The Netherlands starts pilot to enable startups to attract essential workforce from abroad.

The Dutch government started a pilot that will make it easier for innovative startups to recruit staff with sought-after expertise from abroad. As a growing company, startups need to retain staff with the right, often technical, knowledge. The need for such employees is high worldwide, and the supply is scarce. This new pilot started on June 1st.

Startups in the Netherlands

Starting and expanding an innovative company is often complex, risky and expensive. Moreover turnover is still limited in the startup phase. Therefore, attracting top talent, it is common for startups to supplement a lower salary with, for example, shares. The staff thus shares in the success and the risk of the company. The new residence scheme is in line with this practice through a reduced salary criterion, supplemented by so-called mandatory employee participation such as shares. In this way, startups are better able to attract and retain personnel essential for the company’s growth from abroad.

Highly Skilled Migrants Scheme

The highly skilled migrant scheme has been in place since 2004 to attract specialist foreign personnel. This arrangement works well for most, especially larger companies, but does not fit well with the usual way of rewarding startups in the growth phase. Moreover, because of the combination of a lower salary supplemented with a share in the company, startups often do not meet the salary requirement of the highly skilled migrant scheme. With this new pilot, startups can also attract essential staff in the initial phase. The pilot will run for four years and will be evaluated in the interim.

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