The Future of Internationals in the Netherlands

As we all know, the Dutch labor market is at a pivotal moment, figuring out how to balance the need for international talent with evolving political and regulatory frameworks. So, let’s take a closer look at what is happening and dive into some tips and tricks for how to deal with the changes.

Political and Regulatory Landscape: A Shifting Terrain

One of the main discussion points with our experts in the webinar was the ongoing political uncertainty and potential policy changes that are impacting the Dutch business ecosystem, especially for international employees. Although a new coalition is finally in place, much of the direction and decisions for regulations (particularly about the labor market) are still pending

There has been a significant focus in the last few months on the future of the "30% ruling," a tax benefit that allows highly skilled migrants to receive 30% of their income tax-free. Though this ruling has undergone some adjustments recently, and is still under review, it is looking like a version of the tax-free income benefit will remain, although the details on what this will mean for current and future highly skilled migrants are not yet known. Similarly, visa regulations, including the highly skilled migrant visa and start-up visa, will likely see adjustments. In addition to staying informed about the developments, we also advise employers and potential international recruits to get ahead of the game and explore alternative options, such as the "search year" visa or even a start-up or self-employed visa if that fits your situation.

With so many policies and regulations still pending, it can create some confusion and unpredictability for the future of internationals who want to work in the Netherlands. However, one thing that rings through loud and clear from our experts is the necessity of this valuable talent remaining part of the Dutch labor market, as well as the importance of maintaining a stable and welcoming environment for international employees while we all navigate these changes together. Stability is a key factor for sustaining the Dutch economy, and international talent will continue to be a vital component for both stability and growth. So, keep the faith!

Retention: Integrating Internationals

While many internationals find the Netherlands to be a welcoming place, there are still significant barriers—particularly language and cultural differences—that can hinder their integration.

Retaining international talent is as important as attracting it, and helping internationals fully feel comfortable in Dutch society is a big part of this. It requires not only creating an inclusive professional work environment, but also not forgetting aspects of life outside of work and private concerns that may need a little extra attention.

Nuffic’s research, discussed during the webinar, revealed key reasons why international graduates choose to stay or leave the Netherlands, plus some practical tips for helping them integrate better.

Why Internationals Stay

According to the study, 8 out of 10 international graduates who choose to stay in the Netherlands do so because of:

• The country’s economic stability and the quality of life in the Netherlands
• Attractive salary and benefits packages
• International environment and strong social network
• Career development opportunities and a positive work setting

Key takeaways: Companies could go a long way in helping internationals integrate and stay in the Netherlands by emphasizing not only the competitive salaries they offer, but especially their commitment to career growth and creating a stable, welcoming work culture that supports employees at work and at home.

Why Internationals Leave

Many internationals leave due to cultural and administrative challenges such as language barriers, securing a work permit, finding housing, and difficulties finding a support network and integrating into Dutch society. Keep in mind that some people leave due to the challenges it creates for their family members, rather than just themselves. For example, an employee who is doing great at work but cannot find a support network for their partner and/or children to thrive in the Netherlands is not likely to stay long-term.

Overcoming Challenges: Tips for Integration

To retain international talent, companies and institutions should focus on the following strategies:

• Offer Career Mentoring and Reskilling: Internationals benefit greatly from career advice tailored to the Dutch labor market. Employers can provide mentoring programs to support internationals in navigating the professional landscape as it may differ largely from what they are used to. Plus, there are many sectors currently where new employees are in high demand, and with a little training and help to develop new skills internationals struggling to find work here could jump right in. Consider offering this career counselling opportunity to the employee’s partner as well to help them settle into the workforce in the Netherlands, creating a stronger tie to the Dutch market for both individuals.
• Facilitate Internships: Many internationals come to the Netherlands full of hope and motivation to complete their studies and enter the workforce. This same group has some of the lowest retention after graduating mostly due to professional or administrative factors. Offering internships to international students or recent graduates is a proven way to help them build professional networks, gain experience, and ease the transition into the workforce​, which helps them get the handholds they need to move forward with the next steps/
• Provide Social Support: Culture shock can be a big thing and internationals often struggle to integrate into Dutch society. Employers can assist by organizing community events, offering relocation support, and encouraging social activities that help international employees connect with Dutch colleagues and make friends. Plus, keep the partner and kids in mind and offer resources to help them integrate as well.
• Decrease Language Barriers: One of the biggest challenges for internationals entering the Dutch workforce is the language. These candidates have great skills that they are ready to put into action, but Dutch fluency requirements for most positions can be discouraging to those who have just arrived and are still learning. Companies should assess if Dutch is actually essential for the position or if it is possible to at least start without it, opening up the possibility for those not yet fluent in Dutch to show what they can do.

Many international candidates are also more than willing to learn Dutch, but it takes time of course. Employers can encourage language learning by offering in-house courses or subsidizing external language classes This is a benefit that internationals greatly appreciate as it helps them to understand their surroundings better, which supports their integration on both a personal and professional level.

Key takeaways: Building a welcoming and inclusive work environment is very important when it comes to retaining international talent. By addressing both professional and personal integration challenges, employers can help internationals feel more at home in the Netherlands, thereby improving retention rates. These practical steps, combined with a supportive approach, will not only help international employees settle in and do their best work, but also ensure that they remain valuable contributors to the Dutch workforce.

The Future: Strategies for Companies

So what does the future hold? When it comes to policies, that is something we will continue to figure out together, but when it comes to supporting your international workforce our experts have more than enough ideas. One of the key recommendations is to take the time to create a unique value proposition geared towards international candidates and employees. This ensures that your company is seen as an attractive and supportive workplace that will continue to attract international talent. This could include any number of factors and we advise involving your current international employees in this process. Some highly sought after elements that you could consider including are offering relocation services, housing assistance, work permit promotion, language courses, and integration support—helping employees settle into both their professional roles and daily life in the Netherlands.

Organizations such as Undutchables, the Netherlands Point of Entry, and Nuffic, plus our many additional valued partners, offer resources in these areas that are designed specifically to help companies navigate the complex process of recruiting and supporting internationals. So, feel free to reach out.

Conclusion: The Road Ahead

As mentioned above, international talent will continue to play a crucial role in the future of the Dutch labor market. While political and regulatory changes may create uncertainty, businesses can still take proactive steps to attract and retain skilled workers from abroad. By educating themselves about how to proceed with new regulations involving international employees, and fostering a supportive and inclusive work environment, Dutch companies can continue to benefit from the unique perspectives and skills that a diverse team offers.

In an increasingly competitive global market, embracing international talent is not just an option but a necessity for staying innovative and competitive. The Netherlands offers significant potential for internationals, but continued collaboration between employers, government agencies, and organizations committed to this mission will be essential to move forward and fully realize this potential.