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Brought to you by Monster Intelligence
October 2010
2010 WORKFORCE ASSESSMENT
U.S. Market
CONTINGENT WORKFORCE
PERIOD COVERED: SEPTEMBER 2009 – AUGUST 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
2
U.S. Workforce Assessment │ Contingent Workforce
OVERVIEW:
CONTINGENT WORKFORCE
4
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
Contingent Workforce │ Overview
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.
5
Pro Con
Saves money and creates flexibility, as
hiring companies do not need to provide
benefits, severance, or continued
compensation
Becomes expensive if there is high
turnover in a role, requiring continued
hiring and training costs
Aids financial performance; a 2001 study
found that companies generated higher
returns when they increased their
contingent workforce to over 10%
Undermines motivation and dedication, as
worker knows they are in a temporary
position
Provides quick access to specific skill(s) Impacts company morale, if hirer uses a
high number of transient workers
Allows for close worker review before
making a permanent hire
Source: Subadhra Sriram. “The Price is Right”. Contingent Workforce Strategies Magazine. November/December 2008.
6
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
Contingent Workforce │ Talent Demand
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
Source: Monster Internal Data, Jan’08–Aug’10
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
8
Contingent Workforce │ Permanent versus Contingent Jobs
Source: Monster Internal Data, Sept’09-Sep’10
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%
9
Office &
Admin
Support
23%
Architect &
Engineering
5%
Sales &
Related
7%
Business &
Financial
Ops
14%
Management
8%
A majority (84%) of Contingent job postings represent the seven occupations listed below
Contingent Workforce│ Job Postings by Occupation
Healthcare
Practitioner
&
Technical
4%
Computer &
Math (IT)
23%
Source: Monster Internal Data, Sept’09-Aug’10
10
Contingent Workforce │ Most Common Job Posting Job Titles
1. Sales Representative
2. Customer Service Representative
3. Software Engineer
4. Administrative Assistant
5. Staff Accountant
6. Accounts Payable Clerk
7. Gift Wrapper
8. Business Systems Analyst
9. Project Manager
10. Java Developer
11. Financial Analyst
12. Software Quality Assurance Engineer
13. Programmer Analyst
14. Medical Billing Clerk
15. Sr. Software Engineer
16. Accounting Clerk
17. Local/Delivery Driver
18. Accounts Receivable Clerk
19. Sr. Accountant
20. Data Entry Clerk
21. Clinical Research Associate
22. Bookkeeper
23. Visual Basic Programmer
24. Web User Interface Designer
25. Credit Card Collections Specialist
26. Accountant
27. PC Technician
28. Data Warehouse Developer
29. Cost Accountant
30. Recruiter
31. Mortgage Loan Processor
32. Medical Records Clerk
33. Accounts Receivable/Payable Clerk
34. Bill Collector
35. Software Quality Assurance Analyst
36. Payroll Manager
37. Machine Operator
38. Office Manager
39. Database Architect
40. Payroll Clerk
Source: Monster Internal Data, Sept’09-Aug’10
11
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
Source: Monster Internal Data, Sept’09-Aug’10
Contingent Workforce │ Top 10 Job Posting Locations
12
Contingent Workforce │ Monster Demand By State
Source: Monster Internal Data, Sept’09-Aug’10
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:
1. Delaware (38%)
2. Oregon (35%)
3. Washington (32%)
4. Kansas (29%)
5. North Carolina (29%)
Looking nationally, Contingent
job postings account for about
20% of all U.S. job postings
13
Contingent Workforce
% of Total Job Postings
High
Midpoint
Low
TALENT SUPPLY:
CONTINGENT WORKFORCE
Office &
Admin
Support
21%
Architect &
Engineering
6%
Sales and
Related
Workers
4%
Business &
Financial Ops
9%
Management
16%
A majority (79%) of Contingent job seekers represent the seven occupations listed below
Contingent Workforce │ Job Seekers by Occupation
Arts,
Design,
Entertain,
Sports, &
Media
5%
