The world is constantly changing. It is one of the functions of HR to create a culture of agility to constant change. They are delivering effective payroll services:  Sourcing permanent and contractual resources. These are some of the functions which 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 step beyond outsourcing to crowdsourcing.

Outsourcing to crowdsourcing

Not so long ago, outsourcing became the buzzword. It was found economically beneficial to outsource different functions of the organization to external specialized agencies. The trend for outsourcing continues. However, crowdsourcing has entered the arena.

James Surowiecki and Jeff Howe are the two people who discussed and introduced the term crowdsourcing. James Surowiecki discussed it in his book “The Wisdom of Crowds“. Jeff Howe, in 2006 introduced the concept of crowdsourcing. He described it as a method of sourcing people who are willing to help or work on a project.

Outsourcing stipulates outsourcing of work to specialized external agencies. Crowdsourcing has opened the door for technical people worldwide to give their services to carry out functions, jobs and tasks. The whole process includes several steps. Soliciting help to offer from interested people. Negotiation between the parties. Finalization of contract and payment after completing the contract takes place online.

The role of HR

During all these developments 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 meant they were easy targets. Processes and simple transactions were the main features.

The introduction of crowdsourcing has broken new grounds. Functions like recruitment, employee surveys, talent assessment, learning and even performance reviews are suitable.   A study conducted by showed some impressive results. More than 60% of companies who were 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 it must rise to the occasion and develop new competencies to cater for the requirements of crowdsourcing.

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Human Resource Professional with three decades of experience, having worked in multinational companies of repute with distinction in senior positions. A certified expert author, poet, freelance consultant and owner of three blogs. An internationalist and a peace activist. A strong believer in a NEW EQUAL WORLD based on the principles of equality, equity and empathy.