | Lack of innovative solutions (% firms) | Other (% firms) | |
|---|---|---|---|---|---|
| Total | 39.7 | 17.5 | 13.3 | 5.0 | 6.0 |
| Transportation and storage | 47.8 | 22.0 | 15.6 | 3.6 | 7.2 |
| Construction | 48.8 | 23.5 | 4.9 | 6.7 | 8.0 |
| Agriculture, Forestry and fisheries | 23.5 | 19.1 | 24.3 | 12.1 | 12.2 |
| Car trade and repair | 60.8 | 12.0 | 9.6 | 3.0 | 3.0 |
| Mining and quarrying | 16.3 | 35.1 | 5.3 | 6.1 | 23.4 |
| Business services | 47.4 | 13.7 | 10.8 | 5.6 | 4.5 |
| Wholesale and commission trade | 30.4 | 22.2 | 10.6 | 8.1 | 8.3 |
| Retail trade (excl. cars) | 36.4 | 14.4 | 17.9 | 4.5 | 4.0 |
| Manufacturing | 33.0 | 17.4 | 17.4 | 3.9 | 4.9 |
| Accommodation and food services | 32.2 | 13.1 | 21.8 | 2.7 | 5.5 |
| Information and communication | 40.2 | 15.3 | 10.0 | 1.3 | 4.9 |
| Real estate activities | 22.7 | 13.3 | 18.5 | 4.4 | 9.4 |
| Culture, sport and recreation | 27.8 | 9.3 | 18.8 | 2.8 | 7.1 |
| Other services | 27.7 | 5.7 | 18.0 | 2.9 | 6.9 |
| Source: CBS, EIB, KVK, MKB-Nederland, VNO-NCW | |||||
| 1) Business owners could choose a maximum of two options | |||||