Crowdsourcing is defined by Jeff Howe as ‘the act of a company or institution taking a function once performed by employees and outsourcing it to an undefined (and generally large) network of people in the form of an open call’.
How do you recruit 10,000 people in a month? Well to start with, why would any firm need to? To answer that, look at the growth history of Apple with a small employee base to its now 300,000 employees in less than two years. Or sometimes, you need workers available on demand in anticipation of a project or relevant work. In that scenario, a company does not need to stay with unused capacity or untapped talent, as in the ramp up for a new product launch and subsequent ramp down when the project is over. Crowdsourcing offers a solution by allowing companies to hire vast numbers and diverse talents on a demand basis. On the cost-saving side, it’s quite encouraging due to its flexible nature of availability. The crowd workforce is the “disaggregated workforce”, or the growth of jobs outside of “traditional firms”
Crowd sourcing is like the mining industry, where a business, person or entity has the multiple choice of the output and flexibility to choose the best from that without putting a conventional process in place.
It is a win-win type of situation where business have the liberty to pick the best, and workers have the liberty to work as per choice and location. Although crowdsourcing has been utilized for a long time in journalism and intelligence information, it now has an application in almost everything, whether is a source of knowledge or as an intellectual contribution platform.
Crowd hiring retention is higher than the job site hires, and their recruitment is 55% higher.
Utilizing Crowdsourcing Effectively
In order for companies to utilize crowdsourcing effectively, certain attributes are mandatory:
However, companies should be aware that crowdsourcing should be used as an additional source of workers, not as a substitute of traditional job sourcing methods. Additionally, companies should be prepared for change management as the responsibility of the hiring manager is offloaded
Case Studies of Successful Crowdsourcing