Novel approach that gets work done without employees is changing HR
How do we get work accomplished without employees? A novel approach for this economic climate and one that engages the net generation is “crowdsourcing.”
As an alternative to hiring in-house scientists and researchers, companies such as DuPont, Procter & Gamble and Eli Lilly are posting major research problems online to get the help of a “crowd” in solving these problems.
“Crowdsourcing” is an innovative solution for companies to meet resource requirements. It is an action taken by a company that has a business-related problem and requires work to be done. It is an alternative staffing option, taking a function once performed by employees and outsourcing it to an undefined and generally large network of people in the form of an “open call.” The problem is communicated through the net so it is virtually out there for individuals who may be interested in responding.
The term, coined in June 2006 by Wired magazine, recognizes there is an array of untapped talent in the marketplace — a network of interested parties who decide, based on their own interests and their own time, whether they want to help an organization with its problem, provide a service or fill a business need in some way. These individuals are a diverse group of specialists, with limited time and short attention spans, who may not otherwise have such an opportunity but are given the chance to showcase their abilities.
Crowdsourcing is advantageous to HR professionals and can truly change the HR role. This method is significantly different from other staffing options. Traditionally, HR professionals hire, contract talent or outsource the work. In all cases, a relationship exists and the company is committed to pay the individual or firm for services rendered or work done. Instead, crowdsourcing focuses on the outcome. If a company decides it likes a business solution submitted, it will then pay the individual. There are no employment contracts, contractor agreements or formal requests for proposals necessary. It is an alternative staffing option that enables an organization maximum flexibility to tap a potential pool of talent.
For example, Frito Lay Canada used this low-cost option for managing resources by having an open-call contest to invent a name for its new tortilla chip. People competed to be crowned the “Doritos guru” by purchasing and tasting mystery chips to formulate a name. By using this approach, Frito Lay increased sales, decreased marketing costs and gained brand awareness.
Administrative workload is also reduced. There are no application forms or resumés, no interviews or other screening techniques and no employment testing or reference checks for the HR department to process or administer. This enables them to focus their resources on other HR priorities.
Crowdsourcing increases cohesion and engages employees and departments, as they are involved in the vetting of work submitted. Procter & Gamble required research expertise and sought scientists and innovators to solve problems related to new product development. Different divisions then assessed the solutions and collaborated using their in-house expertise to pick a viable solution from the crowd.
In addition, crowdsourcing leverages collective ideas and knowledge, and seeks to tap what Richard Florida, Toronto-based author of The Rise of the Creative Class, deems the “creative class” — innovative, creative, problem-solving or problem-finding individuals. One of the original ideas came from Calgary-based firm iStockphoto. In order to increase its portfolio of photos for customers, it gave amateur photographers an opportunity to upload their photos for royalties depending on how popular their pictures became. Companies such as IBM and United Way purchased these photos instead of hiring high-priced photographers or buying their images through stock-houses.
Is this a new paradigm, a new way of obtaining human resources or just an alternative way to source talent? Either way, crowdsourcing can be very valuable. It offers an array of just-in-time options for organizations, with minimal cost and no obligations. It focuses on the result and not the process. It frees up HR professionals and enables managers to expand their talent pool while managing their labour budgets. And, lastly, it reaches a demographic who might not otherwise be engaged, leveraging the powerful nature of the Internet to tap talent.
Julie Bulmash and Angie Gorassi are co-ordinators for the HR programs at George Brown College in Toronto. Julie can be reached at (416) 415-5000 ext. 6715 or [email protected]. Angie can be reached at (416) 415-5000 ext. 3633 or [email protected].
