10 opportunities to increase budget space for hiring
HR-tech service provider HeadFirst Group is striving for a new world of work, where supply and demand meet using tech and data, the value of talent is prioritized regardless of contract form, and the fight for an inclusive labor market is on. To realize this vision, Managing Director Koen van Rijn challenges organizations to save 10% on hiring costs by hiring 20% more external talent, and offers ten concrete opportunities to meet this challenge.
'Join the next world of work'. The purpose of HR-tech service provider HeadFirst Group, by which it says: we are taking the lead into the new world of work, hook up. But what does that world look like? Koen van Rijn, Managing Director Intermediary Services, describes the vision in three parts: "1) Supply and demand find each other online using tech and data, 2) The value of talent is prioritized where the form of contract has proven less and less relevant and 3) we are fighting for an inclusive labor market with challenging work for all, without prejudice, for a fair price." What steps can you take as an organization towards this new world of work, to which Koen links an interesting challenge: save 10% on hiring costs, by hiring 20% more external talent. With these ten concrete opportunities, you can get started right away.
Hiring maturity
The way organizations have organized external hiring can be plotted on a maturity model. The three most common stakeholders within it are the Business, HR and Procurement. The Business seeks scalability, flexibility, knowledge and speed. HR wants a robust, predictable and transparent on, off and through process of professionals, while Procurement focuses primarily on competitive value for money and managing compliance risks.
In a limited hiring maturity stage, often a decentralized ad hoc organization (Phases 1 and 2), the Business is the dominant stakeholder, with process control, compliance and cost control often secondary. As the hiring process matures (Phase 3 and beyond), there is better process control, reduction in compliance risks and improved value for money for hired professionals.
Opportunity 1: Implement market forces
6-8% budget space
In the ad hoc phase, the Business buys directly. Speed, flexibility and familiarity with suppliers of professionals or freelancers are the dominant criteria, but this has two disadvantages: higher rates and not always the best professionals, due to the lack of market forces and low compliance regarding laws and regulations. HR can create a more stable base by doing market facilitation. This can be done in-house (with platform solutions) or in co-creation with specialist market players (intermediary or MSP).
Opportunity 2: Implement a recruitment policy regarding chain formation
2-5% budget space
In the low maturity stages, undesirable procurement structures often arise with many intermediaries (chains), all making margin and not always complying with laws and regulations. Our data shows that this can lead to 10-12% higher hourly rates. We recommend creating policies aimed at avoiding chains or at least maximizing their duration and margin. Get a grip on compliance and costs by contracting freelancers directly or contracting an intermediary through a fee agreement.
Opportunity 3: Implement a preferred supplier model
2-5% budget space
Enter into strategic partnerships with a select number of suppliers for areas of expertise, in which there is a lot of hiring. With these partners, make a commitment to volume. This creates a healthy balance between competitive rates and preferential treatment.
Opportunity 4: Unlock the zzp market directly
Reduction in recruitment costs ? 12% to 5-7%
Every organization has from the past successful collaborations with self-employed people, both from the Business and through intermediaries or Managed Service Providers (MSPs). Take control of these contacts by uniting them in a (flex) talent pool. You can do this yourself or in collaboration with an HR tech provider capable of managing this on digital platforms. Within these pools, freelancers can inspire each other and pick up challenging assignments in the future. This reduces recruitment costs from over 12% to 5-7% and creates productivity gains through faster onboarding and learning curve, as rejoiners are already familiar with the client.
It is striking that this low-threshold opportunity, is still relatively little applied in the Netherlands. Topics such as direct sourcing and building talent pools are still in an exploratory phase at many organizations.
Opportunity 5: Realize a real-time rate benchmarking process
5-10% financial room in the first year
Many organizations have traditional statistical benchmarking processes; ratecards are periodically reviewed for a fee by outside consulting or expert firms. HeadFirst Group has developed a real-time benchmarking tool based on the combination of valuable data, proper classification and smart technology, including AI. With this, clients compare their assignments against current, market-based rates, set against scarcity. Our data shows that 35-40% of all contracted external professionals are above the benchmark rates. Stepwise optimization, through negotiations and inflow and outflow, without compromising continuity, yields 5-10% financial headroom in the first year.
