2010 Contingent Workforce Assessment

2010 WORKFORCEASSESSMENTU.S. MarketCONTINGENT WORKFORCEPERIOD COVERED: SEPTEMBER 2009 – AUGUST2010
Brought to you by Monster Intelligence
October 2010

Overview
About Contingent Workers
Pros and Cons
Contingent Worker Demand
Talent Demand
Online Demand
Professional Needs & Skills
Geography and “Hot Spots”
Talent Supply
Professional Needs & Skills
Geography and “Hot Spots”
Profile
Career Experience
Education Levels
Compensation Needs
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U.S. Workforce Assessment │ Contingent Workforce

OVERVIEW: CONTINGENT WORKFORCE

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Contingent Workforce │ Overview
A contingent or temporary worker is defined as one that holds a non-permanent job with a company or organization
The pool of contingent workers vary widely
Types of workers include traditional temporary labor placed by staffing agencies and vendors, as well as self-employed, independent contractors, Statement-of-Work (SOW) labor, and project-based services
The duration of a worker’s commitment is also a key factor in a contingent employer/worker relationships
Contingent workers are used more in firms that engage in a large number of projects, such as engineering firms, while industries focused on steady, repeatable tasks use them less; seasonal industries like retail use contingent work to help during peak times
55% of companies surveyed by Aberdeen viewed contingent labor as a high-value strategy and 43% said it provided moderate value
Contingent workers give companies the flexibility of quickly growing and constricting their workforce, a factor that is even more important after the recent downturn
The one major downside from a contingent worker’s perspective: no paid health insurance
Source: Aberdeen Group’s “Contingent Labor Management” June 2010; Workforce.com Speizer, Irwin. “Special Report on Contingent Staffing – The Future of Contingent Staffing Could Be Like Something Out of a Movie” 10/19/09

Contingent Workforce │ Pros and Cons
From a company or organization’s perspective, the chart below lists various pros and cons of using contingent workers
Specific pros and cons depend on a company’s industry, type of work required, etc.
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Source: SubadhraSriram. “The Price is Right”. Contingent Workforce Strategies Magazine. November/December 2008.

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Contingent Workforce │ Talent Demand
Contingent workers traditionally were low-skilled individuals, but recent trends show an increase in higher-skilled levels, including executives, as companies seek short-term, specific professional skills
During the past few years, the volume of temporary help has swung widely; temporary help was the first to be cut during the recession and the first to be hired back post-recession
Staffing Industry Analyst estimated the contingent workforce to be 13% of the U.S. workforce in 2008, up from 11% in 2007
American Staffing Association says the number of people placed by a staffing firm fell by a third over a two year period, dropping from 3 million in 2007 to about 1.9 million in the second quarter of 2009
A recent [June 2010] Aberdeen report claims 20% of the current workforce is temporary help and this workforce has expanded 20% over the past year
Labor law firm Littler Midelson predicts contingent labor could rise to as much as 30-50% of the entire U.S. workforce
A growth enabler of contingent workers is social networking, which effectively links individuals with relevant projects
Source: Aberdeen Group’s “Contingent Labor Management” June 2010; Workforce.com Speizer, Irwin. “Special Report on Contingent Staffing – The Future of Contingent Staffing Could Be Like Something Out of a Movie” 10/19/09

TALENT DEMAND:CONTINGENT WORKFORCE

Contingent Workforce │ Online Demand on Monster
The chart below shows the up and down of Contingent job postings on Monster for the past few years (January 2008 to August 2010)
After trending negative from February 2008 through October 2009, job postings have reported positive growth for the past seven consecutive months
Most recently, job postings were up nearly 100% in August 2010 compared to August 2009
Source: Monster Internal Data, Jan’08–Aug’10
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Contingent Workforce │ Permanent versus Contingent Jobs
The chart below shows permanent versus contingent job postings on Monster for the past year (September 2009 to September 2010)
The percentage of permanent jobs fell from 78% in September 2009 to 73% in September 2010, as temp/contract roles increased from 21% to 27%
Source: Monster Internal Data, Sept’09-Sep’10
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Contingent Workforce│ Job Postings by Occupation
A majority (84%) of Contingent job postings represent the seven occupations listed below
Computer & Math (IT)
23%
Office & Admin Support
23%
Architect & Engineering
5%
Management
8%
Business & Financial Ops
14%
Sales & Related
7%
Healthcare Practitioner & Technical
4%
Source: Monster Internal Data, Sept’09-Aug’10
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Contingent Workforce │ Most Common Job Posting Job Titles
Sales Representative
Customer Service Representative
Software Engineer
Administrative Assistant
Staff Accountant
Accounts Payable Clerk
Gift Wrapper
Business Systems Analyst
Project Manager
Java Developer
Financial Analyst
Software Quality Assurance Engineer
Programmer Analyst
Medical Billing Clerk
Sr. Software Engineer
Accounting Clerk
Local/Delivery Driver
Accounts Receivable Clerk
Sr. Accountant
Data Entry Clerk
Clinical Research Associate
Bookkeeper
Visual Basic Programmer
Web User Interface Designer
Credit Card Collections Specialist
Accountant
PC Technician
Data Warehouse Developer
Cost Accountant
Recruiter
Mortgage Loan Processor
Medical Records Clerk
Accounts Receivable/Payable Clerk
Bill Collector
Software Quality Assurance Analyst
Payroll Manager
Machine Operator
Office Manager
Database Architect
Payroll Clerk
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Contingent Workforce │ Top 10 Job Posting Locations
Listed below are the top 10 states and top 10 regions with Contingent job postings
The top ten states account for 58% of the Contingent talent pool while the top ten regions consist of 41% of the supply
California has a much higher share of Contingent job seekers compared to the other states across the nation primarily based on the state’s share of the population
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Contingent Workforce │ Monster Demand By State
The following locations reported the highest share of Contingent job postings as a percentage of total job postings by state or “hot spots” for demand:
Delaware (38%)
Oregon (35%)
Washington (32%)
Kansas (29%)
North Carolina (29%)
Looking nationally, Contingent job postings account for about 20% of all U.S. job postings
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Contingent Workforce
% of Total Job Postings
High
Midpoint
Low

