Successful third edition of the Labor Market Gateway
On Tuesday, April 16, the third edition of the ArbeidsmarktPoort took place in Nieuwspoort, organized by the Bovib, the VvDN and ONL voor Ondernemers. This meeting brought together various speakers to discuss current labor market issues with each other and the audience. The central theme of this edition was labor migration, a topic that is high on the political agenda and on which opinions vary widely. It was therefore relevant to exchange ideas and discuss positions with stakeholders.
Former ChristenUnie party leader Gert-Jan Segers provided the opening remarks and explained the Delta Plan Grip op Arbeidsmigratie. Gert-Jan recently started as strategic advisor at OTTO Work Force and contributes to the public-societal debate on labor migration and the consequences for the Dutch labor market and society with such reports. The opening remarks and questions from the audience were followed by a discussion panel. Tjebbe van Oostenbruggen (Member of Parliament NSC) and Titus Kramer (entrepreneur and former honorary consul for Turkey) entered into a discussion with each other and the audience, led by Hans Biesheuvel (former chairman of ONL). The discussion generated interesting questions from the audience, especially about the NSC's position on labor migration, with the party making demands on terms and conditions of employment, conditions and housing for migrant workers. NSC also advocates an admission system to keep out rogue employment agencies, which in turn led to critical questions about the feasibility and enforcement of the proposed legislation.
In October, the fourth edition of the Labor Market Gate is planned, where interesting speakers are again expected. HeadFirst Group supports this initiative and is in favor of a constructive, factual debate on issues and challenges in the Dutch labor market. We remain committed to these meetings and look forward to the next edition.
Do you have questions about the Labor Market Gateway and our position in the labor market file? Please contact Sem Overduin, Manager Corporate Affairs & Public Policy at HeadFirst Group, at Sem.Overduin@headfirst.nl.
Digitizing for more user-centricity and shorter processes
Within HeadFirst Group, we started an important behind-the-scenes project last year: a completely revamped, digital onboarding of professionals as soon as they start working for our clients. In collaboration with screening platform Victoria ID, we are working on a faster and smarter way to conduct screenings - an important, but also time-intensive, part of onboarding. Gerjan Pranger, operations director at HeadFirst Group: "By further digitizing the process, we are creating space to give personal attention to our professionals and partners at the times when it really adds value for them."
Founder and CEO of Victoria ID, Stéphanie Eikhoudt: "With Victoria ID, we want to introduce a new validation method. Together with HeadFirst Group, we are working to reduce screening turnaround times by automating the process as much as possible. For example, we use validated ID data for simultaneous checks, which results in faster results and ensures the reliability of the information."
"Developments go as fast as they can, but as slow as they have to." - Gerjan Pranger
Building bridges together
Gerjan continues: "We strive to create a fully digital workflow and shorter processing times. That is one of our project management principles. After the testing phase and a successful pilot with Rabobank, it is now time to address process challenges. For example, what is technically smartest, but more importantly, what works best for the user? Everything has to be aligned, which takes time and attention. We are building bridges together as we walk over them."
"High quality standards emphasize efficiency, convenience and customization." - Stéphanie Eikhoudt
"Our focus is on bringing together different teams, each with their own expertise. Creating synergy and motivating teams are fundamental to the success of our project. This joint effort has allowed us to refine our strategies during the pilot phase. In 2024, we will celebrate an important milestone: the full integration and implementation of this innovative platform.", concludes Stéphanie.
Want to read more about the developments we are working on at HeadFirst Group? Download the 2023 Annual Report here.
An honest and transparent view of the labor market: in conversation with Joachim Klein Molekamp, Director of Loyal Interim
Loyal Interim is a staffing company that values honesty and transparency. Chief Business Development and shareholder Joachim Klein Molekamp sheds light on the needs of the new generation of professionals, in an ever-changing labor market. He also explains how partnerships, such as the one with HeadFirst Group, contribute to their growth and success.
Flexibility and agility are crucial, both for organizations and professionals. As a result, the need for external workers is increasing, while new laws and regulations do not make hiring self-employed workers particularly attractive. This places secondment companies under pressure. "Professionals receive multiple offers and are more likely to change jobs. In addition, projects take longer, while the length of tenure decreases. This creates a special market force. As a service provider, it is then extra important to position the organization well in the labor market. Fortunately, we see opportunities for Loyal Interim because our model suits a new generation of professionals who want freedom, variety and fair remuneration. We see this in the many professionals who have been with us for more than 6 years. That is quite unique for secondment," says Klein Molekamp.
