Posts from employment

The Future Of Labor

As I mentioned yesterday, I am moderating a panel this morning at NewCo Shift Forum on The Future Of Labor.

As I think about, there are three big megatrends impacting the future of labor/work.

The first has largely played itself out over the past thirty years and that is globalization and outsourcing. I believe we have seen most of the impact of that trend in the US as wages and the standard of living has risen dramatically around the world and has stagnated here in the US for the working class. We are not yet in balance with the rest of the developed/developing world, but we are getting close enough that it is a much harder decision now to move a job somewhere else.

The next two big megatrends are starting to happen and they will shape the next fifty years. They are the move to an on demand model for work and the automation of work.

And so, the two people that are joining me on stage this morning are people who can help us think about where all of this might be going.

Stephen DeWitt is the CEO of USV portfolio company Work Market. I wrote a bit about Work Market here a few months ago. Work Market’s software allows employers of all shapes and sizes to arrange the people they work with into labor clouds. These labor clouds include freelancers, contractors, and full time employees. When they need something done, they issue the work order to the labor cloud and someone picks up the work order and gets it done. If you think about many of the operational things companies do (provide customer service, install something, attend a marketing event, make a house call, etc), these labor clouds allow an employer to get the work done without thinking about the kind of relationship they have with the worker. This is the “on demand” model for work and I think we will see this model explode in the coming decades.

Maya Rockeymoore is the CEO of Global Policy Solutions, a think tank and advocacy organization that focuses on the needs of workers and their communities. She is an expert on the US Social Security System and has written extensively on it and other issues.

I talked to Maya last week in anticipation of this panel discussion and I wanted to get her take on what happens to all of the jobs we could lose to automation over the next few decades. She explained to that we may want to look at the safety net that we built with social security as a model. We will get into that in more detail this morning as that is an interesting idea to me.

I don’t think all the work opportunities will be gone in fifty years. But I do think the nature of work is changing quite dramatically in front of our very eyes. Some jobs will clearly be automated out of existence. We are already seeing that. And other jobs will go from being full time employment to on demand employment and that will require big adjustments from everyone, including policymakers.

I thought it was interesting in Henry Blodget’s talk at DLD, which I blogged this past weekend, that we have gained 30 hours a month in productivity over the past fifty years and that 28 hours of those gains have gone towards watching TV. We are going to gain even more hours in productivity over the next fifty years. And what we do with those hours will say a lot about who we are as people, what we value, and where we are headed as a society. It is very possible that jobs and work will matter less and other things will matter more, a concept my partner Albert has been considering in his book World After Capital.

We should be talking about these issues as a society instead of pretending that we are going to bring back all of the jobs lost to globalization and outsourcing over the past fifty years. Those jobs are more likely to be gone completely via automation than coming back to the US. So that’s what I plan to do with this panel today. It should be interesting.

#employment#policy

Tapping Into The Global Job Market

Globalization is certainly a double edged sword for many people, but the truth is that over the past half century, the world has globalized enormously. We are now to the point that many employers around the world are looking outside their local or national talent pools for key hires.

Our portfolio company Jobbatical specializes in helping companies around the world hire from the global talent pool.

And it also helps people (maybe you are one of them) that want to think about working in a different country for a while.

Here are a few sample listings from Jobbatical’s explore page showing the diversity of job options that are available:

We think that the globalization of hiring is going to expand enormously over the next couple decades and we think Jobbatical has a fantastic opportunity in front of it. Hiring from the global talent pool has some unique challenges but that friction is what creates this opportunity.

If you are looking to hire someone from the global talent pool, list your job opportunity with Jobbatical.

And if you are looking to go work somewhere else for a while, explore the available jobs here.

#employment

Labor Clouds and Being Your Own Enterprise

My friend John Battelle published an interview with our portfolio company Work Market‘s CEO Stephen DeWitt yesterday.

There are a couple interesting ideas that are explained in that interview:

  • Labor clouds. It turns out that John’s new company NewCo is using Work Market to create and manage a labor cloud of writers and editors to create a new publication. Some of these writers and editors are full time employees, some are contractors, some are true freelancers. In the “labor cloud” model, you manage all of the labor you need to get something done in a single platform instead of three (or four, or five, or six).
  • My favorite line from the piece, and the one I tweeted out, is this “”By 2040, I’m pretty confident that every skilled worker will have their own signpost. You will be your own enterprise” I like the idea that people are going to have more agency over their work life, their careers, and the way they want to work. I think that leads us to a better place, for both employers and employees.

