Crowdsourcing

Crowdsourcing, a term created by Jeff Howe of Wired magazine in 2006, is the action of sending out multiple tasks to a mass of people resulting in the most productive solution. Rather than delegate a job to a single worker, crowdsourcing allows for a variety of unique viewpoints on a task, maximizing the possibility that the job will be completed at the highest standards. This system of work completion is especially effective with tasks involving large amounts of repetitive data entry or calculations that can be broken up into small segments and given to many workers as opposed to a single employee.

Crowdsourcing Model

Technically, crowdsourcing implies the use of an unknown and impersonal mass of people in order to complete the job at hand. Payment for the work varies depending on the project and the company seeking the solution. While some employers may pay only the best answer, others will compensate all people within the crowd that put effort into the solution. This compensation can be in the form of money, special recognition, non-cash prizes, entry tickets to cash prizes or simply the gratification of completing a complex task. In the end, one of the top benefits of utilizing crowdsourcing is the efficient use of funds. Other key positives include an ability to access a broad range of minds and even the free company, brand, or product recognition that is inherently involved when the crowd feels they have become part of the company through the completion of the task.

Just as there are many compelling reasons for a company to look toward the masses for a solution, there are also some drawbacks that may result from crowdsourcing. The biggest concern is in regard to actual cost-savings. Some business leaders believe that not all crowdsourcing endeavors will be cost-effective in the long run, or that the small amounts of pay will result in incomplete tasks or sub-par solutions. It is difficult with a crowd of unknown workers to set a price that fits the balance of making it worthwhile financially while also not pushing potential problem-solvers away with perceived disrespectful compensation. Another concern involves the lack of interpersonal connections between the workers and the employer. Without being able to interact regularly with the workers within the crowd, employers are not assured that workers will complete the tasks, and they are not able to come to terms regarding contracts or agreements related to the work at hand.

While there are pros and cons that are associated with crowdsourcing, many businesses will continue to find a way to make the concept work for their company. With the upside involving a better use of funding and an increase in the likelihood of the ‘perfect’ solution, crowdsourcing is an appealing method that is being used by more businesses in a variety of industries. While there are some definite potential drawbacks by using a large amount of unknown workers, to date the benefits appear to be outweighing the concerns.