Computer
& Math (IT)
18%
Source: Monster Internal Data, Sept’09-Aug’10
15
Contingent Workforce │ Most Common Job Seeker Job Titles
1. Administrative Assistant
2. Customer Service Representative
3. Project Manager
4. Software Engineer
5. Office and Administrative Support Workers, Other
6. Manager
7. Business Systems Analyst
8. Executive Administrative Assistant
9. Sales Representative
10. Clerk/Typist
11. Assistant Manager
12. Customer Service
13. Sr. Software Engineer
14. Financial Analyst
15. Graphic Designer
16. PC Technician
17. Accountant
18. Mechanical Engineer
19. Office Assistant
20. Programmer - Entry Level
21. Office Manager
22. Consultant
23. Software Quality Assurance Engineer
24. Receptionist
25. Staff Accountant
26. Software Quality Assurance Analyst
27. Information Technology Manager
28. Call Center Representative - Financial Services
29. Medical Assistant
30. Registered Nurse (RN)
31. Retail Salesperson
32. Records Management Analyst
33. Data Entry Clerk
34. Research Assistant
35. Programmer Analyst
36. Java Developer
37. Group Leader
38. Laborer
39. Systems Administrator
40. Consulting Manager
Source: Monster Internal Data, Sept’09-Aug’10
16
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
Source: Monster Internal Data, Sept’09-Aug’10
Contingent Workforce │ Top 10 Job Seeker Locations
17
Contingent Workforce │ Monster Supply By State
Source: Monster Internal Data, Sept’09-Aug’10
The following locations or “hot
spots” reported the highest
share of Contingent job
seekers as a percentage of
total job seekers by state:
1. District of Columbia (13%)
2. Washington (11%)
3. Oregon (10%)
4. California (10%)
5. Virginia (9%)
Looking nationally, Contingent
job seekers account for 8% of
all U.S. job seekers
18
Contingent Workforce
% of Job Seekers by State
High
Midpoint
Low
Contingent Workforce │ Compensation
1
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
19
Source: Monster Internal Data, Sept’09-Aug’10
PROFILE:
CONTINGENT WORKFORCE
Contingent Workforce │ Career Levels
Source: Monster Internal Data, Sept ‘09-Aug‘10
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
21
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%)
Source: Monster Internal Data, Sept’09-Aug’10
22
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
Source: Monster Internal Data, Sept’09-Aug’10
23
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
24
View additional reports and articles at the Monster Resource Center:
http://hiring.monster.com/hr/hr-best-practices.aspx
25
5 Clock Tower Place /// Suite 500
MAYNARD, MA 01754
Visit Monster or call your local Monster
representative.
1-800-MONSTER /// 666-7837
www.monster.com

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2010 Contingent Workforce Assessment

  • 1. Brought to you by Monster Intelligence October 2010 2010 WORKFORCE ASSESSMENT U.S. Market CONTINGENT WORKFORCE PERIOD COVERED: SEPTEMBER 2009 – AUGUST 2010
  • 2. 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 2 U.S. Workforce Assessment │ Contingent Workforce
  • 4. 4 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 Contingent Workforce │ Overview 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
  • 5. 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. 5 Pro Con Saves money and creates flexibility, as hiring companies do not need to provide benefits, severance, or continued compensation Becomes expensive if there is high turnover in a role, requiring continued hiring and training costs Aids financial performance; a 2001 study found that companies generated higher returns when they increased their contingent workforce to over 10% Undermines motivation and dedication, as worker knows they are in a temporary position Provides quick access to specific skill(s) Impacts company morale, if hirer uses a high number of transient workers Allows for close worker review before making a permanent hire Source: Subadhra Sriram. “The Price is Right”. Contingent Workforce Strategies Magazine. November/December 2008.
