Supply and Demand of Domestic Services and the need for formalization in USA

Hiring domestic service workers stands as a transformative step toward improving the quality of life for families and individuals. Employing more than 5 million service professionals and generating more than $506 billion in direct spending in the United States alone, the home services market is both thriving and growing — a broad-based driver of not only employment, manufactured goods sales and product innovation but also improved cultural and mental health. This diverse workforce includes companions, babysitters, cooks, waiters, maids, housekeepers, nannies, nurses, janitors, caretakers, handymen, gardeners, home health aides, personal care aides, and family chauffeurs.(https://www.angi.com/research/wp-content/uploads/sites/2/2020/04/DP5900-Print-HomeServiceMarket-Report_FINAL2-Compressed-1.pdf)

In today's fast-paced world, marked by busy lifestyles and dual-income households, the demand for services facilitating efficient home management is on the rise. Outsourcing tasks such as cleaning, grocery delivery, and pet care has become increasingly attractive for those navigating hectic schedules.

Furthermore, the aging population in the USA adds another layer to the demand for domestic services. As older individuals may require assistance with daily tasks, the need for services such as home healthcare, cleaning, and maintenance is expected to rise.

However, home service workers employed in private households in the U.S. encounter significant challenges that arise from the undervaluation of care work and the complexities of regulating work that takes place within private homes. Issues such as violations of labor laws, inadequate social protections, and unstable employment terms are widespread among domestic workers. The low wages and unfavorable working conditions pose problems not just for the workers themselves but also for the individuals under their care, potentially compromising the quality of care provided.(https://smlr.rutgers.edu/sites/default/files/Documents/Centers/CWW/Publications/Zundl%20and%20Rodgers%20The%20Future%20Work%20for%20Domestic%20Workers%20in%20the%20US.pdf)

While the demand for domestic services is evident, the pressing question remains: Is access to these services equitable?

Research Question:

1. What are the specific needs of employers when it comes to hiring domestic services?
2. Pain points / Frustrations in hiring Domestic servicesDelving into the frustrations and pain points experienced by employers in the process of hiring domestic services is crucial. From navigating through the complexities of employment laws to addressing concerns about service quality, understanding these challenges is key.
3. Goals and Expectations acheived by hiring Domestic service providers What do customers expect from workers and does it always meet the set standards?

Join me on this ongoing exploration of domestic services, where demand meets the nuanced realities of employment and caregiving.

To answer these questions, I conducted a customer needs assessment by interviewing people via Direct interviews and Survey forms.

Customer personas considered:

1. Premium Employers: Wealthy individuals, showbiz personalities, celebrities, public figures, and organizations (e.g., political parties) requiring discreet, high-level domestic services. They seek preferential treatment, often have security measures, and prioritize quality, personalization, and special care. Examples: Celebrities, and political parties.
2. Frequent Employers: Individuals or groups with regular contracts for defined periods (monthly, semi-annual, annual). Often families with dual income and children, require consistent attention to household activities. Examples: Families with children, and elder individuals.
3. Eventual Employers: Occasional customers who engage in domestic services infrequently due to time constraints or budget limitations. Examples: Students, and low-income families.
4. Special Needs Employers: Clients requiring third-party support, with agreed rates, dates, and expectations. This category includes individuals with disabilities, health problems, or nursing homes seeking specialized care. Examples: People with disabilities, individuals with health issues, nursing homes.

For this Survey, we consider Frequent, Eventual employers.

Goals of the Survey

1. Understand the need for home services.

2. Kind/Category of home services generally preferred by customers in the USA

3. Needs of Different Personas

4. User Expectations of Home Services

5. User pain points in hiring home services.

6. Value offering expected over existing solutions.

A few of the questions asked

1. Demographics of user

2. Personality and Lifestyle patterns

3. What home services do you currently utilize?

4. What factors are most important to you when choosing a home service provider?

5. How frequently do you typically use home services?

6. What challenges or frustrations have you experienced when hiring home service

7. How do you usually find home service providers?

8. Would you be interested in a subscription-based home services package that covers multiple needs (cleaning, maintenance, landscaping, etc.) for a fixed monthly fee?

9. What additional features or benefits would you like to see offered by a home services provider?

Survey 1

Survey 2

Survey 3

Survey 4

Graduate and PHD students

Conclusions drawn

1. Labor Accessibility Challenge:The survey reveals a challenge in accessing reliable labor, particularly due to a significant black market of blue- collar workers operating without proper visibility to the government. They do not have to be visible to the government, have no SSN, do not pay taxes, and charges only in Cash.
2. Accountability of Individual Contractors:Individual contractors often lack accountability for their work, leaving customers with potential dissatisfaction and unresolved issues.
3. Competition for Agencies:Agencies face competition from local individual workers, and the value proposition and quality of services may suffer as a result.
4. Attracting Blue-Collar Labor:Agencies need to find ways to attract and engage blue-collar labor by providing more opportunities for earning, education, better packages, and benefits such as health and medical insurance.

Recommendations from Users

1. Customization in Subscription Models:Subscription-based models should prioritize flexibility and customization. Users desire the ability to tailor their service plans according to their specific needs, and platforms should incorporate this flexibility.
2. Improving Online Visibility:Local service companies should focus on improving their online presence and reviews. This would enhance user confidence and simplify the decision-making process when choosing service providers.
3. Streamlining Worker Search on Online Platforms:Online platforms connecting users with workers should streamline the search process. Organizing workers based on their service offerings, skills, experience level, certifications, and testimonials can make it easier for users to find the right match for their needs.
4. Addressing Labor Accessibility and Accountability:Industry stakeholders, including agencies and platforms, should collectively work towards addressing the challenge of labor accessibility and ensuring accountability for the services provided. This may involve regulatory measures and creating a more transparent and reliable system for hiring blue-collar workers.

This is an on-going study. I will refine this as and when my findings broden.

I thank all our participants for giving their valuable time and feeback to this survey. Grateful!