By Albert Cañigueral*

Once in every generation there is a massive change in business that alters the nature of competition, changes the hierarchic order of players, creates completely new industries and categories, closes existing markets and open new ones.  Today, we are going through one of these massive changes due to the development of digital platforms, which are the organizational and business model of the 21^st century. Digital platforms enable managing human, material and economic resources in such an efficient way that they show the lack of efficiency of traditional industrial models.

The impact and transformation on industries such as accommodation (Airbnb or Homeaway), banking (Kickstarter or Transferwise), media (Facebook or Youtube), transportation (Uber or Lyft) and knowledge creation and distribution (Wikipedia), is quite evident. But, if we look more closely, we will see that transformation is actually deeper.

Digital platforms are changing the actual essence of organizations and companies. They are changing the labour market and the way in which citizens will generate income in a very near future.

A world of on demand talent

There are multiple challenges regarding this transformation of the labour system, both for companies and organizations, and for workers.

Companies have been outsourcing cleaning, security, IT and other services for decades. Currently digital platforms make it possible to extend outsourcing to other areas. There are platforms for every kind of task. To name a few, Amazon Mechanical Turk (online micro tasks), Glovo, Rappi or Uber Eats (physical deliveries), Iguanafix or Zolvers (domestic work), Freelancer or Workana (design, programming, translations), as well as elite talent platforms (financial analysts, CEOs), such as TopTal.

The company will become an orchestra director, which will take resources from an on demand “talent pool “optimized by artificial intelligence to have the talent needed, when needed and where it might be needed. The challenge for companies and organizations is how to manage this “workforce of the future”, which is extended, discontinuous, online and offline. How can they build, expand and manage their own platform for “non employees”? How can it be combined with traditional employees? What are the new legal, security, training risks that arise?

The challenge for freelancers

“My father had one job during his entire life, I have had six consecutive jobs, and my children will have six jobs simultaneously”, said Robin Chase, founder of Zipcar, in a recent interview. Despite the huge amount of evidence, education systems across almost the whole world continue to train “workers” for an industrial reality that is disappearing. How can we support people to become freelancers with multiple income sources? In order to succeed, these workers must undergo continuous training, they must resemble entrepreneurs, they must be able to offer their talent using digital platforms, and learn how to handle uncertainty. How can we support universities and technical schools, as well as companies’ training and development departments, to update their curricula accordingly to the new skills that these platforms demand?

How can digital platforms enable and improve working conditions, while assessing workers’ rights and needs? How can this also help informal workers, even though they might not use platforms to get a job? The emerging #WorkerTech industry is a step forward to the proper path.

What can be done from a public policy perspective?

The current labour system has been design and regulated for an industrial era that preceded the existence of the internet. It no longer fits its purpose. Therefore, administrations all around the world must face a radical change in the labour system… and nobody knows where to start. The only way to learn is by doing. Performing experiments where smart risks can be taken, and on a scale that may enable breaking down inherited paradigms and structures. The final goal is learning together, instead of being right about something.

Can we stop talking about “full employment” policies, and start suggesting policies for stable and predictable income? Can we accept that every worker, regardless his or her working condition, needs and deserves basic protection? Can we explore the path of portable benefits, linked to the person instead than to the contract? Can we develop regulation to enable that the data of these workers in these platforms belongs to them as a result of their work? Can we digitalize the administration to make it easier for freelance workers to pay taxes? Can we adapt employment statistics to reflect this reality?

This article states several complex questions. The truth is that nobody has the answers. What we do have is a shared responsibility to look for the best possible answers.

*Albert Cañigueral is the connector of OuiShare for Spain and Latin America. Since he created the blog  Consumo Colaborativo in 2011, he has been considered a major voice in the Spanish sector of collaborative economy. He has written Vivir mejor con menos (Conecta, 2015) and was one of the authors of Retos y posibilidades de la economía colaborativa en América Latina y el Caribe (Banco Interamericano de Desarrollo / FOMIN, 2017).

Source: Factor Trabajo – IDB