Happy people stay loyal longer
Loyal Interim aims to grow to 1,000 Loyals (professionals) rating them with a 9+ by 2030. Klein Molekamp says, "To achieve that, you have to understand the importance of being a good employer. Our transparent business model, in which we are open about salaries, among other things, emphasizes honesty and equality. Our loyals have responsibility for their own results and can set their own course and terms of employment. In addition, we look in particular at personality, skills and ambitions during recruitment. As a result, the ratio of men to women is proportional and people of more than 15 different nationalities work for us."
"At Loyal Interim, people are the focus, both in the approach to loyals and in collaborations with other parties."
And those different nationalities are respected. For example, Klein Molekamp shares an example of an event during Ramadan, where they adjusted the program and dined together after sunset. "In the end, we are one Loyal together. Freedom, flexibility and autonomy are key, and this fits perfectly with the needs of the new generation of professionals. We call that the comfort of being a good employer, with benefits of entrepreneurship."
Successful partnership
Currently, over 200 of these happy loyals are working on an assignment at 25 different clients from HeadFirst Group's vast network. In fact, Loyal Interim and HeadFirst Group work together at a variety of clients. "We share knowledge and developments to better serve the clients. In this we notice that there is proactive thinking and fast switching. We see HeadFirst Group as a strategic partner and a crucial part of Loyal Interim's success," Klein Molekamp concludes.
Record gross invoice value of €2,6 billion for HR-tech unicorn HeadFirst Group
21% organic growth, net fee income of €76 million
HR-tech service provider HeadFirst Group achieved a record gross invoice value of €2.6 billion in 2023, marking a fully organic growth of 21 percent compared to 2022. Net fee income increased by 20 percent to €76 million leading to an EBITDA conversion of 50%. These results lay the perfect foundation for further growth in 2024 as the organisation continues its strategy of 'tech enables touch', aiming to make societal impact simultaneously.
In addition to financial success, HeadFirst Group also saw significant increases in employee and client satisfaction in 2023. Marion van Happen, CEO at HeadFirst Group, stated: "This proves that our strategy works: by intelligently leveraging technology, we digitalise processes extensively, enabling us to utilise the personal touch of our colleagues at moments where it truly adds value for clients, suppliers, and independent professionals. Our colleagues are satisfied because they are engaged in meaningful work, and our clients are happier. These two elements continue to reinforce each other."
Impact unicorn
Due to years of organically good results and the recent completion of the joining of forces with Impellam Group, HeadFirst Global has achieved the so-called unicorn status, which says business valuation of more than 1 billion euros. Marion van Happen: "We have become a unicorn, but more importantly, we combine that with social impact. Financial results are important, so that we can continue to do for our clients what they need, but we are also taking the lead in moving towards a just, diverse and inclusive labor market. This is where our main impact lies, in line with our purpose "Join the next world of work. In addition, we are taking all actions to build an even more sustainable organization so that we deliver value to the society around us."
More information
HeadFirst Group's annual report can be read and downloaded at headfirst.group/investor-relations.
HeadFirst Group accelerates ambitions with strategic appointment Renger Lammers
HR tech services provider HeadFirst Group has added Renger Lammers to the organisation's management team, in the role of managing director growth & strategy. CEO Marion van Happen: "Renger will focus on strengthening the commercial strength of our organisation. With this appointment, we bring focus to the continued development of our services in the Netherlands and our international growth strategy."
HeadFirst Group recently confirmed its acquisition of Impellam Group. Together, they are one of the world's leading Managed Service Providers specializing in STEM talent and a distinctive HR-tech platform for professionals. Through the group, more than 75 thousand professionals are active for clients all over the world, accounting for a turnover (managed spend, in 2023) of 8 billion euros.
In anticipation of the publication of its annual report next week, HeadFirst Group shares that both the joining of forces with Impellam Group and the appointment of Lammers fit perfectly within its internationalization strategy. Van Happen: "Our international growth ambitions are great. At the same time, we are continuously developing our services in the Netherlands and there is still market share to be gained. With the arrival of Renger, we can bring that shared focus to life. He fits perfectly with our vision of customer centricity and with his skills, Renger will play a key role in further expanding and positioning our organization."
After working for Aldi Einkauf Ohg in Germany, where Lammers learned the intricacies of operational excellence in a large organization, he returned to the Netherlands to lead Essent's commercial operations. In the years that followed, he ran a consultancy firm for commerce, operations and change. For the past three years, he has been Commercial Director of Manpower Group in the Netherlands and will join HeadFirst Group as of April 2024. "The impressive growth and ambitious strategy, combined with the use of technology to enable the human touch in the service provision, has made me enthusiastic about taking this step. Making clients happy is what I do it for, and we will undoubtedly do that with the great team that is already there and that I can start working with immediately," says Lammers.