TALENT SUPPLY:CONTINGENT WORKFORCE

Contingent Workforce │ Job Seekers by Occupation
A majority (79%) of Contingent job seekers represent the seven occupations listed below
Office & Admin Support
21%
Computer & Math (IT)
18%
Management
16%
Business & Financial Ops
9%
Architect & Engineering
6%
Sales and Related Workers
4%
Arts, Design, Entertain, Sports, & Media
5%
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Contingent Workforce │ Most Common Job Seeker Job Titles
Administrative Assistant
Customer Service Representative
Project Manager
Software Engineer
Office and Administrative Support Workers, Other
Manager
Business Systems Analyst
Executive Administrative Assistant
Sales Representative
Clerk/Typist
Assistant Manager
Customer Service
Sr. Software Engineer
Financial Analyst
Graphic Designer
PC Technician
Accountant
Mechanical Engineer
Office Assistant
Programmer - Entry Level
Office Manager
Consultant
Software Quality Assurance Engineer
Receptionist
Staff Accountant
Software Quality Assurance Analyst
Information Technology Manager
Call Center Representative - Financial Services
Medical Assistant
Registered Nurse (RN)
Retail Salesperson
Records Management Analyst
Data Entry Clerk
Research Assistant
Programmer Analyst
Java Developer
Group Leader
Laborer
Systems Administrator
Consulting Manager
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Contingent Workforce │ Top 10 Job Seeker Locations
Listed below are the top 10 states and top 10 regions with Contingent job seekers
The top ten states and regions for job seekers are much more concentrated than for job postings
The top ten states account for 64% of the Contingent talent pool while the top ten regions consist of 50% of the supply
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Contingent Workforce
% of Job Seekers by State
High
Midpoint
Low
Contingent Workforce │ Monster Supply By State
The following locations or “hot spots” reported the highest share of Contingent job seekers as a percentage of total job seekers by state:
District of Columbia (13%)
Washington (11%)
Oregon (10%)
California (10%)
Virginia (9%)
Looking nationally, Contingent job seekers account for 8% of all U.S. job seekers

Contingent Workforce │ Compensation
Contingent workers expect to receive higher compensation than Permanent talent, which is typical as Contingent workers must pay taxes and other benefits out-of-pocket, as well as have a temporary role
As seen on the bottom chart, the compensation expectation gap between Permanent and Contingent workers gets greater as the salary rises
30% of Contingent job seekers expect to receive at least $100,000 versus only 9% of Permanent job seekers
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PROFILE:CONTINGENT WORKFORCE

Contingent Workforce │ Career Levels
A vast majority (87%) of Contingent opportunities are for Experienced (non-manager) candidates compared to the less than half (49%) of professionals seeking these types of roles
The percent of job postings seeking experienced candidates increased compared to the prior year, showing recruiters shifting their focus from Entry Level to Experienced roles
Source: Monster Internal Data, Sept ‘09-Aug‘10
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Contingent Workforce │ Education Levels
Contingent job postings seek primarily candidates with at most a Bachelor’s degree (45%) followed by individuals with at most a High School degree (25%)
Job seekers are concentrated in those with at most a Bachelor’s degree (35%) and Associate/Some College experience (30%)
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Contingent Workforce │ Years of Experience
Contingent job seekers are more experienced than available job postings; 55% of seekers have over 7 years of experience compared to 12% of relevant job postings
Both seekers and recruiters could be frustrated at the lack of relevant opportunities and candidates, respectively
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Contingent Workforce │ Summary
The Contingent workforce represents approximately 20% of the U.S. employed
This percentage dipped during the recession, but has recently risen as companies have begun to cautiously hire temporary help
Job postings for Contingent job opportunities have risen continuously since February 2010
Job postings and job seekers are concentrated in the same occupations: Office & Admin. (23% and 21%, respectively) and Computer & Mathematical (IT) (21% and 18%, respectively)
Top Contingent job titles for both postings and seekers include Customer Service Representative, Software Engineer, and Administrative Assistant
“Hot Spots” for contingent worker demand compared to total job opportunities can be found in Delaware, Oregon, and Washington.
“Hot Spots” for contingent job seekers compared to total job seekers can be found in the District of Columbia, Washington, Oregon, and California
As seen in most segments, the job seeker pool is more skilled than the minimum requirements
Less than 4% of job opportunities require a Manager of above (compared to 26% of available seekers)
10% of job postings require candidates with advanced degrees (compared to 18% of relevant seekers)
Contingent workers desire a higher compensation compared to Permanent workers; 30% of Contingent job seekers expect to receive at least $100,000 versus only 9% of Permanent job seekers
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View additional reports and articles at the Monster Resource Center:
http://hiring.monster.com/hr/hr-best-practices.aspx
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2010 Contingent Workforce Assessment

by Monster Worldwide on Oct 25, 2010

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