Q4 2013 Global Talent Market Quarterly

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Q4 2013 Global Talent Market Quarterly

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Kelly´s 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.

Kelly´s 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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  • 1. Global Talent Market Quarterly FOURTH QUARTER l 2013
  • 2. Global Talent Market Quarterly CONTENTS 3 Global Economic Situation • Outlook • Briefing 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 • 2013 KGWI: Employee Engagement and Retention • Benefits of Boosting Engagement • Contingent Workforce Management Strategies • The Talent Project
  • 3. Global Economic Situation FOURTH QUARTER l 2013
  • 4. Global Talent Market Quarterly BACK TO TABLE OF CONTENTS GLOBAL ECONOMIC OUTLOOK Global economic growth has been subdued in 2013, limited by U.S. policy battles, weakness in Europe, and a cooldown in large emerging markets. The global economy is expected to gradually and modestly accelerate in 2014, with projected growth of 3.3%. REAL GDP GROWTH BY REGION, 2012-2015 (p) World APAC EMEA Eurozone 6% Latin America U.S. 5.7% 5.3% 5% 4.7% 4.8% 4.0% 4% 3.1% 3% 2.8% 2.6% 2% 2.4% 3.4% 3.3% 2.5% 3.8% 3.2% 2.6% 2.4% 1.5% 2.1% 1.3% 0.8% 1% 1.0% 0% -0.6% 4 EMEA The Eurozone has finally begun to climb out of recession, spurring brighter growth prospects across the region, but recovery is expected to be gradual. Across the Middle East and Africa, political and civil unrest still pose risks to growth. The region still leads global economic growth, as most APAC economies have adjusted to the cooler export climate. Maintaining strong domestic consumer demand remains critical to future market expansion in the region. -0.5% 2013 (p) Sluggish growth in North America is expected to improve in 2014, and Latin American economies will also continue to strengthen. Much of the regional outlook depends on the U.S. and the resolution of its ongoing policy issues. APAC 0.9% -1% 2012 (e) AMERICAS 2014 (p) 2015 (p) Source: IHS Global Insight (October 2013)
  • 5. Global Talent Market Quarterly BACK TO TABLE OF CONTENTS ECONOMIC BRIEFINGS Strengthening in developed economies including Germany, the U.K., and North America is forecast to drive global economic growth in 2014. Emerging market economies have struggled over the past year, particularly compared to historical performances, but are poised to regain some momentum. EMERGING MARKETS REAL GDP GROWTH RATES, SELECTED MARKETS  CHINA’s economic growth has stabilized in recent months. Modest stimulus measures will help sustain a gradual rebound and keep GDP growth near 8% for 2014.  In INDIA, GDP growth is expected to climb to 5.6% in 2014, but is still sub-par by historical standards. The country’s long-term potential is solid, with economic reforms key to future growth.  The Eurozone crisis slowed exports and dampened RUSSIA’s economic growth, but a moderate recovery is expected to gain momentum beginning in 2014. Growth in other Central and Eastern European economies is also projected to accelerate.  BRAZIL’s GDP growth is expected to continue to strengthen, surpassing 3% in 2014, driven by increased investment and ongoing government stimulus. DEVELOPED ECONOMIES  Subdued regional growth and a slowdown in the mining sector are expected to keep economic expansion in AUSTRALIA limited, with growth remaining at 2.4% in 2014.  JAPAN’s economy is back on track with growth nearing the 2% range, helped by stimulus efforts and increased consumer demand. Future growth depends on continued strong consumer activity and rising exports.  Sluggish economic growth in the U.S. and CANADA is expected to accelerate to around 2.5% in 2014. A key risk is the contentious U.S. political climate; the recent government shutdown was expected to weigh down the country’s GDP growth by 0.6 percentage points in the fourth quarter of 2013.  After six consecutive quarters of recession, the Eurozone economy has begun to recover, led by solid gains in GERMANY and FRANCE. The U.K. has also seen marked economic improvement. Nevertheless, the path to recovery is expected to be slow, as contractions are expected to persist in ITALY, SPAIN, and GREECE through mid-2014. 5 Ranked by 2014(p) growth China India Russia Brazil Canada Global GDP Growth 2014(p): 3.3% U.S. Australia U.K. Japan 2013(p) Germany 2014(p) France 2015(p) Italy -2% 0% 2% 4% 6% 8% 10% Sources: IHS Global Insight (October 2013); Reuters 09.03.13
