Findings from the CrowdEmploy project Dynamics of Virtual Work Meeting Athens, 8 th October 2013

1. Findings from the CrowdEmploy projectDynamics of Virtual Work MeetingAthens, 8th October 2013 Anne Green Institute for Employment Research University of Warwick, UK Anne.Green@warwick.ac.uk

2. Introduction to the CrowdEmploy project CrowdEmploy: • Study commissioned by IPTS, European Commission Project aim: • To explore internet-enabled exchanges with potential to impact on employment and the employability of individuals Research questions: • How do internet-enabled models based on exchange or donation of labour or capital operate from both the user and operator perspectives? • What are the opportunities and challenges that these services present for employment and employability?

3. Aspects of employment and employability • Enabling support factors • Individual factors: demographic characteristics, economic position, employability skills and attributes/characteristics, disposition to enhancing employability, labour market and job seeking knowledge • Individual circumstances: household composition, household work culture, access to resources • Employers’ practices: recruitment and selection • Local contextual factors: features of local employment • Macro level factors: state of the macro economy

4. Methodology • Multiple sources of evidence – including desk research and a mapping exercise, interviews • Six case studies undertaken • Semi-structured interviews with users(‘buyers’ and ‘sellers’) and platform managers/owners • Reflection on the experiences of users – with a particular focus on issues relating to employability

5. Focus of the study

6. PleaseFund.Us (1) • Reward-based UK-based crowdfunding platform: works on an ‘all or nothing’ basis;a fee is charged to successful projects • Projects include books, games, business travel, community projects, etc. Fundraisers developed skills: • practical skills – e.g. using Excel, making a video, etc. • presentation and organisational skills • managing their public relations and image • skills brought to CSF are more important than skills gained

7. PleaseFund.Us (2) • Fundraisers’ social networks are the main community of supporters • Use of social media to ‘reactivate’ personal connections and latent support • “I don’t think we got any new people, they are people in peripheral communities who knew people, who knew people who knew us” Geography: • Nothing to stop projects from gathering funds from around the world BUT the local aspect of campaigns came through • Some projects have greater scope for reaching out over an extended geography than others – some projects are by definition local • Language may be a limiting factor

8. SocioInversores (1) • Equity-based crowdfunding platform allowing entrepreneurs to access financial resources from other Internet users • Founded in 2011 in Spain - context of economic crisis • Acts as an intermediary between entrepreneurs and investors – charges a commission on money invested in the project or business idea; does not act as a bank • A team of analysts at SocioInversores looks into the feasibility of projects – importance of trust • Entrepreneurs showcase business ideas Investors search for investment opportunities • A small number of investors is best option • Employment opportunities

9. SocioInversores (2) Geography: • ICT enables relations to take place at a distance • Example of an investor with care responsibilities – can invest and take an interest from home • Projects concentrated in Madrid, Barcelona and Valencia • “The Internet, Skype, etc, allow you to communicate at a distance but there are nuances that cannot be communicated but in person” (Investor) • Expanded to Latin America

10. PeoplePerHour – introduction (1) • A CSW matching platform – established 2007 • Categories of work include design, Web development, writing, business support, video/ photo/ audio, admin, marketing and PR, translation, software development, social media • May 2013 – 450,000 users in over 200 countries: 64% users in UK; next largest shares India, US and Pakistan • Typical ‘buyers’ are micro-businesses with 1-10 employees • Feedback and ratings system – issues for sellers

11. PeoplePerHour – how it operates (2) Buyers Sellers • Post a job – outlining what is needed, receive proposals, review and select, make a downpayment to start the job, which is released on completion • Search ‘Hourlies’ – see if offers meet requirements • Search sellers’ profiles and contact freelancers directly • NO CHARGES • Build a profile – outlining story and skills • Search for jobs and submit a proposal directly – search and get notifications of jobs • Post ‘Hourlies’ – outline what can do for a fixed price • PeoplePerHour ‘TOP SLICE’ PAYMENT

12. PeoplePerHour: motivation - buyers Cost Non-cost • “It costs nothing to advertise a job - there is nothing to lose” • No overheads • More cost-effective to pay ‘per task’ than ‘per hour’ • No worries about employment legislation – so implications for sellers • Ease of use • Speed of response • One-off services • Generate ideas • Access to many more sellers than by conventional means

13. PeoplePerHour: motivation - sellers Economic Non-economic • Supplementing income – for employees and existing freelancers • Gaining an income – following redundancy • (Re)entry to the labour market – e.g. after sickness • Overcoming discrimination in the labour market • Life course – e.g. work during/ after pregnancy • Flexibility – especially for childcare:“It fits in so well with the family” • Desire to be self-employed • Something to do

