From Crowd to Cloud: The Present and Future of Work in the Network
Economy – the role of Online Work Exchanges
James Stewart
University of Edinburgh
Virtual Work, Bucharest March 2014
This work was funded by and conducted at the JRC-IPTS, European Commission
ICT4EMPL "The Future of Work"
This presentation does not represent the views of the European Commission
My concern from policy?
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Online work exchanges:
New ways of finding work,finding workers, being employed and getting work done
Not: ‘Telework’, ‘free labour’ etc
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Potential Policy Opportunties
Employment-related policy (such as labour market reform, temporary work, youth employment and training, entrepreneurship, self- employment, flexible working, access to work), •Balance of industry and welfare (e.g.flexicurity)
Skills policyDigital skills and access, •Mobility programmes
Enterprise and Markets SMEs and microenterprises, microfinance•Regional Development,•Financial regulation, •The Single Market in services and employment.•Job Creation
Social Policy•Social inclusion programmes•Social cohesion programmes•Public service delivery
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
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STS Agendas
Software Infrastructures Scale –> Big Data
Humans and computers ever more tightly entangled
Algorithmic matching
• Google search, adwords, social media (Facebook etc)
Social computing and classification
ICT and Work
• Replacement of People by IT•‘End of Work’
•Telework•CSCW•Mobile Work•Open Source and voluntary labour
•Call centres•Globalisation, BPO and off-shoring•Fragmentation of labour solidarity•Hollowing out of white collar work•Crowdsourcing for free labour
•Virtual Work
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Clickworker
ElancerTurker
Cloudworker
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On-site
Location of Work
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Off-site
Who works through these systems?
Working and Unemployed
Students – gaining experience, reputation or spare cash
People with families looking for flexibility
Disabled housebound
Rural dwellers
Middle-aged restarters
Retired people supplementing pension
• People in traditional Freelance occupations Designers Translators Accountants Programmers
• Small Business• Hipsters
Professionals in South Asia and other emerging economies
Microbusiness and freelancers buying services from others
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Types of tasks (after Frei)
Size, org,pay example
Microtasks High volume; low pay per task; automated
Transcription, classifying, price search, find simple info
'Macro'-tasks High volume, low pay, automated
Product review, simple testing, simple info collecting (e.g marketing)
Simple projects Low volume, single tasks, with skill and moderate pay. Direct contact
Design a websiteDo accountsWrite a presentationDesign a logo
Complex projects Single projects, high pay, often multiple people, direct contact
Scientific challengesAlgorithm designComplex research
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TWO GENERIC OPERATING AND BUSINESS MODELS
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Crowd
Crowdsourced Microwork model
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Crowd Platforms
Task Managers and Resellers
Local intermediaries
Curating the crowd
Clients (direct integration)Clients (ad hoc)
APIs
Crowd self-organising
Microwork designWorkflow integrationQuality
MatchingRecruitmentWorker interface (motivation, quality, payment), APIs,
BPO workforce
Freelancer Marketplace model
TrustEfficiencyTransparency
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ContractorsClientsIntermediaries and market makers
Large clients
MatchingPaymentsQualityDispute managementSupportWork platforms
Value added services CompetitionsContracts
Rent-a-crowds
Teams
Access to clientsSupport and training
Access to Cntractors
Value added services Tax
TrainingMentorsResources
Existing research concerns and results
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Research on online exchangesCrowdsourcing – business models +some critical user studies (Brabham 2010, 2011, 2013).
Elancing’ from an HR perspective (Aguinis and Lawal 2013)
Microtask platform use – e.g. in scientific experiments (Iperitos 2008,210a, 2010b)
Labour economics perspective (Agrawal et al 2013)
Virtual labour Huws 2003; Scholz 2012; Kleemann and Voß, 2008; Huws 2013; Holts (2013) Caraway (2010) )
Legal issues (Felstiner (2011)
Microworker identity (Lehdonvirta and Mezier (2013)
Microworker empowerment - Turkopticon (Irani and Silberman 2013). 2704/12/23
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).
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Literature
Practitioner Interviews
Short Cases
Inductive
In depth qualitative cases and analysis Outsourced to Warwick university
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ICT4EMPL
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Specialist Generalist
Global Proz (Translators)Microtask
Elance; AMT
National/Regional
Trada (optimizers)
PPH; Clickworker
Local Rated People (domestic trades)Slivers (Social care)
(Local listings)
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12 000 000
$16 000 000 000
Online freelance sites:12m worldwide (World Bank estimates from adding top 3 elancer sites, neglects multiple membership)
Elance 2.3+ million registered users715k in US, 359k India, 80k UK$200m elancer earnings. 48% say main source of income
Odesk Matched 35m hours of work in 2012workers in 179 countries $360m earned. 2/3 workers >50% of family income
Freelancer claims 7m registered workers, 4.5m completed projectsStaffing industry Analysts estimate $1bn value in 2012 ($2bn 2014)
Proz 600 000 registered translators, 20 000 paying members
Trada10000s of users300 regular workers
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Microwork Numbers
Clickworker 300 000 Clickworkers1/3 Germany, 1/3 rest of Europe 1/3 North America
Crowdflower Claim a crowd of over 2 million4m human judgments per day959,582,877 judgements (8/6/2013)
Amazon Mechanical Turk“The only numbers that we share
regarding our Worker population
are these two: Over 500K
registered Workers from over
190 countries worldwide.” Jan
2011
Jobs 1cent-$10
Iperitos, using 2008 data
Turkers are younger.
Turkers are mainly female.
Turkers have lower income. of
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Rates of Pay
Clickworker 8-9euros/hourElance – minimum $3/hourMturk $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/monthTrada – top earners on >$5 000 month full timeOdesk – 2/3 earn over 50% of family income.Proz – full time professional occupation
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In Europe
There are microworkers (culturally specific microtasks)
There are online freelancers etc
How many?
