Crowd Sourcing

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Crowdsourcing: The new trend in ‘Getting Work Done’

We are now living in an As-a-Service (aaS) economy. Whether it’s the software used by businesses or everyday actions such as taking a taxi, the (aaS) concept is increasingly evident in almost every aspect of our lives.

The world of work is certainly no exception. Recent years have seen the rise of the Freelancer, and it’s thought that as much as half of the global workforce could fall under the non-traditional or non-employee bracket within the next few years. Rather than working solely for one employer, individuals are offering their skills to many on a temporary basis, giving rise to the concept of Humans-as-a-Service (HUaaS).

In this environment, it is unsurprising that the way work gets done is changing too. A prime example of this evolution is crowdsourcing - a way of getting things done that is becoming increasingly prevalent in the business world and beyond.

What exactly is crowdsourcing, how are businesses using it and what might the future hold?

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Crowdsourcing in action The concept of crowdsourcing is simple. It involves enlisting

The Business World

the services of a number of people to complete a particular

How is crowdsourcing being used in the business world?

task or project - something that has become much easier

A prime example is the work undertaken by a financial

thanks to the internet. One of the prime examples of

services company that collected data on the state of the

crowdsourcing is Uber, the ridesharing mobile app that has

African economy. In order to track prices in Nigeria - the

shaken up the taxi industry dramatically. The app, which

continent’s largest economy - the company has handed out

allows passengers to connect with drivers directly via their

thousands of smartphones to local people. This financial

smartphone, has effectively crowdsourced taxi services to a

services company pays the data costs for the devices and, in

wide range of motorists, rather than to licensed career drivers

return, the owners photograph the price tags of certain

alone. Customers benefit from the lower fares these new

products and send the images to the bank. Drawing on

drivers charge and the ease of being able to order a ride by

machine learning, this data is then processed to provide the

pressing just a few buttons on their phone. Another notable

company with an insight into the state of the Nigerian

crowdsourcing project is Airbnb, which uses the model to

economy.

directly connect people looking for accommodation with those who have a bed to offer.

Crowdsourcing work, in this way, has allowed this financial services company to bridge a data gap that once existed in Nigeria and in a far more cost-effective manner than if it had tried to do the same through the use of traditional employees.

Indeed, with the African economy and population continuing to grow - the continent is forecast to be home to 25 per cent of the world population aged 24 by 20251 - innovative approaches such as the one employed by this financial services company could be key to accessing this huge pool of new talent and help to bring prosperity to an underprivileged part of the world in the process.

Another example of crowdsourcing in the business world is toy giant Lego, which allows customers to put forward ideas for new products via the Lego Ideas website. If the idea proves popular among the Lego community, the company will produce it as an official product, with the designer receiving one per cent of any royalties. Indeed, many businesses now run similar schemes in which they seek input from customers and the general public on product development and operational improvement.

As the aaS economy continues to develop, and the ranks of the freelance and contingent workforce continue to swell, crowdsourcing, and drawing on talent outside of the traditional employer-employee relationship, looks set to become increasingly prevalent in the way work gets done.

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Risk and reward What are the benefits of using crowdsourcing in a business

contractor misclassification cases in recent years and the

environment? As the financial services company’s project in

use of crowdsourcing will only increase this risk further.

Africa shows, this way of getting things done opens up

As a result, businesses must be clear of the legal situation

opportunities that would be far more time and resource-

surrounding classification in each of the markets they

consuming, or simply impossible, via traditional methods.

operate in to ensure they do not find themselves embroiled

Meanwhile, companies like Lego can boost the appeal of their

in potentially costly and time-consuming legal disputes.

brand by giving customers the chance to make a direct contribution to the business.

The crowdsourcing model also raises some concerns in certain industries. Banking and finance is a prime example

Adopting crowdsourcing also allows businesses to take

of this. Cyber crime represents one the greatest challenges

full advantage of the rise of the Freelancer - individuals who

facing the sector at present and there are serious concerns

choose who to work for in much the same way a customer

about whether crowdsourcing can work in an industry

chooses a consumer brand. Working in this way may allow

where security is such a business-critical concern. To ensure

companies to draw on the skills of candidates who are

compliance, banks require a high level of control over their

unwilling to operate in the traditional employer-employee

workforce and, as yet, it remains unclear whether this could

framework. With the global skills shortage still ongoing, this

be achieved with crowdsourcing. Another question raised

could prove a key way of attracting talent

by this way of working is leadership. Crowdsourcing is

with the competencies businesses desperately need. The

completely different to the traditional approach to work

balance of power has shifted from employer to worker, and

and, as such, it will require a different kind of leadership.

companies must be willing to operate on candidates’ terms

Exactly what form this will take remains to be seen, but it

if they are to attract the best talent. Other advantages of the

is a question that will need to be answered as the use of

crowdsourcing approach are that it can be much quicker

crowdsourcing becomes prevalent.

to connect with talent this way rather than going through the traditional hiring process, allowing for rapid scaling to manage cyclical changes in demand. It may also offer the opportunity to re-engage with past proven workers.

