Workforce Trends Study

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Study on the segmentation of the workforce in fortune 1K companies and controls in place to manage and increase efficiency

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  • TPSA Technology Professional Services Association
  • Workforce Trends Study

    1. 1. Workforce Segmentation & Control Analyze perceived and actual control of the entire workforce Joel A. Capperella SVP Client Solutions
    2. 2. Workforce Trends: Opportunity, Segmentation; and Control Workforce Composition Analysis: Best Practices Capitalizing in a Bear Market
    3. 3. Commitment to Workforce Strategies Peter Cappelli <ul><ul><li>“ Decentralized processes defeat the natural advantages of talent development…” </li></ul></ul><ul><ul><li>~ Peter Cappelli* </li></ul></ul>HCM Involvement 360-Degree View of SAP
    4. 4. Workforce Trends: Opportunity, Segmentation; and Control Workforce Composition Analysis: Best Practices Capitalizing in a Bear Market
    5. 5. 2009 Workforce Trends Study Cost Concerns Perceived Control Actual Control Realities of Total Workforce Control #1 Concern 84% of respondents 20% Reported control 65% Believe they are in control
    6. 6. Seeking Cost Efficiency FACTORS IMPACTING WORKFORCE Expected Impact of Control Key Finding #1 Concern over cost critical to overall workforce management 84.1% 14% 1.9% Significant to Moderate Impact Negligible Insignificant Economy & Budget Business Unit Needs 70.5% HR Workforce Plan 11.6% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 83.7%
    7. 7. Analysis of Continued Contraction Key Finding #1 Concern over cost critical to overall workforce management Segments of workforce impacted % of Decrease The two workforce categories with the least amount of contraction represent areas with fewest control mechanisms in place WORKFORCE CONTRACTION ACROSS SEGMENTS
    8. 8. Perceived Level of Current Control Key Finding #2 A Generally Favorable Perception of Control STATED LEVEL OF WORKFORCE COST CONTROL <ul><li>63% Report Strategic Workforce Plan in Place </li></ul><ul><li>82% Satisfied with Execution of Current Workforce Plan </li></ul>42.0% 23.4% 5.6% 5.6% Significant Partial Limited Negligible 89% 23.4% Complete
    9. 9. Actual Level of Current Control CONTROL OVER ‘NON-EMPLOYEE’ WORKFORCE Key Finding #3 Poor visibility and control into overall investment of total labor pool 10.1% 29.4% 60.5% Complete Control Significant Control Limited to No Control <ul><li>49% report remedial to no workforce segmentation </li></ul><ul><li>57% report limited performance metrics and risk mitigation are applied beyond the fulltime workforce </li></ul>
    10. 10. Actual Level of Current Control Greatest areas of autonomy have least collaboration with HR Key Finding #3 Poor visibility and control into overall investment of total labor pool Workforce Categories Full-Time Contractors Professional Temp Consultants Project Work Temp
    11. 11. Actual Level of Current Control Key Finding #3 Poor visibility and control into overall investment of total labor pool Measurable control and risk mitigation minimal outside the fulltime workforce 0.00% 25.00% 50.00% 75.00% 100.00% Defined Policies ROI Measurable Quality Measureable Risk Mitigation Hiring Metrics Workforce Categories Full-Time Contractors Professional Temp Consultants Project Work Temp
    12. 12. Workforce Breakdown <ul><li>The average proportion of a given company’s total workforce that is </li></ul><ul><li>contingent is approximately 12% - with the usage range peaking as high </li></ul><ul><li>as 20% </li></ul><ul><li>Between 70% and 80% of U.S. companies use some type of contingent labor, including part-time workers. </li></ul><ul><li>From 1995 to 2007, contingent labor in the U.S. grew approximately 149%, a compound annual rate of 7.9%. </li></ul>
    13. 13. Implications of Workforce Trends Cost Concerns Actual Control <ul><li>Global Recession </li></ul><ul><li>Continued impact on workforce strategies </li></ul><ul><li>Continued contraction across all workforce segments </li></ul><ul><li>Costly workforce categories will contract at a slower rate </li></ul><ul><li>Is Perception Reality? </li></ul><ul><li>Do workforce plans reflect climate? </li></ul><ul><li>Is execution over workforce strategies measureable? </li></ul><ul><li>Is effort to manage workforce properly aligned? </li></ul><ul><li>Adjust & Transform </li></ul><ul><li>Analysis of labor segmentation </li></ul><ul><li>Empowering autonomous influencers </li></ul><ul><li>Establish realistic performance metrics </li></ul>Perceived Control
    14. 14. Multiple Talent Streams <ul><li>Centralize and Clearly Define Use of Multiple Talent Streams </li></ul><ul><li>Key Issues: </li></ul><ul><li>Multiple talent streams for contingent, consulting, direct, etc. </li></ul><ul><li>Lack of definition, consistent usage and understanding of reasons for use </li></ul><ul><li>Decentralized, exceptions are the rule, uncontrolled cost basis </li></ul><ul><li>Results: </li></ul><ul><li>Increased visibility </li></ul><ul><li>Reduced costs and risk </li></ul>“ Best-in-Class enterprises are 98% more likely to centralize and standardize contingent labor management processes…” -2009 Contract Labor Management Study

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