Opportunity 6: Global/EU remote sourcing.
6-10% potential savings room
During the corona crisis, we "learned" to work remotely en masse. Many organizations remain reluctant in this area. Why not hire 100% 'remote workers'? For example, from countries where hourly rates are lower. Of course, language is a hurdle to overcome, but certainly in many IT teams, the working language is already English and remote sourcing is a good option. Furthermore, technology is increasingly removing language barriers. We are currently seeing an increase in foreign talent within the government, something that was not thought possible a few years ago. Especially in today's scarce labor market - where we need to be creative - this opportunity is worth exploring.
Opportunity 7: Speed up the screening and onboarding process
Between €150 - €200 savings per screening
Organizations would prefer to have professionals working as soon as possible. Unfortunately, they still face an average screening period of two weeks, associated with costs of between €150 to €250 per screening. The market for screening external employees is also undergoing a digital transformation. With fully digital access to data sources, a happy-flow screening can currently be successfully completed in as little as 10 minutes, at a cost of between €10 and €30. Apart from this direct savings in screening costs, the business returns are even more significant. With the right onboarding processes, a suitable candidate can start work within just a few days. That means: business critical roles are up and running faster, so no delays of projects in the business and frustrations of the professional about a slow onboarding process.
Opportunity 8: Avoid unnecessary emphasis on seniority and ideal candidates
5-7% budget space
A balanced mix of seniority within the flexible workforce can quickly save costs. Organizations often place unrealistic demands and requirements on professionals to be hired. Technological developments have led to increased adaptability and learning ability among junior and medior professionals. This allows them to be productive much faster after onboarding. Increasing our adaptability makes it possible to gradually reduce job levels by one or two levels.
Opportunity 9: Focus on both what you can do and who you are
Despite advanced methodologies such as cultural fit, personal development and adaptability, supported by methodologies such as Realdrives, MBTI, EQ, AQ, when hiring we still select primarily on the basis of required skills (what you can do) and too little on personal compatibility (cultural fit). While the consequences of this mismatch are not always immediately financially visible, they often result in unnecessarily long induction times to fully get up to speed or in premature outflow of professionals (mismatch).
Opportunity 10: Offer inspiring opportunities with fair rewards
Professionals make their choices based on more than just rate. They seek challenging work and want to work at inspiring organizations. Clients still underestimate the value of a good (flex) employer brand to make themselves more attractive to external talent. Put your culture, strategy and projects in the shop window. What HeadFirst Group helps clients with is an adaptive recruitment process and setting up processes to collect feedback from professionals about the client (NPS and Csat), so you can further improve on that.
Also start tomorrow?
The beauty of these opportunities is that any organization can start using them tomorrow, regardless of its current maturity stage. HeadFirst Group offers support in making choices and setting priorities through a baseline measurement. We break away from the traditional approach of interviews and workshops, which can take weeks. Our baseline measurement is fully data-driven and provides real-time insight into the business potential of each opportunity. The depth of our research is consensual and depends on the completeness of supplied data. Set aside any reservations, because how great is it to have 20% more business resources available without additional risk, while saving 10% on your costs at the same time.
Second edition ArbeidsmarktPoort a fact
Second edition ArbeidsmarktPoort a fact
After a successful inaugural edition in April, the second edition of the Labor Market Gate took place on Tuesday, October 24. On the initiative of the Bovib, the VvDN and ONL voor Ondernemers, several speakers came together to engage in a conversation with each other and those present in the room.
The Labor Market Gate provides a space for experts and stakeholders to exchange views and share knowledge and ideas on labor market issues. This second edition focused on labor market reform and cooperation between politics and the polder. A theme that is currently causing a lot of controversy, especially when it comes to the position of self-employed workers.
Kim Putters, president of the SER, kicked off the well-attended meeting. According to Putters, the (structural) shortage in the labor market urgently requires answers that are currently lacking. Especially long-term labor market policy is an issue that should be addressed in the elections. This evoked quite some discussion in the audience.
