Q3 2013 Global Talent Market Quarterly


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This quarterly report from workforce solution provider Kelly Services delivers valuable insights about global labor market trends.

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Q3 2013 Global Talent Market Quarterly

  1. 1. Global Talent Market Quarterly THIRD QUARTER l 2013
  2. 2. Global Talent Market Quarterly CONTENTS 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 • Independent and International Contractors • How effective are your talent management strategies? • 2013 KGWI – Performance Based Pay • Kelly Knowledge
  3. 3. Global Economic Situation THIRD QUARTER l 2013
  4. 4. GLOBAL  ECONOMIC  BRIEFING     Global  economic  growth  remains  sluggish  in  2013,  constrained  by  ongoing  poli?cal  and  fiscal  issues  in  key  areas  including  the  U.S.,   Eurozone,  and  China.  A  soV  recovery  is  expected  to  take  hold  in  the  coming  months,  with  global  growth  set  to  accelerate  in  2014.   Source:  IHS  Global  Insight  (July  2013)  4   AMERICAS   Subdued  but  accelera:ng  growth  is  forecast  for  the  region   through  2015.  Brazil,  Mexico,  and  other  La:n  American   markets  are  expected  to  drive  regional  growth,  while  the   U.S.  and  Canada  will  see  more  moderate  expansion.     EMEA     Significant  challenges  to  growth  persist  in  the  region,  with   many  Eurozone  markets  ba]ling  recessionary  condi:ons,   and  poli:cal  and  social  turmoil  con:nuing  in  the  Middle   East.  Growth  outlooks  for  some  of  the  mature  economies,   including  Germany  and  the  U.K.,  are  more  favorable.   APAC   The  APAC  region  is  expected  to  con:nue  to  lead  global   growth,  driven  by  strong  domes:c  demand  in  Southeast   Asia.  China’s  economy  has  shown  signs  of  weakness  in   2013,  but  growth  will  s:ll  be  high  by  global  standards.   Moderate  growth  rates  are  projected  for  the  developed   APAC  economies  (Australia/NZ,  Japan).   2.5%   2.5%   3.5%   4.0%   4.7%   4.7%   5.4%   5.8%   -­‐0.5%   -­‐0.7%   0.6%   1.3%   2.7%   3.0%   3.8%   4.2%   2.2%   1.6%   2.7%   3.5%   -­‐2%   -­‐1%   0%   1%   2%   3%   4%   5%   6%   7%   2012  (e)   2013  (p)   2014  (p)   2015  (p)   REAL  GDP  GROWTH  BY  REGION,  2012-­‐2015  (p)   World     APAC   Eurozone   La?n  America     U.S.   Global Talent Market Quarterly BACK TO TABLE OF CONTENTS
  5. 5. ECONOMIC OUTLOOK Key emerging markets, while still leading global economic growth, have shown some softness in recent months. Meanwhile, the outlook in many of the large developed economies is brighter; these mature countries are expected to support global expansion in the short term. -2% 0% 2% 4% 6% 8% 10% Italy France Germany U.K. U.S. Canada Japan Australia Brazil Russia India China REAL GDP GROWTH RATES, SELECTED MARKETS Ranked by 2013(p) growth 2013(p) 2014(p) 2015(p) 5 Global GDP Growth 2013(p): 2.5% Sources: IHS Global Insight (July 2013); Reuters, 06.18.13 EMERGING MARKETS  CHINA’s economy is facing challenges from falling exports and the need for structural reforms. Growth is forecast at 7.5% in 2013—disappointing by China’s standards but still among the highest in the world—with strengthening seen through 2015.  Economic growth in INDIA is rebounding after a sharp deceleration in 2012. Boosting investment, continuing structural reforms, and favorable monetary policy are critical components of India’s return to historical growth rates.  RUSSIA’s economic engine is slowing in 2013, amid weaker demand and lower prices for exports, particularly natural resources. Acceleration is expected in 2014.  In BRAZIL, the global economic climate continues to constrain exports and high inflation is undermining consumer purchasing power, limiting GDP growth. Increased investment and infrastructure spending are expected to help drive the economy. DEVELOPED ECONOMIES  AUSTRALIA’s growth prospects for 2013 have been subdued by the domestic mining sector slowdown, weakness in China and ongoing European troubles. Economic activity is expected to gradually accelerate over the next two years.  