Opinions

Every Business Can Learn From The Sharing Economy

The sharing economy is growing fast. What can businesses learn from its ongoing success in 2017?

Share this article

Share this article

The sharing economy is growing fast. What can businesses learn from its ongoing success in 2017?

Opinions

Every Business Can Learn From The Sharing Economy

The sharing economy is growing fast. What can businesses learn from its ongoing success in 2017?

Share this article

The sharing economy is challenging the status quo of some of the world’s most traditional sectors. The hospitality and travel industries will never be the same again, with this new ecosystem expected to generate $335 billion in global revenues by 2025. Its significance to business today cannot be ignored.

As the sharing economy continues to grow, there is much that more traditional organisations can learn from their agile business models and decision-making approach. But how about when it comes to hiring?

1. Trust is key

Trust is one, if not the, most fundamental value that underpins the sharing economy. As a result of how this ecosystem works, customers have a much more personal relationship with the 'employees’ they deal with, and for those interactions to be successful, companies need to ensure customers have faith in their brand.

After all they are essentially entrusting their safety and security with strangers.

young people

Young people are more prepared to trust businesses with their data than previous generations

But, building this confidence isn't just important for the sharing economy. Consumer demographics are changing and research shows that millennials, which account for around 13.8 million people in the UK, are making decisions based more on the values of a business than other generations.

As this group fast approaches its peak spending years, companies need to work harder than ever to meet their expectations and get them on side.

2. There’s nowhere to hide

When anything goes wrong in the sharing economy, it's instantly revealed online, and when the issue is with a newsworthy brand, it hits headlines. But, in a world of TripAdvisor and Twitter, this isn’t only an issue in the sharing economy.

Consumers are more in control than ever, meaning that for businesses reputational damage is just a mouse click away.

Research from the Institute of Customer Service revealed there has been a substantial rise in complaints made through social media, with one in four social users in the UK making a complaint by platforms such as Facebook, Twitter, Instagram or Google+ in the three months up to July 2015.

Twitter

Twitter is the perfect vehicle to complainers

This is creating a new challenge for businesses that now have to respond in public and in real time.

For companies where customer service is a core part of their business model – the case for most consumer-facing organisations – finding the right people to offer service excellence is vital in encouraging customer loyalty. Avoiding a bad hire can also help to prevent complaints (that frequently end up on social media) arising in the first place.

3. Take an international approach

There has been much concern in the US that screening may be less thorough in sharing economy business.

But carrying out adequate due diligence is not just something sharing economy businesses should be aware of. Every organisation needs to think carefully about the appropriate research required before hiring each employee based on the level of risk they pose to their company’s reputation.

It’s also vital to consider how this translates across borders. Fast expanding businesses need to ensure that whatever procedures they are putting in place can be replicated and adapted to local needs, with different territories potentially requiring a bespoke approach.

The sharing economy has both made mistakes and had great success when it comes to finding the right people. As it becomes more sophisticated, it is likely to continue to be a place for other businesses to look to for inspiration.

Steve Girdler is managing director for EMEA at HireRight, a candidate due diligence company.

Related Articles
Get news to your inbox

Every Business Can Learn From The Sharing Economy

Share this article