Marion van Happen, CEO of HeadFirst Group, appoints halfway through the discussion the elephant in the room: the draft proposal of the Law Verduidelijking Beoordeling Arbeidsrelaties en Rechtsverm presumen (VBAR) that is now up for consultation. A bill that has drawn a lot of criticism. Indeed, the content of the current draft bill could get in the way of the position of many zzp'ers. Stan Kaatee, Director General of Work at the Ministry of Social Affairs and Employment, says that all critical reactions to the proposal are being seriously considered.
Contract form-neutral security, for example a social system for all workers to protect them from the consequences of disability, could put an end to the discussion about laws and regulations for flex workers, including self-employed workers. You can overcome the problems of vulnerable self-employed workers at the base of the labor market, which politicians want to address with generic measures. On the other hand, such a huge system change will take at least five to ten years. First we must have a clear long-term vision. At the moment, that vision is lacking in political The Hague. A discussion point about which the last word has by no means been spoken.
HeadFirst Group supports the initiative of this ArbeidsmarktPoort and strongly supports a constructive, fundamental and factual debate on issues and challenges regarding the Dutch labor market. We will continue to contribute to meetings and debate sessions, and are already looking forward to the next edition.
Do you have questions about the Labor Market Gate and our position in the labor market file? If so, please contact Sem Overduin, Public Affairs Officer at HeadFirst Group. He can be reached at Sem.Overduin@headfirst.nl.
The cabinet has fallen, now what?
After the fall of the Cabinet, political parties will be especially busy in the coming weeks with: "Who will be my new party leader?", "Which candidates will be on the electoral list?" and "How do we come up with an expert and solid committee to write a new party program?". We do still have a missionary House of Representatives that will make a decision on whether a caretaker government can continue working on certain bills and plans.
Minister Van Gennip (SZW) was starting to get pretty much up to speed, so she planned to bring a number of legislative proposals to the fore after the summer. One of these plans was to create a clearer distinction between employees and the self-employed through the 'embedding' criterion and the entrepreneurial criteria as a contraindication of an employment contract. There is a chance that the House of Representatives will declare this bill controversial.
Should that be the case, the introduction of new legislation will be delayed and for a longer period of time there will be (legal) uncertainty as to when one is an employee and when one is self-employed. It remains to be seen what the ratio will be in the new Lower House and what plans the next cabinet will come up with for the labor market and the self-employed dossier. Introduction on January 1, 2025 will therefore not be realistic.
Disability Insurance
Second, we have the introduction of compulsory disability insurance (AOV) for the self-employed. Recently, this regulation has been in the media a lot and it has also been hotly debated in the House of Representatives. For this dossier, too, there is certainly a chance that it will be declared controversial. At the same time, the caretaker government is in a quandary, since the plans have been negotiated in the polder between employers and employees and the Netherlands has promised the European Union to offer more protection to the self-employed against the consequences of occupational disability.
Enforcement on labor relations
Finally, we have the section "enforcement on labor relations" by the Tax Administration. The coalition agreement stipulates that as of January 1, 2025, the enforcement moratorium will be lifted. Shortly before the fall of the cabinet, a motion was passed by the PvdA and GroenLinks to enforce sectorally and start in the social sectors of care, education and childcare. This sectoral approach and the abolition of the enforcement moratorium do not require a new bill. However, it is desirable, also for the Tax Administration itself, to have a clearer legal distinction between employees and the self-employed. In the fall, the Tax Administration will come up with a new enforcement plan. This plan will also provide more clarity on the timeline toward January 1, 2025.
These are exciting and turbulent times in political The Hague. After the summer recess, we expect to get more clarity on all the plans and bills related to the labor market and the self-employed dossier. We will keep you informed!
HeadFirst Group strongest grower in Flex Market Turnover Ranking 2023
HeadFirst Group has again taken the second spot in the prestigious Flexmarkt Turnover Ranking Top-100 in 2023. In fact, with revenue growth in the Netherlands for the year 2022 of €298.8 million, the HR-tech service provider is, in absolute numbers, the biggest grower in the list. "The fact that we achieved this largely organically by successfully serving existing and new clients makes me very proud," said CEO Marion van Happen.
