Requiring only a computer and a Wi-Fi connection, the Human Cloud is said to provide a new way in which to get work done. Offering organisations access to talent via an online marketplace, advocates of the Human Cloud have stated that we are on the threshold of a flexible working revolution, with people once again taking ownership of the means of production.

But new methods will require a change in perception from hiring managers.

With the popularity of platforms surging in recent years, we tackle some of the most frequently asked questions surrounding the Human Cloud. We’ve also called on the expertise of Global and Americas Head of Solutions, Robert Moffat, to offer his industry-leading insights.

What is the Human Cloud?

Rob: ‘The Human Cloud’ refers to the growing number of online marketplaces that facilitate a transaction between the buyer (the organisation) and the seller (the worker). Now a single ‘job’ can be split into a series of projects, with members of the Human Cloud executing distinct tasks, on demand, from anywhere in the world.

A Human Cloud can take several forms, including:

• Talent Platforms – where organisations can search and connect with a pool of talent and skills.
• Work Service Platform – mediating a service request with a service output. Examples include Uber and Deliveroo.
• Crowdsourcing Platform – a challenge is posted to the platform by an organisation, with individuals submitting their ideas in a bid to secure work.
   

While the type of Human Cloud may vary, they are often united by the following criteria:

• Facilitate peer-to-peer transactions through a website or mobile application.
• Rely on user-based ratings.
• Manage the relationship from sourcing through payment.
   

Is the Human Cloud a new phenomenon?

Far from it. In fact, Human Clouds have been around for more than a decade.

But what has changed is the rate of adoption and innovation. According to Staffing Industry Analysts, B2B Talent Platforms generated $10.7 billion in spend in 2020. In 2022, the worldwide Talent Platform market is anticipated to reach a scale of $15.1 billion.

Rob: Like many workforce trends of late, the Coronavirus pandemic has been a key catalyst in the growing acceptance of Human Clouds. The worldwide work from home experiment has removed many of the preconceptions surrounding remote work and distributed teams.

In the wake of the pandemic, some individuals are also seeking greater control over their careers. Many workers operating on these sites are young and using platforms to supplement their income. The Human Cloud is useful for those eager to hone ‘side-hustles’ and ‘slash careers’.

Technology, unsurprisingly, also has a role to play. Data-driven worker ratings, for example, allow organisations to identify and connect with top talent in just a few clicks.

Technology has also had a more nuanced impact on the uptake of the Human Cloud. As we innovate at an increasingly rapid pace, tech cycles have contracted, shortening the shelf-life of many skills. The Human Cloud enables organisations to access top talent, without the financial and operational commitments associated with a permanent employee.

Can the Human Cloud better the world of work?

The Human Cloud certainly offers an array of benefits that could improve the experience for organisations and workers alike.

Diversity is at the core of many Human Cloud conversations. Talent platforms have granted a sense of agency to anyone with an internet connection. With the ability to determine when and where they work, Human Cloud workers can balance their career with other commitments. This is especially useful for those who may be housebound, have additional caring responsibilities or are located in areas in which employment is scarce.

The ratings system embedded into many Talent Platforms has also been linked to improved social mobility. For those who do not have a degree from a top university, ‘or even a degree at all’, reviews and recommendations offer alternative evidence of ability.

Rob: For organisations, the Human Cloud offers access to highly skilled individuals from across the globe, that may have otherwise been missed by traditional, “localised” sourcing methods. In industries where skills are scarce, the pools of talented freelancers created by the Human Cloud are hugely appealing.

What are the hazards associated with the Human Cloud?

As with any staffing solution, the Human Cloud is not without risk.

Employment law, already struggling to regulate the changing world of work, is in many cases lagging behind the complexities of the Human Cloud. It is becoming increasingly difficult for legislators to determine who is completing the work, where they are based and if (or where) they are paying tax.

Security concerns also extend to the security of information. Organisations are reliant on a virtual worker, which could increase the likelihood of an intellectual property leak.

Considerations must also be made for the sharing of data. Legislative safeguards such as GDPR offer enhanced protection to customers. A failure to protect sensitive information as it is shared across increasingly blurred borders runs the risk of severe financial and reputational damage.

Talent platforms are taking steps to mitigate this risk, however, with more stringent requirements placed on individuals. Legal agreements adhering to IP regulations are commonplace amongst platforms, and organisations themselves are taking steps in the form of nondisclosure agreements.

How can we make the Human Cloud work?

Rob: The advantages of the Human Cloud are evident, but the challenge presented to organisations is how to integrate this as part of their talent ecosystem to leverage these perks, while maintaining a manageable level of risk.

It is not an easy problem to solve. The North America Staffing Company survey conducted by SIA demonstrated that while 86% of firms indicated awareness of the Human Cloud, nearly half were not interested in pursuing a strategy to incorporate these platforms.

To fully harness the Human Cloud and scale expanded usage of talent platforms, organisations will need to develop processes and internal infrastructure to promote usage. This will require cross-functional support from HR, legal and procurement teams, which could push already overstretched teams to their limit.

Rob: Workforce management providers such as Hays have an important role to play in balancing risk and agility.

With extensive knowledge of the market and an array of tools and technologies at our disposal, we can assist organisations in incorporating top talent from the Human Cloud as part of their wider workforce strategy.

Quick, cheap or high-quality? It’s your choice

Rob: As with many services, you typically have three desired outcomes: you can have it quick, cheap, or done to a high-quality. Often, you can pick two, but rarely all three.

Our clients face a similar conundrum when it comes to their workforce strategy. To increase organisational agility and leverage cost efficiencies does not necessarily equate to a reduction in quality, but it may require an adjusted approach to risk.

If you’d like to discuss how Hays can help you strive for all three, contact us today.

AUTHOR

Robert Moffat
Global and Americas Head of Solutions, Enterprise Solutions at Hays
With a 25 year track record of designing, implementing and managing talent services Robert has a wealth of knowledge on the challenges and opportunities facing employers in maintaining a competitive advantage in talent acquisition, engagement and retention.

As Global Head of Solutions Robert is part of the global leadership team responsible for innovation and product development and as Head of Sales, Solutions and Marketing for the Americas he is responsible for growth of the region. Having lived and worked for Hays in Europe, Asia Pacific and the Americas he is able to bring a diverse range of thought and experience to the new challenges in the world or work.

He has a passion for new ideas, markets and opportunities and has been instrumental in a number of Hays’ recent global projects including the roll out of a Global Operating Method, Supplier Engagement Strategy, the evolution of our direct sourcing approach and a quick deploy RPO service for start-up and high growth companies.

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