HeadFirst Group and Impellam Group join forces to become a global leader in STEM, digital and IT talent, managed services and HR tech
HeadFirst Group and Impellam Group today announced that they have joined forces to become one of the world’s leading STEM talent and Managed Service Providers with a distinctive HR tech platform for professionals. The expanded group has €8 billion spend under management, 2,100 expert colleagues, and over 75,000 professionals serving customers across the globe.
This strategic step provides customers with a unique, truly global tech and talent solution to ensure they stay at the forefront of their industry. The deal has created an unparalleled force in digital, IT, data, life sciences, clinical and engineering talent and leaves the expanded group well-placed to drive market beating growth and to deliver increased value for colleagues, customers, professionals, suppliers, and shareholders.
Han Kolff, chairman of the Board, commented: "We are proud to have brought industry leaders HeadFirst and Impellam together. As well as vast geographic reach, our expanded group combines world-class expertise and market-leading tech, providing customers with mission critical talent, hereby creating a unique platform for growth in a growing market. I am confident HeadFirst and Impellam will power the next world of work together.”
Julia Robertson, CEO of Impellam and the enlarged group, said: “We have an exciting future ahead of us. In a world where talent and tech must come together to build better businesses, we will collaborate to leverage the combined strength and capability of our market-leading brands, our people, and our distinctive technology. Our complementary cultures and our focus on our customers’ needs will ensure we deliver market leading, digitally enabled and differentiated solutions to our customers across the world.”
Experienced team driving growth agenda
Leading the future success and growth of the combined business, the Board of the new group includes: Han Kolff, non-executive chairman, Julia Robertson, group CEO, Tim Briant, group CFO, Marion van Happen, CEO of HeadFirst Group, as well as non-executive directors and co-founders Koen Bekkering and Boyd Sleeman.
There will be no immediate changes to the day-to-day operations of Impellam Group and HeadFirst Group. Impellam and HeadFirst will continue to deliver industry-leading solutions to customers, suppliers and professionals.
Following the completion of the transaction, Lord Ashcroft, the former majority shareholder of Impellam Group will serve as non-executive director on the board.
Hourly rates for self-employed and seconded workers lag behind collective bargaining wages
Expected rate increase of one to two percent in 2024
The hourly rates of flexible workers, self-employed workers and professionals employed by secondment agencies, rose an average of 4.3 percent in 2023 compared to 2022. This increase lags slightly behind the trend in collective bargaining wages. An average rate increase of one to two percent is expected for 2024. This emerges from the latest Talent Monitor of labor market data specialist Intelligence Group and HR-tech service provider HeadFirst Group.
Over 2023, the average agreed wage increase for permanent staff was six percent, according to figures from CBS. HeadFirst Group's hiring data show that professionals who started a new assignment in 2023 experienced a lower increase, at 4.3 percent. The average hourly rate of highly skilled self-employed and seconded workers currently stands at €95.80.
The hourly rates of flexible workers have risen continuously in recent years, over 2022 and 2023 even by more than four percent. Due to the faltering economy, the increasing supply of self-employed and seconded workers in the labor market and falling inflation, this is highly unlikely to continue in 2024. Geert-Jan Waasdorp, director and founder of Intelligence Group, says: "Our forecasting model showed a rate drop of four to six percent based on all these factors, but we do not consider that realistic. The exceptional inflation situation over the past 2 years, has thrown the robust forecasting model off track. We consider a slight increase of 1 to 2 percent as the most likely scenario. "
Scarcity remains, despite slight growth in economy
Waasdorp notes that several developments point to a possible easing of labor market scarcity, but that has little effect on actual scarcity. "We have experienced nine months of economic contraction, but just in the fourth quarter of 2023 there was a small upturn (+0.3 percent). We have seen a decline in job openings for quarters, yet demand remains extremely high and the unemployment rate low. At the same time, bankruptcies and reorganizations are increasing. This is bringing more personnel into the labor market, although it is only a drop in the bucket. Both the increasing supply of talent and the degree of movement in the labor market is still very small in historical perspective and absolute terms."
In addition, a decrease in scarcity is not reflected in the sourcing pressure among freelancers. In fact, the frequency in which they are approached for an assignment shows an upward trend. On average, self-employed people are approached eighteen times a year. In comparison, employed people are approached about nine times a year on average. Marion van Happen, CEO of HeadFirst Group, emphasizes, "These figures show the continuing demand for flexible labor and the growing interest in being self-employed within the labor market. It is undeniable that highly skilled professionals make an invaluable contribution to the Netherlands, with a social and economic value of approximately 4.4 billion euros per year. This also highlights the importance for self-employed professionals to present their profile and skills well, and for organizations to develop effective strategies to attract and retain permanent and flexible talent in a competitive labor market."
