Flexibility in the labour market important for startups and scaleups
Innovation is crucial for the competitive position of the Netherlands and Europe. Startups and scaleups play an important role in this. Commissioned by Techleap, Panteia examined which obstacles startups and scaleups in the Netherlands experience when it comes to the labour market and social security.
Flexibility in the labour market is especially important for innovative companies. Startups and scaleups often grow rapidly, have a dynamic way of working and face substantial financial risks. They experience that rules intended to provide employees with security can, in practice, hinder their growth and competitiveness. They do not argue for less protection for employees, but for clarity, simplicity and a risk distribution that is more balanced.
Our researchers mapped out what these entrepreneurs appreciate in the current system, and which barriers they experience. They did this using a survey, in-depth interviews and a focus group. Based on best practices in other countries and an analysis of policy options, they make recommendations in the report for a system in which both innovative strength and social security remain safeguarded, and in which the Dutch tech ecosystem can flourish and remain internationally competitive.
Some key findings:
- Entrepreneurs appreciate, among other things, the stability of the Dutch system, the professional working environment and the strong and solidarity-based safety net in case of illness and incapacity for work.
- Rules for permanent employment contracts do not align sufficiently with the dynamics of startups and scaleups.
- The long continued payment obligation during sickness hampers growth.
- Contract and dismissal procedures are slow and administratively demanding.
- More tailoring in collective agreements and pensions would create room for suitable collective agreements and remuneration structures.
- Arrangements such as the highly skilled migrant scheme, expat scheme, WBSO and WKR provide important support.
“The results show that startups and scaleups encounter obstacles that impede their growth. This raises the question: how can we ensure that the labour market system better aligns with the companies that carry our future innovative strength?” – Koen Maas, researcher at Panteia
“The report is not intended to change the valuable protection for employees, but to address the modernisation of employment contracts in a balanced way, so that our startups and scaleups remain competitive compared to other ecosystems in the EU and beyond.” – Marije Dijksma, Public & Government Affairs Manager at Techleap
The report (in Dutch) can be found here.
