Recruiting Leaders in the Netherlands: A Practical Guide

In the second part of our series, Doug Mackay continues his conversation with Olfertjan Niemeijer, Managing Director of Independent Recruiters Group (Talentor Netherlands). Having explored the cultural landscape and talent shortages in Part One, they now turn to the practical realities of Dutch employment law, compensation structures, and the mechanics of building a successful team in the Netherlands.

Doug Mackay: Olfertjan, let us get into the practicalities. Dutch employment law is known to be quite protective. What do UK companies need to understand before they make their first hire?

Olfertjan Niemeijer: The protection of employees is indeed strong, and it requires careful navigation. The most critical thing to understand is the probation period (proeftijd). If you offer a contract of less than two years, the maximum probation period is strictly one month. You can only have a two-month probation period if you offer a permanent contract or a fixed-term contract of two years or more.

Furthermore, terminating an employee after the probation period is not straightforward. You cannot simply let someone go; you generally need approval from the Employee Insurance Agency (UWV) or a sub-district court, unless it is a mutual agreement with a settlement. This means you must get the hiring decision right the first time.

Doug Mackay: How does this impact the recruitment timeline and notice periods?

Olfertjan Niemeijer: The statutory notice period for an employee resigning is typically one month. However, for employers, the notice period scales with the employee’s tenure, ranging from one to four months.

Because the stakes are high, the recruitment process itself tends to be thorough. Dutch candidates will want to meet multiple stakeholders and really understand the company culture before committing. You should expect the process from initial search to the candidate’s start date to take anywhere from three to five months for senior roles.

Doug Mackay: We hear a lot about the "30% ruling" in the Netherlands. How important is this for attracting international talent?

Olfertjan Niemeijer: It has historically been a massive advantage. The 30% ruling allows employers to pay up to 30% of a highly skilled migrant’s salary tax-free for a period of five years. It was designed to compensate for the extra costs of moving to the Netherlands.

However, UK companies need to be aware that the rules are changing. The government is transitioning this to a 30/20/10 structure over the coming years, gradually reducing the tax-free percentage. While it remains a strong incentive for bringing in specialist expats, particularly in tech and engineering, you cannot rely on it as your only attraction tool. Your core value proposition must be strong.

Doug Mackay: What about compensation more broadly? How should UK companies structure their offers to be competitive?

Olfertjan Niemeijer: Salaries are competitive, particularly in the Randstad area (Amsterdam, Rotterdam, The Hague, Utrecht). For the professionals and managers we recruit, salaries typically range between €60,000 and €120,000 gross per year, though executive roles go much higher.

You must also factor in the mandatory 8% holiday allowance (vakantiegeld), which is usually paid out in May. Additionally, employer social security contributions will add roughly 20% on top of the gross salary. Many sectors are also governed by Collective Labour Agreements (CAOs), which dictate minimum pay scales, working hours, and benefits. You must check if your industry falls under a mandatory CAO before drafting contracts.

Doug Mackay: Finally, what is the most common mistake you see foreign companies make when recruiting in the Netherlands?

Olfertjan Niemeijer: The biggest mistake is trying to "copy-paste" a UK employment contract and UK HR policies directly into the Dutch operation. It simply does not work legally, and it alienates candidates culturally.

For example, offering 20 days of annual leave might be the legal minimum, but the market standard is 25 to 27 days. If you offer 20, you will immediately look uncompetitive. My advice is always to work with a local recruitment partner and local legal counsel. We ensure that your offer is not only legally compliant but structured in a way that actually appeals to top Dutch talent.

Collingwood has been the England and Wales partner in Talentor International since 2023, alongside Denholm Associates in Scotland.

If you are weighing up a first hire in the Netherlands, our executive search service and our experience across the technology sector are a useful starting point, alongside our practical guide to recruiting leaders in Sweden. To talk it through, get in touch.