  • 6. Global Labor Market Update FOURTH QUARTER l 2013
  • 7. Global Talent Market Quarterly BACK TO TABLE OF CONTENTS GLOBAL LABOR MARKET UPDATE: AMERICAS Despite relatively positive unemployment figures, key countries across the Americas region have failed to generate significant momentum in their labor markets, as hiring has been constrained by economic, structural, and political tensions. Declining labor force participation is also a critical concern in many markets. The outlook calls for continued moderate employment growth in the region. AVERAGE ANNUAL UNEMPLOYMENT RATE UNITED STATES Although unemployment in the U.S. continues to trend downward, the pace of new job growth has been lackluster. Future improvements depend on resolution of policy issues and increasing business confidence. BRAZIL Job creation in Brazil has remained steady, in spite of the country’s sluggish economic performance. The unemployment rate is also projected to remain stable in the 5.5% range over the coming years. CANADA U.S. Brazil Canada Mexico 9% 8.1% 8% 7.5% 7.1% 7% 7.3% 6.7% 6% MEXICO 5.5% 5.5% 5.6% 4.9% 4.8% 4% The slowdown in the Mexican economy is affecting the labor market, as both unemployment and labor force participation rates have been volatile in 2013. More consistent improvements are expected in 2014 and 2015. 7.0% 5.0% Modest employment growth is expected to continue, with ongoing strength in energy-related sectors and geographies. The unemployment rate edged below 7% in September—the lowest since 2008—but unemployment is still high, and labor force participation is trending down. 7.1% 6.5% 5.5% 3% 5% 4.3% 2012 2013 (e) 2014 (p) 2015 (p) Sources: IHS Global Insight (October 2013) EIU, 09.23.13 and 09.27.13; Dow Jones News Service, 10.11.13 7
  • 8. Global Talent Market Quarterly BACK TO TABLE OF CONTENTS GLOBAL LABOR MARKET UPDATE: EMEA Although economic conditions have begun to improve in Europe, many of the hardest hit countries are not projected to see labor market improvements until late 2014 or 2015. In countries that were less affected by the economic crisis, including Germany and the U.K., favorable employment conditions are expected to continue to strengthen. AVERAGE ANNUAL UNEMPLOYMENT RATE GERMANY The economic crisis has had very little effect on employment conditions in Germany, which continue to outpace most of the rest of Europe. Unemployment declines are expected to accelerate over the coming years. 12% FRANCE 11% Although the economy has begun to rebound, the French labor market is expected to remain very challenging through 2014, with unemployment rising above 11% and continuing to surpass historically high levels. UNITED KINGDOM The U.K. labor market is improving, as greater economic activity drives more solid hiring trends and gradual improvements in unemployment. Jobless claims dropped by over 41,000 in September, the largest fall in 16 years, and employment is at its highest point in over 40 years. RUSSIA Despite a significant slowdown in the economy, unemployment in Russia has been on a gradual downward trend—a pace that is expected to continue in the coming years. Germany 10% 9% 8% 7% France 10.9% U.K. 11.2% Russia 11.1% 10.2% 7.9% 7.7% 6.8% 6.8% 7.4% 6.6% 7.1% 6.3% 6% 5% 5.5% 5.4% 5.2% 5.0% 2012 2013 (e) 2014 (p) 2015 (p) 4% 3% Sources: IHS Global Insight (October 2013) ; Reuters 10.16.13 8
  • 9. Global Talent Market Quarterly BACK TO TABLE OF CONTENTS GLOBAL LABOR MARKET UPDATE: APAC The slowdown in economic activity has had very little effect on labor markets across the APAC region. Forecasts vary for the region’s key countries, with a brighter outlook for India and Japan offset by more challenging employment conditions predicted for Australia. CHINA Despite a slowing economy, the Chinese labor market has been relatively resilient, adding 7.25 million jobs in the first six months of the year, an increase of 310,000 year-over-year. The service sector, and in particular Internet-based businesses, have helped create employment opportunities. JAPAN AVERAGE ANNUAL UNEMPLOYMENT RATE China Japan India Australia 9% The unemployment rate, which had dropped below 4%, rose in August as more Japanese workers began looking for jobs. The country’s job availability index has shown six straight months of improvement, reaching 0.95, or 95 employment offers per 100 job seekers, in August. 