This company gives all its employees 500 euros extra per month: ‘This is how you help reduce turnover’

Van der Schoot: “The housing costs and energy prices have risen enormously. “I don’t want people to come to work with fear,” she says. He also said, ‘I don’t want to lose them. We make software, which is a product that requires a lot of effort. It’s a bit of a win,” he says.

“Everyone is cold or hot”

Van der Schoot says that things are going well. He doesn’t think it’s morally responsible to pay out all that profit to himself and a few other shareholders. “Employees work hard every day.”

Van der Schoot says he does not consciously prefer a percentage increase. “Everyone is shopping, everyone is cold or hot,” he says. And this 500 Euro does not come out of nowhere.

Measures for low incomes

Van der Schoot estimates that a family loses a total of about 5,000 euros extra per year. “This is 10,000 euros gross. Most of the people who work for us have a double income, so I thought: I’ll do half.”

ABN AMRO economist Piet Rietman thinks it is a “very smart idea”. She conducts research on wages, pensions, social security and household debt. “This is a measure that mainly compensates for low incomes. For some that is a quarter of their income of 500 euros, for others a few percent.”

Prince’s Day

Several ministers this week urged employers to raise wages. “The government cannot do everything,” said Finance Minister Sigrid Kaag. In the coming weeks, new measures for next year will be discussed, which will be presented on Budget Day.

The energy bill in particular contributes to the poverty trap in the Netherlands. Gas is expensive, but electricity is becoming more and more expensive. In the video below you can see why:

But in the meantime, don’t expect tons of money from The Hague for the most modest. However, the previously announced €500 compensation for the energy bill is still close to the minimum.

Poverty is expensive

So for now the ball is in the court of the employers. Rietman says the salary increase could be “a very useful boost to the economy”. According to him, in this way consumption can be stimulated and it helps to protect the economy. But more importantly, it prevents people from falling into poverty.

It sounds rude, but people in poverty are expensive. “Debt relief, well-being, it’s a lot of government spending after all.”

Lots of room for salary increases

That is why Rietman is in favor of wage increases, but we sometimes hear that (significant) wage increases can push inflation up even more. The so-called wage-price spiral. What about this one? Rietman: “There is actually no risk in the current economy. This can only happen if people can buy more than before. But now purchasing power is falling and a poverty trap is emerging. Make up for the loss.”

Rietman says that prices are now rising rapidly and wages are only rising slightly. Ministers have said before that there is room for wage increases, and Rietman agrees. While we are talking about a productivity increase of about 4% in the country, “wages are currently increasing by 2.9%”.

“Employers take their responsibility”

So you could say there is room for improvement. “But one always comes at the expense of the other. The higher the wage, the lower the profit of the company. The lower the wages, the higher the profit.”

The employers’ organization VNO-NCW is aware of the problem. In response to RTL Nieuws, they state that “the collective labor agreement salaries are rising rapidly”. According to them, this is the largest increase of this century. “There’s a lot going on outside that. Employers take responsibility for that.”

meeting with the cabinet

But employers cannot do this alone, according to the organization. “Even 60% of contractors can barely cover the costs.”

VNO-NCW says it is in talks with the cabinet and the labor movement. “To see what economic policies make sense now and what we can do in this unique and uncertain situation.”

Manager Van der Schoot thinks that sometimes things don’t go so badly with these “difficult salary negotiations”. “Sometimes around four percent. But for some people, that means they might still be able to go to McDonald’s twice a month.”

Find other companies

Van der Schoot also calls on other companies to take responsibility, because, in his opinion, it doesn’t happen often enough. “Then the manager should not pay a dividend once, but lower it at the same time. Entrepreneurship is thinking in the long term. It now very often relies on annual accounts. But some companies will not be able to pay now. “

In any case, the reactions within his company were – logically – very enthusiastic. “We announced it last Friday and of course everyone was happy. But I also got emotional emails. People told me that’s why they work for this company. Was very good.”

Source: RTL