Take It to the Crowd: The Evolution of Contingent Workforce Management?

128015771Crowdsourcing is not a new concept – people have been leveraging the minds of the masses since the dawn of time – but social media has taken it to an entirely new level. These platforms have enabled people to share opinions and networks in real time, fostering communication and collaboration across disparate geographies. This shared experience has real benefits to offer, not just personally but professionally. Imagine the possibilities that crowdsourcing can offer companies that are hiring contingent resources for project work. Exposure to a broader base of workers, with an associated feedback loop, has the potential to truly transform the way hiring is done, making it more efficient, effective and specialized.

The idea of providing a crowdsourcing mechanism for hiring is not without its risks, and there are several key hurdles to overcome before this mechanism becomes viable for the enterprise. Businesses have unique rules and requirements that must be considered, from system integration to alignment with procurement. In order for crowdsourcing to be effective, care must be taken to protect individuals and organizations throughout the process. In order for this type of process to be successful, employers will need a solid framework that supports performance review and reputation management. This will enable them to thoroughly review the options that are available based on trustworthy feedback from others who have engaged. Critical mass is the key – the “crowd” must be broad enough to include not only a significant number of potential resources, but also enough shared experience with these resources to be able to provide legitimate feedback.

While the crowdsourcing mechanism has already proven effective in the freelancing world, there are special considerations for larger organizations hiring contingent workers. Because these resources come on site and have a deeper level of access to business systems and data, there is greater risk associated with the engagement. Enterprise organizations require a higher level of service from the suppliers they choose to work with, because their project requirements are more complex – suppliers must provide resources that can produce high-quality work within the defined parameters. SOW resources expose the organization to a higher level of risk, and thus suppliers must be willing to assume an increased level of liability in the event that something goes wrong. In order for crowdsourcing to be effective for the enterprise, both sides must agree on a methodology to resolve disputes and business insurance must be in place to protect the enterprise from gross negligence.

PREMIUM CONTENT: Online Staffing and Crowdsourcing Businesses ‐ 2013 and 2014 Industry Segment Forecast

Today, a lack of a qualified audience with a significant amount of historical data leaves businesses unable to effectively “source the crowd” for their project work. Without a collective marketplace that holds the necessary decision-making information for specialized contingent hiring, organizations are left to their existing pool of resources when they are sourcing project work. Looking ahead, crowdsourcing offers the opportunity for a new approach, once these hurdles are overcome and businesses are able to mitigate the risks.

MORE: Crowdsourcing and the FLSA

Edward "EJ" Jackson

Edward "EJ" Jackson
Edward “EJ” Jackson is president of Provade, which delivers an enterprise-class vendor management system for global workforce spend management.

Edward "EJ" Jackson

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  23. […] Crowdsourcing is not a new concept – people have been leveraging the minds of the masses since the dawn of time – but social media has taken it to an entirely new level. These platforms have enabled people to share opinions and networks in real time, fostering communication and collaboration across disparate geographies.  […]

  24. […] Take it to the crowd: The evolution of contingent workforce management […]

  25. […] Crowdsourcing is not a new concept – people have been leveraging the minds of the masses since the dawn of time – but social media has taken it to an entirely new level.  […]

  26. […] Take it to the crowd: The evolution of contingent workforce management […]

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