Millions
How could we count them?
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VALUE AND RISKS
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Value and risks for clients
New Value
Only solutionOn demandSpeedScalable
•Exploit crowd effects•Analytics•Assured service•High service quality for specific work
HR•Lower HR search costs•No/low employment costs or obligations•Greater selection of workers•Access to global pool of talent+ global wage rates
Risks•Low control•Too much choice•Lower quality•Disadvantages of non-permanent staff•Job specification•Privacy and confidentiality•Complexity of some microwork
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Suggested value and risk for workers
‘Free’, ‘Cheap’, 'exploitation 'insecurity'
‘Flexible’, 'freedom', 'opportunity'
Non-economic
FlexibilitySelf employmentWork-life balanceLife courseTry out, and learn new skillsSomething to do
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Economic
Makes independent work more feasibleRe-enter labour market‘Extra cash’ Supplement main income
Access to (global) clientsTransparency of markets - Trust in marketBuild a portfolio of clients.
Specialisation (Malone et al)Access to work for excludedTools for productivityDevelop skills and employability
Key business innovations
How did these exchanges become this way and where are they going?
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Intermediaries need to attract and keep customers in a sceptical and competitive market
Multiple Quality Systems
‘
Market management
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Trust and Quality
E-REPUTATION, RATINGS AND QUALIFICATIONS
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E- Reputation in the marketplace
Workers
Rating on every job
Algorithmic Reputation Calculation
Computer generated story
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•Failure can be terminal (compare with Tripadvisor)
Dispute resolution
Reputation – the Client/Buyers
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ARating by supplierBluebook comments
BNo ratingOff-platform fora or hacktivism (Turkopticon)
Depends on the business model of intermediary, and the balance of the market.
Qualifications and Validated workers
•Real-life Qualifications
•Virtual Qualification
•'Gold' tests
•Access to good work (promotion)
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Disputes over qualification tests
“I was up until 1.00am completing the Qualify Author section. This morning I checked and they only scored me 58%. I felt this was a good article which fitted the brief and used SEO [Search engine optimization] words so I have emailed them. I'm pretty sure it was because the computer timed me (even though I didn't see anywhere which said this was a timed section) out as I'm 4 stars on text broker and got 100% on the 72 questions.”
“ Had an email back. They agreed the article was better than the 58% and have changed my mark. He explained it was a little off topic and doesn't need to have witty remarks and more about keywords. At least I can work for them now. (moneysavingexpert.com, 2012)
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Transferability
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Private marketplaces – privatised qualification & reputation scores
Non-TransferableKey to business model – keep workers on the platform
BUTUser-driven portabilityPosting reputation scores outside the site (Linkedin)
Growing recognition.
THE CROWD: INDIVIDUALIST OR COLLECTIVIST?
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Worker Support and networking
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A community from a crowd
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Emerging e-working ecosystem
Ecosystem of competitive services and user-generated support
User Organisation activities
• Worker support from the exchange
• Worker mutual support in third spaces (e.g. http://cloudmebaby.com/mturkblog/ moneysavingexpert.com )
• Worker-led creation of closed shops
• Interventions to add support tools
• Platforms as tools for building teams, subcontracting and building businesses
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Crowds become communities that:Support techno-socialisation into the practices and logic of work though online exchanges – how to perform in this new eco-system.
Subversion of exchange logic
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Policy Questions and Challenges
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Enterprise - SMEsHow much start-up, SME and microbusiness growth will/could this type of work exchange create?
In what sectors? Countries?
How many people might this growth provide work for?For how much of their time?For what overall income?In which sectors of the workforce
What kind of support could be given to promote access to services through these exchanges?
• Awareness; certification; Legal consistency across Europe? Identity proof?
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Employment and EmployabilityDoes working through exchanges and crowdsourcing platforms provide:-Access to work-Income-Entry to work-Opportunity to build skillsFor whom, in what sectors, in what countries? Who does it exclude?
Which sort of people are better prepared for this work, and why?
How can we support people to develop freelance skills and work ?
Could this be integrated with public employment services, how, where?
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Export of Jobs?
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Welfare issues
Self-employed: low earnings, discontinuous work, low skills, long and non-standard working hours, the high incidence of industrial accidents and work-related health problems
Do we want to encourage this?
Or do we just have to cope with this reality?
Policy concerns -Policy barriers to autonomous workers-The EES not adapting to atypical work
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Platform Support?Why do these platforms not exist in some
sectors/countries/regions?Are what rate are they growing?What would be the impact on employment (growth,
reduction) and wages if they did exist?If they are desirable to support growth and/or
employment,
What can public policy makers and public services do to: Stimulate growth in these platforms – focused in sectors, regions that will most benefit/most in need?Integration of e-government services with platforms.
What are the Risks of promoting this type of working?Insecure work, exploitation, resistance from social partners
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Potential policy interest
Reactive
Training and skillsConstraints on autonomous workers in EuropeProtection of workersFlexibility in hiring freelancersAdapt e-gov systems
Long term Welfare and Economic issues
Proactive
1.Model and ideas for social innovation: Public services
PES• Public service ‘delivery’
2. Active promotion of work these working patterns: opportunities for• New jobs • Entrepreneurs• SMEs• Digital economy• Excluded citizens• Employment transitions
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Discuss
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Summary
Explore: Innovation and investment necessary to build confidence in platforms, and attract clients and contractors
Conditions of work, including the pressures of working for and within software machines
Potential socio-economic impact
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More info on the JRC-IPTS research
JRC-IPTS Employability-The Future of Work
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Or James Stewart [email protected]