By: Pamela Harding
What is WaaS anyway? Let me explain. Like software-as-a-service (SaaS), workforce-as-a-service (WaaS) allows businesses to adjust their workforce up or down as needed. WaaS is also known as the 1099 Economy, On-Demand Economy (ODE) and Sharing Economy. Whatever you call it, it’s here to stay.
Tom Starner of HRDive published a very interesting article on this -http://bit.ly/1Rx8lZ9. He astutely notes that “On-demand workforces can be used by employers of all sizes, as the variable cost model ensures it’s not cost-prohibitive.” An on-demand workforce allows business to be nimble – an absolute must in today’s environment. In fact, Starner notes that “Today’s top HR/CHRO execs understand the importance of building an on-demand workforce that can adapt to an unpredictable market in real-time.”
This issue has been bubbling for quite a while now, but what are the ramifications of an on-demand workforce? WaaS is causing significant disruption in how to employ a workforce – Uber would not be such a phenomenon if it did not have an on-demand workforce. Last month California ruled that an Uber driver is an employee – not an independent contractor. This ruling was by the California Labor Commissioner and only applies to California, but Uber quickly responded by filing an appeal in state court. (http://reut.rs/1Rxb2tJ). The final determination will probably be years in coming as the case works its way through the US court system.
This is not an issue confined just to the United States. In the United Kingdom, zero-hours contracts have caused a lot of controversy. These contracts are used to employers to hire staff with no guarantee of work – they only work when needed, often on short notice. As such, there is concern they do not provide financial stability and security in employment. Additionally, there is criticism that employers use zero-hours contracts to avoid providing employment rights available for those on traditional contracts. Employers – particularly in the retail and service industries – need to have flexibility to expand and contract their workforce without incurring additional overhead. Please seehttp://bbc.in/1LgAX3J for additional information.
As we expand more into a global workforce, and as the nature of work is seeing rapid change due to technological advances, on-demand workforces are likely to continue to increase. We are beginning to see research that gives us more insight on these workers. For example, in one US survey (http://theatln.tc/1M9r75b) Millennials make up the greatest proportion of on-demand workforce at 67%. And, unlike their baby boomer parents, they generally like the flexibility and control that this work provides.
What is your experience with WaaS? What do you think is the greatest advantage of WaaS from both the worker and employer perspective? What is the greatest disadvantage?
Looking forward to reading your responses.
Kind regards,
Pamela Harding
Linked:HR Community Chair