8% INDIA 6% Hiring in India is expected to pick up in the coming months, after lackluster economic growth had limited job creation in the first part of 2013. IT and ecommerce are among the bright spots for employment growth. 5% AUSTRALIA 4% While business confidence has improved somewhat following the elections in Australia, hiring intentions remain soft. The labor force participation rate has sunk to a nearly seven-year low, and unemployment is forecast to continue to increase over the short-term. 3% 8.1% 8.4% 8.2% 8.1% 7% 5.7% 6.0% 5.4% 5.2% 4.3% 4.2% 4.1% 4.0% 4.1% 4.0% 3.9% 3.9% 2012 2013 (e) 2014 (p) 2015 (p) Sources: IHS Global Insight (October 2013); Thai News Service, 08.06.13; Kyodo News, 09.20.13; Staffing Industry Analysts, 09.16.13 99
  • 10. Global Talent Market Quarterly BACK TO TABLE OF CONTENTS GLOBAL LABOR MARKET SPOTLIGHT: ADULT SKILL LEVELS HOW SKILLED IS YOUR COUNTRY’S LABOR FORCE? The OECD’s first Survey of Adult Skills offers a fascinating, multi-national picture of labor force skills and competencies. The survey used assessment tests to evaluate literacy, numeracy, and technology problem solving skills among people ages 16-65 across 24 countries. It shows marked differences in skills among countries as well as within each labor force, and suggests that developing and using skills can have a profound impact on employment prospects, quality of life, and a country’s economic growth potential. The survey shows that workers in the Nordic countries and Japan tend to be highly proficient. In others, notably in Southern Europe, Ireland, and the U.S., many adults struggle with the most basic literacy and numeracy skills. It also shows that many adults do not possess basic computer skills, including nearly one in four in Italy, Korea, Poland, Spain and the Slovak Republic. ADDITIONAL KEY FINDINGS: OECD SURVEY OF ADULT SKILLS Economic and social impact of skills • Those with low literacy skills are more than twice as likely to be unemployed, and have median earnings 60% lower than those with higher literacy skills. Countries with greater inequality in skills also exhibit higher income inequality. Gap between skills and educational attainment • In some countries (Australia, Finland, Japan, Netherlands, Norway), many adults without a high school degree have high literacy skills, suggesting that people can learn skills despite limited early schooling. Impact of social background varies • In England, Germany, Poland and the U.S., the children of parents with low education levels have much weaker reading skills as adults than those with better educated parents. Australia, Estonia, Japan and Sweden show the smallest difference between these two groups. Uneven progress across generations • In some countries (Korea, Japan, Finland), the younger generations have made significant steps in closing the skills gap, particularly in technology areas. But in others (England, U.S.), younger workers are not as skilled as those near retirement. PROFICIENCY IN KEY SKILLS: ADULTS AGES 16-65 Significantly below average Significantly above average Not significantly different from average Literacy Australia Austria Canada Czech Republic Denmark Estonia Finland France Germany Ireland Italy Japan Korea Netherlands Norway Poland Slovak Republic Spain Sweden United States Belgium* UK* Cyprus Numeracy Technology Problem Solving n/a n/a n/a n/a *Belgium: Flanders only; UK: England and N. Ireland only Cyprus, France, Italy, and Spain did not field the technology problem solving assessment Source: Skilled for Life? Key Findings From the Survey of Adult Skills, OECD, 2013 10 Literacy was defined as the ability to understand, evaluate, use and engage with written texts. Numeracy was defined as the ability to access, use, interpret and communicate mathematical information and ideas. Problem solving in technology-rich environments was defined as the ability to use digital technology, communication tools and networks to acquire and evaluate information, communicate with others and perform practical tasks.