For the year 2021, HeadFirst Group still recorded a Dutch turnover of 1,627.2 million euros. In 2022, that rose to 1,926 million, a growth of over 18%.
Van Happen: "We are accelerating our digital transformation. By deploying tech smartly, we create that colleagues have personal contact at the times when it really adds value for our customers (clients, suppliers and professionals alike). In this way we are working towards the ultimate customer journeys with high customer satisfaction. This has already visibly borne fruit in 2022. In 2023 and the years after, we will continue full steam ahead with this strategy."
All annual figures
Earlier this year, HeadFirst Group presented its annual results, including foreign divisions, presenting record revenues of 2.2 billion. HeadFirst Group's annual report can be read and downloaded on the Investor relations page.
About Flexmarkt Turnover Ranking Top-100
The Flexmarkt Turnover Ranking Top-100 is a leading ranking of flex companies, from small to large, offering a variety of services in staffing and hiring. In addition to staffing agencies, it includes numerous payroll companies, as well as secondment companies, zzp intermediaries and MSP service providers. The list is published annually by Flexmarkt in cooperation with Corporate Finance International (CFI). In terms of turnover, it covers more than half of the total Dutch flex industry and thus provides a clear, representative picture of developments in the market.
Opinion piece: The zzp spirit is out of the bottle - let workers choose their own form of contract
Recently, labor market data specialist Intelligence Group released figures showing that the majority of self-employed people would like to stay in business. Never before have so few self-employed people wanted to return to paid employment, just ten percent. In 2015, the figure was 18 percent. The same declining trend can be seen in all education levels. Of forced self-employment, I dare say on the basis of this information, there is hardly any more.
Studies by Statistics Netherlands and data from the Self-Employed Labor Survey also show the same picture over and over again: self-employed workers - compared to employed or temporary workers - are more often satisfied with their working conditions, sense of autonomy and learning opportunities at work. Self-employed workers experience less stress, are generally more proud of the work they do, and place great value on their sense of flexibility and freedom. Positive numbers and a development that I think we should cherish.
Not for nothing has the number of self-employed people been rising rapidly for years. In the Netherlands there are already over 1.2 million of them. Worldwide, with 1.57 billion, it is now the fastest growing group of workers in the labor market.
Why, according to the minister, is the permanent contract the norm?
Despite these clear figures, Minister Van Gennip (SZW) came out with a firm letter on December 16, 2022. A letter full of plans and proposals that tighten the thumbscrews, make being self-employed more unattractive and where working as an employee is clearly taken as the starting point. In these plans, both labor law and tax law tighten the belt for the self-employed.
The permanent contract is the norm and the minister wants to see a reduction in the number of self-employed workers in the Dutch labor market. This seems at odds with the choices made by working people in the Netherlands. Want to limit the group of working people who, on average, are the happiest? Especially since it is very questionable whether they will actually return to salaried employment if the rules become stricter and the frameworks more limited.
Everyone is desperately needed
All the plans and proposals highlighted in last December's letter and the broader labor market letter of April 3 clearly aim to reduce flexible work. Van Gennip also makes this clear in speeches and television appearances. The plans are based on the opinions of the Borstlap Commission and the SER MLT opinion, but we are far too quick to overlook the fact that these reports came about in a truly completely different time. Reality has caught up with us: after all, we are currently facing an extremely tight labor market. Employers and clients are crying out for staff, vacancies are being filled less quickly, and many organizations currently see this as the greatest challenge and threat to the continuity of their services. Shouldn't the focus of policy and political debate be on getting more workers on the job market instead of reducing flexible work? Shouldn't we give more space and flexibility to workers? And embrace all workers, whether they are self-employed, employees or temporary workers?
