The Dutch Market Is Changing

Why Are Dutch Companies Switching To Hiring Local?

Dutch companies are increasingly opting to hire local or European candidates instead of international ones, even with the current tight labor market. Key reasons include challenges with integration and housing, the renewed emphasis on in-office work and changes in Dutch labor law that are impacting freelancers. In this article I will highlight my experiences in the field with theory/articles found online.

1. Preserving Work Culture and Communication

Many companies aim to maintain a work culture, emphasizing direct communication and efficiency. Research shows that Dutch organizations function better when employees are familiar with this culture—something that European candidates often understand better than those from outside the EU (Dalen et al., 2023). Cultural differences can lead to misunderstandings and slow collaboration, limiting productivity (Van der Linde, 2022).

2. Perceptions of Technical Skills and European Experience

Beyond cultural fit, Dutch companies often value the technical skills and experience that European candidates bring. European work experience and education are often more aligned with the expectations of Dutch companies, particularly in technical fields such as IT and engineering. These skills closely match the needs of the European business landscape, strengthening the preference for European candidates (KPMG, 2023). This obviously doesn't exclude the skills and experience of foreign workers, it just sets out a preference and little adapting time.

3. Challenges with Integration and the Return to Office

More companies are moving away from fully remote work. Zoom, known for its remote-work tools, required employees to return to the office, a trend that other large companies are also following (Hern, 2023). Employers frequently find that remote work reduces team cohesion, impacting collaboration and productivity (Janssen et al., 2023). In-person attendance fosters teamwork and facilitates knowledge sharing, particularly in complex projects. Many organizations in the Netherlands see this as an opportunity to strengthen office-based work.

4. The Tight Dutch Housing Market

The Dutch housing market has been very tight for several years, impacting hiring decisions. Limited housing availability and high costs make it increasingly challenging for employers to attract and retain international candidates. This issue leads companies to focus more on local hires, as these candidates typically face fewer housing challenges (NOS, 2023).

5. Impact of the DBA Law on Freelancers

Recent changes to the Dutch DBA (Deregulering Beoordeling Arbeidsrelaties) law, aimed at clarifying the employment status of freelancers, have made freelancing less attractive. With increased restrictions and scrutiny, many freelancers are opting for the stability of permanent employment over the uncertain freelance market. This shift in the workforce reduces the demand for foreign workers, as more local freelancers transition to full-time roles (Rijksoverheid, 2023).

By focusing on these factors, Dutch companies could prioritize local or European candidates over other candidates. As the market is always changing in a rapid pace these trends above could change pretty fast which will hopefully make it easier for foreign people to land jobs in the Dutch market as an expat.

I have written this article based on my own experiences and with some of the articles I have found online. This is no scientific article, but based on experiences. Feel free to reach out or discuss something!

- Dalen, J., van den Broek, E., & Smit, A. (2023). Dutch work culture and collaboration in a multicultural environment. Journal of Cross-Cultural Management, 35(2), 123-145.

- Hern, A. (2023, August 4). Zoom orders workers back to the office. The Guardian. https://www.theguardian.com

- Janssen, M., Biesma, R., & Meijer, K. (2023). The impact of remote work on team dynamics and productivity. European Journal of Business and Management, 27(3), 58-72.

- KPMG. (2023). European technical skills benchmark report. KPMG Insights. https://www.kpmg.com

- NOS. (2023, April 12). Dutch housing shortage makes it harder for international employees. NOS.nl. https://www.nos.nl

- Rijksoverheid. (2023). DBA law and employment relations in the Netherlands. Dutch Government Publications. https://www.rijksoverheid.nl