  • 11. Global Talent Market Quarterly BACK TO TABLE OF CONTENTS GLOBAL LEGISLATIVE UPDATE Regulations surrounding temporary employment, and in particular those concerning contract limits, continue to be redefined. Tempto-hire contracts are now permissible in Belgium, indefinite contracts have been proposed in France, and discussions to loosen assignment limits are occurring in Japan. South Africa, meanwhile, has tightened restrictions on temporary workers’ contract lengths. BELGIUM CANADA New measures that encourage employers to hire Canadians rather than temporary foreign workers include an application fee to recruit overseas workers and an obligation to advertise jobs first to Canadians. BRAZIL New legislation prohibits bribery of foreign government officials by Brazilian companies, as well as bribery of local government officials by companies operating in Brazil. Staffing firms are now allowed to provide temp-to-hire employment, beginning in September 2013. Staffing firms were previously limited to providing temporary workers only in the case of the absence or dismissal of a permanent employee, or to face a temporary rise in demand. FRANCE GERMANY Trade unions and the French staffing association PRISME have introduced a proposal to allow indefinite contracts, or a “benched resources” model, for staffing firms. The government must review the proposal’s viability under the Labor Code. Minimum wage increases for temporary workers will come into effect on January 1, 2014. Minimum wage rises for temporary workers which take effect in mid-2015 and mid-2016 were also announced. SOUTH AFRICA Under a new bill, temporary workers’ contracts are limited to three months, after which the workers are eligible to become permanent employees. JAPAN A proposal to revise the Temporary Dispatch Law is being discussed, which would loosen the assignment limit rules for temporary workers and abolish the current 26 designated job categories in which workers can be engaged indefinitely. Potential changes are likely to be submitted to the Diet in 2014. PHILIPPINES A bill filed in the Senate seeks to end age discrimination by penalizing employers or recruitment agencies that make a person’s age the basis for employment. BAHRAIN Employers may now apply for one-year visas for foreign workers, in addition to the two-year work permits previously allowed. The new visas may be renewed for a period of six months or one year. . Sources: Globe and Mail, 08.08.13; SIA Daily News, 07.29.13 and 09.24.13; SIA European Legs & Regs Advisor, July and September 2013; SIA ROW Legs & Regs Advisor, July and August 2013; SHRM, 08.27.13 11
  • 12. U.S. Labor Market Overview FOURTH QUARTER l 2013
  • 13. Global Talent Market Quarterly BACK TO TABLE OF CONTENTS U.S. EMPLOYMENT CONDITIONS UNEMPLOYMENT INCHING DOWN Despite the lack of momentum in payroll gains, the unemployment picture in the U.S. has been slowly improving. The unemployment rate dipped to 7.2% in September 2013, its lowest point since 2008. The number of people unemployed has fallen by more than 4 million since the peak in late 2009, but there are still more than 11.2 million unemployed workers in the U.S., and the labor force participation rate remains at a 35-year low. U.S. MONTHLY EMPLOYMENT CHANGE AND UNEMPLOYMENT RATE 350 300 250 200 150 100 50 0 10.0 9.0 8.0 7.0 6.0 Total non-farm employment growth Unemployment rate EMPLOYMENT OVERVIEW APR MAY JUN JUL AUG SEP Total non-farm employment growth 199K 176K 172K 89K 193K 148K Private sector employment growth 157K 187K 194K 100K 161K 126K Unemployment rate 7.5% 7.6% 7.6% 7.4% 7.3% 7.2% POLICYMAKING AND ECONOMIC CLIMATE TAKING A TOLL The sluggish and slowing hiring momentum through the third quarter suggests that, even before the U.S. government shutdown, employers remained very hesitant to add significantly to their payrolls. IHS Global Insight forecasts that the shutdown will lower U.S. economic performance in the fourth quarter of 2013 by about 0.6 percentage points—and the negative impacts on employment growth, as well as consumer and business confidence, are yet to be determined. Although the outlook is for stronger hiring in 2014, achieving that outcome depends upon stronger economic growth and perhaps a less uncertain policymaking climate. 13 Source: U.S Bureau of Labor Statistics Unemployment Rate (%) September’s employment report—which was delayed by more than two weeks due to the U.S. federal government shutdown—showed that the pace of job creation in the country continues to be frustratingly modest. Employment gains have slowed over the course of the year, averaging just 143,000 per month in the third quarter of 2013, down from 183,000 in the second quarter and 207,000 in the first. So far in 2013, job growth has averaged around 180,000 per month—nearly identical to the lackluster rate the U.S. economy has generated for the past two years. Employment (000s) LACKLUSTER JOB CREATION