Criterion of 'embedding' becomes a battleground
When I then zoom in on the content of the self-employment plans, I am nonetheless moderately enthusiastic. In the corridors I hear that policymakers and organizations involved are struggling to flesh out the three elements of authority, embedding and self-employment. Will the criterion of "embeddedness in the organization" provide the desired clarity? We are already struggling incredibly to clarify the term "authority. Will the embedding criterion then provide clarity, or will it just create even more ambiguity? While clients, intermediaries and freelancers have been calling for clear frameworks and rules for years.
As CEO of one of the largest HR-tech service providers in the country, I see hiring requests coming in daily from numerous organizations. Think of ministries, municipalities, companies and universities. And time after time I ask myself; is this function or assignment embedded in the organization? By the current definition of embedding, the answer is often 'yes': these are professionals who are flown in to work on a project or replace someone temporarily. More and more organizations are doing a lot of project-based work. Hired professionals - take software developers as an example - work shoulder-to-shoulder in teams with employees on the same projects. Over time - currently averaging 1 year - the professional moves out and the professional has made a valuable contribution to the client's goals with his or her knowledge and expertise. The hiring organization happy and the professional happy. And time and again I ask myself; will this still be possible in the future?
If not, this is going to have serious consequences for the stability of organizations. The very tight labor market and already sometimes faltering services are going to be in even bigger trouble. I predict you: this is going to be as much of a battleground as it was in 2016 when the DBA law was introduced.
Regardless of how you will define embedding, the resulting question is: what will be the interrelationship between the three elements of authority, embedding and self-employment? How much weight will the entrepreneurial criteria be given? Will these criteria actually be seen as contraindicating the existence of an employment contract? And do we then look at embeddedness of the work being performed? Or do we look at embeddedness of the worker?
The House of Representatives was therefore right to ask critical questions on February 9 in response to the zzp plans. On Wednesday, May 31, the House received no less than 56 pages of answers from the minister. In my opinion, the minister has not yet sufficiently answered those questions. The ball is now in the Parliamentarians' court to ask about this again during the Commission meeting on June 7.
What then?
I am positive that entrepreneurial criteria are clearly named in the mid-December letter. Therefore, start working on the further elaboration of clear and verifiable entrepreneurial criteria. And, more or less in line with the advice of the Boot Committee, bring forward the entrepreneurial criteria. Formulate firm criteria that an independent entrepreneur must meet. If the worker jumps through this hoop, he or she is obviously self-employed and then notions such as embedding and authority are no longer relevant. This also improves enforceability because the number of situations to be checked is thus much reduced.
What I have been advocating for some time is that we take a more sectoral approach to the zzp issue. The target group is simply far too heterogeneous and diverse for generic measures to combat the excesses. The majority of the self-employed, as mentioned, have consciously chosen self-employment and are satisfied with their working conditions and sense of autonomy. We should cherish that and not frustrate it with generic measures. Follow the example of the healthcare sector and, on the contrary, enter into discussions with trade associations and market parties in sectors that involve a lot of public money, such as education and childcare. Make clear agreements with each other about when it is or is not possible to work as a self-employed person. That approach is much more in line with the diversity of the target group and in this way you ensure customization at the sectoral level.
And third, get to work as soon as possible on a basic disability system for all working people. Separate it from the form of contract and get everyone to contribute to a collective system. That is solidary, keeps the system affordable and ensures that we protect all vulnerable workers from the consequences and risks of disability. This will require a major system change and the necessary thinking, but it is more than necessary that we start this as soon as possible.
The genie is out of the bottle
The zzp spirit is out of the bottle. I do not believe that top-down measures from The Hague are going to change this. The number of self-employed people will continue to increase. This movement is irreversible. That is why I ask politicians and policy makers in The Hague to embrace this development and, on the contrary, to regulate matters around it properly. Focus less on the form of contract, ensure that everyone contributes to a collective system and offer more space and freedom to workers, especially now, in times of extreme scarcity. On Wednesday, June 7, people will cross swords in the Chamber. I am curious to see if these fundamental questions will be raised and hope for a good substantive debate. See you then!
