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Revenue decline at secondment firms nears zero in third quarter

Revenue at Dutch secondment firms fell by 0.4 per cent in the third quarter of 2026 compared with a year earlier. That is the smallest decline since late 2023. The ICT sector is lagging behind with a 5.8 per cent drop, while the industry is concerned about new legislation that takes effect on 1 January.

This is according to the latest MarktMonitor from the Vereniging van Detacheerders Nederland (VvDN), the Dutch association of secondment firms. In the second quarter of this year, revenue was still down 2.6 per cent, and in the first quarter 3.2 per cent. VvDN chair Edwin van den Elst says that the previously anticipated zero line has therefore been reached. Van den Elst hopes for slight growth in the final quarter of the year.

ICT sector shrinks faster than average

Revenue trends vary considerably by sector. In engineering, the largest sector for secondment firms in terms of size, revenue grew by 0.4 per cent. The financial sector shrank by 12 per cent and the legal sector by 11 per cent. Marketing & Communications fell by 9 per cent, ICT by 5.8 per cent and HRM by 4.6 per cent.There was growth in the social care domain (+5.9 per cent), procurement and logistics (+4.9 per cent) and the secretarial sector (+15.5 per cent). For the ICT sector, this means the decline is well above the average for the secondment market as a whole.

Rates rise due to secondment collective agreement

The average hourly rate charged by secondment firms rose by 5.5 per cent in the third quarter to €80.63. That increase lags behind the average rate rise in the wider flexible staffing industry. According to the VvDN, the higher rates are partly linked to the secondment collective labour agreement, which came into effect on 1 January this year. The principle of equal pay in that agreement increases costs for secondment firms.The industry association says this cost increase was passed on to rates only to a limited extent in the first and second quarters. As a result, the effect fed through with a delay into the third quarter.

Fewer seconded staff and less bench time

The number of seconded employees on the payroll, expressed in FTEs, was 8.6 per cent lower in the third quarter than a year earlier. In the second quarter, the decline was 8.3 per cent. The share of employees on a permanent contract fell slightly but remained high at 79.9 per cent. Four in five seconded professionals therefore have a permanent position with their secondment firm.The bench rate, the share of seconded staff without an assignment, came in at 5.6 per cent. That is 13 per cent lower than a year earlier, following a 7.7 per cent decline in the second quarter. Because revenue remained virtually unchanged while the number of employees fell, revenue per seconded employee rose by 7.9 per cent.

Investment in training and concerns over Wtta

The MarktMonitor also shows that secondment firms expect to invest the same amount (41 per cent) or considerably more (51 per cent) in the training and development of their professionals next year. The emphasis is on upskilling and retraining.The VvDN is concerned about the Wet toelating terbeschikkingstelling van arbeidskrachten (Wtta), the Dutch act governing the admission of labour providers, which comes into force on 1 January. The law stipulates that all providers of labour, including secondment firms, must be admitted to the scheme. The industry association says it understands the desire to keep out rogue agencies, but believes the implementation clashes on several points with the day-to-day practice of its member firms.According to the VvDN, it is also questionable whether smaller secondment firms have the resources to meet the requirements. Three quarters of the secondment firms surveyed expect the Wtta to have a negative impact on their business operations.

This article was originally published in Dutch on MSP Business. Read the original →