The economic viability of your business centers on creating value, and that value is created, enhanced and grown through the use of enterprise crowdsourcing. The first two parts of this blog series focused on the access to a flexible workforce and creative talent. In Part 3, the spotlight turns to increased cost effectiveness.
The ability to manage costs directly impacts your company’s bottom line. Cost effectiveness increases with completion of work by the crowd than through other, more traditional means of employment for the following reasons.
Whether you are hiring part-time, full-time, contingent or temporary employees, the cost of recruiting, interviewing and training create costs that eliminate cost effectiveness. With crowdsourcing, the need for prescreening, recruiting and interviewing is eliminated. Instead, a pre-qualified workforce stands ready 24/7.
In more traditional work relationships, your company pays hourly wages, fees or salaries; however, crowdsourcing provides work-based payments that increase cost effectiveness. Instead of all-encompassing positions where in-house employees are paid the same amount regardless of the task, crowdsourcing allows you to pay according to the type and complexity of the task. By paying for tasks rather than time, you receive value for every cent you spend.
The cost effectiveness of projects is further diluted by overhead costs that are necessary to create a work environment or provide employee benefits. Through crowdsourcing, your business can eliminate overhead costs associated with taxes, employee benefits, paid time off, disability, space and utilities. All of those savings increase the cost effectiveness of crowdsourced tasks.
In addition to other employee-related costs, your company also saves on termination costs. Crowdsourced workers are not employees; their services are used only for the work you need completed. When a project or group of your tasks is complete, you end your relationship with crowd workers until you provide more work. This eliminates any potential severance pay or workers’ compensation payments and increases the cost effectiveness of any project you task to the crowd.
The increased cost effectiveness of leveraging the crowd for various aspects of your business far outweighs the costs of embracing crowd labor. While cost effectiveness does not always directly translate into lower costs overall, it does provide you with more value by eliminating many of the traditional costs of hiring employees to pay for a changing or limited workloads.
Check out our enterprise crowdsourcing solutions to see how the crowd can help grow your company’s value and increase cost effectiveness, or contact a member of our sales team for more information or custom solutions.
Stay tuned for The Business Value of Enterprise Crowdsourcing Part 4: Increased Business Capabilities.
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