Companies with remote work policies already benefit from minimized office space and often increased productivity and lower workplace liabilities. But companies that have remote workers in the EU also have lower employee administration costs, healthcare costs, and tax and pension costs plus other soft benefits and savings.
Health insurance is probably the largest area of savings because health insurance in the US is the responsibility of the employer and can often be 20% of an employee’s salary. You, as the employer, have to select the right insurance plans for your employees, pay the costs for those plans, and administer and manage any changes. In the Netherlands, the employee is, by law, required to find their own insurance and can select from many providers and plans that are best for the individual. A typical cost to the employee is €125/month for a premium plan that will cover just about everything. So effectively there are no health insurance costs for Dutch employers. That is an instant savings.
When you consider payroll, taxes, and HR administration on top of health insurance plus expertise you have to have in house to effectively administer everything, it can be quite the distraction from your core business. Furthermore, if this is done poorly, or there are mistakes, things can get complicated very quickly.
Not so much as a direct or measurable expense, but attracting employees is getting more difficult and sometimes does not even mean offering higher salaries. Many of today’s highly skilled workers are looking for not just more money but other incentives. Why not offer the opportunity to live and work in the Netherlands so they can explore Europe in their free time? This can be a great way to attract or retain a key employee who might either look for a European firm or go to another opportunity that does pay more.
How does RPWalter help? When you enter into a professional services agreement with us, we take over all of the typical payroll and HR admin for your employee, sponsoring a Dutch work visa for them, manage all the immigration processes, and free you of much of the HR responsibilities and expenses of managing an employee in another country. The cost savings vary, but they are typically less than half of your current HR and payroll costs and in most cases, roughly 6% of the employee’s salary..