Findings from the CrowdEmploy project

Dynamics of Virtual Work MeetingAthens, 8th October 2013

Anne GreenInstitute for Employment Research

University of Warwick, UKAnne.Green@warwick.ac.uk

Introduction to the CrowdEmploy projectCrowdEmploy: Study commissioned by IPTS, European CommissionProject aim: To explore internet-enabled exchanges with potential to

impact on employment and the employability of individualsResearch questions: How do internet-enabled models based on exchange or

donation of labour or capital operate from both the user and operator perspectives?

What are the opportunities and challenges that these services present for employment and employability?

Aspects of employment and employability

Enabling support factors Individual factors: demographic characteristics, economic

position, employability skills and attributes/characteristics, disposition to enhancing employability, labour market and job seeking knowledge

Individual circumstances: household composition, household work culture, access to resources

Employers’ practices: recruitment and selectionLocal contextual factors: features of local employmentMacro level factors: state of the macro economy

MethodologyMultiple sources of evidence – including desk

research and a mapping exercise, interviewsSix case studies undertaken Semi-structured interviews with users (‘buyers’

and ‘sellers’) and platform managers/ownersReflection on the experiences of users – with a

particular focus on issues relating to employability

Focus of the study

•PleaseFund.Us

•SociosInversores

CSF

•PeoplePerHour

•Slivers of TimeCSW

•Do.it

•Tauschen-ohne-geld

CSV

PleaseFund.Us (1)Reward-based UK-based

crowdfunding platform: works on an ‘all or nothing’ basis;a fee is charged to successful projects

Projects include books, games, business travel, community projects, etc.

Fundraisers developed skills:practical skills – e.g. using

Excel, making a video, etc.presentation and

organisational skills managing their public

relations and imageskills brought to CSF are

more important than skills gained

PleaseFund.Us (2)Fundraisers’ social networks

are the main community of supporters

Use of social media to ‘reactivate’ personal connections and latent support

“I don’t think we got any new people, they are people in peripheral communities who knew people, who knew people who knew us”

Geography:Nothing to stop projects from

gathering funds from around the world BUT the local aspect of campaigns came through

Some projects have greater scope for reaching out over an extended geography than others – some projects are by definition local

Language may be a limiting factor

SocioInversores (1) Equity-based crowdfunding

platform allowing entrepreneurs to access financial resources from other Internet users

Founded in 2011 in Spain - context of economic crisis

Acts as an intermediary between entrepreneurs and investors – charges a commission on money invested in the project or business idea; does not act as a bank

A team of analysts at SocioInversores looks into the feasibility of projects – importance of trust

Entrepreneurs showcase business ideas Investors search for investment opportunities

A small number of investors is best option

Employment opportunities

SocioInversores (2)

Geography: ICT enables relations to take place at a distanceExample of an investor with care responsibilities –

can invest and take an interest from homeProjects concentrated in Madrid, Barcelona and Valencia“The Internet, Skype, etc, allow you to communicate at a

distance but there are nuances that cannot be communicated but in person” (Investor)

Expanded to Latin America

PeoplePerHour – introduction (1)A CSW matching platform – established 2007Categories of work include design, Web development,

writing, business support, video/ photo/ audio, admin, marketing and PR, translation, software development, social media

May 2013 – 450,000 users in over 200 countries: 64% users in UK; next largest shares India, US and Pakistan

Typical ‘buyers’ are micro-businesses with 1-10 employeesFeedback and ratings system – issues for sellers

PeoplePerHour – how it operates (2)Buyers SellersPost a job – outlining what is

needed, receive proposals, review and select, make a downpayment to start the job, which is released on completion

Search ‘Hourlies’ – see if offers meet requirements

Search sellers’ profiles and contact freelancers directly

NO CHARGES

Build a profile – outlining story and skills

Search for jobs and submit a proposal directly – search and get notifications of jobs

Post ‘Hourlies’ – outline what can do for a fixed price

PeoplePerHour ‘TOP SLICE’ PAYMENT

PeoplePerHour: motivation - buyersCost Non-cost“It costs nothing to

advertise a job - there is nothing to lose”

No overheadsMore cost-effective to pay

‘per task’ than ‘per hour’No worries about

employment legislation – so implications for sellers

Ease of useSpeed of responseOne-off services Generate ideasAccess to many more

sellers than by conventional means

PeoplePerHour: motivation - sellersEconomic Non-economicSupplementing income – for

employees and existing freelancers

Gaining an income – following redundancy

(Re)entry to the labour market – e.g. after sickness

Overcoming discrimination in the labour market

Life course – e.g. work during/ after pregnancy

Flexibility – especially for childcare:“It fits in so well with the family”

