Maximizing the Benefits of an On-Demand Workforce: Fill Rate-Based Allocation and Coordination Mechanisms
57 Pages Posted: 14 Jun 2016 Last revised: 22 May 2019
Date Written: May 21, 2019
With the rapid growth of the sharing economy, on-demand staffing platforms have emerged to help companies manage their temporary workforce. In this paper, we study how to maximize and distribute the benefits of an on-demand workforce in this new business context. We consider an on-demand staffing platform that serves multiple employers with uncertain demands using a common pool of self-scheduling workers. To compare this method with traditional staffing solutions, we first investigate when an on-demand staffing platform can be beneficial from the perspective of a central planner. Next, we propose a novel fill rate-based allocation and coordination mechanism that enables the on-demand workforce to be shared optimally when individual employers and the platform operator make decisions in their own interest. Our results suggest that a win-win-win solution can be achieved in an appropriately designed system: Individual employers and the platform operator share the maximum benefits of on-demand staffing, while workers are able to set their own hours.
Keywords: Sharing Economy; On-Demand Staffing; Capacity Pooling; Incentive Contract
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