Employees in stronger position to negotiate terms of employment
Employees are now in a better position to negotiate the terms and conditions of their employment. This is mainly visible in wage increases and fringe benefits. Olaf van Vliet, Professor of Economics at Leiden University, spoke to NU.nl about workers' improved negotiating position.
Compared to ten years ago, during the financial crisis, employees today are in a much stronger position when it comes to negotiating their terms of employment. This is due to the current shortages in the job market and the aging population. Professor Van Vliet says that employees' position will only get stronger if the shortages in the market continue: ‘We’re seeing a workers’ labour market, where it’s clear that employees can negotiate other terms of employment than just wages.’
An improved negotiating position results in higher wages and extra rewards. Last year, wages increased by a record average of 7.3%. As for other employment conditions, the professor notes that the effects are varied: ‘Some companies are quite willing to provide an extra bonus, while others see more in offering an extra training course or an attractive lease car.’
More information
Read the full NU.nl article (in Dutch)
Photo: Getty Images through Unsplash