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The Netherlands Human Capital Overview

The Netherlands Human Capital Overview

The Netherlands Human Capital Overview

U.S. companies are looking at various countries as potential work offshoring markets. The Netherlands is one such nation with a well-educated workforce of many English-speaking individuals.

While the difference in time zone may be a challenge for customer-facing services, offshoring other projects may be the right move for many businesses.  

SERVIAP can help with your global expansion needs. Contact us today to learn how you can expand your business with PEO in The Netherlands.

Tech Graduates and Workforce

The Netherlands’ government has invested heavily in the tech sector over the last decade. As a result, the tech market in the nation is bustling.

  • Tech Companies: There are approximately 76,000 IT companies operating within The Netherlands as of 2020. These companies employ a combined 452,000 IT professionals.
  • Student Growth: The Dutch student population is surging, with over 340,000 new students enrolling in master’s and bachelor’s programs in The Netherlands in the 2021-2022 academic year.
  • Tuition: The Netherlands has relatively low university tuition rates, especially for European Union students. Individuals who are citizens of an EU member state pay approximately 1,800-4,000 euros per year for tuition. International students from non-EU states may pay between 6,000 and 20,000 euros per year for tuition.

Key Sectors for Local Activity

While the IT sector has exploded in the Netherlands, the economy remains incredibly diverse. Here’s an overview of the country’s main business sectors:

  • Agriculture: Agriculture is a primary sector of The Netherlands’ economy. The country is known worldwide for its innovative production and food processing infrastructure. It has also made significant strides in increasing the sustainability of its agricultural industry.
  • Energy Modernization: Energy modernization is another integral part of The Netherlands’ economic infrastructure. The country has engaged in a nationwide energy modernization initiative, which is aimed at converting power production to more sustainable systems, such as wind and solar.
  • Chemistry and Scientific Research: The Netherlands has demonstrated a long-standing commitment to solving global challenges through science. It is home to immense private and government-run scientific research communities.

Key Sectors for Outsourcing

With tens of thousands of IT companies operating within The Netherlands, the country is a prime location for outsourcing or offshoring technological endeavors.

In addition, financial, legal, and business processes can be effectively outsourced to The Netherlands thanks to its highly educated workforce and affordable network of universities. Other potential outsourcing opportunities include telecommunications, manufacturing, and scientific research.

English Speakers

English is taught as a compulsory second language in The Netherlands. Students begin taking English courses in the upper grades of elementary school. They continue to participate in these courses throughout secondary school.

Proficiency in the English language is also a contingency for graduating high school. If students cannot demonstrate proficiency on their final exams, they may be prevented from graduating.

While these studies focus on “The Queen’s English,” Dutch students are exposed to a large volume of American programming, which undoubtedly has an influence on their pronunciation and dialect.

Average Wages

The average hourly wage in The Netherlands is approximately 24 euros as of 2020. Naturally, the average annual wages vary based on age, work experience, and other factors.

Studies show that 15 to 25-year-olds working in The Netherlands earn approximately 10,600 euros annually. This figure jumps to 36,400 euros per year for workers between the ages of 25 and 45. Workers over the age of 45 bring in approximately 42,400 euros per year.

Prominent Cities for Business

The Netherlands is home to some sprawling cities and population centers that are innovative and tech-centric. Some top cities for business in The Netherlands include:

  • Amsterdam: Amsterdam, the capital city, is known worldwide as a center for art and creativity. However, it is also a hub for business, tech, and innovation.
  • The Hague: Currently the home for the international center of justice and peace, The Hague is the site of many embassies and international organizations. This proximity to power makes The Hague the ideal location for cybersecurity and tech start-ups.
  • Rotterdam: As the second-largest city in Holland, Rotterdam is a great offshoring location. It has the largest shipping port in Europe, making it a great site for expansion or outsourcing. 
  • Eindhoven: Eindhoven is considered one of the smartest regions worldwide. The city plays host to research facilities, academic institutions, tech companies, and other trailblazers within the technology and science sectors.

Turnover Rates

Like many other nations, The Netherlands has experienced climbing turnover rates in recent years. However, these rates are significantly lower than those in other countries, including the U.S. The Netherlands also keeps a massive, unionized temporary workforce that both domestic and international businesses can leverage.

Is The Netherlands Right for Your Business?

SERVIAP is a leading Professional Employer Organization (PEO) ready to help your business expand operations throughout the Western Hemisphere. PEO is a model of co-employment, where we assume total responsibility for your talent, allowing you to focus on the strategic activities of your organization.

Contact us today to learn more about how you can expand your business in The Netherlands.

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