🦜 PerchPulse - The Netherlands Market Update December 2022 🦜

A warm welcome to the December issue of PerchPeek’s Netherlands Market Monthly update!

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Here’s where you’ll find the hottest updates around employee relocation and international talent strategy, insights from our experts on housing and cost-of-living news affecting your staff, the latest trends in global mobility, and tips and tricks on ways to support your teams.

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A fly-by summary

●     Cost of living changes for 2023: Amsterdam public transport and national train prices set to rise by 5%+, minimum wage to increase, and energy bill caps to be implemented

●     How to help staff apply for a €1,000 bursary for training and development programmes

●     The ongoing worker shortage and how this increases need for international recruitment

●     Helping your relocating employees celebrate the new year in the traditional (and low-cost!) Dutch way

●     PerchPeek’s 2022 in numbers: From rental market stats to our biggest destinations, here’s what we’ve learned in 2022, and how this could help you support your team!

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Cost of living: Public transport price rises, energy bill caps and other key updates affecting your employees in 2023

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It’s been a difficult time for everyone towards the end of 2022, with soaring inflation causing the cost of living to rise. As our clocks tick over to the new year, we’ll see changes to a number of everyday costs. While most are set to increase, there are a few positive points on the horizon!

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Here’s our roundup of the main changes that’ll have an impact on your teams:

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●     National train fares are to rise in 2023, by 5.5% for 2nd-class tickets, and 4.3% overall

●     Public transport prices in Amsterdam are to rise by at least 7% in January

●     Childcare costs will rise by an average of 8.5% in 2023, but child benefits by only 5.6%

●     The minimum wage is to increase by 10.15% on 1st January, to €1,756.20 per month

●     Energy bill price caps to come into effect in January, following discounts of €190

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These are the confirmed changes, but it’s harder to predict how the cost of living will fluctuate later in 2023 as a result of macro trends. Our advice is to keep on top of such developments and review compensation packages regularly to keep them in line with current living costs, so your teams feel supported through these challenging price increases.

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Support your talent: Help employees apply for up to €1,000 for L&D

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Many employees’ New Year’s resolutions may include up-skilling themselves, and we’re seeing more and more companies facilitate this by offering a learning and development allowance as a perk. Here’s PerchPeek’s nifty money saving tip to supplement your L&D budget and support your team.

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The next round of the government’s Stimulering Arbeidsmarkt Positie budget (STAP budget) is fast approaching. This scheme was launched in March to help both employed and unemployed people boost their skillset with a bursary of up to €1,000 to cover the costs of a training course.

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Do note that while this subsidiary is open to all regardless of employment status, applicants must be over 18 and below retirement age, and must be an EU citizen or the partner of one. The course also needs to be officially recognised by the UWV (Employee Insurance Agency).

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The next application window will open at 10:00am on Monday 2nd January. Those wishing to apply must visit stapuwv.nl, and need to be quick about it! November’s application round only lasted a day before it was filled, so it’s a good idea to advise your staff to set a reminder to apply, while they’re ringing in the new year!

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Talent strategy: Worker shortage continues, increasing scope for international recruitment

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Lately we’ve seen reports of worker shortages across the country but particularly in Amsterdam, where the UWV (Employee Insurance Agency) found there were 60,000 jobs available in the middle of 2022; three times as many as in 2016. This comprised roles across various different sectors. Yet, they calculated there were only around 25,000 potential employees available.

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In general, the UWV has predicted that the current worker shortage is likely to continue into 2023 across numerous sectors. One example of a severely understaffed sector is energy, where there are currently 48,000 role vacancies for the Netherlands to carry out the necessary transition to achieve its climate goals. Companies are calling for technically skilled professionals as well as designers, architects, project managers, accountants and administrators.

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On the face of it, unemployment levels also appear high - for example, in Amsterdam the latest figures show 90,000 people registered as unemployed - which would logically present a solution to the worker shortage. However, many of these people are actually enrolled in education or are unable to work for personal or medical reasons.

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What this labour shortage means for companies is an increased need to hire talent from other countries. Having competitive relocation policies in place will therefore be a crucial factor in attracting talent from overseas.

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Support your talent: Help international staff get the most out of their New Year

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Any employees newly arrived in the Netherlands and feeling a bit lost this holiday season are sure to appreciate these tips on Dutch festive traditions and culture. What’s more, these activities won’t break the bank which will be welcome news to all during these tough times!

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Here are our favourite free - or at least, very cheap - ways to celebrate in the Dutch way!

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●     Amsterdam Light Festival - The 11th annual open-air exhibition will be showcasing 20 luminous works until 22nd January. It’s of course free to wander the city and admire the illuminations, but walking maps and cruise tickets are available on the official website.

●     New Year’s Eve fireworks - An ever-popular way to ring in the new year, fireworks displays are allowed in designated zones. Our favourite way to enjoy the spectacle is from a hill or balcony high above the action - it’s free and well away from pesky sparks!

●     Beach bonfires in The Hague - Continuing a decades-long tradition, two huge bonfires will be built on the beaches at Duindorp and Scheveningen and lit at midnight on New Year’s Eve. It’s free to rock up and see in the New Year in a spectacular way!

●     New Year’s Dive at Scheveningen - For those in The Hague who need to cool off from all this pyromania, a traditional icy dip in the sea on New Year’s Day should do the trick. It costs just €4 to join the 10,000-strong crowd for a freezing frolic - including a free hat!

●     Christmas tree burning, various cities - There’s more fiery fun to be had! In another Dutch tradition, used Christmas trees are ceremoniously burned. Timings vary by city; in Amsterdam, it takes place at Museumplein on the first Sunday in January.

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Talent strategy: PerchPeek’s international talent learnings from our 2022 experience in numbers

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This year we’ve seen a lot of developments in international talent strategy. Diving into the data, here’s what we’ve learned from the many moves we’ve managed in 2022:

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●     With the rise of tech-based solutions and flexible budget options, HR teams can use relocation to access talent at all levels, no longer just executives. In 2022 we’ve helped over 2,250 people start their relocation journey to 28 countries around the world.

●     The Netherlands is one of our top five relocation destinations in terms of mover volume, proving that while it may be a relatively small country in size, it’s a big player when it comes to attracting international talent.

●     The Dutch rental market remains extremely competitive. It really varies based on a mover’s budget and other needs, but on average it’s taken 25-50 recommendations and 15 viewings to secure a rental property. Perseverance and resilience on the part of the mover are key, and HR can support by offering employees flexibility and patience.

●     With a tricky rental market and complex processes to follow, movers have a lot of questions and are super grateful for relocation advice. In our app, our relocation experts exchange an average of 500 instant messages with each mover!

●     Relocation support can be a crucial factor in employees deciding to take a job, and we love to see the value it delivers for every mover. We’re so proud to be rated 4.9 out of 5 stars on Trustpilot from over 300 reviews - we can’t wait to build on this in 2023!

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We hope you enjoyed this month’s update, and wish you a happy and restful holiday season.

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If you have any feedback, comments or questions about what's happening in your location, feel free to reach out via the form below!

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Thanks for reading, and see you in the new year!

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