The On-Demand Economy: A New Reality in Today’s Workplace
One of the ways that advancements in technology and a shifting focus of young buyers have shaped the consumer market is the rise of the On-Demand Economy. This term refers to a phenomenon which has grown over the past few years, centered on traditional business models being replaced by web-based C2C strategies. Consumers use online platforms-either a website or, more recently, a phone app-to offer their goods and services directly to the public seeking them. The result is instant fulfillment of needs ranging from meal delivery to ride sharing, and options are increasing every day.
The world of the On-Demand Economy has been growing for some time now. eBay is one of the most traditional examples of the direct person-to-person exchange network that makes up the ODE. Such online marketplaces constitute the largest category of On-Demand transactions, bringing in 16.3 million consumers and nearly $36 billion monthly. Just behind online markets are the newly popular group of transportation apps such as Uber and Lyft; these services generate $5.6 billion in annual spending, with users at 7.3 million and climbing. Other major groupings of OD offerings include food and groceries, hospitality, and freelance work. The latter is where companies such as Laborocity come into play.
Laborocity provides fast and effective temporary staffing, with a business strategy that meshes directly with the ODE style. Providing labor placement in the fields of construction, office work, events and moving, the company’s innovative algorithm instantly matches work listings with the most qualified workers from an online registry. Pay rates are completely transparent, and the number of hours and workers required are all built into the transaction from the client’s project requirements. With this approach, instead of a business relying on the time-consuming process of seeking out and interviewing potential temporary staff itself, Laborocity is able to complete the process for them within 24 hours of a job being posted. This is the crux of the ODE: consumer needs being fulfilled both personally and rapidly.
There is a massive amount of potential for companies to tap into the new sales system of the On-Demand Economy. The user base for such services stands at over 86.5 million in America alone. Of these, roughly half are young individuals between the ages of 18 and 34, and they tend to be from middle-class income households. This demographic set is focused on the ability to seek out information and make real-time purchasing decisions based on their needs of the moment. Companies can take certain steps to alter their sales approach in order to fully take advantage of ODE consumer inclinations. Whatever a product or amenity may be, the ultimate goal is to tailor offerings based on details of the individual transaction, make access available at all times to facilitate real-time operations, and use feedback as a tool for both improvement and self-promotion.
In the case of the staffing industry, a slightly different angle must be considered as well when making the transition to a more modern business experience. Laborocity and other such organizations are not just catering to consumers, but to companies who function within the same On-Demand economic setting. They share individual customers’ drive to find immediate solutions to their current situation, but like Laborocity, their end goal is to serve their own consumers, which cannot be done until they acquire the staff to do so. The “product” being sold by Laborocity is the time and effort of people who will go on to help another business feed into the same ODE model, and as a result efficiency and customization carry a much greater weight. Therefore, placement groups must find a strategy that thinks of selling to both a consumer and a business simultaneously. All the techniques of direct selling should be utilized, but one must also remember the role of the middleman being filled.
The On-Demand Economy is one that is expanding at a dramatic rate, and companies may find it daunting to remain relevant in this constantly changing consumer market. However, a few simple alterations can give many more opportunities to serve a wider client base. By treating each buyer as a unique individual, and by streamlining operations to provide them with a quick and personalized experience every time, companies have a chance to grow and thrive in a brave new world.
Interested in learning about Laborocity’s On-demand hiring solutions? [Click Here]
Thoughts? Hit me up. Woody@Laborocity.com
Woody Klemmer is the Co-founder of Laborocity, a company that provides businesses with qualified workers, “Doers”, on-demand.