Your strategy to derive value from online platforms: build, belong, or buy?

Main points

• Online platforms automate the match between supply and demand.

• A flex agency is essentially already a platform.

• Platforms become indispensable due to labor market shortages, scarce recruiters, and digitalization.

• There are three strategies when starting a platform: build (create yourself), belong (join an existing platform), and buy (purchase software).

• Build offers customization and brand experience but requires more time and digital prowess.

• Belong and buy are faster but offer less control over data, branding, and customer loyalty.

The definition of online platforms

The story of Sepp had one main character: online platforms. To ensure everyone in the room was discussing the same thing, he first addressed the question: when is an online environment precisely an online platform? “When we talk about an online platform,” Sepp begins, “we are talking about a two-sided platform that brings supply and demand together, either partially or entirely self-serviced.” And that 'self-serviced' means clients and candidates find each other automatically without anyone needing to intervene with the match.

For flex organizations, they are essentially already a platform, but offline or hybrid; they already bring work supply and demand together, but mostly manually, through skilled recruiters. “That’s why an online platform is such a logical way to further expand business for this sector,” says Sepp. “See a platform as the online and super-scalable extension of your organization.”

Platforms are becoming more relevant

Online platforms have changed the flex industry. Not to quietly leave the arena afterward. On the contrary! The role platforms play is only getting bigger. “A generation is entering the labor market that has grown up with YoungOnes, Temper, and Youbahn,” Sepp continues. “The market is marked by shortages, good recruiters are becoming scarcer, labor more expensive, and everything needs to be more efficient. This is the ideal breeding ground for online platforms. The question is no longer whether you should do something with platforms or platformization, but what the right route is to start with it.” Yes! This brings us to the core of the story. So what is the right route for your flex agency to start with a platform?

The three strategies: build, belong, or buy?

Sepp distinguishes three routes to leverage the power of online platforms.

1. Build: you build your own online platform

2. (example: your organization builds its own YoungOnes)

3. Belong: you use an existing online platform

4. (example: your organization uses Indeed)

5. Buy: you purchase an existing software product

6. (example: your organization starts working with work platform Maqqie)

The three routes speak for themselves. But when do you choose which route? Sepp: “It’s essential to align your strategy with the character of your organization.” Okay, okay, sounds logical. But which strategy suits which character? Luckily, Sepp provides some examples.

Belong: the considerations

This strategy is attractive if you want to tap into a large existing network (public) of candidates and/or clients. Indeed, for example, already has millions of users you can benefit from.

If you use an existing online platform like Indeed, be aware of:

• You partly relinquish your data to the platform, such as candidate details.

• There is little to no room to showcase the USPs of your organization.

• Candidates ‘do business’ with Indeed, LinkedIn, etc., and not with your organization. That affects the connection as well.

• An existing online platform has a large audience that you reach in one go.

Buy: the considerations

This strategy is attractive if you want or need to be operational quickly with your platform.

If you purchase an existing software product like Maqqie, be aware of:

• You're stuck with what you buy; your organization and workflows have to fit into the mold of the existing platform.

• There is little to no room to showcase the USPs of your organization. So ask yourself: how distinctive do you want to be compared to your competitors?

• With this strategy, you focus on speed; you are quickly operational with your platform.

Build: the considerations

This strategy is attractive if you choose differentiation and want to focus on the unique experience, branding, and value of your organization.

If you build your own online platform, be aware of:

• It takes a bit longer for your platform to be operational. Within six weeks, you can have a first working version, as with Aanpakkers.nl and Cocoroco.

• You need to have or build your own network of candidates and clients.

• You need a solid business case.

• You must have the ambition to become increasingly digital and dare to organize your internal structure accordingly.

• With this strategy, you create your own community and ecosystem, and a seamless experience for your users.

• Building yourself provides flexibility and future prospects: once the platform is up, you can plug in many new online services.