The world is constantly changing. One of HR’s functions is to create a culture of agility to constant change. They deliver effective payroll services by sourcing permanent and contractual resources. These functions can be costly if not set up effectively. Achieving practical and cost-effective processes is essential for any business. Outsourcing is a traditional approach to achieving value for money. Here, we look at the steps beyond outsourcing to crowdsourcing.
Outsourcing To Crowdsourcing
Not so long ago, outsourcing became the buzzword. It was found economically beneficial to outsource various organisational functions to external specialised agencies. The trend for outsourcing continues. However, crowdsourcing has entered the arena.
James Surowiecki and Jeff Howe are the two people who coined the term crowdsourcing. James Surowiecki discussed it in his book “The Wisdom of Crowds.” Jeff Howe introduced the concept of crowdsourcing in 2006. He described it as a method of finding people who are willing to help or work on a project.
Outsourcing stipulates outsourcing work to specialised external agencies. Crowdsourcing has opened the door for technical people worldwide to offer their services to perform various tasks. The whole process includes several steps: soliciting help from interested people, negotiating between the parties, finalising the contract, and paying after completing the contract, which takes place online.
The Role of HR
During all these developments, the human resource department’s role continued to change and adjust to constant change. With the advent of outsourcing, some functions of the human resource department were obvious contenders. These were mainly administrative. The nature of these outsourced functions made them easy targets. Processes and simple transactions were the main features.
The introduction of crowdsourcing has broken new ground. Functions like recruitment, employee surveys, talent assessment, learning, and even performance reviews are suitable. A study conducted by TimesJobs.com showed some impressive results. More than 60% of companies using crowdsourcing for HR functions were satisfied due to efficiency and cost-effectiveness.
The Future of Crowdsourcing
Crowdsourcing will require a lot more effort and innovation to be mainstream. Effective communication and clear standards in terms of expertise are essential. A comprehensive understanding of the terms of any contract is necessary. Businesses must be very clear about the reputation of anyone involved. Crowdsourcing has brought new challenges for human resource departments in its wake, and they must rise to the occasion and develop new competencies to cater to crowdsourcing requirements.
