Cor Konings notes that consolidation is underway in the highly fragmented market for foreign employees. Together with Han van Horen, he manages the Labor Power Company (LPC), a rapidly growing consortium of employment agencies.
Duijndam Uitzendgroep (2021 revenue: 40 million) was the seventh agency to be acquired in two years. And it doesn’t stop there, says Konings. As a top grower, he is confident that LPC will emerge as one of the winners from the consolidation battle. “When we started in 2020, we wanted to grow to 250 million turnover in five years. After two years, we are around 300 million. Our business plan for the coming years has been adjusted to DKK 500 million.
In the €150 – €500 million turnover category, Labor Power Company (LPC) is the fastest growing in the Flex Market Turnover Ranking Top-100 with turnover growth of 208% (2021 turnover: €255.7 million).
As independent as possible
Earlier this year, the Belgian investor Straco took over a majority stake in LPC. King is happy about it. “This will allow us to keep our ambitions to a minimum and possibly even grow further.” How does he explain the success? “Our model appeals to businesses,” says Konings. “We leave the agencies as independent as possible and facilitate them in the areas of risk & compliance and finance. The mistake that is often made in takeovers is that everything must comply with the parent company’s working method within no time.’
Until now, the LPC has used a turnover criterion of 20 million for new candidates. The large companies remain interesting for LPC, which seeks national coverage. But the turnover requirement has been dropped, says Konings. He sees how difficult it is for small agencies to comply with increasingly strict legal and regulatory requirements. “Digitalisation also requires significant investments in software and further development of software. If you have an organization with five to ten people, you can spend less and less time with customers and employees. If smaller companies join, we relieve them in the back office: payroll processing, invoicing and debtor management.”
An important criterion for takeover candidates, which remains unchanged, is good employer status. “People leave home and hearth to come and work here. They must do this under good working conditions for a good salary and under good living conditions.”
It is not yet the norm everywhere, he states. “We once looked at an agency that at the end of phase B exchanged their employees with another temp agency, so they never got a permanent contract. Then we cancel immediately. We are in the process of securing our best employees with a permanent contract.”
Besides further growth, what is on the group’s wish list? We want our companies to benefit more from each other, says Konings. “Candidates who just don’t meet the requirements for one brand can often work well for another vacancy at another company. We set up our systems accordingly. We are also establishing an umbrella training company and developing large housing estates at the holding company level. These are the big themes we do at the top. Everyone else is doing their own business.”
This article, written by Annet Maseland, was published in the June issue of Flexmarkt. The Flexmarkt Turnover Ranking Top-100 has been published in this edition. Only Flexmarkt pro subscribers have access to the digital version of the Flexmarkt magazine.
During the FleXevent in June, FlexTopGroeiers from the Flexmarkt Turnover Ranking Top-100 shared the secret behind the success of their flex business. Watch the video below for an impression.