BTerrell Group Blog

Mary Meeker reviews Internet trends every year and her reports have grown to be famous for their insight and accuracy. Her 2015 presentation includes a few important “on-demand” examples of up and coming companies, all of which are driven by smartphones and the accessibility of mobile devices.

Uber, for example, has transformed the transportation industry and you can expect a ride within minutes of requesting one on your mobile phone.  Airb&bAirbnb has also made major waves in the travel industry, allowing travelers to experience a different side of tourism while feeling at home in an actual home.  Amazon.com has made leaps and bounds in online ordering and continues to offer amazingly fast shipments and on-demand options.

It’s exciting to see these industries change and grow in such a way that on-demand actually means, on-demand. It’s instant gratification for a world that expects no less. As Mary states in her report, “Mobile- enabled urban millennials believe they should get what they want when they want it.”

As we watch the workforce grow in the area of on-demand employment, what does this actually mean for these workers? Is stability no longer desirable? Can these workers go without certain benefits? It’s simply a different way to do business, therefor, there are learning curves to take into account. Problems are sure to arise, such as Uber’s issue of whether employers need to include Social Security and unemployment taxes on wages. But even with the challenges, there are benefits that may outweigh them.

It will surely take time to get things squared away for the on-demand economy. In the mean-time, Mary Meeker reviews the benefits and challenges faced by on-demand workers to give you a better feel for what this all means for our current and future workforce:

Benefits:

• Financial- ability to earn supplemental and/or primary income.

• Flexibility- choose your own schedule, task, location, and income goals.

• Skill Set Match- effectively matches skills with needed services.

• Feedback and Communication- often real-time and direct.

• Data- Customer location and data can allow workers to provide more informed and efficient service.

• Customer Base- Marketplaces can aggregate demand that may be fragmented/far-reaching from a global scale.

• Growth- rising sector demand for services should boost opportunities and competition for workers.

Challenges:

• Incumbent Displacement- creates change and uncertainty.

• Financial- lack of predictable income possible.

• Uncertainty- lack of clarity related to demand, work, reporting possible.

• Benefits Clarity- insurance, vacation, sick leave, and pension are most often not available.

• Asset Use- potential job requirement to use personal items, such as cars, phones, homes.

• Training and Development- potentially limited training, development, and supervision.

• Workplace Culture- people feel dispersed and unconnected.

Are you an on-demand employer dealing with the learning curve of how to treat your on-demand employees? You’re not alone! Our team here at BTerrell Group helps companies leverage Intacct® and Ameriflex Workforce Management Solution, a fully integrated Payroll and HRMS solution, to help manage on-demand employees. Learn more on our website and contact us today. The on-demand world isn’t going away!

By Brian Terrell of BTerrell Group, LLP, Intacct and Sage ERP & CRM provider based in Dallas.