More insights into professionals' rate trends over 2023 and into 2024? Download the latest Talent Monitor for free at headfirst.group.
HeadFirst Group responds to the internet consultation on the Law on Admission for the Posting of Workers
HeadFirst Group responds to the internet consultation on the Law on Admission for the Posting of Workers
From Wednesday, January 24 through Saturday, February 24, it was possible to respond to the Internet consultation on the amendment of the Decree on allocation of labor forces by intermediaries. This in connection with the plans to introduce an admission system. A total of sixteen public responses were submitted.
As a market-leading organization, we believe it is important to contribute to the political-social debate on the future of the (flexible) labor market. For this reason, we also responded to the internet consultation. Below is a brief summary of our response point by point:
- HeadFirst Group is concerned about the broad scope of the admission system. We embrace the recommendations of the Roemer Commission to improve the position of migrant workers, but as an HR service provider at the top of the market, we have nothing to do with this issue. We therefore call for more customization;
- Much important information in the Explanatory Memorandum is currently missing. The draft decision does not yet contain a framework of standards and information is also missing with regard to the waiver scheme. In order to make a well-considered and complete judgment on this change, it is important that we as an organization have all relevant figures and obligations;
- HeadFirst Group supports the advice of the Advisory Panel on Regulatory Burden (ATR) to investigate less burdensome alternatives and first firmly enforce the laws and obligations in force. By following this advice, companies will be prevented from being saddled with at least 143 million euros of additional regulatory burden every year;
- The broad scope means that thousands of companies will soon have to be admitted to the system. This requires good representation from industry associations and umbrella organizations so that all interests and concerns are heard in a timely and regular manner.
Curious about our full input? Check out our response here.
HeadFirst Group once again Great Place To Work
For the second year in a row, HeadFirst Group has received Great Place To Work certification. This global authority examines organizations in terms of workplace culture, employee experience and leadership behavior. With a Trust Index of 77 percent, HeadFirst Group meets the criteria for great place to work. Joke de Graaf, Head of HR & Organization, emphasizes, "The certificate is not a goal in itself, but it does confirm that we are a wonderful employer. Even more valuable is the feedback received, which we can work with in the coming year."
Voice of the employee
The leading, international HR tech services provider has once again experienced unprecedented growth over the past year, with as many as 200 new employees and the recent confirmation of a takeover bid for Impellam Group. Despite this significant growth in size, HeadFirst Group continues to invest in its most important asset: its employees.
For De Graaf, achieving Great Place To Work certification is an important step in understanding how employees perceive the culture built at HeadFirst Group. "I am immensely proud that our efforts to create a safe and trusted work environment, where each person feels at home and valued, have paid off. This is partly due to the fair treatment everyone receives, regardless of factors such as gender, age or origin."
Responsibility and trust
The survey shows that employees consider themselves "full members of the organization. De Graaf explains: "Mutual trust is important to us and we like to give employees the freedom to do their jobs. Making mistakes is allowed and is of course part of the job. That is why 'Learn every day' is one of our core values. It is positive that the numbers show that employees care about each other, are innovative and try to do things in an innovative and better way. That's why we offer the HeadFirst Group Academy, various workshops and trainings, leadership programs and advancement opportunities. Getting a little better every day, both as an organization and as individuals, is what we strive for. With the perfect balance between advanced technology and human interaction always being the starting point."
In addition, employees experience management as approachable and easy to deal with. De Graaf adds, "We take various initiatives to create a pleasant working environment with facilities in our offices. Think of the possibility of hybrid working and flexible working hours, so that everyone can design their own working day. Bottom-up leadership is also part of this. With us, no rigid hierarchy, but rather flexibility in and ownership of one's job."
Festive outlook
This second certification comes as an additional source of motivation not only for past efforts, but also for future endeavors. "Successes, birthdays and anniversaries do not go unnoticed and we like to celebrate together. With regular outings and drinks, we make it a party to work at HeadFirst Group. I look forward to a year in which we can strengthen the foundations we have laid and be consistently recognized as a work environment that is equitable and focused on innovation for everyone involved," concludes De Graaf.
About Great Place to Work
Great Place to Work helps organizations create a culture of trust. They do this through the Trust Index™, the employee survey that measures trust, pride and joy. They believe that trust is the basis for better individual performance, team performance and business results. Growth and innovation then follow naturally. The philosophy is based on more than 30 years of experience in 60 different countries.
