The Future of Work with Digital Marketplaces

TheFutureofWorkwithDigitalMarketplacesWhatRoleforCompaniesEngagingPlatformWorkers?

MarcoTorregrossaSecretaryGeneral@EuropeanForumofIndependent Professionals

ManagingDirector@EuroFreelancers

TechMarketplaceSummit25January2017

TheNewYorkCity’ssubwaysystemhas reported inApril2015that,forthefirsttimein30years:

… thisisbecausepeopleareditching theconventionalcommutetoa9-to-5job, sotheycanliveandworkdifferently.

TheRushHourisDying!

“weekdaygrowthwasstrongestoutsideofthetraditionalmorningandeveningrushhours”.

PlatformEconomy:BringingDiversityofWork

AdaptedfromUrsulaHuws,PlatformLabourorCrowdsourcing2015

Type Mode Place Status Client FullTime/PartTime

Manual High-skill Online Offline Home Empl.site Employee Self-empl. Individual Company Mainjob Secondjob

Upwork * * * * * *

Click-worker * * * * * *

Taskrabbit * * * * * *

Wonolo * * * * * *

MechanicalTurk * * * * * *

Mila * * * * * *

EdenMcCallum * * * * * *

JobsforLifeBecomeJobsforaMinute

Type

Contract

Length

Place

Protection

Employee

Open-ended

Decades

In-house

Linkedtopremises

Subcontractor

Temporary

Years

Out-house

Linkedtostatus

Freelancer

Self-employed

Months/Days

Home/Cowor-kingspace

Linkedtoindividual

Ondemand

Services

Hours/Minutes

Platforms

Tobeinvented

AdaptedfromThomasMalone– Thespectrumofjobs

Eurostat,2015

1. AhighdegreeofautonomyTheyexercisecontrolovertheirworkloadandportfolio,givingthemagreaterdegreeofflexibilitythanemployees.

2. Paymentbytask,assignment,orsalesTheyarepaidfortheiroutput– thecompletionofaproject,ratherthantheirinput– numberofhoursworked.

3. Short-termrelationshipwithclientsTheyperformshort-termassignments.Theycanbegintoworkimmediatelywithoutinfrastructures,funding,abusinessplanandoftenlearnbusinessskillsastheygo.

4. MeasuringgrowthinunconventionalwaysTheywanttokeeptheirbusinessatamanageablesize,balancingincomegenerationwithcreativity,freedom,self-relianceandwell-being.

HowtoSpotaFreelanceDigitalWorker

1.Full-TimeDigitalWorkers[40%ofallfreelancers]Traditionalfreelancerswhoderivetheirprimaryincomefromindependentworkanddonothaveanemployernoremployeesbut insteaddofreelanceworkonaproject-to-projectbasis.E.g.Aself-employedtherapistonbetterhelp.com

FreelanceDigitalWorkersSegmentation

2.Part-TimeDigitalWorkers(Moonlighters)[45%ofallfreelancers]Individualswithmultiplesourcesofincomefromamixoftraditionalemployer andfreelancework.E.g.Aself-employedprofessorwhoalsogivesonlinepaidspeechesandwrites/sellsane-book.

3.TemporaryDigitalWorkers[10%ofallfreelancers]Individualswithasingleemployer,client,job,orcontractprojectwheretheiremploymentstatus istemporary.E.g.Aself-employedbusinessconsultantworkingforoneclientonacontractbasisforamonth-longproject.

4.FreelanceBusinessOwners[5%ofallfreelancers]Freelancerswhoprovidetheirservicesthroughalimitedcompanyratherthanasasolotrader.E.g.Aself-employeddigitalmarketingguruworkingonfiverr.com viaherownone-personcompany.

Consultants PR/Marketing prof. ITprof. Journalists

Real estateprof. Painters Translators/Interpreters Magicians

Footballplayers Top models HR/Headhunters Writers/Editors

Interior designers Meteorologists Virtualassistants Therapists

Socialworkers Privateinvestigators Fitnesstrainers Photographers

Socialmedia prof. Exoticdancers Actors/FilmMakers Gamedevelopers

Bloggers Musicians/Singers Tourguides Medium/Fortune Tellers

Buskers Yogainstructors Gardeners Personalcoaches

Senior carers/Nannies Chiropractors Webdevelopers/Coders Bitcoinminers

SomeExamplesofFreelancers

StructuralShiftsShapingtheDigitalWorldofWork

Combinedforces• Globalisation• Fasterlifestyles• Technologicalrevolution• Demographicchanges• Increasedmobility• Developmentoftheservicesector• Newproductionpatterns• Onlineplatforms• Erodingbrandandemployerloyalties• Needforspecialisedadhocskills• Costeffectiveonlineadvertising• Accesstobetterinfrastructures

Workisnowadays…1. Muchmoreaccessible2. Inmuchsmallerpieces3. Fromagreaternumberofproviders4. Unbundledfromajob

NickGrossman,TheUnbundlingoftheJob

WhatAdviceCanWeGiveThem?

