Tech companies in the Netherlands are feeling discouraged by the caretaker government’s plans to disincentivise hiring ‘knowledge migrants.’ Should internationals be worried?
Global talent has been flocking to the Netherlands for some time; this small country offers more than just canals and tulips. There are also plenty of opportunities in the job market!
According to 2024 data collected by the CBS (Statistics Netherlands), sixteen thousand knowledge migrants chose to come here in that year alone.
Clearly, there is work to be had — and to hear the experts tell it, not enough Dutchies to take it on.
In reality, the problem is more complicated. Let’s dive in.
What is the plan?
According to the Dutch government, there is a need “to further strengthen the knowledge economy and reduce migration to the Netherlands.”
The plan, therefore, is geared towards deterring companies from hiring internationals in several ways.
For one, companies would be required to pay higher wages to knowledge migrants.
This might sound like a good deal for expats, but in reality, it discourages companies from hiring them at all due to the extra expense.
Permits for employer sponsorship will also be harder to obtain. Companies hiring expats will face stricter requirements to meet the standards for continuing to sponsor expats.
Essentially, the plan proposes adding more violations to the list of grounds for revoking a company’s employer sponsorship permit.
The permitting restrictions also widely favour larger companies with a history of employing internationals.
For instance, if a company hasn’t employed an expat in the past two years, this could now work against the acceptance of its permit.
Seems counterintuitive…but ok.
The response
D66 and VVD have debated the plans, fearing business consequences and the ills of scapegoating expats for a larger issue.
Tech companies feel targeted by the plans, as their workforce is often international by necessity, they say.
Speaking to NU.nl, several companies, specifically NLtech, Booking.com, and Just Eat Takeaway, described the country’s “scarce” talent in “software, data, and product development.”
These kinds of businesses, also including ASML, Bol.com, and Marktplaats (to name a few), are worried. The sentiment among these companies is that the tight labour market has made it necessary to look outside for highly skilled workers.
Others think the concerns are slightly overblown. Speaking with NU.nl, the CEO of labour market researcher Intelligence Group, Geert-Jan Waasdorp, says these requirements won’t make quite the splash as feared.
He says, “Large corporations already pay a lot for talent; money is not an issue there.”
Of course, for smaller companies, start-ups, and companies hiring their first international employees, they might not even get the chance.
Because the permitting process is restrictive, these types of (often smaller) businesses are at a disadvantage compared to larger companies with a history of hiring internationals.
But is this really the best approach to addressing a weak Dutch knowledge economy?
What if there was another way?
Waasdorp had a different suggestion. Again speaking with NU.nl, he believes “The government should…encourage employers to invest. For every knowledge migrant, you train a person for the same position.”
This approach seems favourable in the long-term attempts to resolve the issue.
Knowledge migrants cannot be occupationally demonised for coming to the Netherlands when the government doesn’t properly stimulate expertise development within its borders.
After all, closing the door doesn’t teach anyone how to code.
What do you think of the proposed plans? Let us know in the comments.