Aggressive monetary stimulus and strong consumer spending has lifted JAPAN’s economic momentum in 2013. Future growth will be limited by the ongoing structural shift from manufacturing to services, as well as demographic challenges.  Economic growth in North America is expected to be moderate but improving in the short term, with domestic headwinds limiting growth in both the U.S. and CANADA.  Weak but accelerating growth is forecast for the U.K. and GERMANY, and the Eurozone economy has begun to stabilize. Still, recessionary conditions have expanded to some northern markets including the NETHERLANDS, BELGIUM, and FINLAND, and contractions in the southern periphery will extend through mid-2014. Global Talent Market Quarterly BACK TO TABLE OF CONTENTS
  6. 6. Global Labor Market Update THIRD QUARTER l 2013
  7. 7. GLOBAL  LABOR  MARKET  UPDATE:  AMERICAS     Although  some  headwinds  remain  in  2013,  the  outlook  is  largely  posi?ve  for  labor  markets  in  the  Americas,  as  an  improving  economic   forecast  supports  con?nued  hiring  ac?vity.  Unemployment  is  expected  to  con?nue  to  fall  in  most  key  markets.       Sources:  IHS  Global  Insight  (July  2013);    Reuters,  06.21.13;  Toronto  Star,  07.06.13   7   UNITED  STATES   Job  crea:on  was  rela:vely  strong  in  the  first  half  of  2013,  and  the   unemployment  rate  has  held  steady  despite  an  increased  labor  force.  The   labor  market  outlook  for  the  rest  of  2013  is  posi:ve,  but  the  extent  of   improvement  remains  highly  dependent  upon  macroeconomic  trends.   BRAZIL   Slower  economic  growth  has  diminished  the  pace  of  hiring  in  Brazil,  but  the   unemployment  rate  s:ll  remains  at  or  near  record  lows  as  businesses   con:nue  to  retain  workers  in  an:cipa:on  of  an  economic  rebound.   CANADA    Hiring  has  been  fairly  sluggish  in  2013  as  s:mulus  efforts  come  to  an  end   and  the  housing  market  has  slowed.  Employment  growth  is  expected  to  stay   muted  through  the  end  of  the  year  before  accelera:ng  in  the  near  term.   MEXICO   Moderate  economic  growth  and  labor  market  reforms  that  allow  for  more   hiring  and  firing  flexibility  will  con:nue  to  generate  demand  for  new   workers.  As  a  result,  formal  employment  growth  is  expected  to  accelerate.   8.1%   7.6%   7.2%   6.6%   5.5%   5.6%   5.5%   5.4%   7.3%   7.1%   7.0%   6.6%   5.0%   5.0%   4.4%   4.3%   3%   4%   5%   6%   7%   8%   9%   2012   2013  (e)   2014  (p)   2015  (p)   AVERAGE  ANNUAL  UNEMPLOYMENT  RATE   U.S.   Brazil   Canada   Mexico   Global Talent Market Quarterly BACK TO TABLE OF CONTENTS
  8. 8. GLOBAL  LABOR  MARKET  UPDATE:  EMEA     The  employment  situa?on    in  many  EMEA  countries  is  expected  to  remain  challenging  in  the  short-­‐  to  medium-­‐term,  par?cularly  in  the   Eurozone  as  it  struggles  to  climb  out  of  recession.    Labor  market  bright  spots  include  the  U.K.  and  Germany.   Sources:  IHS  Global  Insight  (July  2013);  Reuters,  06.12.13,  06.26.13     8   GERMANY   The  German  labor  market  con:nues  to  outperform  most  others  in  the   region,  and  renewed  economic  growth  should  drive  down  unemployment   even  further  during  the  remainder  of  2013  and  beyond.   FRANCE   Unemployment  remains  at  a  record  high  level  in  France,  with  further   deteriora:on  predicted  through  2014,  as  ongoing  weak  business  and   consumer  ac:vity  is  expected  to  weigh  on  employment  crea:on.   UNITED  KINGDOM   A  more  favorable  economic  outlook  is  boos:ng  the  forecast  for  the  U.K.   labor  market.  Private  sector  job  growth  is  expected  to  be  slow  but  steadily   increasing,  nudging  the  unemployment  rate  down  in  the  coming  years.     RUSSIA   The  gradual  pace  of  declining  unemployment  is  expected  to  persist  in  the   coming  years,  as  the  private  sector  will  create  jobs  but  demographic  issues   and  public  sector  :ghtening  are  expected  to  limit  employment  growth.   6.8%   6.8%   6.6%   6.3%   10.2%   10.9%   11.2%   11.1%   7.9%   7.8%   7.6%   7.3%   5.5%   5.4%   5.2%   5.0%   3%   4%   5%   6%   7%   8%   9%   10%   11%   12%   2012   2013  (e)   2014  (p)   2015  (p)   AVERAGE  ANNUAL  UNEMPLOYMENT  RATE   Germany   France   U.K.   Russia   Global Talent Market Quarterly BACK TO TABLE OF CONTENTS
