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Global Talent Market Quarterly Q1 2012
 

Global Talent Market Quarterly Q1 2012

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The Global Talent Market Quarterly provides a summary of the current economic and labor market conditions around the world and gives insight into how they might impact you.

The Global Talent Market Quarterly provides a summary of the current economic and labor market conditions around the world and gives insight into how they might impact you.

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Global Talent Market Quarterly Q1 2012 Presentation Transcript

  • 1. Global Talent Market Quarterly FIRST QUARTER l 2012
  • 2. 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
  • 3. Global Economic Situation FIRST QUARTER l 2012
  • 4. 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    
  • 5. Global Talent Market Quarterly BACK TO TABLE OF CONTENTS */010B"/&0(%@00X& %OD&5=<455C&K5A&,-.,&;L&FD8;FDF4M&7&ADN;5974&L<5AM[&)Y)/&79F&<OD&D:DAN;9N&:7ACD<L&859>9=D&<5&4D7F&<OD&D8595:;8&8O7ANDQ&I;<O&<OD& ):DA;87L&ADN;59&LO5I;9N&L45I&6=<&:5FDL<&NA5I<OQ&79F&<OD&*=A5W59DUL&859>9=;9N&RL874&EA564D:L&8AD7>9N&I;FDLEAD7F&D8595:;8&I5DLG&)& L45I&L<7A<&<5&<OD&MD7A&;L&DVED8<DF&<5&N;HD&I7M&<5&L4;NO<4M&L<A59NDA&NA5I<O&;9&744&ADN;59L&;9&<OD&LD859F&O74K&5K&<OD&MD7AG& #D74&3Y&3A5I<O&#7<DL&]T&/O79ND^& #D74&3Y&3A5I<O&#7<DL&]T&/O79ND^&$D4D8<&B7ACD<L&& IJ!!"^%*5K`"" IJ!I"^7&1YK`"" /5=9<AM_&#DN;59& ,-..&]DL<G^& ,-.,&]EA5`G^& /O;97&& )B*#"/)$& "9F;7&& PA7W;4& IKbR" FKIR" /797F7& IKFR" IKJR" #=LL;7&& (G$G& !KcR" IKJR" PA7W;4&& *B*)& !A798D& !KfR" UJKZR" )=L<A74;7&& 3DA:79M& FKJR" JKIR" Z7E79&& "<74M& JKeR" U!KgR" #=LL;7& eKJR" FKZR" (G$G&& /012)0"/A-"/&1H59" (GXG& JKbR" JKFR" /797F7&& ^IJ!I"7&1YK`]"IKZR" *=A5W59D& !KgR" UJKZR" (GXG&& )Y)/& )=L<A74;7& IKJR" FK!R" 3DA:79M&& /O;97& bKIR" ZKbR" !A798D&& "9F;7& fKcR" ZKIR" Z7E79& UJKZR" IKbR" "<74M& )Y)/& eKgR" gKFR" S,T&S.T& -T& .T& ,T& 2T& aT& bT& ?T& cT& dT& eT& .-T& J0#@& FKJR" IKZR" 61>&(%]"[6"/012)0"[?*895"&%71&5*"^_)?>)&@"IJ!I`"g"
  • 6. Global Labor Market Update FIRST QUARTER l 2012
  • 7. 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  
  • 8. 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    
  • 9. 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
  • 10. 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  
  • 11. 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  
  • 12. U.S. Labor Market Overview FIRST QUARTER l 2012
  • 13. 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  
  • 14. 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  
  • 15. 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  
  • 16. Workforce Solutions Industry Insight FIRST QUARTER l 2012
  • 17. 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  
  • 18. 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  
  • 19. 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  
  • 20. 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  
  • 21. 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  
  • 22. 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