As a Gen Xer, I remember Amazon was a humble online bookstore in 1995. Just ten years later, that same “bookstore” sold a $140 million dollar yacht! This transition is a perfect example of how technology platforms expand to new markets and create new use cases.
1099 talent platforms made a similar transition to find new use cases and expanded markets. In most cities across the country, all you need is a clean driving record and a (relatively) clean car in order to drive for Uber No car, no problem either, just get on Wag and walk dogs. Once more, new use cases are defined for 1099 Platforms making it now possible to get highly skilled labor via 1099 talent platform, at the drop of a hat. An obvious example, Upwork, is home to some very talented graphic designers and software programmers, easily accessible via mobile or web anytime, anywhere.
With this history, it should come as no surprise that early adopters for W2 staffing platforms, such as Uber Works and Indeed Flex, were in the hospitality/events space and other types of low wage, low skill, and short duration vertical markets prior to Covid19. The driver of this adoption was efficiency as much as worker preferences, and to protect profit margins with highly efficient administrative process for shifts being filled en masse.
Beyond the current disruption of low skill/short duration placements by on-demand platforms, what about the other end of the spectrum? Are highly skilled, long term placements going to be disrupted by mobile platform technology?
On-demand is headed to all sectors of the staffing industry
Virtually every industry in the United States has a third party that supplies some sort of contingent labor, and the history of technology adoption tells us that it is only a matter of time before even highly skilled positions will be impacted by app-based platforms.
This next wave of adoption will come from high wage, high skill and long duration positions, in complex vertical markets like manufacturing, office and medical. You can expect this wave because it addresses several important features that all people looking for a work opportunity, regardless of the job, want:
- Curated opportunity preferences: Workers only want to see certain positions, in a certain geographic area, doing certain things, for a certain wage (and not waste time sifting through imperfectly matched jobs).
- Speed and convenience: Tightly curated opportunities according to user preference delivered quickly via smartphone 24/7/365.
- Transparency: What the job is, ratings/feedback from other workers, and the ability to accurately communicate skills and qualifications to the client/employer.
- Ease of use: Easy interaction and transition between communication of opportunity, acceptance and first day of work, the work itself, and getting paid.
Let’s reimagine the art of worker deployment together
Arrived is seeking small to mid-sized staffing agencies that want to unlock new markets together. Layering Arrived technology provides our clients with a fully branded app in the Apple App/Google Play store, right alongside the big national firms. I’d like to help staffing agencies of all sizes to adopt a mobile platform on their own terms. Adopting our digital offering helps win new business, retain existing clients, adapt to changing worker expectations, and adds recruiter efficiency. If you want to know more or even just discuss market conditions and strategy, grab some time on my schedule here.