On 12th June 2020, the Victorian Government released a Report on On-Demand Workforce.
It was done to address growing concerns on the innovating gig economy and on-demand work. I though it was valuable initiative
Valid concerns, one and most prominent of which is the rising lack of permanency in the workforce. In particular the on-demand work sector which is spreading to other areas. The report is informative, insightful and timely.
You might want to read other related posts on the gig economy here.
What was considered casual, temporary and transient is clearly not as previously understood.
New words and terms have also cropped up which may or may not lead to overlaps and confusion.
Rise of the Platforms
Platforms for on-demand work are digital online apps or websites that match clients and workers Tinder like. The term is rather appropriate is now commonly used in this sector.
Platforms are designed to be fast, convenient and highly intuitive.
Not just for people seeking work, assignments or h=gig. And there is demand from employers as well. Some companies even run their own.
Platforms such as Airtasker, Upwork and Mable are now popular in Australia serving a wider base. They stand in the middle and act as honest brokers in the main.
To be clear, these are not your usual recruitment agencies that advertise for positions and collect CVs and application online.
Platforms for the gig economy are best referred to as market place to sell your skills and experience to those looking to buy.
Potential workers referred to in the report as “platform workers” sign up and load their profiles online. These profiles include credentials, past experience and preferred area of work. In some categories candidates state their rates and terms.
Potential clients view these and reach out. Selecting or shortlisting candidates.
Clients also use the same platform to advertise for work and assignments to be carried out on these portals.
The target pool are the unemployed, casual workers, the self-employed, independent contractors, students and even homemakers and just about anybody.
Notably little to do with career progression or permanent employment. There is also a clear avoidance of terms such as “workers”, “employee”, “employment”.
Instead words such as “independent”, “entrepreneur” and “contractor” are prominent.
The platform clients range from small business owners, large companies, NGOs to private individuals. To spectrum is remarkably wide. Not all clients especially big business show their hand until they pick and speak or message the client directly.
Leverage
Some workers on these platforms do have leverage. The ability to set rates or negotiate for better terms. This ability is confined to a small segment of the better qualified such as IT developers, programmers, graphic designers and consultants. The platform is a boon to them as it provides significant reach. That means more options to obtain the best possible terms.
Another interesting development is those in particular vocation or skillset pass or recommend others for assignments that they can’t handle. It could be the amount of the work they are already handling or the terms are not attractive. Or they possess that particular skillset.
Keyword searches help accelerate matches where the skillset is esoteric.
Leverage understandably does not apply to all. If there is more than sufficient supply opportunities to set terms diminishes. I have seen forums where for instance web designers are persuading other wed designers not to undercut.
One thing is clear though. Those who have chalked fair amount of assignment and have positive ratings are commanding higher fees. These fees can be in multiples compared to new entrants.
So those who are new to these platforms have to manage their expectations in terms of fees on entry. Their prior work and years of experience in the non-gig World are not registered in platforms. It also does not record work and assignments secured in other platforms.
So it works for some but not for others.
Need for balance and fairness
No one can disregard or discount the value of gig economy pioneers such as ride hailing and food couriers. Its the others less prominent new entrants.
The temptation for companies big and small to ditch conventional recruitment and staffing protocols and ask potential staff to go thru platform is there. It is likely to be cheaper as overheads are less.
Any new legislation or measures to close the gap on worker protection and those who provide a service must take into account a number of issues. Besides seeking a balance, there is fairness, avoiding exploitation and mechanism that allow collection of fees due.
These are important considerations for the model to mature. Not an enviable task. And something that cannot be ignored.
Wider implications in Play
If work is not secured by tenure there are other consequences to consider. And they can be much wider as time goes on.
The social impact on families and communities is one. The ability for Banks to offer mortgages and loans in view of employment uncertainty is another.
If the issue grows, the consequence on the wider economy needs to be considered.
Importantly not all of us are risk takers in terms of entrepreneurship and self-employment but competent in many other ways. We need to provide that protection.
The Victorian Government has to be applauded for identifying the growing issue in 2018 which led to the commissioning of an inquiry.
The research was done on a national scale thereby benefiting the whole of Australia. Their inquiry will act as a pathway to the wider implications in play.
Gig Economy and On-Demand Work reshape I guess is still work in progress.