After growing teams for companies in the green energy industry, food sector, fashion business and more, we noticed a pattern of challenges (and opportunities) when companies approach us to help them grow. Drawing from our experience, we want to share some insights to help you avoid common mistakes when scaling your company in the Dutch market.
Choosing the wrong people to work with
Your team is the backbone of your business, and hiring the wrong people can significantly impact your growth. Hiring for cultural fit, in addition to skills, is essential. Dutch professionals value direct communication, reliability, and a strong work ethic. Ensure your recruitment process is thorough, and consider working with local recruitment agencies that understand the Dutch labour market.
Are you looking to scale up your team with permanent or temporary employees?
Making assumptions about the Dutch business culture
The Netherlands is known for its flat organizational structures, where hierarchies are flatter and decision-making is often collaborative. Dutch professionals appreciate transparency, their work-life balance and directness, this might come as a surprise for people from Japan or the US, who want to hire their first team in the Netherlands. Knowing these cultural nuances can help you build better relationships with your new team, clients, and partners.
Failing to benchmark benefits and salaries
To attract the best candidates possible, it is advisable to familiarise yourself with the benefits packages on offer for similar roles in your industry. The Netherlands typically offers more favourable benefit packages than other countries. Even though you might be established here already, its always a good idea to stay up-to-date on salaries and benefits companies offer that successfully attract and retain talent. Find some must-haves and current nice-to-haves below:
Legally mandated
- Minimum 20 holiday days (40h workweek/year)
- 8% holiday allowance
- Unlimited sick leave
- 16 weeks of maternity leave
Standard benefits
- 25 holiday days
- Commute allowance
- Remote/hybrid working
- Home office budget
Common additional benefits
- Extra holiday days/ADV days
- Pets in the office
- Gym subscriptions
- Team outings
Scaling too fast and compromising on quality
If you scale before your company is ready, you may struggle with cash flow issues, operational inefficiencies, and an overwhelmed team. This can affect your company’s culture and lead to high turnover rates. A suitable solution for situations where you need to hire many employees fast is to consider temporary employees.
In the Netherlands, hiring temporary staff offers several benefits:
- Temporary employees allow you to quickly scale your workforce up or down depending on current needs.
- If hired through a recruitment agency, interim employees are typically paid by the agency, not by your company directly, helping you avoid certain administrative burdens and costs, such as payroll taxes and long-term contracts.
- Interim staff helps you assess whether the business is ready for a more permanent expansion. If conditions change, you can adjust more easily without the financial burden of layoffs.
- Seasonal workers can bring in specific expertise for short-term projects or during peak periods, providing immediate value without extensive training.
Inefficient processes and time management
As your company scales, processes that work for a small team may no longer be efficient. In the Netherlands, where efficiency is highly valued, it would be helpful to implement tools and or take on support from experienced HR service providers to streamline operations and adapt your HR strategy to match your growing headcount. Don’t overlook the importance of training and development to ensure your team is equipped to handle increasing demands.
Whether you want to set up your first people processes, or need to address immediate HR concerns; we offer a comprehensive HR consultancy service to solve your business’s unique obstacles.
Scaling your company in the Netherlands presents opportunities, but demands careful planning and execution. Our decades of experience have taught us that success stems from being mindful of whom you hire, understanding the local business culture, avoiding the rush to scale too quickly, optimising your processes, and selecting the right time to expand. By taking these insights into account, you can better navigate the challenges of scaling in the Netherlands and set your company on a path to long-term success.
Do you want to learn how we can help you successfully scale your team in the Netherlands?