Note to editors
Do you have any questions or comments? Please contact Maud Raaphorst, Teamlead Communications at HeadFirst Group, reachable at 06 - 51 10 70 77 or maud.raaphorst@headfirst.nl
Successful first edition of the Labor Market Gateway
On Wednesday, April 19, the first edition of the ArbeidsmarktPoort was scheduled in Nieuwspoort. The ArbeidsmarktPoort is an initiative of the Bovib (branch association for intermediaries and brokers), the VvDN (branch association for secondment companies) and ONL voor Ondernemers. The ArbeidsmarktPoort is a discussion and meeting platform where politicians, journalists, civil servants, industry associations, market parties and other stakeholders exchange views. As a member of the Bovib and cooperation partner of ONL for Entrepreneurs, HeadFirst Group has contributed to the creation of this Labor Market Gate. We welcome discussion and debate on issues and themes related to the labor market and find it important that the public-social debate is taken to a higher level.
The first Labor Market Gate was dominated by the Borstlap Commission report and the parliamentary letter from Minister Van Gennip (Social Affairs and Employment) on Monday, April 3. In this letter, the minister comes up with firm plans to reduce flexible labor. The Borstlap Commission report in January 2020 came with a number of recommendations and proposals to thoroughly reform the labor market to make it future-proof.
Hans Borstlap, former top official and former chairman of the committee, opened the first edition of Labor Market Gate. Borstlap shed light on Minister Van Gennip's plans, the lightning-fast developments in the labor market and his committee's previous recommendations. Borstlap is positive about the direction Van Gennip wants to take, but also strongly criticized the introduction of compulsory disability insurance and the Crisis Regulation Personnel Retention. In addition, he lacks ambitious and clear plans regarding the development of an individual learning account.
Hans Borstlap's speech was followed by a panel with Hilde Palland (Member of Parliament for the CDA), Ruben Houweling (Professor of Labor Law at Erasmus University and Crown Member of the SER) and Hans himself. The panel was led by Hugo-Jan Ruts, editor-in-chief of ZiPconomy. An interesting and substantive panel followed where various topics were discussed, such as the current tightness in the labor market, the growth of the number of self-employed people and a basic social system for all employed people, regardless of the form of contract. Interesting topics on which the last word has not yet been spoken.
HeadFirst Group supports the initiative of this ArbeidsmarktPoort and strongly supports a constructive, fundamental and factual debate on issues and challenges regarding the Dutch labor market. In the future, we will therefore certainly contribute to meetings and debate sessions. On Tuesday, October 24, the second edition of the Labor Market Gate is scheduled. Kim Putters, chairman of the Social and Economic Council and former director of the Social and Cultural Planning Office, will be present then and provide the opening. More information will follow.
If you have questions about the Labor Market Gate and our position in the labor market file, please contact Sem Overduin, Public Affairs Officer at HeadFirst Group. He can be reached at Sem.Overduin@headfirst.nl
HeadFirst Group organizes knowledge session for SGP parliamentary party
HeadFirst Group organizes knowledge session for SGP parliamentary party
On Thursday, March 16, HeadFirst Group, in cooperation with our partner ONL voor Ondernemers, organized a knowledge session for the SGP parliamentary party. On behalf of the SGP, Chris Stoffer (MP) and Arnold van Huizen (policy officer) were present. In the past, HeadFirst Group has organized more knowledge sessions for MPs and policy officers. During the knowledge sessions we reflect on the services of HeadFirst Group and what role and added value an HR service provider has in the (flexible) labor market. In addition, we take the MPs and policy officers into relevant developments in the labor market regarding the zzp-dossier and which challenges and bottlenecks we experience in legislation and regulations. Besides a HeadFirst Group delegation, an independent professional and a representative of one of our clients were also present. They gave a short presentation on why they use our services as client and contractor and where the added value of HeadFirst Group lies for them.
All in all, it was a very successful session and we were able to provide the SGP Parliamentary Group with the necessary information and knowledge. We would like to thank our cooperation partner ONL voor Ondernemers for their hospitality and the attendees for their sharp questions and the discussion we had. Through this type of knowledge session, we try to put ourselves in the limelight as a professional discussion partner and make a valuable contribution to the labor market and self-employed workers file.
