In its 2016-2017 report, the World Economic Forum ranked the Netherlands 4th out of 138 countries on its competitiveness index. This high ranking is due to the country’s robust infrastructure development, unparalleled technological progress, and exceptional scientific innovation.
Additionally, in 2016, the World Bank ranked the Netherlands 28th out of 190 countries for ease of doing business. This European economic powerhouse is definitely one to watch out for in 2017. If you’re at all inclined to do business in the Netherlands, our quick guide to business etiquette for the Netherlands will provide you with the basic information you need to succeed in your endeavors. You can find more results in the Global Competitive Report 2018
How To Network Successfully:It’s well known that the Dutch cherish a consensus-driven culture. Certainly, its storied experience with national flood-control has fostered this unique spirit of Dutch cooperation and mutual dependence. Since the unceasing threat of the open seas necessitates vigilance, businesses in the Netherlands are extremely open to sustainable practices.
In order to network successfully in the Netherlands, learn to leverage your knowledge of sustainability to earn the trust of your Dutch business counterparts. In the Netherlands, public-private partnerships promote ethical practices and equality, major components of sustainable business. So, familiarize yourself with De Groene Zaak, the leading sustainable business association in the Netherlands, with more than 200 pioneering companies as members.
In modern Dutch corporate culture, sustainable business practices continue to gain popularity. According to Prime Minister Mark Rutte, speaking at the United Nations Sustainable Development Summit in 2015, a multi-stakeholder approach is key to eradicating poverty. Businesses like Heineken have already drawn up plans to source at least 60% of its raw materials for its African and Middle Eastern breweries from local farmers.
How To Cold Email Effectively:
The Dutch value directness, but they also appreciate courtesy. In the western world, cold emails are becoming increasingly popular. However, it is important to remember that all formalities should be observed in a cold email to prospective Dutch partners. The email should be brief, to the point, and detail-oriented.
Identify a pain point, present an actionable solution, and suggest a meeting time. To be effective in this approach, actionable solutions should be substantiated by empirical evidence: figures, percentages, and factual data. This allows you to provide evidence for how a partnership would be beneficial to both sides. If your prospective Dutch partner is committed to sustainable business, make sure you’re familiar with De Groene Zaak, and briefly mention it in your email. It’s an effective way for you to alert your Dutch counterpart to your shared business philosophy.
Email Etiquette:
Remember to observe all courtesies in any email communication. Always include a greeting or salutation, and remember to sign off with your name, position within your company, and the name of your organization. It’s also a good idea to include a contact number, if possible. Above all else, observe the strictest rules of decorum. Refrain from being too familiar, as the Dutch are typically reserved in nature.
Business Cards:
While there is no set ritual for exchanging business cards, take great care to observe all the typical courtesies when doing so. Refrain from sharing cards that are torn or dirty. Handle your Dutch counterpart’s card with care and respect. At this point, it is also important to remember the Dutch penchant for privacy: refrain from calling home numbers if they are included on exchanged cards.
LinkedIn And Other Social Media Connections:
The Netherlands currently ranks #1 on the DHL Global Connectedness Index, with 91% of households connected to the Internet. Additionally, 84% of Dutch citizens have a broadband connection. As the digital gateway to Europe, the Netherlands hosts digital leaders like Microsoft, Verizon, Google, Infosys, IBM, and Huawei on its shores. The Netherlands connects the Americas to Europe with fifteen sub-sea cables and boasts the highest bandwidth speed per-Internet user in Europe (an average of 8.5 Mbps).
These digital advantages translate to a rising trend in social media usage in the Netherlands. According to NLTIMES, the Dutch are flocking to Whatsapp, Instagram, and Snap Chat with great enthusiasm. Currently, Whatsapp boasts 9.8 million users and is the largest social network in the Netherlands. Additionally, nearly 50% of its working population (about 5 million users) are registered members of LinkedIn. Of the 92% of small businesses that use social media for marketing purposes, 61% credit their social media presence for an increase in overall revenues. So, it is definitely to your advantage to leverage the power of social media to increase your company’s lead generation and sales.
How To Dress:
The Dutch favor conservative dress in the corporate world. Ideally, men should wear dark-colored suits and classic ties, while women should choose between tailored suits or dresses. Despite its conservative business culture, the Dutch propensity for egalitarianism and independence is evident in its reputation as the most cycle-friendly country in the world. The Dutch cities of Amsterdam, Utrecht, and Groningen lead the world in terms of sustainable travel. For example, the city of Groningen reports that bicycles are used for 61% of trips around the city.
On any given day, no self-respecting Dutch citizen will bat an eyelid at the sight of men in suits peddling to work next to sweatshirt-wearing teens and ladies in flowered dresses. This inclusive culture can be seen in the corporate sector. Workers in tech, startup, IT or service industries often ditch the customary suit for jeans and open-necked shirts. The best way to determine whether you need that formal suit is to make discreet inquiries before you attend an event.
How To Negotiate:
The Dutch focus less on business relationships and connections than many other cultures; their primary approach to negotiations is to produce win-win scenarios that benefit both sellers and buyers. The Dutch believe in earning trust through the sharing of information, not through the influence of business connections. Since the Dutch highly value honesty, it is of utmost importance to refrain from all forms of indirect communication and excessive ‘salesmanship’ that can come across as insincere and dishonest. Be respectful but firm in your offers.
Additionally, the Dutch practice what is called a monochronic work style. They place great value on working systematically and sequentially through a list. This characteristic is often a great trial to those who come from polychronic cultures, so it is a good idea to exercise patience when it comes to negotiating with your Dutch counterparts.
Additionally, some Dutch negotiators may resort to emotional strategies or attitudinal bargaining to close the deal. For example, your Dutch counterpart may try to guilt-trip you into a decision. Or, he may stubbornly insist on protecting some of his more extreme positions. In these instances, it is imperative to stay calm and to renegotiate your own position. If you make any concessions, bluntly ask your Dutch counterpart to reciprocate.
How To Tell if a Meeting Went Well Or Poorly:
Often, many people mistake the Dutch bluntness for rudeness. However, the Dutch are merely being straightforward with their concerns. You will know that a meeting has gone well when both you and your Dutch counterparts succeed in crafting a satisfying agreement that benefits both parties. Also, if you receive any compliment at all from your Dutch counterparts, count that as a positive development: the Dutch are not effusive with their compliments. When they do give them, it is because they mean it. In contrast, a poorly executed meeting leaves both sides feeling less than enthusiastic about moving forward.
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Works Cited:
1) Katz, Lothar. Negotiating International Business – The Negotiator’s Reference Guide to 50 Countries Around the World. Book Surge Publishing. 2006.
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