3 Things Businesses can learn from the Sharing Economy

With the growth of the sharing economy not seeming to slow down, it is becoming impossible to ignore the ecosystem it has brought about. There is a lot that traditional businesses can learn from the agile models the sharing economy thrives on, but what about when it comes to recruiting? See our top 3 below.

1. Take an international approach

There has been some degree of concern that in the sharing economy, employee screening may not be as thorough as traditional businesses. Adequate due diligence is not just a concern of the sharing economy however, every business needs to be aware of the importance of their people and the risks they can pose.

It’s also vital to consider how screening is implemented across borders. With increased globalisation and businesses expanding into new territories, it is important to make sure procedures that are put in place can be replicated and adapted to come in line with local requirements.

2. You can’t hide

In the sharing economy, as soon as something goes wrong, it is revealed online for all to see and if the issue is with a big brand, it makes headline news. But with social media, and review sites such as TripAdvisor, this issue is not restricted just to the sharing economy.

Consumers now hold the power. That means potential reputational damage for a business is now just a mouse click away. Businesses must now adapt, and be able to respond in public, and in real-time.

Where customer service is a core part of the business model, getting the right people in place to create service excellence is vital to creating loyalty. Avoiding a bad hire with due diligence can help prevent complaints (which are now often public on social media) from arising in the first place.

3. The key, is trust

The sharing economy is built on trust. Without it the sharing economy would collapse, after all, people are essentially entrusting their safety and security to strangers. As a result of the structure of the sharing economy, customers have a much closer relationship to ‘employees’, and for those interactions to be successful, companies need customers to have faith in the brand.

But this is something that isn’t just important to the sharing economy. Demographics are changing, and research shows that millennials are making decisions based more on the values of a business than any other generation. With this group soon approaching peak spending years, businesses need to make sure they meet their expectations and get them on side. The key to that, is trust.

 

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