Tag Archives: WorkMarket

A Merger in the Gig Economy…Or Not

As part of my research for my new book, Thriving in the Gig Economy, which will be coming out next spring, I had the opportunity to interview Stephen DeWitt, the  CEO of WorkMarket. http://www.workmarket.com

Although it sounds banal to say it, Stephen is a visionary about the future of work and how technology will enable on-demand access to skilled workers globally  in a marketplace that many will find hard to _dsc5674imagine or even anticipate.  As I explain in my book, in today's environment, the immediacy of access to resources is highly conditioned by the skill set sought; I want my Uber driver right away, but I may be a bit disconcerted if my interim CFO showed up on my doorstep in 5 minutes.  Our mental models are not quite set at the right speed  now, for the way Stephen sees the future. Stephen sees that CFO, or chemical engineer or strategist arriving seamlessly when a company needs it  thanks to custom talent pools and the algorithms that will continue to evolve and load balance expertise levels.

As he shared with me as well as John Battelle in his great newco piece, A Total Rethink of How Work Should Work  https://shift.newco.co/a-total-rethink-of-how-work-should-work-5dc3980ea52#.76ychzmxi , to imagine the future you need to think of the futures you know.  Think Star Trek, for example, if Captain Kirk is in need of new expertise to make the next voyage, do you think he is just going to list it on LinkedIn?

Which brings me to the point of this post.  A major acquisition was finally approved last week to remarkably little fan fair, especially when compared to the press when the deal was announced. LinkedIn is now officially owned by Microsoft, an organization not known for successfully integrating acquisitions. LinkedIn is of course the largest talent marketplace  in the world, even if it doesn't operate like a digital talent platform. (With apologies, of course, to LinkedIn Profinder, which is trying. )

It has a significant role in the Gig Economy, though, since it is a key element of an independent worker's digital brand. Look at me -- I am posting this on LinkedIn in addition to my own blog as part of my own branding strategy. I even have a section in my book on how to optimize your digital image on LinkedIn. So will this primacy as a venue for independent experts to showcase expertise change in the new Microsoft world?

It is hard to say. An article on this topic by Dina Bass on Bloomberg yesterday https://www.bloomberg.com/news/articles/2016-12-13/how-microsoft-and-linkedin-can-make-this-expensive-deal-work said a key to the deal is to "let LinkedIn be LinkedIn." The public plan is to keep the two companies separate and develop those ever popular "synergies" to enable skilled professionals to be more productive.  As an Apple fan who has always thought apple design far superior to Microsoft and other platforms,  that didn't seem like a natural outcome to me.  (Let's face it the Microsoft stuff never works quite as well on a mac...)

But my bigger concern came from the video conference the day they announced the deal. Microsoft CEO , Satya Nadella, said he wanted to help make the LinkedIn members more successful in their "jobs".  https://www.linkedin.com/pulse/linkedin-microsoft-changing-way-world-works-jeff-weiner In the new world of work, the one that I see and the one Stephen DeWitt sees, it isn't about "jobs" it is about the work and skill sets and managing independent careers. Hopefully the new combined Microsoft and LinkedIn leadership will see that and plan accordingly.

The Trump Administration and the Gig Economy

The co-founder of WorkMarket, https://www.workmarket.com/about#jeff-wald Jeff Wald, hosted a webinar today on what the new Trump administration will mean for the on-demand economy.  Since I differentiate the Gig Economy from  the On-Demand one in my new book, Thriving in the Gig Economy, which will be coming out next spring, I listened more for the implications for the career gig workers, experts who have chosen to create a careers as  independent workers.

With the disclaimer that no one REALLY knows what may happen, Wald's prediction was two fold - what is likely to happen in 2017 and what may happen in 2018.  Immediately after the inauguration, regulations , especially those resulting from the 2010 Obama task force meant to tackle worker misclassification would be discontinued or not enforced.  The misclassification, of course, refers to the independent contractor vs. employee issue, which I have probably blogged too much about.  ( See my post I am Uber the Uber Lawsuit ) Moreover, he thought the task force would be disbanded immediately. This could bode well for many senior consultants who would like to work independently as an independent contractor but have clients who are wary of the misclassification risk.

Wald did not think the Affordable Care Act (ACA), commonly referred to as ObamaCare would be repealed, rather he thought it would be revised into "DonaldCare", where certain elements would be maintained, like the coverage of children up to 26 on their parents' plans. The ACA has been a key enabler in the gig economy, since the ability to secure health insurance make the decision to go solo a more viable one.  Although I hope Wald is correct on this prognostication, I am withholding judgement until the Labor Secretary is named.

Perhaps the most important action, and the one which will have the least attention, is the appointment of a new Commissioner for the National Labor Relations Board. (NLRB) One of two recent NLRB decisions adversely impacted the staffing industry, by  increasing the risk of co-employment when using temporary staffing/gig workers.  A new NLRB appointee could reverse that decision, which would be a boon for temporary and specialty staffing firms.

And finally, the Supreme Court  appointment could have a major impact on the workplace. Frederick vs. the California Teachers' Association was denied a hearing in a 4 to 4 decision in June. The case involved mandatory union fees.  The tea leaves Wald reads suggests that a rehearing with a new more conservative court would strike down the mandatory fees, which would be a major blow to organized labor. Since many are suggesting the gig economy should become unionized, much like Hollywood back in the day, such an action may alter that thinking.

Looking into his crystal ball for 2018, Wald thought there could be some movement in the chronic problem of worker classification.  Trump likes to simplify complexity, and the rules governing independent contractor compliance are nothing if not complex.  Wald thought there is a chance that certain benefits, like retirement, may be unbundled from employment.  (Again something I just blogged about as well - Work, Jobs and the Gig Economy ).  Finally, tax reform will likely take until 2018, since it is a complex problem.  Again, in the interest of simplification, the new tax regulations could eliminate many of the business deduction provisions that have been a mainstay of the self-employed career consultants. That said, a lot will happen between now and then.  Time to strap on for the ride.

What is gig economy? - Definition from WhatIs.com

A gig economy is an environment in which temporary positions are common and organizations contract with independent workers for short-term engagements.
What is gig economy? - Definition from WhatIs.com

A gig economy is an environment in which temporary positions are common and organizations contract with independent workers for short-term engagements.
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