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Why Labor Clouds Work

Why Labor Clouds Work

Everything else is in the cloud, so why not labor, right?

If you’re unfamiliar with the term, you won’t be for long, as its effectiveness is probably coming to a company near you soon. Essentially, a labor cloud is a tool that organizes non-permanent workers into one system that facilitates engagement, payment, reporting, dispatching and more. And if you’re a company who relies on freelancers and other non-traditional forms of human capital, a labor cloud can give HR, procurement and hiring managers a huge advantage in the quest for talent, and here’s why.

It’s faster and more nimble.

If a worker is a part of your labor cloud, that means that their specific capabilities have already been pre-vetted. In a sense, the hard part, i.e. determining if they’re qualified, is already done, so you know exactly what you’re getting. And if you need someone with a very unique skill set on short notice, the perfect person is a few keystrokes away.

It helps you mitigate risk.

The beauty of the labor cloud is that talent comes pre-screened. And hopefully, this screening not only includes a close look at their qualifications, but also a thorough background check. This will ensure that the people who come through your company won’t pose a threat to other employees, or your business.

Along with mitigating safety and financial concerns, labor clouds also help to filter talent to ensure that people who progress to the next hiring stage are actually a good fit for the role. For instance, many of today’s top labor cloud solutions can recommend the best person for an assignment based on factors like location, deadline and budget — in addition to skill set. This ensures that companies are able to evaluate all relevant factors to get top-quality work at the best price. In fact, companies that source talent on their own through a labor cloud solution can save between 20%-30% when compared with the expenses of a traditional staffing firm.

It’s cost-effective.

Music to every procurement manager’s ears. Labor clouds watch out for your bottom line because they provide visibility into areas that humans aren’t quickly able to tap into. The data they deliver can help your organization understand when and how talent is sourced, and how much you spend securing and compensating talent. Overall, labor clouds support efficiency, higher product quality and more satisfied customers. Essentially, everyone wins.  

Need help screening your cloud labor? Contact JDP today!

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