What’sinStorefortheCollaborativeEconomy in 2017,MarcoTorregrossa onMedium

• IncreaseworkplaceinnovationandlabourproductivityinbothcorporationsandSMEs

• Freefromthelimitsofinternalresourcesandenabletheuseoftalentthatwouldotherwisenotbeeconomicallyfeasibletohireonemployeecontracts

• Reducetheamountoffinancerequiredforbusinessstart-upsandgaincompetitiveadvantage

• Becomemoreflexible,responsivetothemarketandmaximiseperformanceacrosspeaksindemand

• Createjobs(forothers)byincreasingthelevelofefficiencyandbyhelpingnewprojectssucceed

AdvantagestoUseDigitalWorkers

TimesAreChanging

“Freelancingislikeonlinedating,upto5yearsagocompanies

wereashamedtoadmittheydidit,i.e.hirefreelancers.Now,allofasudden,ithasbecomesexy.”

• 32% oftheaveragecompany’sworkforceiscomprisedbycontingentworkers.

• 85% ofHRdirectorsbelieveanintegratedtalentmanagementapproach,permanentandcontingentalike,willenhancetheresourcestheirbusinessesneedtodrivegrowth.

• 84% ofdigitalworkersarehappieratworkthanemployees,despitethefactthattheymayearnless.

SomeKeyFacts

AdaptedfromPeck,TheFlexibleFirm(1996)

Freelancedigitalworkersarethe“bosses”ofsomeemployees

AdoptingtheHollywoodmodelofwork

TalentExchangetomatchindependentconsultantstoclientprojects

Fillingshort-termdemandforITexpertise duringseasonalpeaks•

50:50projectratioofemployeesandfreelancers

CaseStudiesfromLeadingCompanies

TheHollywoodModelandtheFutureofWork

FirstStep:CompanyasaService

Keynote:TheCollaborativeEconomywithJeremiahOwyang,slideshare

SecondStep:MotivateaMarketplace


ThirdStep:ProvideaPlatform


20%20%

20%


• Understandlifetimeemploymentislargelyarelicofthepast.

• Operatelikeaself-containedsmallbusiness.

• Mapoutyourowncareertrajectories,lookingforyourownadvancement.

• Developdifferentiatedskillstoavoidbecomingpartofalow-wagegeneralistpool.

• Learnself-managementandforesighttoprepareforhighsandlowsinearnings.

AdvicetoFreelanceDigitalWorkers

• Digitalworkerscanbeusedtorespondquicklytodisruptiveinnovation,managechange,harnessexternalknowledge,andintroducenewservices.

• Don’tthinkintermsofemployeesbutintermsofspecialisms.• Startinsideofcompaniesbyprovidingopportunitiesforemployeestochooseassignmentsindifferentareas.

• Createanexternal talentpooland appointanofficerofextendedworkforcemanagement.

KeyTakeaways(1)

Thehumancloud:Anewworldofwork,FinancialTimes,2015

AVirtualWorldofWorkers

• Deviceon-demandhiringanalyticstomeasureperformanceandintegratedigitalworkersintothecompanyculture.

• Understandthatpeoplewhospecializeindoingwhattheydobestraisestheirengagementandmakescompaniesmoreproductive.

• Considerthetrade-offs,itcanbeunwisetomanagesomeone’sworkexternallyandriskiertoentrustsomeonewithconfidentialprojects.

• Ensurethatdigitalworkersaretreatedfairlyandethically.

KeyTakeaways(2)

“Therearelawsforpeopleandlawsforbusinesses,butweareanewcategory,athirdcategory…peopleasbusinesses.”

- BrianChesky, CEOAirbnb

“Myfatherhadonejobinhislife,I'vehadsixinmine,mykidswillhavesixatthesametime.”

- RobinChase, CEOZipcar

MarcoTorregrossaabout.me/marcotorregrossa

ManagingDirectorEuroFreelancers@EuroFreelancers

#FutureOfWork

• UnderstandingIndependentProfessionalsintheEU,Lorence NyeandKayte Jenkins,June2016.

• FreelancinginAmerica,FreelancersUnionandUpwork report,2015.• Howdothestaffingneedsofcompaniesevolve?,DenisPennel

Ciett ManagingDirectorpresentationatILOITC,2ndNovember2015.• TheFutureofWork:SkillsandResilienceforaWorldofChange,EuropeanPolitical

StrategyCentre,10June2016.• FutureofWorkWhitePaper,WorldEmploymentConfederation,September2016.• Independentwork:Choice,necessity,andthegigeconomy,McKinseyGlobalReport,

October2016.• PlatformLabourorCrowdsourcing,Prof. UrsulaHuws,2015.• TheStateofContingentWorkforceManagement:The2014-2015Guidebookfor

ManagingNon-Traditional Talent,ArdentPartners,2015.• TheRoleofFreelancersinthe21st CenturyBritishEconomy,Prof. AndrewBurke,2012.• Illustrations,IgorKalashnikov for BrightSide.me• JeremiahOwyang,KeynoteonSlideshare:TheCollaborativeEconomy

Sources