Shift to Self-Employment: A Changing Landscape in the Staffing Industry

Self-employment is an attractive alternative

New regulations make temporary agency work more expensive and less flexible in the long term. This is leading to a shift to other flexible forms of work, such as self-employment, which is an attractive alternative for both companies and workers, thanks partly to tax benefits. The shift to self-employment is also reflected in the increase in the share of self-employed persons in the labour force, from 11% in 2019 to 13% in 2023. At the same time, the proportion of flexible workers has fallen. 

 

More self-employed persons, less flexible employment

Share of labour position in the labour force, first quarter

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Gen Z wants more flexibility

According to the trade association ABU, it is mainly students (generation Z), formerly accounting for approximately 20% of temporary agency workers, who are opting more often for self-employment in the current market. Above all, they seek work that offers more flexibility and supports their well-being. They do this by, for example, working as self-employed through online work platforms such as Temper and YoungOnes, where they can determine their assignments, working hours and rates.

 

Strategic reorientation

It is clear that the Dutch staffing industry, in its current form, is no longer functioning properly. Staffing firms will have to make strategic choices in order to maintain their relevance in the near future. The structurally tight labour market offers new opportunities. For example, temporary work agencies may need to invest in good employment in order to retain temporary workers for a longer time by offering them a permanent contract directly. Staffing firms can also play a more significant role in the field of labour mobility between shrinking and growing sectors through training and career guidance, for example, by targeting people over the age of 50 or by retraining blue-collar workers. Finally, because of their knowledge and experience, they can relieve other companies and advise them on HR issues. Ultimately, a broadening of services will lead to a more long-lasting customer relationship and higher added value.