Green Skills Series: Immigration Policy and Talent Retention in the Netherlands

The Netherlands’ recent hydrogen trade mission to Brazil, which included participation from Fragomen, underscores the country’s commitment to leading the global energy transition and addressing climate change. Brazil is recognised as a significant player in green hydrogen production, making this collaboration strategically important.

A growing trend in job postings highlights the increasing importance of “green skills,” encompassing a wide range of knowledge and abilities essential for promoting environmental sustainability. This includes expertise in energy, sustainable agricultural practices and more.

Current observations suggest that the Dutch government is adopting a dual approach to immigration policy. Initial statements from the Schoof cabinet indicated intentions to implement stringent immigration laws and limit European competencies on migration. This position has since evolved, reflecting a more stringent stance on asylum migration within the governance agreement.

Industry discussions reveal that the competition for talent, particularly in the realm of green skills, is intensifying, giving rise to the concept of a “green skills gap.” As businesses assess strategies for becoming more sustainable, the demand for these skills is expected to grow, especially in sectors such as waste management, sustainable transportation, agriculture and renewable energy.

In response, educational institutions are increasingly offering specialised programmes designed to equip the workforce with the necessary competencies. However, these programmes typically span three to four years, and internal training initiatives can extend up to two years, underscoring the urgent need to expedite the onboarding of skilled employees through immigration.

The recent government agreement prioritises enhancing sustainable labour market participation and improving the alignment between job seekers and employers. While it emphasises a stricter approach to labour migration, it concurrently acknowledges the necessity of attracting talent in sectors critical to achieving sustainability objectives. As the landscape evolves, stakeholders must navigate these complex dynamics to ensure a skilled workforce that meets the demands of a sustainable future.

Attracting top talent

Attracting and retaining top talent begins with education. When international students are drawn to study in the Netherlands, the likelihood of them remaining and securing employment increases significantly.

However, the government has indicated plans to reduce the number of international students due to pressures on the Dutch educational system. Additionally, there are proposals to limit the availability of English-taught courses, allowing them only for specific programmes related to labour shortages.

While the emphasis on Dutch-language courses is acknowledged, it is crucial that this requirement is not interpreted too rigidly. Current non-shortage sectors may evolve, and while there has been a focus on STEM and technical professions, other fields—such as economics—can also yield significant contributions to Dutch society.

In a broader context, there are concerns about whether top talent in these critical sectors will choose the Netherlands as their destination if they perceive the country’s immigration policies as unfriendly.

Potential issues, such as the challenges associated with obtaining long-term residency and navigating civic integration, may deter talented individuals from pursuing opportunities in the Netherlands.

Retaining top talent

Retaining top talent after their studies in the Netherlands is of paramount importance. As noted, the planned stricter requirements for long-term residency may lead to an increase in students leaving the country after completing their education.

Historically, the Netherlands has offered the orientation year permit, which allows graduates to seek employment within the country and subsequently transition into the highly skilled migrant programme.

It is observed that the Highly Skilled Migrant (HSM) scheme tends to be more accessible for larger multinational companies compared to small and medium-sized enterprises (SMEs). To effectively integrate non-EU talent with green skills, it is essential to make these opportunities available not only to companies with established talent mobility programmes but also to Dutch SMEs that require such expertise, which is often lacking in the local labour market. The advantage of engaging local SMEs is that expatriates would work alongside their Dutch colleagues, fostering better integration into the workplace and the broader community.

To enhance access for SMEs to talent with necessary green skills, the Dutch government could consider several measures. Currently, if a business identifies a candidate on a highly skilled migrant permit and has not yet achieved trusted sponsor status, hiring that individual is contingent upon becoming a recognised sponsor.

While utilising a payrolling company as a trusted sponsor remains an option, it is not favoured by all businesses. The process to become a trusted sponsor typically takes approximately six weeks; however, for startups or companies facing solvability concerns from the IND, this timeframe can extend to three to six months. Coupled with the costs associated (approximately EUR 4,560) and the responsibilities of trusted sponsorship, many businesses may opt against pursuing this route, potentially resulting in the hiring of less qualified candidates.

The government has already identified several sectors experiencing labour market shortages. A facilitated process for companies within these sectors to become trusted sponsors would be beneficial. Additionally, more regional or sector-specific agencies could assess company viability and contributions to sustainability.

For those companies that prefer not to become trusted sponsors, alternatives such as the EU Blue Card or a standard residence permit with work authorisation exist. However, current processing times for the Blue Card are also around three months, and the highest salary threshold applies unless the candidate has recently graduated. As many businesses urgently require candidates, they often choose to navigate these processes or resort to payrolling companies.

The standard residence permit with work authorisation is generally considered a last resort, as it requires passing a labour market test. The application process can take up to three months and necessitates thorough pre-hire research to ensure the job description is appropriately defined. Moreover, if the vacancy is not registered with the UWV for a minimum of five weeks, the application will be rejected. Historically, less than 50% of applications are approved within a six-month period.

To create a more favourable environment for attracting talent with relevant green skills, the government could consider revising existing legislation to allow for less stringent labour market tests for specific sectors. Dutch law currently permits the identification of labour shortage occupations with reduced testing requirements; implementing such options could significantly facilitate the recruitment of skilled talent by SMEs in the Netherlands.

Green visa

Only recently did the term ‘green visa’ take shape in immigration and sustainability conversations. The Dutch government is unlikely to introduce a green visa at this time. However, if there is an interest in tailoring Dutch labour migration policies, a permit could be developed to allow individuals with relevant green skills to enter the country. This permit could facilitate the establishment of businesses focused on sustainable energy, among other initiatives.

Alternatively, with the energy transition, and companies having to send workers in for short term projects such as the instalment of windmills or upgrading the efficiency of power plants so that less fuel is required, a new green work permit waiver could be introduced. Many projects related to the energy transition have required staff from abroad on an urgent basis, yet there has often been no appropriate work permit application category available to accommodate this need.

For instance, in a recent tender, a UK company secured a project related to carbon capture and storage, which had an imminent deadline. Initially, the search for staff was limited to the EU, but the availability of skilled personnel proved insufficient, necessitating the import of UK workers. Although it was possible to register the project under the International Trade Regulation, it would be beneficial if such projects could automatically qualify for an exemption category, requiring only a simple notification.

Looking ahead

As the urgency of addressing climate change grows, so too does the demand for individuals with relevant green skills to contribute to these initiatives.

Given the government’s recognition of labour migration as a vital component of the Dutch labor market, a more tailored approach to specific sectors and occupations could facilitate the entry of skilled green talent.

Embracing innovative strategies in this area could significantly enhance the Netherlands’ capacity to achieve sustainable business practices.

Need to know more?

For more information on immigration policy in the Netherlands, please contact [email protected].  

This blog was published on 12 November 2024, and due to the circumstances, there are frequent changes. To keep up to date with all the latest updates on global immigration, please subscribe to our alerts and follow us on LinkedIn, X, Facebook and Instagram.