Yes, organizations often try to find local talent; if not, they prefer talent from within the Netherlands. However, according to new research by the Dutch relocation platform Settly, a shift is occurring. A significant 78% of organizations surveyed by Settly said they consider relocating talent for up to 50% of their vacancies, although only 13% say they consider international talent for more than 75% of all their open positions.
67% reported a favorable return on investment from bringing in international talent.
Some other notable findings from the study (conducted in collaboration with Netherlands Point of Entry) include the following: the international talent that organizations attract mainly comes from Asia and Europe. The average cost of relocation is (only) 7,232 euros, while organizations spend an average of 96,011 euros per year (around 13 employees on average). More than 3/4 reported a positive correlation between a good relocation experience and increased engagement and retention. Moreover, 67% of the surveyed organizations reported at least a break-even return on investment when bringing talent from abroad.
The Winners of Tomorrow
Marieke van Iperen, CEO and co-founder of Settly (pictured), notes in the report that the biggest frenzy in the (international) labour market is over. However, she believes this will not immediately slow down the demand for relocation. “We are also dealing with the reality of an ageing workforce and an increase in migration, both voluntary (economic) and involuntary (e.g., due to geopolitics, climate, or safety). This means that in the next 3 to 5 years, the demand for international talent will grow again. Those who lay the foundation for their talent strategies today will be the winners of tomorrow.”
“Those who lay the foundation for their talent strategies today will be the winners of tomorrow.”
Of the companies surveyed, 74% had their headquarters in the Randstad region, while the rest had at least a permanent presence in the Netherlands but headquarters ranging from the U.S. to Dubai and Australia. Notably, organizations report spending less on relocation than in last year’s research, but this year, fewer organizations have specific policies in this area. However, there is significant growth in the number of organizations hiring specialized services for this, and even a doubling of the percentage of companies saying they plan to bring in at least the same number of employees from abroad this year.
Primarily a Large Company Activity
As expected, recruiting international talent is primarily an activity of large companies: 63% of all recruitments occur by organizations with more than 1,000 employees. These large organizations also expect the most growth in relocating international talent, with companies of over 5,000 employees even anticipating 40% growth. Notably, these large organizations also spend the most on it: an average of 12,489 euros per recruited employee, five times what small organizations are willing to spend.
The focus is mainly on very specialized roles. According to the research, seeking international talent is less common for management and executive (C-level) functions. Internships and support roles are quite underrepresented when it comes to cross-border recruitment. However, respondents are generally very satisfied with the contribution of international employees: while only 4.35% disagree that talent from abroad performs better and is more engaged, 39.13% agree (strongly) with it (and the remaining 56.52% are neutral).
Housing a Major Concern
Unsurprisingly, housing in the Netherlands is the biggest challenge for all organizations wanting to attract international talent. This concern spans the board, from small to large companies. It is naturally something that relocation service providers can help with only relatively little: after all, they also face the enormous scarcity in the housing market, a problem already highlighted in last year’s research by the Amsterdam-based startup, which managed to raise 6 million euros in investment a year ago.
Want to Know More?
In 2023, the first edition of the conference Internationalization of the Dutch Labor Market took place in Rotterdam. On September 9, 2024, the second edition will be held in The Hague. During this conference, participants will be inspired by the facts, context, practice, best practices, dilemmas, challenges, issues, and solutions. There are no sacred cows, just facts and practice. Problems and solutions. Register now:
