Global Talent Market Quarterly Q1 2012

Global Talent Market Quarterly FIRST QUARTER l 2012

Global Talent Market QuarterlyCONTENTS 3 Global Economic Situation • Briefing • Outlook 6 Global Labor Market Update • Americas • EMEA • APAC • Global Labor Market Spotlight • Legislative Update 12 U.S. Labor Market Overview • Current Employment Conditions • Supply and Demand • Labor Market Spotlight 16 Workforce Solutions Industry Insight • Talent Supply Chain Management • Workforce Mobility • Kelly Webcast Series

Global Economic Situation FIRST QUARTER l 2012

Global Talent Market Quarterly BACK TO TABLE OF CONTENTS GLOBAL ECONOMIC BRIEFING A series of poli>cal, environmental, and fiscal issues kept global economic growth muted in 2011. Con>nued modest growth is forecast for the global economy in 2012, with the ongoing European financial crisis represen>ng a key risk. AMERICAS EMEA APAC Moderate growth of 2-‐3% is forecast The ongoing fiscal crisis is expected to trigger a The APAC region will con>nue to lead the throughout the Americas region in 2012, Eurozone recession in 2012, dampening global world’s economic growth, but it will face helped by the U.S. economy’s posi>ve and regional economic prospects. some challenges in 2012, par>cularly from a momentum. weak export climate. Eurozone Canada The Eurozone con:nues to confront numerous Japan Economic expansion is expected to con:nue at fiscal challenges. As a result, few of the region’s Recovery from the 2011 natural disasters a slow pace in Canada in 2012. An improving economies will be able to avoid contrac:on in con:nues on an accelera:ng, if uneven, pace. performance in the U.S. will help prop up the first part of 2012, with minimal growth at The economy is expected to grow nearly 3% in domes:c business and consumer op:mism. best expected in the back half of the year. 2012—a considerable improvement over the previous year’s contrac:on. U.S. U.K. The outlook for the U.S. economy points to The U.K economy is expected to struggle greatly China modest growth in 2012 as business and over the next few months in the face of low China s:ll boasts growth rates that are among consumer ac:vity con:nues on a gradually consumer, government, and business spending the highest in the world, but the economy improving trend. Risks to the posi:ve outlook levels. Slight growth will return in the second slowed in 2011. Growth is expected to remain include the Eurozone debt crisis, and poli:cal half of 2012, with the Olympics providing a soX in 2012—well below the 10% average seen and fiscal policy issues. much-‐needed boost. in the past decade. Weak export and domes:c demand are the main challenges. La>n America Central and Eastern Europe Despite some nega:ve effects from global Solid economic growth in the CEE region is India economic condi:ons, the region’s economies being muted by spillover from the Eurozone Economic growth is projected to stay in the 7% are forecast to grow in the 3% range in 2012. crisis; countries are looking to boost domes:c range in 2012, as India feels the effects of Countries such as Brazil, Mexico, and Peru are demand to support their momentum. :ghter fiscal policies and the shaky global enac:ng monetary and fiscal s:mulus economic climate. Middle East and North Africa measures to help alleviate the impact of Australia Poli:cal turmoil took its toll on the region in slower global demand. Healthy economic ac:vity is expected to 2011, but modest economic growth is expected to resume in 2012. con:nue in 2012, with growth largely driven by mining sector investment. 4 Sources: IHS Global Insight reports (January 2012); Japan Revises Down GDP, WSJ, 12/09/11; GDP Growth Slows Down In China, WSJ, 01/18/12; For investors Arab Spring dangers remain, Jerusalem Post, 01/19/12

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Global Labor Market Update FIRST QUARTER l 2012

Global Talent Market Quarterly BACK TO TABLE OF CONTENTS GLOBAL LABOR MARKET UPDATE: AMERICAS U.S. hiring climate has improved heading into 2012, an encouraging sign for regional employment prospects. The near-‐term outlook The shows unemployment remaining stable or improving modestly in most of the Americas, but uncertainty arising from the cooler global economic climate will keep employment gains subdued. UNITED STATES BRAZIL CANADA MEXICO Employment trends in the U.S. The Brazilian economy con:nues Canada saw healthy employment The Mexican unemployment rate picked up in the last part of 2011, to create jobs, albeit at a slightly growth of 1.2% in 2011, with the remained over 5% in 2011—a with the economy adding jobs at lower rate when compared to economy adding nearly 200,000 somewhat elevated level a healthy pace and the prior years. The labor market jobs. Recent labor force figures compared to its historical unemployment rate falling to outlook is encouraging, with the have shown weaker job gains average of around 4% —but 8.5% in December. Moderate largest risks coming from and a stagnant unemployment formal job crea:on con:nued at hiring ac:vity is expected to decelera:ng global economic rate, however, sugges:ng that a healthy pace. The labor market con:nue in 2012, as the condi:ons and the possibility of the country’s strong labor is expected to remain rela:vely economy improves and business domes:c infla:on. market may be losing some resilient in 2012 in light of stable confidence remains posi:ve. momentum heading into 2012. U.S. export demand. Average Annual Unemployment Rate 10% 8% 9.0% 8.8% 7.4% 7.2% 6% 6.3% 6.2% 2011 5.3% 4% 4.8% 2012 (p) 2% 0% U.S. Brazil Canada Mexico Sources: IHS Global Insight reports (January 2012); RBC Economic Forecast, December 2011; Congressional Budget Office Economic Outlook, January 2012; Sta:s:cs Canada; Brazil cuts growth view, jobless rate falls, Reuters, 12/22/11; Canada adds jobs in December, but jobless rate up, Reuters, 01/06/12; US job market ends year in bejer shape, AP, 12/29/11 7

Global Talent Market Quarterly BACK TO TABLE OF CONTENTS GLOBAL LABOR MARKET UPDATE: EMEA The ongoing economic crisis in the Eurozone is affec>ng employment levels in the EMEA region and throughout the rest of the world. European companies are under pressure to keep their labor forces as >ght as possible, and will be reluctant to take on more workers un>l the economic situa>on improves considerably. In addi>on, public sector employment con>nues to fall due to ongoing government austerity measures. Germany and Russia are among the EMEA countries that have remained rela>vely immune to the labor market malaise. GERMANY FRANCE UNITED KINGDOM RUSSIA Germany’s labor market has Labor market condi:ons Unemployment is expected to Unemployment in Russia fell been remarkably resilient in the worsened in the last part of con:nue to rise in the U.K. in significantly in 2011 as high face of the economic crisis. 2011, and lijle relief is expected 2012. Job losses are forecast in demand for energy exports drove Employment reached a record in 2012. Concerns about the both the public and private economic growth. The high in 2011, and is expected to economic outlook are severely sectors, as austerity measures employment situa:on is remain stable in 2012 despite the curtailing private companies and lowered business confidence expected to remain on a posi:ve region’s challenges. hiring ac:vity, and the public combine to create a bleak trend in 2012. sector con:nues to shed jobs. employment outlook. ITALY Demand for labor soXened in the Average Annual Unemployment Rate last part of 2011 as the Italian economy slid towards recession. Unemployment is expected to 10% intensify in 2012 as the Italian 9.7% 9.8% government’s short-‐term work 8% 8.8% 9.1% 8.1% 8.3% scheme is scaled back and the 6% 7.1% 7.2% economy con:nues to shrink. 6.5% 5.7% 2011 4% 2012 (p) 2% 0% Germany France U.K. Russia Italy Sources: IHS Global Insight reports (January 2012); Record number of Germans in work in 2011, Agence France Presse, 01/02/12; Unemployment In U.K. Hits 17-‐Year High, WSJ Europe, 01/19/12; Italy Jobless Rate Hits New High , WSJ, 01/05/12 8

Global Talent Market Quarterly BACK TO TABLE OF CONTENTS GLOBAL LABOR MARKET UPDATE: APAC APAC’s labor markets appear to be holding steady in 2012, ajer facing numerous challenges – par>cularly from natural disasters – in 2011. Post-‐disaster reconstruc>on will boost investment spending in 2012, but private sector hiring will be somewhat moderate – par>cularly in countries with high exposure to export demand – as companies remain cau>ous as a result of the Eurozone economic condi>ons. CHINA JAPAN INDIA AUSTRALIA In 2011, China’s unemployment Employment condi:ons are The Indian job market is Australia’s job market remains rate remained at 4.1% and around recovering at a very moderate expected to see posi:ve but stable, with a steady outlook. 12 million new jobs were created, pace, with the unemployment somewhat subdued hiring Weak consumer spending and similar to 2010. The government rate hovering at around 4.5%. ac:vity in 2012. Employers are fears of a poten:al global will con:nue proac:ve policies to Sectors such as construc:on and embracing a cau:ously op:mis:c economic slowdown are crea:ng boost employment in 2012; jobs healthcare are showing the approach as they predict lower worker demand in areas for new college graduates and greatest job gains while rela:vely bejer hiring plans such as tourism, retail and encouraging small business manufacturing employment despite a climate of economic manufacturing, but hiring in the crea:on are key priori:es. con:nues to drop. uncertainty. mining industry is s:ll strong. Average Annual Unemployment Rate 10% 9.6% 9.7% 8% 2011 6% 5.1% 5.2% 2012 (p) 4% 4.5% 4.4% 4.1% 4.1% 2% 0% Japan China India Australia Sources: IHS Global Insight reports (January 2012); Australia Loses Jobs Despite Steady Rate, WSJ, 01/19/12; Slow hiring but double-‐digit pay hikes forecast in India, Asia Pulse, 12/27/11; Japans unemployment rate in Nov. unchanged at 4.5%, Kyodo News, 12/27/11; China’s urban jobless rate at 4.1% in 2011, China Informa:on Daily, 01/30/12 9

Global Talent Market Quarterly BACK TO TABLE OF CONTENTS GLOBAL LABOR MARKET SPOTLIGHT: WAGE TRENDS ongoing concern about the health of the global economy is keeping salary increases in check in most developed countries. However, An the need to keep up with rising infla>on and skilled talent shortages are giving rise to greater wage increases in emerging markets, par>cularly in La>n America and APAC. AMERICAS Salary increases in the U.S. and Canada are projected to remain in the 3% range in Projected Salary Increases and Infla>on Rates 2012, as companies remain very anxious to control costs in light of an uncertain Select Markets 2012 economic environment. Employees in La:n America, however, are set to see larger salary hikes, due in part to much higher infla:on rates. Companies in Argen:na, for Avg. Salary Country/ Region Infla>on Rate example, are forecas:ng a 20% pay increase for workers; aXer accoun:ng for Increase infla:on, the real wage increase is s:ll more than 8%. AMERICAS La>n America 6.3% 6.2% EMEA Canada 3.0% 2.0% Employers in Western Europe and the U.K. are forecas:ng the lowest salary increases U.S. 3.0% 1.5% in the EMEA region. Similar to the U.S., the forecasts are in the 3% range, and also reflect the shaky economic climate. Employees in Central and Eastern Europe can look EMEA forward to rela:vely higher pay increases in 2012, averaging 5.7% across the region. In U.K. 3.0% 2.7% the Middle East and Africa, pay increase forecasts are healthy but not strong enough Western Europe 2.7% 1.8% to keep up with the higher infla:on forecast for the region, although there is significant varia:on among countries given the diverse nature of their economies. Eastern/Central Europe 5.7% 5.3% Middle East & North Africa 5.9% 7.5% APAC APAC APAC workers can expect higher salary increases in general, with developing countries China 8.5% 3.5% such as India, China and Vietnam needing to hike salaries to keep pace with infla:on India 12.0% 7.1% and to ajract talent to meet rapidly growing markets. The excep:on to the high salary forecast in APAC is Japan, where companies are predic:ng only a 2.3% increase in Japan 2.3% -‐0.8% 2012. Defla:on in the country will help to offset the lower wage growth. APAC 6.3% 2.7% Sources: For 2012, modest salary increases with regional varia:ons, SHRM, 10/03/11; European 2012 employee salary increase forecasts, Mercer, 11/08/11; Employees in Singapore to receive the highest salary increase in 2012, The Asia Career Times, 12/02/11; 2011-‐2012 Culpepper Salary Budget Survey; IHS Global Insight 10

Global Talent Market Quarterly BACK TO TABLE OF CONTENTS GLOBAL LEGISLATIVE UPDATE Several European countries have approved legisla>on that raises the re>rement age, in an effort to alleviate pressure on the pension system; in Spain, impending labor reforms aim to alleviate the country’s sky-‐high unemployment rate. In Asian countries, the focus is on social protec>ons such as family leave; legisla>on also addresses HR issues arising from natural disasters. Health insurance laws remain a cri>cal issue not only in the U.S., but also in diverse countries including Chile and the UAE. CANADA NETHERLANDS, ITALY, UK The Canadian government will increase All three countries have approved laws that would the number of skilled foreign workers raise the re:rement age. The UK pension age will allowed in the country in 2012, pursuant be 66 by 2020; the Dutch pension age will increase SOUTH KOREA to its 2012 Immigra:on Levels Plan. The cabinet has approved to age 66 in 2020 and to age 67 in 2025; in Italy, the re:rement age will increase to age 67 by 2026. expansions to family leave en:tlements, such as increased paternity leave and the opportunity UNITED STATES FRANCE for parents of small children to The U.S. Supreme Court is Pending legisla:on would define the status request reduced working hours. expected to review the of telecommuters. The law would guarantee Obama administra:on’s equal employment rights to telecommuters healthcare reform law and and require employers to assume costs that THAILAND rule on the legality of the directly arise from telecommu:ng. In response to recent TAIWAN individual mandate provision flooding in Thailand, Employers’ associa:ons and by summer 2012. minimum wage increases will unions have reached an SPAIN differ regionally, and will agreement on paid leave In February 2012, the Spanish come into effect in March for family care following government plans to announce labor CHILE (rather than January) 2012. natural disasters. reforms that would lower employment The government is studying protec:on and increase wage flexibility. a proposal to create a guaranteed health care plan and to eliminate UAE discrimina:on in private The Dubai Health Authority is postponing the health care insurance. implementa:on of mandatory health care insurance for all workers un:l 2013. Sources: Aon Hewij Global Legisla:ve Developments (October – November 2011); IHS Global Insight Country Intelligence, Spain, 01/19/12; What Supreme Court ruling could mean for healthcare, Reuters, 11/16/11 11

U.S. Labor Market Overview FIRST QUARTER l 2012

Global Talent Market Quarterly BACK TO TABLE OF CONTENTS U.S. EMPLOYMENT CONDITIONS JOB MARKET GAINS MOMENTUM U.S. MONTHLY EMPLOYMENT CHANGE AND UNEMPLOYMENT RATE The U.S. labor market showed marked Unemployment Rate (%) improvement at the end of 2011, with Employment (000’s) 600 11 the strong performance con:nuing into 300 10 2012. The hiring pace averaged more 0 9 than 180,000 a month from September 8 -‐300 7 2011 to January 2012, more than -‐600 6 double the job crea:on rate seen in the previous four months. Overall, U.S. -‐900 5 Jan-‐09 Apr-‐09 Jul-‐09 Jan-‐10 Apr-‐10 Jul-‐10 Jan-‐11 Apr-‐11 Jul-‐11 Jan-‐12 Oct-‐09 Oct-‐10 Oct-‐11 employers added more than 1.8 million workers in 2011, the best performance in five years. Non-‐Farm Employment Private-‐Sector Employment Unemployment Rate UNEMPLOYMENT IS RECEDING EMPLOYMENT OVERVIEW The U.S. unemployment rate declined for the fiXh consecu:ve month in JAN DEC NOV OCT SEPT January 2012, falling to a nearly three-‐ year low of 8.3%. The average number Total non-‐farm employment growth 243K 203K 157K 112K 202K of people applying for jobless benefits has also declined steadily heading into Private employment growth 257K 220K 178K 139K 216K 2012, a further indica:on that the labor market is gaining strength. Unemployment rate 8.3% 8.5% 8.7% 8.9% 9.0% LABOR MARKET REMAINS VULNERABLE The U.S. labor market con:nues to take posi:ve steps, as companies are gaining confidence and adding workers at an improving pace. The current economic forecast is expected to sustain the hiring momentum in 2012, but risks including the Eurozone crisis, poli:cal and fiscal uncertainty on the domes:c front, and a possible pullback in consumer confidence may dampen employment growth prospects. Sources: Bureau of Labor Sta:s:cs; US job market ends year in bejer shape, AP, 12/29/11 13

Global Talent Market Quarterly BACK TO TABLE OF CONTENTS U.S. LABOR MARKET -‐ SUPPLY AND DEMAND DEMAND GREW IN DECEMBER 2011 Online adver:sed job vacancies grew in December 2011, U.S. MARKET -‐ MONTHLY LABOR DEMAND VS. LABOR SUPPLY reversing the downward trend in demand seen since May. The supply/demand ra:o has been stable at 3.0-‐3.5 16,000 8,000 throughout the year, indica:ng that there are more than three unemployed workers for every online job vacancy. 14,000 7,000 ALL REGIONS REPORT DEMAND GROWTH No. of Online Job Ads 12,000 No. of Unemployed Demand grew in each of the four regions to end the year. 6,000 The Midwest region reported the largest growth in online (in 000s) (in 000s) adver:sed job vacancies in December 2011, followed 10,000 closely by the West. 5,000 8,000 BLUE COLLAR REBOUND Although the number of workers s:ll exceeds the demand 4,000 6,000 for most blue collar occupa:ons, the supply-‐demand situa:on for many of these jobs has improved 4,000 3,000 considerably. Occupa:ons in the construc:on, produc:on, and transporta:on categories were among the biggest gainers in demand in 2011. Online adver:sed vacancies 2,000 Apr 08 2,000 Apr 09 Apr 10 Apr 11 Oct 08 Oct 09 Oct 10 Oct 11 Jul 08 Jul 09 Jul 10 Jul 11 Jan 08 Jan 09 Jan 10 Jan 11 grew 41% for construc:on occupa:ons, 32% for transporta:on, and 25% for produc:on jobs over the year. # of unemployed workers # of online ads “ The December increase was a welcome liX for labor demand aXer a lackluster year.” — Judy Shelp, Vice President, The Conference Board, January 4, 2012 Sources: Conference Board Help Wanted OnLine, Bureau of Labor Sta:s:cs 14

Global Talent Market Quarterly BACK TO TABLE OF CONTENTS U.S. LABOR MARKET SPOTLIGHT: 2012 HIRING OUTLOOK U.S. EMPLOYERS ARE CAUTIOUSLY OPTIMISTIC ON HIRING IN 2012 According to a recent survey by CareerBuilder, nearly one out of four hiring DOES YOUR COMPANY PLAN TO INCREASE, DECREASE, OR managers plan to hire full-‐:me, permanent employees in 2012. Seven MAKE NO CHANGE TO ITS NUMBER OF EMPLOYEES IN 2012? percent expect to decrease headcount in 2012, the same as in 2011. 11% 23% Increase REGIONAL HIRING FORECASTS ARE A MIXED PICTURE Employers in the West are most op:mis:c in their plans to recruit new Decrease employees in 2012, followed closely by the South and Midwest. However, 7% No change the West also has the highest number of companies planning to downsize 59% in 2012. The Northeast shows the dimmest hiring outlook, and also ranks Not sure second highest among regions in plans to reduce headcount in 2012. VOLUNTARY TURNOVER IS EXPECTED TO INCREASE Around a third of employers said they lost top performers to other WHAT WERE THE MOST COMMON REASONS EMPLOYEES organiza:ons in 2011, and 43% indicated they are concerned top talent VOLUNTARILY LEFT YOUR COMPANY IN 2011? may leave in 2012. Employers cited the desire for higher compensa:on and feeling overworked as the top two reasons employees gave for resigning. Higher pay somewhere else 62% Felt overworked -‐ no work/life balance 40% COMPENSATION IS ON THE RISE FOR SKILLED POSITIONS Lack of career advancement 38% Employers’ desire to retain key talent is reﬂected in salary trends for 2012: Unhappy with company culture 31% 62% of employers say they plan to increase compensa:on for their exis:ng Didnt get along with the boss 21% workers while 32% say they will oﬀer higher star:ng salaries for new Felt underemployed 13% employees. Sales and IT are the two func:onal areas that are expected to Not enough training 12% see the greatest pay increases in 2012. Other 16% 0% 20% 40% 60% 80% “Barring any major economic upsets, we expect 2012 to bring a bejer hiring picture than 2011 especially in the second half of the year. Many companies have been opera:ng lean and have already pushed produc:vity limits. We’re likely to see gradual improvements in hiring across categories as companies respond to increased market demands.” — Ma@ Ferguson, CEO of CareerBuilder Source: 2012 Job Forecast, CareerBuilder, January 2012 15

Workforce Solutions Industry Insight FIRST QUARTER l 2012

Global Talent Market Quarterly BACK TO TABLE OF CONTENTS TALENT SUPPLY CHAIN MANAGEMENT Managing today’s workforce is more complicated than ever, due to a changing economic climate, demographic shijs, rapidly developing technology, and the increasingly global nature of business. In order to beser navigate today’s complex employment environment, more companies are looking into a total talent approach that encompasses permanent hiring solu>ons along with con>ngent workforce management processes. EVOLUTION OF TALENT MANAGEMENT STRATEGIES Buyer Adop>on of MSP and RPO Buyer Adop>on In recent years, companies have increasingly turned to of Blended RPO/MSP MSP RPO managed service providers (MSP) to manage their 80% 50% Blended con:ngent workforces and to recruitment process RPO/ outsourcing (RPO) to take care of permanent hiring. 40% MSP 60% 15% Now, the marketplace is seeing a convergence of these 30% MSP RPO two workforce management strategies. More companies 40% are looking for a holis:c talent acquisi:on and 20% RPO Only management system that covers all types of labor – from 20% 85% permanent hires to con:ngent and project-‐based 10% workers – and they want a single service provider to 0% 0% manage it all. 2007 2009 2011 2013 (p) Based on findings of SIA’s Con:ngent Buyer Survey. Based on 255 RPO deals from 2007-‐2010 for MSP usage among core con:ngent buyers. which type of hire data was available (Everest) “We are beginning to see more integra:on of both MSP and RPO within our clients, merging these two pieces together as one from a strategic workforce standpoint. Companies are looking more now at the total talent supply chain than at different silos of labor.” — Teresa Carroll, SVP, Kelly Outsourcing and ConsulFng Group, in HRO Today (November 2011) Sources: Rise of Blended RPO, Everest Group, 2011; Staffing Industry Analysts Con:ngent Buyers Survey 2011; The Total Workforce, HRO Today, November 2011 17

Global Talent Market Quarterly BACK TO TABLE OF CONTENTS TALENT SUPPLY CHAIN MANAGEMENT The talent supply chain management approach has been common in Europe, but buyers in North America are now beginning to realize the benefits of combining RPO and MSP. Blended solu>ons can help make hiring and managing talent more efficient and effec>ve across the organiza>on, and provide wide-‐ranging benefits on mul>ple levels. BLENDED SOLUTIONS MORE COMMON IN EUROPE TALENT SUPPLY CHAIN MANAGEMENT ORGANIZATIONAL IMPACTS In the U.K. and Europe, a single MSP oXen provides hiring and A comprehensive workforce management system that incorporates workforce management services for both con:ngent and permanent, con:ngent, and other categorie of workers can deliver wide-‐ permanent employees. In fact, RPO is a term that is not widely used ranging strategic value to organiza:ons. Among the key benefits: cost savings, in the U.K.; the term MSP generally covers both areas. which the Everest Group es:mates at 20% to 30% greater than using separate RPO and MSP providers. In the U.S., the two func:ons have tradi:onally been performed in silos, with procurement taking the lead on con:ngent labor acquisi:on and management, and HR departments in charge of •  A comprehensive solu:on can provide bejer insight into permanent workers. the op:mum deployment of con:ngent workers, and Financial may also result in lower overall service costs. Impacts •  Research by the Everest Group es:mates that firms can RPO Buyer Adop>on Trend by Region save 20-‐30% by combining the MSP and RPO func:ons. 16% 11% •  A single service plauorm for con:ngent and permanent hiring provides greater flexibility and 22% Business standardiza:on of processes. 51% APAC Impacts •  A blended model can facilitate a bejer match of jobs and worker skills, resul:ng in higher engagement. Europe 62% Americas 38% •  A holis:c approach to talent management allows for bejer alignment of workforce planning to overall Strategy business strategy. RPO only Blended RPO/MSP Impacts •  Managing a single provider enables internal HR resources to focus on more strategic talent issues. Based on 255 RPO deals from 2007-‐2010 for which type of hire data was available (Everest) Sources: Rise of Blended RPO, Everest Group, 2011; The Total Workforce, HRO Today, November 2011 18

Global Talent Market Quarterly BACK TO TABLE OF CONTENTS WORKFORCE MOBILITY Despite a lackluster employment picture in recent years, skilled workers can be hard to find. Recruitment increasingly takes place across state lines or country borders, as companies take a broader approach to the search func>on. At the same >me, the current job market means that workers themselves have become more willing to relocate for a good job. TOP AREAS IN WHICH EMPLOYERS WILL PAY WORKERS TO RELOCATE COMPANIES MORE FOCUSED ON TALENT MOBILITY Employers will go to great lengths to put the right workers in Engineering 30% the right posi:ons. A new survey from CareerBuilder found that 32% of employers say they are willing to pay to relocate IT 23% new employees. The top areas for which employers are most 21% Business Development likely to pay to relocate talent are technical and revenue-‐ genera:ng posi:ons, such as engineering, IT, sales, and Sales 21% business development. Financial 16% Marke>ng 13% WORKERS MORE WILLING TO RELOCATE Workers are also open to looking far and wide for new Legal 11% employment opportuni:es. More than four in ten workers 0% 5% 10% 15% 20% 25% 30% 35% say they would be willing to relocate in the future for a career opportunity. And CareerBuilder found that 20% of workers who were laid off in 2011 and subsequently found new jobs had relocated to a new city or state. Reloca>ng: Greatest Benefits •  Making a fresh start RELOCATING IS (MAINLY) A GOOD THING •  Making new friends More than three-‐quarters of the workers who relocated in •  Having new experiences 2011 reported that they were happy with the move. Workers •  Higher earnings Greatest Challenges cited new friends and unique experiences as key benefits of •  Bejer long-‐term career •  Higher cost of living reloca:ng. Challenges associated with reloca:on include a opportuni:es •  More family stress higher cost of living and more family stress. •  Difficult to make new friends •  Homesickness Source: Nearly one-‐third of employers willing to pay to relocate employees in 2012, CareerBuilder, 01/18/12 19

