This case study examines an initiative in the Netherlands supported by the European Social Fund (ESF) aimed at promoting employability through customised interventions to establish healthier and more inclusive working environments. In response to demographic shifts and sector-specific challenges such as burnout, the project focused on reducing absenteeism, improving workplace practices, and enhancing labour mobility across industries. It facilitated cross-sector collaboration among municipalities, companies, research and development funds, and industry associations, delivering coaching, training programmes, and innovative HR policy solutions. Although engaging stakeholders and ensuring long-term impact presented challenges, ESF funding helped build capacity, foster experimentation, and develop scalable solutions. Outcomes included the adoption of improved work-life balance policies, onboarding initiatives for underrepresented workers, and the ongoing continuation of project activities beyond the funding period. The project aligned with the Netherlands’ decentralised and locally driven approach to social innovation and employment policy.
Sustainable employability in regions and sectors in the Netherlands
Abstract
The social economy landscape in the Netherlands encompasses a variety of entities, including associations, co-operatives, mutual societies, and social enterprises. However, the country lacks a comprehensive national legal framework specifically designed to define or regulate the social economy. Various legal provisions, such as those found in the Civil Code, address issues related to transparency and stakeholder engagement for social economy entities. As of 2024, approximately 45 010 social economy entities were operating nationwide, including 41 725 associations (CIRIEC et al., 2024[1]).
The Netherlands has a decentralised approach to social innovation, with local governments and partnerships taking the lead. Cities such as Amsterdam, Rotterdam, The Hague, and Utrecht have developed action plans to stimulate social economy and social innovation activities. Initiatives like the Social Impact Factory Utrecht and the City Deal Impact Entrepreneurship (implemented in Amsterdam) bring together public authorities, financiers, and knowledge institutions (OECD, 2023[2]). The country primarily follows the “Policy Making for Social Innovation” approach, emphasising experimentation and capacity building at the local level rather than integrating social innovation into mainstream policy frameworks.
Between 2014 and 2020, the Netherlands received EUR 1.3 billion in ESF funding—including both EU and national co-financing—accounting for 26.4% of its European Structural and Investment Funds (European Commission, 2025[3]). The funding targeted three main areas: (1) social inclusion, (2) crisis recovery and resilience, and (3) sustainable and quality employment. These resources supported initiatives such as the Sustainable Employability Regions and Sectors scheme, aligning with ESF objectives and addressing key social and economic challenges in the country.
ESF+ is managed at the national level by the Ministry of Social Affairs and Employment. The Ministry oversees the National Programme on Labour Market Integration, Social Innovation, Food Aid, and Technical Assistance. The majority of ESF+ funds are allocated to municipalities across the country’s 35 labour market regions, which then implement projects as the final beneficiaries. A dedicated Monitoring Committee, including stakeholders across sectors—including the Ministry of Justice and Security, the Ministry of Education, Culture and Science, and the Dutch College for People’s Rights—oversees the implementation and progress of ESF+ activities (see Figure 1).
Source: Authors’ own elaboration based on information provided by the Netherlands.
This project focuses on ensuring that workers remain motivated, healthy, and productive throughout their careers until retirement. It centres on three themes: promoting health and safety to reduce absenteeism, enhancing work practices that develop skills and engagement, and improving labour mobility through better skill transparency and career guidance. The initiative also responds to demographic shifts, such as an ageing workforce, and sector-specific issues like burnout in the service industry. Both companies and employees benefit from tailored interventions designed to foster sustainable employment (SEOR BV & Ockham IPS, 2021[4]).
By fostering partnerships among R&D funds, municipalities, industry organisations, and companies, the project established a collaborative framework to address employability challenges. Interventions included workshops, coaching, policy planning, and sector-specific campaigns designed to encourage cultural change, raise awareness, and provide tools for long-term improvements. While cross-sectoral collaboration is common elsewhere, its integration within the Dutch context represents a significant innovation in workforce sustainability efforts.
The project faced several challenges, including limited participation, under-representation of some sectors, and difficulties in measuring tangible impacts. Engaging companies—particularly in the service sector—proved difficult due to low awareness of sustainable employability practices and administrative hurdles. Trust issues among companies also hampered progress on labour mobility initiatives. Additionally, short project durations limited opportunities for long-term behavioural change and concrete outcome measurement, with many results relying on qualitative data and participants' perceptions. Geographical and demographic coverage was also somewhat limited.
To address these issues, the project promoted collaboration, tailored interventions, and capacity building. Efforts focused on raising awareness through workshops, campaigns, and coaching, while building trust among stakeholders. Partnerships among R&D funds, industry associations, and companies facilitated sector-specific guidance, ensuring interventions aligned with real-company needs. The development of tools and policies during the project improved HR practices and laid the foundations for sustainable change. For example, mentorship schemes pairing experienced employees with newcomers helped facilitate smoother integration. Over 80% of participating companies reported ongoing efforts, and 71% implemented concrete actions such as flexible working hours and onboarding programmes for underrepresented groups. Mainstreaming these practices remains a priority, but the project contributed to improved employment retention and greater inclusivity (SEOR BV & Ockham IPS, 2021[4]).
ESF funding was instrumental in enabling the project' scalability. It supported a variety of interventions—including research, training, and policy development—that would have been unlikely for companies to undertake independently. The funding enabled customised solutions to address employment challenges, such as absenteeism and skills development. Approximately 60% of companies reported meeting or exceeding their project goals, and 80% continued implementing initiatives beyond the project's end. Moreover, ESF facilitated the development of partnerships and promoted cross-sector mobility, fostering long-term cultural shifts and sustainable improvements in HR policies (SEOR BV & Ockham IPS, 2021[4]).
References
[1] CIRIEC et al. (2024), “Benchmarking the socio-economic performance of the EU social economy. Improving the socio-economic knowledge of the proximity and social economy system.”, https://www.ciriec.uliege.be/en/publications/etudesrapports/benchmarking-the-socio-economic-performance-of-the-eu-social-economy-2024/ (accessed on 31 January 2025).
[3] European Commission (2025), “Cohesion Open Data Platform - Netherlands”, https://cohesiondata.ec.europa.eu/countries/NL/14-20 (accessed on 16 January 2025).
[2] OECD (2023), “Country Fact Sheet: Netherlands”, https://www.oecd.org/content/dam/oecd/en/topics/policy-sub-issues/social-economy-and-social-innovation/country-fact-sheets/country-fact-sheet-netherlands.pdf (accessed on 16 January 2025).
[4] SEOR BV & Ockham IPS (2021), Evaluation ESF Sustainable Employability Regions and Sectors.
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