Trend analysis: from a tight labour market to a diverse team
It’s increasingly common to encounter international colleagues in the workplace. In the Netherlands, 1 in 12 online job vacancies is already non-Dutch speaking; in Amsterdam, this rises to 1 in 4. With an ageing population and ongoing labour market shortages, this trend is expected to continue. Director Sabine shares her insights and expectations on the impact of internationalisation in the financial sector.
A tight labour market
“The teams at our clients’ organisations are far more international than they were five years ago. Companies already accustomed to communicating in English are experiencing accelerated internationalisation within their workforce,” says Sabine. “This increase in hiring international employees can largely be attributed to the tight labour market we’ve been facing in recent years.”
Research by Indeed shows that 57% of Dutch employers cite labour shortages as the main reason for hiring foreign workers.
Even the most traditional companies are changing
“There is a significant difference between multinationals and SMEs,” Sabine continues. “Most large banks already operate in English, partly due to their international focus and European regulations. At the same time, many organisations in the financial sector that focus on the Dutch market maintain a Dutch corporate culture, where Dutch is the primary language. These companies are often not yet prepared for the arrival of expats. For many employees, it’s a challenge to conduct meetings or emails in English.”
Sabine notes that it’s understandable these companies are less appealing to employees who prefer working in an international environment. “They tend to opt for multinational companies, such as those located on the Zuidas.”
Still, smaller companies are beginning to recognise that today’s labour climate requires a broader recruitment approach. “More and more Dutch organisations are willing to look beyond national borders,” says Sabine.
“In the past, speaking Dutch in the office was considered important, but since hybrid working has become the norm, this plays a smaller role. Colleagues working from home no longer have those informal conversations by the coffee machine.”
Trend evolution throughout the years
Sabine identifies several factors contributing to the internationalisation of the workplace. “Trends rarely emerge without reason; they are a product of their time,” she explains. “In the 2000s, outsourcing was on the rise. Many companies later reversed this decision due to inefficiencies. Despite the lower wages, it ultimately didn’t prove to be cheaper.”
She notes that several factors are converging today. “In addition to the tight labour market, we’re also seeing broader internationalisation in society. Our daily lives are becoming increasingly English-oriented, the demand for diversity is growing, and with it, the importance of a diverse and inclusive workplace. Moreover, scientific research shows that diverse teams perform better, as different perspectives lead to more creative and effective solutions.”
Challenges of an international workforce
The arrival of international employees also brings challenges, Sabine observes. “It starts during the recruitment process, with additional paperwork and legal hurdles. Once the employee begins, it’s crucial that they feel connected to the rest of the team.”
Sabine emphasises that cultural differences and integration are key focus areas for organisations. In this blog, she shares practical tips on managing cultural differences within teams.
*The original article was published in 2022 and revised and updated in 2024.
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