Global Talent Market Quarterly BACK TO TABLE OF CONTENTS WORKFORCE MOBILITY As talent mobility strategies increase in importance and become more global in nature, organiza>ons are focused on making sure that they have the right people working in the right places. Business leaders are adjus>ng their worker mobility strategies to beser reflect the key priori>es of their companies as well as the career development needs of their employees. GROWING EMPHASIS ON TALENT AND MOBILITY Close to 80% of organiza:ons responding to a recent Deloije survey an:cipate that global mobility will become more important or cri:cally important to their business in the next three to five years. BEST PRACTICES IN GLOBAL MOBILITY Leading organiza:ons take a big-‐picture approach to talent mobility, and develop programs that maximize both business growth opportuni:es and human capital development. According to Deloije, the best talent mobility strategies include: •  Mobility strategies need to address both current and future business-‐driven Viewing mobility as a needs, and talent-‐driven desire for opportuni:es. development tool •  Op:mum talent strategies encourage “smart moves” that facilitate real growth. Aligning mobility with •  Nearly four out of five organiza:ons said that it is cri:cally important or business strategy important to align their organiza:on’s global mobility strategy with its overall strategic talent and business objec:ves. Redefining the mobility •  Talent mobility is more than just a transac:onal and logis:cal process. process as part of the talent •  The mobility func:on can add value by playing a greater role in evalua:ng cycle business needs and analyzing talent deployment op:ons. •  Leading organiza:ons promote mobility experience as an opportunity and Crea:ng a greater value emphasize the benefits of interna:onal assignments for employees. proposi:on for mobility •  Enhanced support programs for assignees help elevate the mobility op:on. Source: The Global Talent Challenge, Deloije, November 2011 20

Global Talent Market Quarterly BACK TO TABLE OF CONTENTS KELLY WEBCAST SERIES Kelly, in partnership with other recognized experts, offers a webcast series to advance the discussion and thinking around current trends, strategies, and issues impac>ng global talent management. WEBCAST TITLE PRESENTED BY: DESCRIPTION Elevate your perspec:ve on the most cri:cal issues facing A power-‐packed session that will show you the global workplace today Zachary Misko, Kelly the best strategies and prac:ces for with the new iPad app, The Outsourcing and ajrac:ng and retaining top talent today. Asrac>ng and Consul:ng Group Talent Project, from Kelly Retaining Talent in a * This program has been approved for 1.0 Services. Challenging Economy Dr. Bob Nelson, (General) recer:fica:on credit hours author (1001 Ways to toward PHR, SPHR, and GPHR Reward Employees) recer:fica:on through the HR Cer:fica:on Ins:tute. Jason Morga, Kelly Learn why talent is dwindling and get a Services Americas detailed profile of those that comprise the Understanding the contemporary workforce. Hear the Mul>genera>onal Lance Richards, Kelly challenges employers face, and the Workforce Services Global sugges:ons for recrui:ng and retaining Workforce Solu:ons top talent. To register for webcasts or for more informa:on, visit www.kellyocg.com Learn more about the iPad app at www.kellyservices.com 21

AbouT Kelly ServiceS®Kelly Services, inc. (NASDAQ: KelyA, Kelyb) is a leader in providing workforce solutions.Kelly® offers a comprehensive array of outsourcing and consulting services as well asworld-class staffing on a temporary, temporary-to-hire and direct-hire basis. Servingclients around the globe, Kelly provides employment to more than 530,000 employeesannually. revenue in 2010 was $5 billion. visit kellyservices.com and connect withus on Facebook®, linkedin®, and Twitter®.A Kelly ServiceS reporTAll trademarks are property of their respective owners. An equal opportunity employer © 2012 Kelly Services, inc. X0269kellyservices.com

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Global Talent Market Quarterly Q1 2012

by Todd Wheatland

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