Rising labour costs, finding new talent and employee health are the main challenges Belgian companies according to a study by SD Worx as explained in an article of the Brussels Times
Small and medium-sized enterprises (SMEs) in Belgium represent around 99 % of the total number of Belgian companies. Recent figures highlight that many have been struggling with the current economic climate, also the growth of new companies slowed.
Belgian SMEs are facing several challenges, according to a survey of 557 SME company managers by SD Worx in December 2024.
“Controlling rising wage costs is the most important challenge facing our Belgian SMEs”
SD Worx SME consultancy director Annelies Rottiers.
These rising costs are driven by automatic wage indexation. This system is unique to Belgium and Luxembourg and sees both public and private wages increase alongside inflation.
In January 2025, around one million people saw their wages rise by almost 3.6%. “Due to automatic wage indexation, gross wages have increased by 20 % in the last four years alone,” said Rottiers.
Finding new talent is also a key issue here. As a result, more Flemish SMEs (one in five) are deploying flexible working. The Dutch-speaking region’s third major challenge is increasing employee satisfaction and engagement.
Both in Brussels and Flanders, health and well-being at work were listed as the fourth-biggest concern. Meanwhile, in Wallonia, it is the main challenge (47 % of SMEs indicated this was the case).
To better control labour costs, companies may increase their analysis of hidden costs, including filling vacancies or people off on (short-term) sick leave. They may also consider different, cheaper ways to reward employees, such as a profit bonus. This sees companies allocate (part of) the profits to employees.
To retain employees, “more attention is being paid to improving employee experience and well-being”
Annelies Rottiers
For this purpose and to improve employee satisfaction, more companies are working with the Flex Income Plan. This gives employees more autonomy in the composition of their pay package and adjusts it to their personal preferences. Employers will likely be advised to listen more to employees about their needs through surveys and personal conversations.
Finally, companies are also increasingly asking how employees are doing, ensuring people take time off, using tools to create a balanced workforce planning and offering more flexibility, such as the option to work from home and flexible hours.
Belgian-Macedonian Business Club 
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