ICT4EMPL "The Future of Work" From Crowd to Cloud: The - PowerPoint PPT Presentation

ICT4EMPL "The Future of Work" From Crowd to Cloud: The Present and Future of Work in the Network Economy – the role of Online Work Exchanges Virtual Work, Bucharest March 2014 This work was funded by and conducted at This presentation the JRC-IPTS, European Commission does not represent the views of the European James Stewart Commission University of Edinburgh j.k.stewart@ed.ac.uk

My concern from policy? 6/ 5/ 2014 2

Online work exchanges: New ways of finding work, finding workers, being employed and getting work done Not: ‘ Telework ’ , ‘ free labour ’ etc 6/ 5/ 2014 3

Potential Policy Opportunties Enterprise and Employment-related Markets SMEs and policy (such as labour market microenterprises, microfinance reform, temporary work, youth • Regional Development, employment and training, • Financial regulation, entrepreneurship, self- • The Single Market in services employment, flexible working, and employment. access to work), • Job Creation • Balance of industry and welfare (e.g.flexicurity) Social Policy • Social inclusion programmes Skills policy • Social cohesion programmes Digital skills and access, • Public service delivery • Mobility programmes International development

10+ years on Bates and Huws 2002 'eworker' estimates for 2000 in Europe (EMERGENCE Project ) • 9 million eWorkers • 3.7m multi-locational eWorkers • 810,000 teleworkers • 1.45m eLancers • 3m+ eEnabled self employed • Most not working through online exchanges 6/ 5/ 2014 5

STS Agendas ICT and Work Software • Replacement of People by IT Infrastructures • ‘ End of Work ’ Scale – > Big Data • Telework • CSCW Humans and computers ever • Mobile Work more tightly entangled • Open Source and voluntary labour Algorithmic matching • Call centres • Globalisation, BPO and off-shoring • Google search, adwords, social • Fragmentation of labour solidarity media (Facebook etc) • Hollowing out of white collar work • Crowdsourcing for free labour Social computing and classification • Virtual Work 6/ 5/ 2014

Clickworker Turker Elancer Cloudworker 6/ 5/ 2014 7

6/ 5/ 2014 8

6/ 5/ 2014 9

6/ 5/ 2014 10

6/ 5/ 2014 11

6/ 5/ 2014 12

6/ 5/ 2014 13

6/ 5/ 2014 14

6/ 5/ 2014 15

6/ 5/ 2014 16

6/ 5/ 2014 17

6/ 5/ 2014 18

6/ 5/ 2014 19

Location of Work On-site Off-site 6/ 5/ 2014 20

Who works through these systems? Working and Unemployed • People in traditional Freelance occupations Students – gaining  Designers experience, reputation or  Translators spare cash  Accountants  Programmers People with families looking for flexibility • Small Business • Hipsters Disabled housebound Professionals in South Rural dwellers Asia and other emerging economies Middle-aged restarters Microbusiness and Retired people freelancers buying supplementing pension 6/ 5/ 2014 21 services from others

Types of tasks (after Frei) Size, org,pay example Microtasks High volume; low Transcription, pay per task; classifying, price automated search, find simple info 'Macro'-tasks High volume, low Product review, pay, automated simple testing, simple info collecting (e.g marketing) Simple projects Low volume, single Design a website tasks, with skill and Do accounts moderate pay. Direct Write a presentation contact Design a logo Complex projects Single projects, high Scientific challenges pay, often multiple Algorithm design people, direct Complex research 6/ 5/ 2014 22 contact

TWO GENERIC OPERATING AND BUSINESS MODELS 6/ 5/ 2014 23

Crowdsourced Microwork model Clients (direct Clients (ad hoc) integration) APIs Microwork design Task Managers Workflow integration and Resellers Quality Matching Recruitment Crowd Platforms Worker interface (motivation, quality, payment), Curating the crowd APIs, Crowd BPO Crowd self- Local workforce organising intermediaries 6/ 5/ 2014 24

Freelancer Marketplace model Trust Efficiency Large Transparency Teams clients Intermediaries Clients and market Contractors makers Access to Cntractors Access to clients Support and training Matching Value added services Payments Competitions Value added services Quality Contracts Tax Dispute management Rent-a-crowds Training Support Mentors Work platforms Resources 6/ 5/ 2014

