Portrait photo of Meike Hendriks

Meike Hendriks

Webinar Week: platformization of recruitment

Marketplaces

Temp & flex

Oct 8, 2024

Wout WIthagen in a podcast studio

3,2,1, action! On Tuesday, October 1st, Wout appeared alongside Bas de Meulemeester from Aanpakkers.nl (Covebo) in front of the camera during the Werf& Webinar Week. They discussed platformization within the flex industry. A trend, but also a necessity for staffing organizations that want to grow and remain relevant. The key opportunities, challenges, and practical insights from the webinar outlined.

Platformization: the new reality

In most sectors, you see platforms emerging. From taxis to meal delivery, platforms ensure that supply and demand efficiently meet. In the recruitment sector, this is no different. The number of new platforms has been increasing for years due to the rise of white-label solutions and the desire of organizations to differentiate themselves.

But what makes platforms so powerful in the flexible workforce industry? Their scalability and efficiency. They connect candidates and clients directly, without an intermediary, and provide valuable data insights for better matches. Jobs or assignments can be automatically suggested based on behavior and preferences, making matching not only faster but also more effective.

1. From matching to retention

One of the greatest advantages of flexible platforms is their ability to bind and retain candidates. Traditional recruitment agencies often focus on making the right match, and once that match is made, the attention moves on to the next match. “Where recruiters may not always have the space to invest in binding and retaining, a platform excels in retention,” states Wout from Freshheads. “Platforms offer continuous access to new opportunities.”

Candidates can not only find new assignments more easily, but platforms can also proactively suggest suitable jobs and respond to their behavior. For example, a platform knows when someone has started an assignment and can timely offer new suitable assignments to prevent them from looking elsewhere.

2. Go niche or deploy broadly?

While specializing can be daunting, one of the main lessons Wout shares is: “Go niche or go home.” In other words: choose your niche. This increases the chance of success. By focusing on a specific market, you can tailor your platform entirely to their needs. By optimally serving them, you ensure satisfaction and connection. The target groups in your niche will choose your platform over larger, competing intermediaries without focus and optimal service.

3. Build, belong, buy: three routes for platformization

If you are considering a platform for your flexible organization, there are roughly three strategies you can choose from: build, belong, or buy. Each of these routes has its own pros and cons.

  • Build: You develop a platform from the ground up. This gives full control, but also requires significant investment in time, money, and technology.

  • Belong: You join an existing platform. This is less risky and faster to set up, but you have less control over the functionalities and data.

  • Buy: You purchase an existing platform and tailor it to your own needs. This can be a good middle ground between control and speed, but requires the necessary (implementation) resources and finances.

In practice, you often see a mix of these strategies. What is important is that you consciously choose a strategy that fits the goals of your organization.

4. Dealing with laws and regulations

There is quite a bit of turmoil in the world of laws and regulations around freelance workers. Both Uber and the Dutch platform Temper have recently been confronted with rulings questioning the responsibility of platforms. “If you use a platform in the flexible workforce industry, it's important that you have clarity on the extent of your responsibility for the work performed through your platform,” Bas from Aanpakkers.nl points out. “How do you define your responsibility? And how do you ensure compliance with the applicable laws and regulations? Be transparent about this too.”

The future of flexible platforms

Platformization is not a trend that will quickly fade away. Wout predicts that in the near future, we will see a combination of large platforms serving multiple niches and small, specialized platforms focusing entirely on one target group. White-label solutions play an important role in this, as they allow organizations to quickly set up a platform without having to develop the technology themselves.

In addition, standardization offers a great opportunity. A platform that functions as the single source of truth can create more transparency for both freelancers and clients and make processes more efficient. This is especially crucial in sectors with many small platforms, where, without standardization, it is difficult to offer users a consistent and uniform experience.