Published on June 5, 2019
1. How Should Companies Take Advantage of the Growing On-Demand “Gig-Economy” Tuesday June 4th,2019
2. TODAY’S PRESENTERS Marion McGovern Author, Thriving In The Gig Economy Hans Bukow Chief Strategy Officer Mr. Bukow brings 25 years experience in founding and leading innovative venture backed enterprise software and Web companies as CEO and GM for over 20 years. Hans is recognized for pioneering $3B+ software categories: Manufacturing Execution (MES) and Vendor Management (VMS). Significant successes: FASTech (#22 Inc. 500) is now part of Applied Materials Global Services, WorldPlay which became AOL-EA Games, and eWork – a professional IT services marketplace – which had an IPO in the EU and is a still growing with $1B+ in revenues. Marion McGovern is the founder of M Squared Consulting, a specialty consulting firm that uses independent consulting talent to meet the needs of clients to help them solve critical business problems. Founded in 1988, M Squared was a gig economy business before the term was even coined. She also started Collabrus, a subsidiary, which is a professional employer for independent consultants while they are on engagements to ensure compliance with employment laws. In 2005, she completed the sale of the companies to The Kelly Group, a publicly traded company in South Africa. She remained a Director until 2014, when Solomon Edwards purchased M Squared.
3. DISCUSSION - AGENDA Latest on the “Gig Economy” – How big a trend is it? – Will it continue to grow? Is my organization ready to capitalize on this emerging trend? What do I need to start to benefit from becoming more workforce flexible? Specific next steps: Assess Cloud tech and determine better-fit scenarios for a pilot project Key Takeaways – Webinar Informative Goals: Scale of the emerging “Gig Economy” Market and organizational response and interest to capitalize What factors and challenges is management considering when going “gig” style Ideas for performing more on-demand work – learning from a pilot project Cloud platform that manages on-demand agile outsourced work performance
4. 1. We don’t know ??? 2. More than 30% 3. From 30% to 20% 4. From 20% to 10% 5. Less than 10% Survey #1 - Size of Your Flexible/Contingent Workforce
5. With “contingent work” and “gig economy” viewed the same, • Accounted for $1.3 trillion or 6.7% of GDP in 2017** • 56.7 million people took on some gig work in 2017** • 1.7 billion hours in the US in 2017*** • Nearly 20% of US gig workers were exporting services or doing business with global clients How BIG is the “Gig-Economy” in the US?
6. And Internationally • In the UK, France and the Netherlands freelance growth outpaced employment • In the EU, independent work doubled from 2000-2014 • In Developing countries 30% of workers are doing gig work according to a recent BCG study • 20% of world’s organizations have at least 30% contingent workers
7. Who Are These Workers? • The New Contingent Professionals – Not Just “Uber drivers” – Work is knowledge based – Skills difficult to source traditionally • 20% are high earners in excess of $100k/yr • 42% had 4yr degrees with nearly 20% with advanced degrees • Motivated by flexibility and control over time and work • Have options beyond your gig
8. What is Driving the Growth? • Demographics - Millennials and Boomers worldwide • Job satisfaction • 70% of Independent workers are so by choice • 50% would not return to regular employment • Cloud based Solutions – Digitalization creates access – Projects sourced through Freelance Management Systems, per Oxford Internet Institute grew 26% in 2017 – Companies familiarity with FMS grew 72%
9. The “Gig-Economy” Will Continue to Grow Why? It’s very simple, Business always wants more: • Flexibility • Speed • Quality • Capabilities • Competitiveness and always for less $$$
10. HR Leadership Planning for Contingent Growth UpWork’s 2018 Future Workforce HR Report – released June 19th – surveyed more than 200 U.S. HR managers and was conducted by an independent research firm.
11. 1. Traditional - Old School: Everyone working at their desk, set hours, strict reporting pyramid of command, etc. 2. Emerging Transition: Some traditional mixed in with some progressive ways 3. Progressive: flex-hours, remote working abilities, some technology enabled collaboration (think Box, GoogleDrive) 4. Digitalization Transition: Progressive and becoming more decentralized, agile, tech platform centric (think Slack) 5. Modern Highly Digitalized – Agile – Supplier Collaborative Survey #2 – Your Workforce Organization Style: LOWER FLEX HIGHER FLEX
12. Barriers to Adoption of New Agile Work Abilities
13. Top Contingent Workforce Challenges
14. An Agile Workforce is a Real TOP Priority * “New FreshBooks Report Reveals Millennials as Catalysts Behind Self-Employment Movement, Opting for More Autonomy,” FreshBooks, Feb. 21, 2018 *
15. Top Business Decisions For New Projects
16. How to Get Started? • Understand the Marketplace – People and Platforms • Identify Organization Hurdles – Process, Procurement , Onboarding or lack thereof, Bias – “Great ideas get overlooked because the people in charge don’t understand the problem.” Reed Hastings • Experiment – Pilot projects and infrastructure
17. Comparison of the Best vs the Rest For Respondents Who Consider that they have a Contingent Workforce “Practice”:
18. General Capabilities Compared
19. Satisfaction & Challenges of On-Demand Workers
20. The Benefits of On-Demand Workers
21. Becoming a Client of Choice • “IT HAS LONG BEEN ESSENTIAL FOR COMPANIES TO BE AN EMPLOYER OF CHOICE. NOW, IT IS JUST AS VITAL FOR COMPANIES TO BE THE CLIENT OF CHOICE FOR HIGHLY-SKILLED INDEPENDENT PROFESSIONAL TALENT.” •MBO Partners, Client of Choice Report, 2019
22. 1. Email with Desktop Apps - Some Mobile access 2. Operate from Centralized Data (Cloud Storage, Box, etc.) – Mobile Ready 3. Operational Collaborative Platform (Slack, Jira, etc.) – Highly Mobile Operational 4. Comprehensive Cloud Operations (Salesforce, ServiceNow) – Mobile 1st Centric Working Survey #3 – State of Your Tech Platform(s): LOWER TECH HIGHER TECH
24. IT Consultants - #1 Fit Basic Problems Solved – VMS Answers the Questions Healthcare Light Industrial Field Service Clerical Hospitality & Retail What’s going on with all the work we’ve outsourced? Who? What? Where? When? How much? Legal? Etc….
25. What does VMS do? Manage “req to check” SaaS for Managing all non-employee Outsourced work related services: Procure “Req” Pay “check”
26. Easy to use on any device - available everywhere
27. HIGHEST SECURITY RANKING OF ALL AGILE WORKFORCE PLATFORMS Global Footprint Multi-currency Multi-language Highly Secure Powerful Scalable Disaster Recoverable #1 Business Ecosystem $6B in R&D in 2016 Platform Demonstration at: https://www.smarterp.com/smart-talent-procurement-overview
28. CONCLUSION The “Gig Economy” (increasingly agile workforces) is here to stay and with Cloud based technology it’s likely to grow even faster ! Today YOU learned how to begin to take advantage of the “Gig Economy” by identifying where best to apply a tech platform based “pilot” that will: Identify and organize the related workflows and business intelligence Standardize the requisition and fulfillment process Manage towards improving supplier performance Ensure delivery of the best talent at the best rates Streamline time, expense and invoice transactions Reduce risks associated with misclassification Gain visibility into your contingent workforce Chuck Leddy - Writer and Expert in the Future of Work