  • 14. Global Talent Market Quarterly BACK TO TABLE OF CONTENTS U.S. LABOR MARKET: SUPPLY AND DEMAND JOB DEMAND FINALLY UP IN SEPTEMBER U.S. demand for jobs increased strongly in September, up nearly 210,000. This was the first significant rise in 2013, as the number of online job ads had been essentially flat over the previous eight months. The supply/demand ratio dropped to 2.2 unemployed workers for each online advertised job vacancy in the United States. GEOGRAPHICAL DIFFERENCES IN SUPPLY/DEMAND Salt Lake City leads the country with a supply/demand ratio of 0.9, indicating that there are more job vacancies than unemployed workers in the metro area. Other metro areas with favorable supply/ demand ratios include Minneapolis–St. Paul (1.2), Washington DC (1.2), and Seattle–Tacoma (1.25). In contrast are Riverside CA, with 5.8 unemployed workers for every advertised vacancy, and Memphis and Las Vegas, each with supply/demand ratios of 3.5. 10000 16000 9000 7000 12000 6000 10000 5000 8000 4000 6000 Online Job Ads (in thousands) 8000 14000 3000 4000 2000 2000 1000 0 0 Jan 09 Apr 09 Jul 09 Oct 09 Jan 10 Apr 10 Jul 10 Oct 10 Jan 11 Apr 11 Jul 11 Oct 11 Jan 12 Apr 12 Jul 12 Oct 12 Jan 13 Apr 13 Jul 13 In September, job demand increased across a wide number of sectors, from food services to computer and mathematical science occupations. Transportation occupations have been among those in greatest demand, with job vacancies up by nearly 40,000 over the past three months. 18000 Unemployed Workers (in thousands) STRONG DEMAND FOR TRANSPORTATION JOBS U.S. MARKET - MONTHLY LABOR DEMAND VS. LABOR SUPPLY # of Unemployed Workers # of Online Job Ads “The 210,000 gain for September is the first optimistic sign this year that employers are seeking additional workers.” — June Shelp, Vice President, The Conference Board, October 2, 2013 14 Sources: Conference Board Help Wanted OnLine, Bureau of Labor Statistics
  • 15. Global Talent Market Quarterly BACK TO TABLE OF CONTENTS U.S. LABOR MARKET SPOTLIGHT: UNDERCOVER IT HUBS OUT WITH THE OLD, IN WITH THE NEW While focus in IT talent often falls to traditional epicenters like Silicon Valley, Washington DC, Seattle, and Boston, high wage pressures and lackluster projected demand are expected to lower these metro areas’ future potential. Data from Kelly’s Talent Market Analyst tool suggests that there may be better opportunities for finding IT professionals in less obvious metropolitan areas moving forward. Provo UT, Phoenix AZ, Huntsville AL, and Madison WI are among the top “hidden” IT sourcing areas in the US. These areas are projected to see the largest growth in demand over the next five years, and an increasing IT concentration index (representing a growing importance of IT professions within the labor force). Many of these high potential sourcing areas also feature relatively lower wages for IT talent. Current IT wages in Provo are 18% below the national average, while those in Madison and Salt Lake City are 9% below national average IT wages. HIGH POTENTIAL IT TALENT AREAS (Ranked by projected demand growth) Current Supply (2013) Projected Demand (2013-2018) Provo, UT Phoenix, AZ Huntsville, AL Madison, WI Baltimore, MD Indianapolis, IN Salt Lake City, UT 11,206 72,813 14,949 17,964 64,294 29,754 28,149 17% 15% 14% 13% 12% 12% 12% Concentration Index Concentration Index % Change (2013) (2013-2018) 1.50 0.7% 1.19 1.7% 2.23 2.2% 1.62 4.9% 1.45 2.1% 41% 1.02 2.0% 1.27 0.8% Wages % Above/ Below National Average (2013) -18% -4% 10% -9% 11% -7% -9% MORE FAVORABLE Metropolitan Area Source: Talent Market Analyst 15 Notes: Based on metropolitan areas with at least 10,000 employees in IT occupations in 2013. Concentration Index: employment in IT occupations as a % of the total labor force, compared to the national average of 1.00. Concentration Index % Change: projected change in the concentration index 2013-2018. Wages: median hourly IT occupational earnings compared to national average occupational wage of $36.72/hr (lower=more favorable).