Desire to be self-employedSomething to do

PeoplePerHour: skills development Formal qualifications helpful for CSW in global marketplace –

perhaps not recognised as a local employee:“We contacted you because you had a Masters degree” (buyer to seller)

Onus on the seller to develop skills:“I’m not interested in people honing their skills” (buyer)

Costs for skills development borne by the individual:“I’d consider short courses, but I don’t want to be in debt for studying” (seller)

PeoplePerHour: geography“You can as easily work with

people in the Philippines as in Peckham” (buyer)

Can test ideas on cheaper sites first (buyer)

“A great portal onto the world” – “I can do this from anywhere” (seller)

Work and home – merge or otherwise (seller)

“Working for peanuts” to ‘break in’ – then “competing against people where living wages are a lot lower” (seller)

Need to learn “not to undersell yourself” and “not to chase work at all costs” (seller)

Slivers of Time (1)Provider of software and

expertise supporting an agency to administer and manage the system

Matching - online staff booking and time management platform

Operates in public, private and voluntary sectors

Offers community based paid and unpaid work - local

Opportunities managed by agencies who use Slivers of Time system

Agency vets sellersSophisticated system -

individuals can constantly manage their availability (flexibility and control on an hour by hour basis)

Slivers of Time (2)Way of working beyond retirement – to remain

engaged and included in the labour marketProvides extra incomeOpportunity to do work where have experience or

to do something different – although rather limited opportunities for skills development

‘Sellers’ are vetted - onus on ‘sellers’ to prove their reliability

Highly committed

Do-It (1)UK-based broker for organisations seeking to recruit volunteers and

volunteers seeking opportunitiesVoluntary organisations may use Do-It alongside their own websitesPotential volunteers can search on activities (online or otherwise),

availability and location – and selectOnline activities include reviewing publications, online research, e-

campaigning, online forum moderation, consultancy roles, peer support (involves training), etc.

Volunteers emphasised:– altruism– enhancing employability

Do-It (2)Geography:“You Do-It from home, You can

Do-It wherever you want. You are basically your own boss in that sense.”

“I thought if I don’t get any paid work, if I got some voluntary work this would be good for the CV. I was looking for anything basically. The virtual element was appealing as I could do it from home.”

Skills:Communicating onlineLearn use of language without

visual cues“The disadvantages are you

gain no interpersonal skills, there is no interpersonal contact; I just work on my computer and send stuff back.”

“Because it is virtual it is harder to put on the CV.”

Tauschen-ohne-geld (Exchange without money)

Initial idea of the website (www.tauschen-ohne-geld.de) was to connect regional German reciprocal exchange rings

Limits of geography: not successful; exchange rings are highly LOCAL – many services are local (lawn mowing, hairdressing, help with practical tasks, etc.); and other sites exist for provision of extra-local services e.g. holidays

LoWi e.V. – example of local ring

Use ICT for documenting services and goods offered and required and recording transactions

SOCIAL contact is central – “personal contact leads to trust”; “human communication is at the centre of attention”

Supportive environment in which to hone skills

Synthesis – from these cases (1)

DIVERSITYWithin and between platform

typesTypes of employers /

organisations using CS• Individuals can be: ‘sellers’ and ‘buyers’ reactive and proactive self-employed and employees ‘at work’ and ‘at home’

FLEXIBILITYUsers need to be flexible

to use platformsPlatforms facilitate flexible

working

GEOGRAPHYEnables global working –

increased reach of ‘buyers’ and ‘sellers’

Facilitates local working / exchange

Synthesis (2)

SUPPORTING ONLY platforms are

‘supporting tools’ only – individuals need to bring existing skills and networks to use them

BUT individuals can use platforms as a launch pad for broadening skills and networks, or changing career

BUYERS / EMPLOYERS canUse cheaper labour elsewhereReduce (and change) employment

opportunities locallyReduce inputs to, and responsibility for,

workers – as an ‘employer’ and a ‘training provider’

Change (and make more transparent) recruitment and selection of workers

Organise work differentlyCreate new employment and learning

opportunitiesOpen up employment opportunities for

people who might otherwise be unable to take them

Synthesis (3)

Prerequisites

Self starterSelf

efficacyManage

timeKnow

marketIT skills

Literacy

Developed

Business skills

Communication skills

Customer relations

Diversity of skills

Support

Awareness raising:

(non)employed

Training:- various

- bite-sizedPartnerships

– intermediari

es and platforms

For more informationAnne GreenInstitute for Employment ResearchUniversity of WarwickCoventry, UK

Email: Anne.Green@warwick.ac.ukTel: +44 (0) 24 765 24113

On behalf of the CrowdEmploy Project Team: Anne Green, Maria de Hoyos, Sally-Anne Barnes, Heike Behle, Beate Baldauf

www.warwick.ac.uk/ier