Family businesses increase investments to combat tight labour market

12 Dec 2024 10:00 CET

• Family businesses will invest an average of 16% more in 2025 than in 2024. 
• 28% of family businesses expect to invest 20% or more than in 2024. 
• Investments are mainly made in personnel, innovations, and process improvements.

Panel research by Nyenrode Business University, in collaboration with Van Lanschot Kempen and RSM, among directors and owners of family businesses, shows that family businesses in the Netherlands are increasing their investments to address the tight labour market. Nearly all family businesses (92%) are focusing on process improvements. Additionally, 81% of family businesses are emphasising investments in personnel. Technological innovation (73%) and product innovation (61%) are also high on the investment list. On average, Dutch family businesses will invest 16% more in 2025 than in the past year, with more than a quarter (28%) investing at least 20% more annually.

Mark Buitenhuis, Managing Director Private Banking Regions at Van Lanschot Kempen: “Family businesses have a long-term vision and strive for continuity across generations. At the local level, family businesses are important employers. By continuing to invest, they can retain and attract staff and create new jobs. Additionally, investments in process improvements, among other things, can mitigate the dependency on sufficient personnel.” 

Family businesses in the Netherlands face significant challenges due to the ongoing labor market tightness. 70% of family businesses are concerned about the impact of labor market tightness on their company. Family businesses struggle to find sufficient staff, especially at the vocational education (MBO) level and below. Although the situation has slightly improved compared to 2022, the scarcity endangers the continuity of production and services for 54% of companies. Besides investments, 40% of family businesses are looking for new employees beyond national borders. The appeal of family businesses remains strong, with 74% of directors indicating that new employees specifically choose the work environment that family businesses offer.

You can read the full study (in Dutch) via ‘Personeelstekort zet druk op de productie en dienstverlening van familiebedrijven’.