Specialized and highly educated self-employed provide social value added of 4.4 billion euros per year
New research offers insight into true costs and benefits of independent professionals
New research offers insight into the true value of the total output for the Dutch economy of highly skilled self-employed workers, working for mostly large clients in business services (zp'ers). This amounts to 17.3 billion euros per year for the current population of 110,000 independent professionals. Although the social position of self-employed professionals is regularly under fire, the report "The Economic and Social Value of Independent Professionals" - which SEO conducted on behalf of HR tech service provider HeadFirst Group - makes clear what contribution this group of workers has for society. It shows, for example, that at the bottom of the line they provide additional revenues worth as much as 4.4 billion euros. This knowledge can contribute to better regulation in the future, and prevent obstructive policies.
"In our research we make clear the significance independent professionals have for our society and economy. This turns out to be undeniable, since their contribution to the economy has a value of euro per year. Without their input, some of this production would no longer take place or would be moved abroad. This would be at the expense of numerous jobs and lead to a great loss of knowledge. That is something we cannot afford, with the current tightness," said Marion van Happen, CEO of HeadFirst Group. "Zzp'ers are needed more than ever at a time when the labor market is screaming for qualified personnel. For example, specialists in different sectors are crucial, to make the transitions our society faces succeed. This applies to all workers - regardless of the form of contract. Unfortunately, there are still many misconceptions about the highly educated self-employed population. For example, it is wrongly assumed that they cost society more than they provide. The report shows that the real and great value of independent professionals for the economy and our society cannot be underestimated."
The social costs and benefits
According to the study, the social costs and benefits of independent professionals amount to a positive balance of as much as 4.4 billion euros per year. This positive balance is mainly the result of the additional production and profit realized through the use of the current population of 110,000 independent professionals. This is mainly the result of higher labor force participation. Without the possibility of self-employment, some of this production would no longer take place or move abroad. In addition, this positive balance of 4.4 billion euros per year also has to do with higher average productivity (+10 percent) compared to a situation where they would be working in another form of contract. Finally, government and society benefit from a higher profit and income tax, compared to a situation without self-employment. This is because more is worked, produced and earned - both by independent professionals and clients.
Call to politics
With this data, HeadFirst Group contributes to the political debate on the labor market, where impending regulations may severely limit self-employment. Van Happen: "We call on politicians to pay attention to the great value of independent professionals and to listen to the needs of clients. They appreciate the flexibility and possibilities of specialized professionals. This report shows that on balance there is a social added value by the possibility to work as an independent professional. Although less social contributions are paid, this is more than compensated by more tax revenue. Regulations for the base of the labor market - to combat false self-employment, for example - can have consequences for the rest of the market, however, and this can lead to loss of welfare. In addition, our earlier report on the entire self-employed population showed that the number of forced self-employed is minimal, contrary to what many policymakers believe. This group of workers deliberately chooses this form of contract precisely because of the degree of professional autonomy and flexibility it offers. Customization in legislation is therefore essential to combine protection of vulnerable workers with facilitating entrepreneurship."
Facts and figures about self-employed workers
The report contains many other interesting insights about highly educated self-employed people. An overview:
- It is estimated that over 110 thousand highly skilled independent professionals are now active in the Dutch labor market. This amounts to 10.2 percent of all self-employed people and 1.1 percent of all employed people.
- Highly educated self-employed workers work for the government (22 percent), business services (19 percent), financial services (15 percent) and in the healthcare and IT sectors (both 9 percent).
- Most highly educated self-employed workers work annually for a limited number of mostly larger clients. Most work for one client (38 percent) or two to five clients (45 percent). Only a small proportion work for five to 10 clients (10 percent). The part that works for a limited number of clients often does so for (very) large companies.
- Half of the highly educated self-employed are between the ages of 35 and 55. In addition, the proportion over 55 (33 percent) is almost twice as large as the proportion younger than 35 (17 percent).
- Almost a third of highly educated self-employed workers have been active in this form of work for more than 10 years and 13 percent even more than 20 years.
- Three in five highly educated self-employed workers work full-time; 32 percent are employed between 20 and 35 hours per week and 7 percent work less than 20 hours per week.
- Highly educated self-employed workers would, in a null alternative - if it were no longer possible to work as a self-employed worker - work in another form of employment in nine out of 10 cases. Almost a third would return to permanent employment, while 20 percent would be active as seconded workers. In addition, 12 percent are expected to be working in a regular temporary contract, while 10 percent would be inactive, working abroad or in (early) retirement.