  • 16. Workforce Solutions Industry Insight FOURTH QUARTER l 2013
  • 17. Global Talent Market Quarterly BACK TO TABLE OF CONTENTS 2013 KGWI: EMPLOYEE ENGAGEMENT AND RETENTION The 2013 Kelly Global Workforce Index shows that many workers have experienced a significant shift in their attitudes toward their employers in the wake of the global financial crisis. Workers’ loyalty and commitment to their employers is wavering, as economic and labor market conditions remain volatile. EMEA WORKERS SHOW GREATER TURNOVER, LOWER ENGAGEMENT EMPLOYEE TURNOVER Around the globe, employees show varying degrees of engagement with their jobs in 2013. Worldwide, only around half of all workers say that they are happy with their current position and only a third say they are totally committed to their current employer. Those in the EMEA region are less likely to recommend their employers, feel less committed, and are less happy in their jobs than workers in other regions. Global Americas EMEA 63% 47% And the dissatisfaction seems to be leading to greater job churn. Almost half of all respondents globally have changed employers in the past year, with the greatest rate of job-changers in the EMEA region. Around two-thirds of respondents in the EMEA region say they intend to look for a job this year, also highest among all regions. 45% 51% APAC 67% 56% 61% 42% Have changed employers in the Intend to look for another job last year this year EMPLOYEE ENGAGEMENT Global Americas EMEA APAC 63% 52% 42% 29% 24% 28% Would recommend their employer* 33% 40% 28% 53% 46% 34% Feel "totally committed" to current employer Feel happy or very happy in job *Respondents rating 9 or 10 on scale of 1–10 where 1 = “Definitely would not” and 10 = “Definitely would” recommend 17 Source: Employee Engagement and Retention, 2013 KGWI
  • 18. Global Talent Market Quarterly BACK TO TABLE OF CONTENTS BENEFITS OF BOOSTING ENGAGEMENT Particularly in a time of economic uncertainty, having a committed and engaged workforce can be one of the most critical ingredients in the success of a business. A recent report from Aon Hewitt suggests that organizations should pay attention to their employees’ attitudes and feelings, as there is a strong correlation between employee engagement and a company’s financial performance. WORTHWHILE TO IMPROVE EMPLOYEE ENGAGEMENT A recent report from Aon Hewitt suggests that increasing employee engagement can have a direct and positive effect on a company’s future revenue and profitability growth. Higher engagement levels also predict greater shareholder return for companies.   INVESTING IN TALENT TO TAME THE ECONOMIC CYCLE EMPLOYEE ENGAGMENT, BUSINESS AND ECONOMIC CYCLE Economic Forces Company Performance Company Decisions Growth in operating income An engaged workforce can help smooth the effects of a volatile economic climate. During downturns, organizations invest in employee engagement to help stabilize the workplace and mitigate negative effects from downsizing. During recovery periods, engagement becomes even more crucial as organizations ask fewer people to do more; a committed workforce can help set the stage for greater business growth. Each incremental percentage of employees who become engaged predicts an incremental 0.6% growth in sales in the following year, as well as a significant impact on profitability. Companies with engagement levels in the top quartile attained 50% higher total shareholder return than the average organization. POTENTIAL EFFECT OF INCREASED ENGAGEMENT ON OPERATING INCOME 27% 14% 3% 1% engagement improvement Employee Engagement 18 5% engagement improvement 10% engagement improvement Sensitivity of lagged operating income to changes in employee engagement for a $5b organization with 15% operating margin Source: Trends in Global Employee Engagement, Aon Hewitt