Questions and concerns However, crowdsourcing is not without its risks. Perhaps the greatest challenge is posed by the legal ramifications of working with talent in this way. Should crowdsourced talent be treated as contractors or employees? This question has already sparked some legal action. In summer 2015, the California Labour Commission ruled that an Uber driver had been treated as an employee rather than an independent contractor, meaning the business was required to back pay their wages. Several months later, the California Employment Development Department passed a similar ruling. Numerous big-name businesses have been involved in independent

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The future So, what does the future hold for crowdsourcing? The world

Embracing the crowdsourcing model can be a difficult,

of work is evolving and it is imperative that businesses are able

and often daunting, process for a business. However, as

to develop new ways of getting work done if they are to thrive

shown those that make the leap sooner rather than later

in this changeable environment. Crowdsourcing ticks more

will make clear savings and be able to either enrich their

than one box when it comes to achieving this. It makes full

current service offering or simply deliver on what they

use of the opportunities provided by the internet and is fully

are currently doing in a more responsive manner. Of

compatible with the rise of the Freelancer. Projects such as

course making this transition is much easier with expert,

the financial services company mentioned before, work in

strategic guidance. At Allegis Global Solutions (AGS), we

Africa shows that this way of working can deliver results that

have the talent acquisition and workforce management

would be impractical or even impossible to attain otherwise.

expertise to help you take full advantage of the latest developments in the world

Of course, crowdsourcing as a means of corporate innovation is still in its relative infancy and it will take some time for businesses to work out the best way to unlock its full benefits and mitigate any potential risks. However, with

of work. From strategy implementation to ongoing process management, we are on hand to ensure you are able to unlock the full potential of your people and achieve your goals.

the right guidance, there is no doubt this can be achieved and an exciting new frontier in the aaS economy will soon

If you would like to read more about what is driving the

be opened.

move towards Freelancing from a candidate point of view please read our joint research white paper produced in conjunction with the Human Capital Institute (HCI). This paper, entitled ‘Innovative Talent Acquisition Strategies to Attract the TalentSumer’, examines the changing needs and preferences of candidates as well as how to appeal to this new generation from an employer branding perspective.

Additionally, if you would like to speak with us more about taking advantage of these trends please get in touch at info@allegisglobalsolutions.com.

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About the author

Bruce Morton Global Head of Innovation, Allegis Global Solutions

As a distinguished thought leader and global innovator, Bruce

Global Solutions. The function embodies the whole process

Morton has over three decades of experience within the

of innovation: from new services and product idea

human capital and workforce management industry.

generation, sales presentations, internal and external

Throughout this time he has seen a massive shift in the way

evangelism, digital and social media strategies, lead

organizations manage their greatest asset: people.

generation and face to the industry through conferences and speaking engagements. Prior to his role at Allegis Global

As a sought after and renowned international speaker, Bruce has stimulated audiences across Europe, US and Asia with his fresh and innovative approach to acquiring top talent. Bruce shares his in-depth knowledge on recruitment and retention with new age media on a global scale. He has designed, implemented and managed some of the largest resourcing solutions across many different parts of the globe, saving companies millions of dollars while securing the very best talent.

Solutions, Bruce owned e3 Unlimited, a talent acquisition and development organization managing a breadth of staffing-related needs for global companies. Bruce’s latest innovation is that of a dynamic integrated technology platform that, for the first time, integrates top-of-class digital recruitment technologies that create engaged living talent communities; diverging from traditional static methodologies. Bruce was recognized as Thought Leader of the Year at the 2013 European HRO ‘Be Transformed’ Awards, and again as Thought Leader of the Year at the 2014 North American HRO Today Forum.

In his current role, Bruce serves as Global Head of Innovation for Allegis Global Solutions. He was promoted from Chief Marketing Officer in January 2013. The Innovation team leads and champions ‘enterprise innovation’ efforts across Allegis References 1 Quartz, This is how Sub-Saharan Africa will cash in on its youth, 2015 6

About Us Allegis Global Solutions is a leader in global talent solutions. To date, we support clients in more than 60 countries both on-site and through regional hubs, matching our great people with companies seeking to augment their permanent and contingent workforce.

We deliver scalable, flexible and tailored solutions, shaped around our clients’ unique business requirements and culture. We draw upon decades of industry expertise and market insight to design strategies that work. We develop innovative tools, products and processes that deliver results.

Our passion for talent is the driving force behind everything we do. We live to match exceptional companies with outstanding people. By creating a culture devoted to great talent, we can deliver client-focused solutions that make a difference for businesses across the globe.

www.allegisglobalsolutions.com

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