Workforce as a Service

A post from Mezzo News

In every company, Human Resources are just assets which generate income. Human Resources can be easily divided into Administration and Operational Workforce. Across other two, workforce is the primary production factor (others being land and the capital, i.e. by A. Smith or D. Ricardo).

Without the plausible workforce, there’s no business operations. Therefore significant efforts have been taken for recent years, to tailor the process of sourcing, screening, negotiating wages, training, promoting and eventually retaining the workforce of a particular profile. Each enterprise possesses specialized HR department which typically runs several HR processes simultaneously. Sometimes, HR is outsourced to a specialized HR entity (typically: the ICT), when i.e in-house HR isn’t specialized in a particular sector and hiring certain personnel is crucial for the business.

Despite all these efforts, gaps appear severe to the business. Certain employees leave for the competition for better salaries, they change companies because they get easily promoted or they join new company branches which appear in new locations, offering competitive working conditions. This is why no company can sleep well when it comes for proper workforce management. Various non-competition clauses are included in the contracts but their significance is heavily diminished either practice-wise or even legally.

There are however “men-for-hire” companies of various sizes (also, multi-national Enterprises) who sustain the adequate population of full-time workers and seek for contracts globally, when collecting a project group, delegate it towards the clients’ site. This however isn’t efficient enough as this is just a “virtual employee” layer introduced by another entity, having its fixed costs set, including constant personnel sourcing cost, costs of employee delegation but also needs to generate revenue. This all causes that outsourcing personnel in this model might deliver attractive specialists relatively shortly but the overall cost of this service and the possible risks cannot be overlooked.

Another challenge here is the ongoing globalisation process. Companies must act in a highly competitive world while seeking for new customers globally and making operational workforce skilled, available, on-demand and where needed. If we bring on classic Five Forces model by M. Porter, the competition picturized is extremely high nowadays as the core pressures are both on the pricing (margin drop) but also - if we treat employers as resource suppliers - also the cost pressure (higher salary pressure). This all makes nowadays business world as complicated, dynamic and full or pressures coming from many angles, where nothing is certain and no company, even a renowned enterprise, can sleep well.

Taking into account all the concerns mentioned earlier in the text, the new working model emerges: Workforce-as-a-Service (Waas). Most persons recognize earlier frameworks like SaaS (for software) or GaaS (for gaming). This approach spans far beyond the ICT world already. Currently, 30% of all employees work remotely as a report shows and this tendency will increase drastically for the next years. “If you don’t trust your employees to work remotely why hiring them in the first place” - the cliches call. Eventually, this is not about trust but about quality and productivity, i.e. the work done, on time, done well. And this is when ICT systems come in. The quality of all work can be controlled by an ICT system (as a separate work sometime). The overall credibility in any profile-based system (i.e. social network) is the value per se and everyone is doing one’s best to maintain it fine and unflawed. Thus with the help of ICT “marketplace” resources, name it Amazon Mechanical Turk or any other, workforce (“workers”) can plug in, compete on each task cost-wise and finish it in no-time, bona fide.

The open question arises, whether small tasks chopped to several minutes duties can be applied to most desk jobs. In MezzoWork we thoroughly believe so! Stay tuned for another news!

bleak theme by Jack Preston