  • 19. Global Talent Market Quarterly BACK TO TABLE OF CONTENTS CONTINGENT WORKFORCE MANAGEMENT STRATEGIES As organizations continue to shift towards more flexible and non-traditional work options, electing and implementing a contingent workforce management strategy has never been more important. According to research by Aberdeen, leading companies are turning to holistic programs including VMS and MSP to maximize the potential value of contingent workers. MSP AND VMS USAGE DRIVE VISIBILITY, EFFICIENCIES More companies are turning towards a formal, cohesive program that manages all aspects of their contingent workforce, according to Aberdeen: 27% reported using this type of system in 2013, up from 23% in 2012. A key best practice is outsourcing contingent workforce management. Among best-in-class organizations, 40% use an MSP or VMS to manage their contingent workforce, compared to around 20% of all others. Using an outsourced solution can help organizations better achieve their primary goals, such as improving visibility into spending across all contingent labor categories. Outsourced solutions can also provide organizations with more efficient and effective practices ranging from onboarding/off-boarding, to forecasting contingent usage. MANAGEMENT OF CONTINGENT LABOR 2012 30% 25% 20% 15% 10% 5% 0% 27% 23% 23% Improve visibility 48% Improve total talent management 42% Drive efficiencies 39% ADVANTAGES OF MSP Proper on-boarding/ off-boarding Internal process for compliance to government labor and tax policies 2013 Visibility into spending across all subsets Data analytics and reporting 27% 22% 23% 20% Use MSP No MSP Able to track and monitor quality Able to forecast contingent labor use Formal program Disparate management managing all aspects of of contingent labor contingent labor 19 TOP PRIORITIES FOR CONTINGENT WORKFORCE MANAGEMENT No management of contingent labor 0% 20% 40% 60% 80% Source: Contingent Labor Management: Strategies and Solutions for a Flexible Workforce, Aberdeen, August 2013
  • 20. Global Talent Market Quarterly BACK TO TABLE OF CONTENTS Kelly offers a complete content library that advances the discussion and thinking around current trends, strategies, and issues impacting global talent management. TITLE PRESENTED BY: DESCRIPTION Gen Now: Understanding the Multi-Gen Workforce Jason Morga, VP, Americas Marketing Employers worldwide face the concurrent challenges of optimizing an aging workforce and embracing upcoming younger talent. This webcast takes a closer look at the fundamental reasons why entire organizations, not just HR departments, must learn to respond to generational issues today. Lance Richards, VP, Innovation Talent Supply Chain Management Readiness Teresa Carroll, SVP & General Manager, KellyOCG This research aims to uncover to what extent organizations are rethinking their approach to talent supply chain management, where their highest priorities lie, and what they find particularly challenging. It also looks closely at top performers to understand what they do differently from their peers, and how others can emulate them. Building the New Silk Road: The Talent Challenge for AsiaPacific in 2013/14 Anthony Raja Devadoss, VP, APAC, KellyOCG Organizations operating within APAC need to understand the forces that are impacting supply and demand for talent across this dynamic and diverse region. This report outlines the new and emerging workforce imperatives in APAC, and how employers can stay ahead of the talent curve. To register for webcasts or for more information, visit www.kellyocg.com Download The Talent Project, a free iPad ® app by Kelly Services. 20
  • 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 as world-class staffing on a temporary, temporary-to-hire and direct-hire basis. Serving clients around the globe, Kelly provides employment to more than 560,000 employees annually. Revenue in 2012 was $5.5 billion. Visit kellyservices.com and connect with us on Facebook, LinkedIn, & Twitter. Click to download The Talent Project, our free iPad app. A Kelly Services Report All trademarks are property of their respective owners. An Equal Opportunity Employer © 2013 Kelly Services, Inc. Y1446 kellyservices.com