EXISTING RESEARCH CONCERNS AND RESULTS 6/ 5/ 2014 26

Research on online exchanges Crowdsourcing – business models + some critical user Virtual labour Huws 2003; studies (Brabham 2010, 2011, Scholz 2012; Kleemann and 2013). Voß, 2008; Huws 2013; Holts (2013) Caraway (2010) ) Elancing ’ from an HR perspective (Aguinis and Legal issues (Felstiner (2011) Lawal 2013) Microworker identity Microtask platform use – (Lehdonvirta and Mezier (2013) e.g. in scientific experiments Microworker empowerment - (Iperitos 2008,210a, 2010b) Turkopticon (Irani and Labour economics Silberman 2013). perspective (Agrawal et al 2013) 6/ 5/ 2014 27

Open the black box of job search (Petrongolo and Pissarides, 2001; Marchal et al 2007). formal and informal information channels (e.g. Granovetter 1974) role of intermediaries whose work is to match vacancies sellers and buyers (see Marchal et al 2007). 6/ 5/ 2014 28

ICT4EMPL Literature Practitioner Interviews Short Cases Inductive In depth qualitative cases and analysis Outsourced to Warwick university 6/ 5/ 2014 29

6/ 5/ 2014 30

Specialist Generalist Global Proz Elance; AMT (Translators) Microtask National/ Trada PPH; Clickworker Regional (optimizers) Local Rated People (Local listings) (domestic trades) Slivers ( Social care) 6/ 5/ 2014 31

12 000 000 $16 000 000 000 6/ 5/ 2014 32

Online freelance sites: 12m worldwide (World Bank estimates from adding top 3 elancer sites, neglects multiple membership) Freelancer Elance claims 7m registered workers, 2.3+ million registered users 4.5m completed projects 715k in US, 359k India, 80k UK Staffing industry Analysts $200m elancer earnings. estimate $1bn value in 2012 48% say main source of income ($2bn 2014) Odesk Proz Matched 35m hours of work in 600 000 registered translators, 2012 20 000 paying members workers in 179 countries $360m earned. Trada 2/ 3 workers > 50% of family 10000s of users income 300 regular workers 6/ 5/ 2014 33

Microwork Numbers Amazon Mechanical Turk Clickworker “ The only numbers that we share 300 000 Clickworkers regarding our Worker population are 1/ 3 Germany, 1/ 3 rest of Europe these two: Over 500K registered 1/ 3 North America Workers from over 190 countries worldwide. ” Jan 2011 Crowdflower Jobs 1cent-$10 Claim a crowd of over 2 million 4m human judgments per day Iperitos, using 2008 data 959,582,877 judgements Turkers are younger. (8/ 6/ 2013) Turkers are mainly female. Turkers have lower income. of the general 6/ 5/ 2014 34

Rates of Pay Clickworker 8-9euros/ hour Elance – minimum $3/ hour Mturk $0.10 1-2min HIT Penny HITS - for the desperate, adjusted to local (low wage) labour rates. X Time worked Clickworker most people earn less than $300/ month Trada – top earners on > $5 000 month full time Odesk – 2/ 3 earn over 50% of family income. Proz – full time professional occupation 6/ 5/ 2014 35

In Europe There are microworkers (culturally specific microtasks) There are online freelancers etc How many? Millions How could we count them? 6/ 5/ 2014 36

VALUE AND RISKS 6/ 5/ 2014 37

Value and risks for clients HR New Value • Lower HR search costs • No/ low employment costs or Only solution obligations On demand • Greater selection of workers • Access to global pool of talent+ Speed global wage rates Scalable Risks • Exploit crowd effects • Low control • Analytics • Too much choice • Assured service • Lower quality • High service quality for specific • Disadvantages of non- work permanent staff • Job specification • Privacy and confidentiality 38 • Complexity of some microwork 6/ 5/ 2014

Suggested value and ‘ Free ’ , ‘ Cheap ’ , 'exploitation risk for workers 'insecurity' ‘ Flexible ’ , 'freedom', 'opportunity' Economic Makes independent work more feasible Non-economic Re-enter labour market ‘ Extra cash ’ Supplement main income Flexibility Access to (global) clients Self employment Transparency of markets - Trust in market Work-life balance Build a portfolio of clients. Life course Try out, and learn new skills Specialisation (Malone et al) Something to do Access to work for excluded Tools for productivity Develop skills and employability 6/ 5/ 2014

How did these exchanges become this way and where are they going? Key business innovations 6/ 5/ 2014 40

Intermediaries need to attract and keep customers in a sceptical and competitive market Trust and Quality Market Multiple Quality management Systems ‘ 6/ 5/ 2014 41

E-REPUTATION, RATINGS AND QUALIFICATIONS 6/ 5/ 2014 42

6/ 5/ 2014 43