  • 6. 6 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 Contingent Workforce │ Talent Demand 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
  • 8. Contingent Workforce │ Online Demand on Monster Source: Monster Internal Data, Jan’08–Aug’10 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 8
  • 9. Contingent Workforce │ Permanent versus Contingent Jobs Source: Monster Internal Data, Sept’09-Sep’10 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% 9
  • 10. Office & Admin Support 23% Architect & Engineering 5% Sales & Related 7% Business & Financial Ops 14% Management 8% A majority (84%) of Contingent job postings represent the seven occupations listed below Contingent Workforce│ Job Postings by Occupation Healthcare Practitioner & Technical 4% Computer & Math (IT) 23% Source: Monster Internal Data, Sept’09-Aug’10 10
  • 11. Contingent Workforce │ Most Common Job Posting Job Titles 1. Sales Representative 2. Customer Service Representative 3. Software Engineer 4. Administrative Assistant 5. Staff Accountant 6. Accounts Payable Clerk 7. Gift Wrapper 8. Business Systems Analyst 9. Project Manager 10. Java Developer 11. Financial Analyst 12. Software Quality Assurance Engineer 13. Programmer Analyst 14. Medical Billing Clerk 15. Sr. Software Engineer 16. Accounting Clerk 17. Local/Delivery Driver 18. Accounts Receivable Clerk 19. Sr. Accountant 20. Data Entry Clerk 21. Clinical Research Associate 22. Bookkeeper 23. Visual Basic Programmer 24. Web User Interface Designer 25. Credit Card Collections Specialist 26. Accountant 27. PC Technician 28. Data Warehouse Developer 29. Cost Accountant 30. Recruiter 31. Mortgage Loan Processor 32. Medical Records Clerk 33. Accounts Receivable/Payable Clerk 34. Bill Collector 35. Software Quality Assurance Analyst 36. Payroll Manager 37. Machine Operator 38. Office Manager 39. Database Architect 40. Payroll Clerk Source: Monster Internal Data, Sept’09-Aug’10 11
  • 12. 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 Source: Monster Internal Data, Sept’09-Aug’10 Contingent Workforce │ Top 10 Job Posting Locations 12
  • 13. Contingent Workforce │ Monster Demand By State Source: Monster Internal Data, Sept’09-Aug’10 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: 1. Delaware (38%) 2. Oregon (35%) 3. Washington (32%) 4. Kansas (29%) 5. North Carolina (29%) Looking nationally, Contingent job postings account for about 20% of all U.S. job postings 13 Contingent Workforce % of Total Job Postings High Midpoint Low
  • 15. Office & Admin Support 21% Architect & Engineering 6% Sales and Related Workers 4% Business & Financial Ops 9% Management 16% A majority (79%) of Contingent job seekers represent the seven occupations listed below Contingent Workforce │ Job Seekers by Occupation Arts, Design, Entertain, Sports, & Media 5% Computer & Math (IT) 18% Source: Monster Internal Data, Sept’09-Aug’10 15
  • 16. Contingent Workforce │ Most Common Job Seeker Job Titles 1. Administrative Assistant 2. Customer Service Representative 3. Project Manager 4. Software Engineer 5. Office and Administrative Support Workers, Other 6. Manager 7. Business Systems Analyst 8. Executive Administrative Assistant 9. Sales Representative 10. Clerk/Typist 11. Assistant Manager 12. Customer Service 13. Sr. Software Engineer 14. Financial Analyst 15. Graphic Designer 16. PC Technician 17. Accountant 18. Mechanical Engineer 19. Office Assistant 20. Programmer - Entry Level 21. Office Manager 22. Consultant 23. Software Quality Assurance Engineer 24. Receptionist 25. Staff Accountant 26. Software Quality Assurance Analyst 27. Information Technology Manager 28. Call Center Representative - Financial Services 29. Medical Assistant 30. Registered Nurse (RN) 31. Retail Salesperson 32. Records Management Analyst 33. Data Entry Clerk 34. Research Assistant 35. Programmer Analyst 36. Java Developer 37. Group Leader 38. Laborer 39. Systems Administrator 40. Consulting Manager Source: Monster Internal Data, Sept’09-Aug’10 16
  • 17. 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 Source: Monster Internal Data, Sept’09-Aug’10 Contingent Workforce │ Top 10 Job Seeker Locations 17
  • 18. Contingent Workforce │ Monster Supply By State Source: Monster Internal Data, Sept’09-Aug’10 The following locations or “hot spots” reported the highest share of Contingent job seekers as a percentage of total job seekers by state: 1. District of Columbia (13%) 2. Washington (11%) 3. Oregon (10%) 4. California (10%) 5. Virginia (9%) Looking nationally, Contingent job seekers account for 8% of all U.S. job seekers 18 Contingent Workforce % of Job Seekers by State High Midpoint Low
  • 19. Contingent Workforce │ Compensation 1 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 19 Source: Monster Internal Data, Sept’09-Aug’10
  • 21. Contingent Workforce │ Career Levels Source: Monster Internal Data, Sept ‘09-Aug‘10 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 21
  • 22. 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%) Source: Monster Internal Data, Sept’09-Aug’10 22
  • 23. 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 Source: Monster Internal Data, Sept’09-Aug’10 23
  • 24. 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 24
  • 25. View additional reports and articles at the Monster Resource Center: http://hiring.monster.com/hr/hr-best-practices.aspx 25
  • 26. 5 Clock Tower Place /// Suite 500 MAYNARD, MA 01754 Visit Monster or call your local Monster representative. 1-800-MONSTER /// 666-7837 www.monster.com