Thursday, October 17, 2013

What Lurks Beneath? A Tectonic Shift in the Work Arrangement Landscape?

Earthquakes occur when sufficient stress has built up along fault lines, such that the earth moves all of a sudden, and what’s on the surface is often drastically altered. Things in our 21st century world are now happening so quickly that we rarely pause to examine what changes actually occurred and how those changes overtook us (they often come quietly from behind).

Just over the past 20 years, we have known many such instances. One of the most visible ones (you can think of all the rest!) was the advent of iTunes. Prior to that, we were all very comfortable with our time-tested way of consuming music: we would own our own player devices (phonograph, Walkman, CD player) and we would buy our music on some corresponding physical medium (vinyl, cassette, CD containing the IP/content we desired) from some retail outlet (first a physical store and eventually an online store like Amazon.com).

Even as digitization set in, this old pattern or form of arranging access to musical content we did not own — but could pay to use — did not change right away. But at some point — after internet, MP3 technology, and Napster — it did (rapidly and completely). At some point, technology, economic forces, human behavior shifts brought about a major shift — not some major discontinuity or leap in underlying technologies or a suspension of the laws of supply and demand (or laws of intellectual property, for that matter), but a substantial change in how access to music was structured or arranged.

So is such a shift possible in the world of “work arrangements?”

Until quite recently, human capital-related information technology (including HCM and TMS) has not had much impact on the shape of “work arrangements.” Job Boards did not change the form of the traditional permanent employment work arrangement, and Vendor Management Systems (VMS) did not change the form of the traditional contingent/temporary/SOW work arrangements. Both of these information technology developments basically targeted improvements in talent supply chain performance, not the “restructuring” of actual “work arrangements.”

However, over the past six years, a set of forces has been converging (these include, increasing global economic competitive pressures, businesses requiring more flexible workforces and scarce talent, and changes in workforce demographics, expectations, and preferences). These forces, mixed with new possibilities engendered by integration of technologies like social, cloud, mobile, et al, have been having significant impacts on work arrangements (actually spawning new forms). Perhaps one of the most radical of these has been “crowdsourcing” work arrangements, while one of the most pervasive has been “online freelancing” enabled by online staffing platforms like oDesk, Elance, and others. Concepts of “extended workforce” (Accenture), “private talent clouds” (Elance), “workforce-as-a-service” (OnForce) are now not just fantastic ideas, but in 2013 refer to functioning “work arrangements” that have unprecedented characteristics of being fractional, variable, mobile, on demand, etc.

SIA started studying this phenomenon over the past two years, and we continue seeing clear signs of development, innovation, and growth--in what today still looks like a small spot in a petri dish. Some of these visible signs can viewed through the microscopes of two recent SIA reports, The “Human Cloud” in 2013: What It Is, and Why It Is An Emerging and Real Opportunity For Staffing Firms and “Online Staffing” Platforms: 2013 industry segment landscape.

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