Employment agencies: increase your temporary workforce!

Published on 23/04/2019

In previous articles we have already indicated that the temporary employment sector is in a sense the indicator of the economy. When the economy improves, the number of temporary employment hours increases and when economic growth decreases, this is reflected in a decreasing number of temporary employment hours. Now that the retail sector remains in dire straits, it is important for employment agencies to arm themselves against this ongoing development.

This year will probably still be a good year for the temporary employment sector, but bad times are ahead. It is important to anticipate this now. The financing and debtor risk scan developed by Xolv especially for the temporary employment sector helps with this.

Development of the number of temporary employment hours in the Netherlands

The growth of the global and Dutch economy is declining. A logical consequence is that the number of temporary employment hours will decrease again in the coming years. The development of the number of hours in weeks 9-12 of this year is as follows:

Source: ABU

ABU reports that during this period the number of hours decreased by 5% compared to the same period last year. Because this period had the same number of workable days as the same period last year, no correction was applied.

Challenges of the temporary employment sector

During the economic recovery of recent years, the temporary employment sector also faced challenges and developments that still apply today:

  • Shortage of available workers;
  • Margins are under more pressure;
  • Smaller employment agencies do better on average than larger employment agencies;
  • Consolidation in the temporary employment sector continues;
  • Companies are increasingly hiring flex workers;
  • Employment agencies are further expanding their range of services.

Financing and debtor risk scan for the temporary employment sector

Given the economic prospects, it is important for the temporary employment sector to anticipate bad times now. Ensure strict accounts receivable management, insure yourself against accounts receivable losses and ensure good financing in order to have sufficient working capital. Xolv has developed a financing and debtor risk scan especially for the temporary employment sector in which we quickly provide insight into the debtor risks and financing options. This quickly makes it clear where a possible need lies and what steps are desirable to take.

Are you interested in the financing and debtor risk scan specially developed for the temporary employment sector? Please contact us at info@xolv.nl or 073 – 820 02 95. Our specialists will be happy to assist you.

Knowing more? Please contact us.