Employee Hiring Process In Netherland

One of the key discoveries here is that hiring one’s first worker costs a lot more than just paying their salary. In the Netherlands, it's too costly to hire a new employee. Also, it's difficult for a startup company who have low investment for their business. The typical small business will pay an employee around £20,800, based on typical wage rates for a professional or skilled worker. But for the 55+ size business, a greater proportion of total employment costs is devoted to the employees’ wages instead of the overheads. In the case of a company's first- Recruitment, around 20% of the total worker costs goes to national insurance contributions and income tax.

Finding Exceptional Employees

Finding a good candidate can be a challenge in the best of circumstances, but when you’re setting up a company in a new country whose workforce you aren’t familiar with it can add extra hurdles for you to jump. The Netherlands has over 9 million people in its workforce with a yearly unemployment average of 5.9%.

Hire A Recruiter

If you can offer it, a Hiring agency is your easiest choice. Recruiting agencies can charge somewhere between one to six months of your new workers' salary.

While the cost seems high, hiring agencies have already established access to pools of qualified individuals which cuts the effort down on your part significantly. Not only do they have access to skilled employees, but they can also cut down the administrative time by screening and putting forward candidates for you to interview.

Advertise Online

The contemporary recruiting world is digital, which works wonders for you if you are setting up shop before arriving on the ground in the Netherlands. To find an employee you need to advertise in the newspaper, social media platform, etc. An approximate survey shows that the cost is 20-30 percent of the total salary of an employee.

Understanding The Cultural Differences

It's important to check the cultural difference before hiring an employee. That's why the company needs to choose the right employee among them all. For that, the company also needs to spend some amount.

Bonus

On occasion, the company pays bonuses to its employees. The cost is nearly full or half of employee wages. That's the cost that the company needs to bare for own employees.

Sick Days

Employees shall be paid at least 70% of their gross salary in case of illness, paid by the employer for one year.

Vacation Payment

7% of the annual base salary earned in the period June 1 - May 31. It is payable in May.

Other Social Security Cost

Labor disability insurance general- 5.76%

Reintegration compensation insurance, general- 0.18%

Reintegration compensation insurance, general- 2.08%

Medical insurance- 6.98%

The cost of hiring a new employee is mentioned above. It's easier to hire a virtual assistant and no doubt, you can save all of these costs.

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