Housing & well-being of foreign employees - why living conditions determine workforce stability in the Netherlands

  • Data publikacji 14 listopad 2025

The Dutch labour market has long been struggling with a persistent shortage of workers. This is confirmed by both CBS data and projections from government institutions. The latest report Mogelijkheden voor arbeidsmarktprognoses voor 2030 shows that in many sectors — from logistics and production to agriculture and technical professions — labour demand exceeds what the local population can supply. This is why foreign employees remain the foundation of operational continuity for thousands of businesses operating in the Netherlands.

However, the availability and willingness of foreign workers is only half of the equation. The second half is far less obvious, yet absolutely crucial: housing and overall well-being. In the Netherlands, it is housing conditions — not only wages — that determine turnover, productivity, stability, and engagement of foreign staff. In practice, this means that housing is no longer a logistical matter, but a strategic component of HR policy and employer branding.

1. Pressure on the Dutch housing market - the background shaping the labour market

The shortage of housing for workers in the Netherlands is more than a statistic — it directly influences companies’ recruitment possibilities. In regions where the highest numbers of labour migrants work, the availability of rental properties is lowest, and rental prices rise much faster than the average wages in the temporary employment sector. As a result, some workers resign from coming to the Netherlands before even starting employment, while others move between regions in search of more affordable options.

For companies, this means competing not only through wage levels but also through living conditions, which have become a key element of the recruitment package. Employers who provide stable and appropriate accommodation experience lower turnover, fewer absences, and greater predictability in operational staffing. In an economy built on continuous processes, any disruption caused by housing problems quickly translates into real financial costs.

2. How housing impacts stability - what determines a worker’s long-term engagement?

The Netherlands has been studying the relationship between migrant housing, workplace adaptation, mental health and productivity for years. Poor housing conditions lead to a decline in well-being, and consequently to higher turnover.

Research shows that overcrowding and lack of privacy increase stress and adaptation difficulties - which, for foreign employees, significantly affects workplace efficiency and the time required for full onboarding.

In practice, the correlation is clear: employees who live in well-maintained, stable accommodations have a stronger sense of security, integrate into teams faster and stay longer in their jobs. This directly translates into lower HR costs, lower turnover and greater business predictability.

For employers, this means that well-being does not begin in the workplace, but much earlier: in the employee’s place of residence.

3. Research insights - what do migrants themselves say about housing?

The Zicht op arbeidsmigranten report prepared by ROSBP (Erasmus Universiteit Rotterdam) reveals how severe the structural housing problems are for foreign workers. One of the key sections states:

“Het Aanjaagteam concludeert dat als het gaat om huisvesting, er voor EU-arbeidsmigranten en derdelanders te weinig locaties zijn, de kwaliteit slecht is en dat ze vaak afhankelijk zijn van werkgevers voor huisvesting.”

The key conclusion of the report is not only the description of the problem but also a clear direction for solutions: separating housing from the employer–employee relationship and ensuring transparent housing standards. This is why SNF (Stichting Normering Flexwonen) plays such an important role, providing clear norms relating to space, safety, equipment and privacy.

From a business perspective, investing in certified accommodation is not an added benefit but a necessity — it impacts retention, planning predictability and reduces reputational risks.

4. When housing becomes a market advantage - transport, privacy, and location

In the Netherlands, the key component of comfort for foreign workers is not only the quality of housing, but also its location. Our operational experience shows that commuting time directly impacts employee satisfaction and sick-leave rates. The longer and more complicated the commute, the higher the risk of lateness and job abandonment.

For this reason, companies increasingly choose “close-to-work” solutions: accommodations located within 20–30 minutes of the workplace. This reduces stress, improves daily routines and increases the worker’s sense of stability. Combined with private rooms or small shared rooms, this addresses the fundamental needs of privacy, safety and avoidance of conflict.

From the employer’s perspective, the greatest value of good housing is that it determines whether an employee will stay long-term or treat the job as a temporary episode. In an economy where turnover generates measurable costs, well-planned housing becomes a competitive advantage — not merely a logistical necessity.

5. Well-being in practice - health, integration, and stability as measurable outcomes

Dutch institutions have long emphasised that housing quality affects four areas: mental health, physical health, safety, and social integration. Studies show that employees living in stable, comfortable conditions take fewer sick days, adapt faster to a new culture and show higher motivation.

For foreign workers, an additional factor appears — the ability to build community. Migrants who live close to each other but retain sufficient privacy form informal support networks, reducing feelings of isolation and language barriers. High-quality housing becomes the foundation for integration, which directly boosts efficiency and loyalty.

It is important to emphasise that well-being is not just about reputation. In industries such as logistics and production — where the work is physically demanding — comfortable housing determines recovery, sleep cycles and the capacity to work shifts. Poor living conditions can shorten the effective relocation cycle by half — which immediately increases turnover.

6. Conclusions and implications for employers in the Netherlands

Housing conditions are not the backdrop to employment — they are its foundation. Employers who invest in housing quality gain more stable, healthier, and more loyal teams. Those who ignore this aspect face rising turnover, higher absenteeism and difficulties in scaling operations.

Best market practices are based on three principles: transparency, stability and integration. Transparency means clear rental rules and compliance with SNF standards. Stability means predictable location and comfort in daily life. Integration means language, administrative and social support that allows workers to function in a new environment.

In this context, the role of operational partners capable of combining recruitment with responsible housing and daily support grows in importance. One such partner is Intraservis, which builds a cooperation model based on compliant housing, regulatory alignment and integration - providing companies with the certainty that their foreign workers have safe, stable living conditions. In an economy where talent shortages are becoming the norm, such partnership strengthens workforce continuity.

FAQ - Housing & Well-being of Foreign Employees in the Netherlands

1. Why is housing such a critical factor for foreign employees working in the Netherlands?

Because it directly affects stability, productivity, and retention. Research from RISBO and CBS shows that workers living in overcrowded or unstable housing experience higher stress levels, more absences, slower adaptation, and significantly higher turnover. Stable accommodation reduces these risks and improves long-term engagement.

2. What is the role of SNF certification in ensuring proper living conditions?

SNF (Stichting Normering Flexwonen) sets clear standards for space, privacy, safety, hygiene, and equipment in migrant housing. Employers providing SNF-certified housing ensure compliance with Dutch regulations, reduce reputational risk, and improve the well-being and retention of their foreign workforce.

3. Does proximity of housing to the workplace actually affect employee performance?

Yes. Dutch research and employer experience show a strong correlation between commute time and productivity. Workers living 20–30 minutes from their workplace are less stressed, more punctual, and significantly less likely to change jobs. Long and complicated commutes are one of the most common reasons for turnover among foreign employees.

4. How does housing influence mental and physical health?

Poor housing conditions — such as overcrowding, lack of privacy or unsafe environments — contribute to fatigue, sleep problems, chronic stress, and mental health difficulties. Conversely, clean, quiet and private accommodation improves recovery after physical work, stabilises sleep cycles, and strengthens resilience in shift-based jobs.

5. Why is community-building important for migrant well-being?

Foreign workers often face language barriers, cultural differences and social isolation. Living in well-planned housing — close to others but with sufficient privacy — enables the creation of informal support networks. These networks reduce loneliness, facilitate adaptation, and have been linked to higher job satisfaction and longer retention.

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