If you have any questions about our knowledge sessions as a result of this post, please contact Sem Overduin, Public Affairs Officer at HeadFirst Group. Sem can be reached at Sem.Overduin@headfirst.nl
Cabinet, consider all workers in the labor market
On Friday, Dec. 16, Minister Van Gennip (SZW) and State Secretary Van Rij (Taxation and Customs Administration) presented the "Progress Letter on Working with and as Self-Employed(s)" to the Lower House. Numerous topics are discussed in the letter, such as a legal presumption of employment below a certain hourly rate, the enforcement moratorium of the DBA law and the clarification of the authority criterion. Much remains to be worked out in the coming period, but in response to the proposed plans for the zzp dossier, I am happy to respond.
Recognition of self-employment
In the first pages of the letter, the importance of self-employment for the Dutch labor market is highlighted. I am pleased that the Cabinet recognizes the position and added value of the self-employed. With their knowledge and expertise, self-employed people make an important contribution to solving problems at numerous organizations. It is impossible to imagine our labor market without the self-employed IT professional or project manager. Time and again, research shows that the majority of the self-employed population is very satisfied with their working conditions, salary and sense of autonomy. This is a development we should cherish.
The search for the right balance of elements
At the same time, I am critical of some plans. For example, the cabinet plans to clarify the authority criterion by more explicitly embedding the criterion of 'embedding in the organization' when assessing the employment relationship. In an earlier column, I hinted that the clarification of the authority criterion remains a hot topic of discussion. I remain of the opinion that it becomes very complex to clearly define embeddedness in the organization. When is a worker "embedded in the organization"? And what tasks belong to "the regular work of an organization"? This discussion has been had before and was not settled at the time. Many freelancers work in IT, HR or project management and are more or less embedded in the organization. Will this soon no longer be possible? It is undoubtedly going to cause unrest among clients, intermediaries and zzp'ers. Given the shortage of - and at the same time the high demand for - specialist personnel, this unrest seems highly undesirable to me. What we need right now are rules that encourage and facilitate mobility in the labor market and self-employment. I therefore remain strongly in favor of a pluralistic labor market with different forms of contracts. A labor market where people are given the space to organize their work themselves. I am convinced that this will have a positive effect on the productivity and job happiness of workers and will result in a more innovative and better functioning labor market.
Another element that will receive more attention in determining the employment relationship is the self-employment of the worker. I read in the parliamentary letter that embedding in the organization does not necessarily mean an employment contract. That the government is seeking balance in determining the employment relationship is positive to me. In my opinion, we need to look not only at the task being performed, but also at the individual. Clear entrepreneurial criteria, such as the amount of the rate and specialized knowledge are pre-eminent criteria to include in the assessment of the employment relationship. By assessing the correct facts and circumstances, the distinction between employee and self-employed will automatically become clearer. Clear entrepreneurial criteria will also help the Inland Revenue to enforce effectively.
Opportunities for the intermediary industry
In the coming months the plans will be further elaborated in consultation with stakeholders, experts and social partners. I am pleased with the outstretched hand of the cabinet to take this up together with market parties. A strong coalition of industry associations (ABU, NBBU, I-ZO, VvDN, RIM and Bovib) seems to me to be a pleasant and expert discussion partner for the Cabinet, the Tax Administration and policy makers. By bringing daily practice to The Hague, clear and verifiable entrepreneurial criteria can be drawn up. The members of these industry associations are pre-eminently the specialists when it comes to organizing external hiring and contracting of zzp'ers. Therefore, use their knowledge and expertise!
There is also a great opportunity for intermediaries. The changes that lie ahead offer the opportunity to further professionalize the relationship with contractors, suppliers and clients. By advising and supporting both the supply and demand sides of the labor market in complying with changing laws and regulations. By helping them draft or further develop their hiring policies. At HeadFirst Group, we are aware of the challenges ahead. At the same time, this makes us indispensable in a dynamic, multiform and rapidly changing labor market. New rules force us to adapt. The trick is to successfully bring our relations along with us.