This vision for the enterprise is more than the “uberization of work” although many people will simply see it as that. It is a recognition that enterprises should not manage workers in silos based on how they pay them but instead they should manage their workers in a cloud which allows everyone to be paid and managed the way they want. That’s a transformative vision for the future of work.

#employment#enterprise

Whither Labor?

It is Labor Day in the US, a day where we celebrate the organized labor movement. Though it wasn’t until 1894 that Labor Day became an official federal holiday, the concept of Labor Day goes back to the middle of the 19th century, when the labor movement really took off in the US.

The labor movement and the industrial economy go hand in hand. One begat the other.

But as globalization has caused the industrial economy to move to lower cost parts of the world, the role of labor in the US economy has declined.

And with automation on the horizon, it begs the issue of where the entire concept of labor is headed.

I don’t have any great answers to this question to be honest. But it is something I think about a lot. And so I will think about it a little bit more today.

Update: My partner has a longer and more thoughtful post on this topic on his blog today.

#employment

The "Losing Jobs To China" Discussion

I am bothered by the ongoing discussion about how the US has allowed China (and other lower cost countries) take our manufacturing jobs. That is true, of course. But it does not address the larger context which is that manufacturing is becoming more and more automated and many of these jobs will not exist at all anywhere in a few more decades.

We are now well into a transition from an industrial economy to an information economy. It seems to me that part of that transition was the move of industrial jobs to lower and lower cost regions in an ongoing march to reduce costs. But that march may end with massive automation and very little labor in the manufacturing process. That means that these low cost regions that “stole our jobs” will also lose these jobs eventually.

The US and a number of other countries around the world are building new information based economies. That is the long term winning strategy.

So while we can critique our leaders (business and political) for giving up on the manufacturing sector a bit too early, I think the US has largely played this game correctly and will be much better off than the parts of the world that have taken the low cost manufacturing jobs from us.

But we don’t hear any of our political leaders explaining this. I wish they would.

#economics#employment#policy#Politics

The Freelance Economy

I was on the phone last night with Stephen DeWitt, the CEO of our portfolio company Work Market. He was talking about a specific community of people and I asked him how many of them were likely to be freelancers. He said “well the statistics say that 3 to 4 out of every ten people these days are freelancers.”

I thought that sounded high but after reading Mary Meeker’s Internet Trends Report, in which she says that “34 percent of the work force in the United States, 53 million people, now consider themselves independent contractors, short-term hires or other kinds of freelancers”, I think Stephen has it exactly right.

Look around you on the subway, the baseball park, the movie theater, 3 to 4 out of every ten people are freelancers. That’s a big number. And its growing pretty rapidly. Younger people are more inclined to be freelancers. Older people turn to freelancing for flexibility or economic necessity. And employers are more inclined to hire freelancers as technology makes the management and compliance requirements around freelancers easier to handle.

The biggest section of Mary’s report, some twenty or thirty slides if I recall, was on freelancers and the “on demand” economy. Technology, the Internet, mobile devices, and the communications and financial systems that have been built across all of these technologies is making freelance work easier and easier to issue and easier and easier to do.

When I got home last night for dinner, my son and his friend were checking out jobs on care.com. When I was their age, finding work was a manual process. Now you just pull out your phone, scan your feed, and get some work.

It’s a new era we are living in and the nature of work is changing and changing fast. There are tons of opportunities in and around this trend and we are invested in some of them. It’s one of the big megatrends of this century.

#employment#marketplaces

Building A Diverse Culture And Team

Brittany posted today about the first USV portfolio diversity summit. Last year we had forty-two portfolio summits all driven by topics that bubble up from our portfolio. Diversity has been rising as a topic that people want to talk about and we reacted to that by hosting a summit on it. We had 28 attendees from 13 different portfolio companies in attendance.

In Brittany’s post, she cites two important reasons to strive for diversity on your team:

  • Do you want your company to increase your company’s competitive advantage? Extensive research has proven that more diverse perspectives leads to more innovative ideas and better financial returns.
  • Do you want your company to one day serve millions of people? It helps if you know how different people in the population think. If companies want to last, they need to think about this early.

She goes on to outline how the portfolio companies are approaching diversity:

  • Getting Started: having the discussion, language, and online tools
  • Company Culture: embracing diversity, inclusive mission vision values, and performance
  • Recruiting: tactics, expectations, interviews, job postings, resources, and external organizations
  • Constant Evolution: Feedback, measuring success, training, and materials

If you are seeking to build a diverse culture and team in your company, I would encourage you to read Brittany’s post which she will follow with dedicated posts on all four topics in the outline.

#employment#management