14. PeoplePerHour: skills development • Formal qualifications helpful for CSW in global marketplace – perhaps not recognised as a local employee:“We contacted you because you had a Masters degree” (buyer to seller) • Onus on the seller to develop skills:“I’m not interested in people honing their skills”(buyer) • Costs for skills development borne by the individual:“I’d consider short courses, but I don’t want to be in debt for studying” (seller)

15. PeoplePerHour: geography • “You can as easily work with people in the Philippines as in Peckham” (buyer) • Can test ideas on cheaper sites first (buyer) • “A great portal onto the world” – “I can do this from anywhere” (seller) • Work and home – merge or otherwise (seller) • “Working for peanuts” to ‘break in’ – then “competing against people where living wages are a lot lower” (seller) • Need to learn “not to undersell yourself” and “not to chase work at all costs” (seller)

16. Slivers of Time (1) • Provider of software and expertise supporting an agency to administer and manage the system • Matching - online staff booking and time management platform • Operates in public, private and voluntary sectors • Offers community based paid and unpaid work - local • Opportunities managed by agencies who use Slivers of Time system • Agency vets sellers • Sophisticated system - individuals can constantly manage their availability (flexibility and control on an hour by hour basis)

17. Slivers of Time (2) • Way of working beyond retirement – to remain engaged and included in the labour market • Provides extra income • Opportunity to do work where have experience or to do something different – although rather limited opportunities for skills development • ‘Sellers’ are vetted - onus on ‘sellers’ to prove their reliability • Highly committed

18. Do-It (1) • UK-based broker for organisations seeking to recruit volunteers and volunteers seeking opportunities • Voluntary organisations may use Do-It alongside their own websites • Potential volunteers can search on activities (online or otherwise), availability and location – and select • Online activities include reviewing publications, online research, e-campaigning, online forum moderation, consultancy roles, peer support (involves training), etc. • Volunteers emphasised:– altruism– enhancing employability

19. Do-It (2) Geography: • “You Do-It from home, You can Do-It wherever you want. You are basically your own boss in that sense.” • “I thought if I don’t get any paid work, if I got some voluntary work this would be good for the CV. I was looking for anything basically. The virtual element was appealing as I could do it from home.” Skills: • Communicating online • Learn use of language without visual cues • “The disadvantages are you gain no interpersonal skills, there is no interpersonal contact; I just work on my computer and send stuff back.” • “Because it is virtual it is harder to put on the CV.”

20. Tauschen-ohne-geld (Exchange without money) • Initial idea of the website (www.tauschen-ohne-geld.de) was to connect regional German reciprocal exchange rings • Limits of geography: not successful; exchange rings are highly LOCAL– many services are local (lawn mowing, hairdressing, help with practical tasks, etc.); and other sites exist for provision of extra-local services e.g. holidays • LoWie.V. – example of local ring • Use ICT for documenting services and goods offered and required and recording transactions • SOCIAL contact is central – “personal contact leads to trust”; “human communication is at the centre of attention” • Supportive environment in which to hone skills

21. Synthesis – from these cases (1) DIVERSITY • Within and between platform types • Types of employers / organisations using CS • Individuals can be: • ‘sellers’ and ‘buyers’ • reactive and proactive • self-employed and employees • ‘at work’ and ‘at home’ FLEXIBILITY • Users need to be flexible to use platforms • Platforms facilitate flexible working GEOGRAPHY • Enables global working –increased reach of ‘buyers’ and ‘sellers’ • Facilitates local working / exchange

22. Synthesis (2) SUPPORTING ONLY • platforms are ‘supporting tools’ only – individuals need to bring existing skills and networks to use them • BUTindividuals can use platforms as a launch pad for broadening skills and networks, or changing career BUYERS / EMPLOYERS can • Use cheaper labour elsewhere • Reduce (and change) employment opportunities locally • Reduce inputs to, and responsibility for, workers – as an ‘employer’ and a ‘training provider’ • Change (and make more transparent) recruitment and selection of workers • Organise work differently • Create new employment and learning opportunities • Open up employment opportunities for people who might otherwise be unable to take them

23. Synthesis (3)

24. For more information Anne Green Institute for Employment Research University of Warwick Coventry, UK Email: Anne.Green@warwick.ac.uk Tel: +44 (0) 24 765 24113 On behalf of the CrowdEmploy Project Team: Anne Green, Maria de Hoyos, Sally-Anne Barnes, Heike Behle, BeateBaldauf www.warwick.ac.uk/ier