Independent contractors deserve flexibility, customization and quality

For years, service providers ignored the zzp'er, whom we at HeadFirst like to call independent professionals, as a specific target group. In recent years this has finally changed. It's about time, because currently there are more than 800,000 self-employed professionals in the Netherlands. It is estimated that there will be one million by 2020. A huge potential customer base for many companies. But what does this independent professional (zp'er) really want? What does he expect from products and services? One thing we know for sure is that they cannot be lumped together with the rest of working Holland.

A different life

The self-employed lead a completely different working life than someone in permanent employment. I recently started reading about this every month in VrijeStijl Magazine, where the section Fixed vs. Flex describes the difference between an employee and a self-employed person with the same profession. In particular, the difference in security and continuity affects important aspects of their lives. From opportunities for self-development to choice in workweek arrangements. But there are also huge differences in business aspects, such as taking out a mortgage, building up a pension, arranging mobility and taking out liability and disability insurance, for example. Differences in a negative sense for the self-employed, that is. As an independent professional, try taking out a mortgage, a hell of a job. Ditto with affordable professional liability insurance. And I could go on and on.

Amazing

This surprises me. To date, providers of mortgages, pensions, insurance and mobility fail to design products and services that are adopted by large groups of self-employed people, with positive exceptions. For example, I recently read in the Financieele Dagblad that few self-employed professionals are getting into the new pension products (from Bright Pensioen and Brand New Day, among others) that have been on the market since the beginning of this year. I also see few insurers moving away from cumbersome annual contracts. They are all stuck with their standard products, which at best they adjust a little to the left or right. The number of self-employed people using leasing products is marginal. Despite the fact that leasing could, in principle, be an excellent solution to deal with the fluctuations in a self-employed person's mobility needs. For one assignment he goes from Zwolle to Utrecht three days a week, then he is without an assignment for a month and then he invariably has to go to the heart of downtown Amsterdam five days a week for his client. In the space of six months. Constantly having a car in front of the door, and therefore continuous costs, is not convenient for a freelancer in such a situation. I have yet to see a flexible lease product that solves this.

Positive

It's not all doom and gloom. For example, the attempt by Bright and Brand New Day for a zzp pension product is not a resounding success (yet), but can definitely be called brave. I am convinced that there is definitely a need for it among various groups of self-employed people. I also see the first mortgage providers emerging that offer customized products for the self-employed and claim to offer the flexibility that the self-employed need. Florius is one of them. They have adjusted the acceptance conditions for a mortgage so that zp'ers are more likely to qualify for a suitable mortgage. In this way, even self-employed people who have been self-employed for less than three years can still take out a mortgage, which used to be next to impossible. A good development. Recently there is also ZP Services, which combines financial and insurance products for self-employed people. For example, there is now professional and beroeps- en bedrijfsaansprakelijkheidsverzekering (BAV) that you can turn on and off. If you have an assignment, you sign up. If you find yourself without an assignment, you cancel it immediately. In other words, no income, no costs.

No income, no costs

Building on that thought. Take the example of a self-employed person who has an assignment for the first four months of the year, then doesn't have a job for three months, and does return to work for the last five months of the year. During the months he is assignment-less, he has no income but his expenses for a variety of services continue. Fortunately, most self-employed people build up a buffer to cover these months, but they don't always succeed. Apart from that, if a self-employed person can reduce his costs and thus improve his competitive position in relation to other self-employed persons and professionals, this can only be beneficial.

Flexibility and quality

Obviously, one-size-fits-all products do not work for the self-employed. Products that may work well for SMEs may be completely useless for self-employed professionals. It requires a targeted approach. Offering flexibility is what it's all about. In addition to quality, of course. Providers of insurance, pensions, mortgages and mobility products should be more aware of this. The hundreds of thousands of independent professionals would benefit.