Innovation as a remedy for staff shortages

The labor market is stuck. Companies are struggling with a severe personnel shortage, while talent is becoming increasingly difficult to find. 46% of employers in the Netherlands are forced to organize work differently due to shortages in the labor market, according to research by the Employee Insurance Agency (UWV).

The consequences are tangible: work pressure is increasing, projects are not being carried out and growth is at risk. Innovation offers a way out of this struggle against shortages. Companies must radically change how they work: from flexible job profiles to robotizing processes. Those who do not change with the times will be left behind. Innovation is no longer a luxury, but a necessity to relieve the workload and keep the company running.

Persistent shortages force innovation

Six out of ten employers are experiencing staff shortages. The situation is urgent: 53% of vacancies are difficult to fill. Only 9% of employers expect finding staff to become easier in the course of this year. Traditional solutions such as recruitment and staff retention are no longer sufficient. Employers must start thinking and working differently in a structural way. The Dutch economy has grown in a 'labor-intensive' way for too long. This is no longer tenable with an aging population and social transitions such as the energy transition. Innovation is no longer a choice but a necessity.

Organizing differently as a first step

The Employee Insurance Agency (UWV) has seen that almost half of employers are organizing work differently. A successful example is the Frisian company Opnieuw, which divides tasks into specializations. Where previously one person would repair an entire chair, there is now a specific department for armrests, for example. Customs also applies this method by bundling non-specialist tasks into new positions with less specific requirements. This 'job carving' approach makes it easier to fill vacancies and gives specialists more room for their core tasks. UWV labor market advisor Erica Maurits emphasizes the importance of employee involvement in these changes: “Employees often have a good sense of what the possibilities are.”

The world against the screaming staff shortage

In the column series “What the world would be like, if…” Elcke Vels explores intriguing scenarios that deviate from the status quo. Each column is supported by AI-generated images.

Robotization and automation offer a solution

The plastic window frame industry shows how robotization can solve personnel shortages. A recent innovation in which robots install strike plates and handle profiles delivers impressive results: an error margin of almost zero and significant relief for employees. In the construction sector, digitization is seen as a crucial solution to the personnel shortage. Smart software and automation lighten the administrative burden and make processes more efficient. These technological innovations are not only an answer to personnel shortages but also strengthen the competitive position of companies.

Towards a future-proof labor market

The Netherlands must become more innovative to increase labor productivity. TNO identifies four crucial solutions: stimulating economic activities with higher productivity growth, developing labor-saving technologies, applying technological and social innovations, and continuous learning and development. Labor participation in the Netherlands is already so high that further increases are hardly possible. Acemoglu predicts that in 10 years, AI could realize a GDP growth effect of 0.9-1.1%, rising to 1.8% with major investments. This transition requires a joint effort from the government, the business community and employees.