  9. 9. GLOBAL  LABOR  MARKET  UPDATE:  APAC     Employment  prospects  vary  across  APAC  countries,  as  labor  markets  con?nue  to  adjust  to  the  challenging  global  economic  climate  and   slowdowns  in  key  markets  including  China,  India,  and  Australia.       Sources:  IHS  Global  Insight  (July  2013)  ;  Xinhua  Economic  News  Service,  07.16.13;  Times  of  India,  06.11.13;  India  Infoline,  06.21.13;  Nikkei  Weekly,  07.01.13;  Market  News  Interna:onal,  06.28.13   9   CHINA   China’s  labor  market  remained  rela:vely  stable  in  the  first  half  of  2013   despite  a  slowdown  in  the  economy.  Maintaining  a  steady  pace  of  job   crea:on  going  forward  will  be  cri:cal,  par:cularly  in  light  of  the  record-­‐high   of  nearly  7  million  college  students  entering  the  workforce  this  year.   JAPAN   The  jobless  rate  has  remained  steady  and  employment  demand  con:nues  to   improve,  par:cularly  in  professional  and  consumer-­‐related  sectors,   underscoring  the  view  that  the  Japanese  economy  is  steadily  recovering.   INDIA   Unemployment  remains  high  and  job  crea:on  has  stagnated,  as  employers   have  been  hesitant  to  hire  in  the  face  of  lower  domes:c  and  global  growth.     The  employment  outlook  is  brightest  for  the  trade  and  services  sectors.   AUSTRALIA   Vola:le  hiring  trends  and  a  climbing  unemployment  rate  suggest  that  the   Australian  labor  market  is  struggling  to  adjust  to  the  slowdown  in  the  mining   sector.  Demand  for  workers  will  improve  as  the  economic  picture  brightens.   4.1%   4.1%   4.0%   3.9%   4.3%   4.2%   4.2%   4.3%   8.8%   8.6%   8.3%   7.9%   5.2%   5.6%   5.5%   4.9%   3%   4%   5%   6%   7%   8%   9%   2012   2013  (e)   2014  (p)   2015  (p)   AVERAGE  ANNUAL  UNEMPLOYMENT  RATE   China   Japan   India   Australia   Global Talent Market Quarterly BACK TO TABLE OF CONTENTS 9
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  11. 11. GLOBAL  LEGISLATIVE  UPDATE     As  tradi?onal  and  rigid  views  on  employment  are  replaced  by  a  growing  acceptance  of  more  agile  workstyles,  countries  con?nue  to   implement  legisla?on  making  labor  markets  more  flexible  and  manda?ng  equal  treatment  for  all  workers.  Other  significant  recent   legisla?ve  ac?on  addresses  issues  related  to  health  benefits,  immigra?on,  and  employee  training.   Sources:  SIA  Daily  News,  05.15.13,  06.21.13,  07.02.13;  SIA  ROW  Legs  &  Regs  Advisor,  May  2013;  SIA  WE  Legs  &  Regs  Advisor,  April  2013;  SHRM,  04.15.13;  Lexology,  07.02.13   11   VIETNAM   A  new  regula:on  recognizes  and  provides  rules   for  the  prac:ce  of  temporary  labor  provision.   Temporary  staffing  will  only  be  permi]ed  in  17   fields,  and  only  for  a  maximum  period  of  12   months.  The  law  also  introduces  a  pay  equality   requirement  for  temporary  workers.     PHILIPPINES   Two  new  labor  laws  give  workers  more  say  in   how  they  are  treated.  The  first  mandates  that   employers,  employees  and  the  government  be   involved  in  sesng  na:onal  labor  policies.  The   second  law  requires  concilia:on,  or  media:on   and  arbitra:on  sessions,  in  all  labor  disputes.     SOUTH  AFRICA   Parliament  voted  to  require  employers  to  treat  all   temporary,  fixed-­‐contract  and  part-­‐:me  workers  on   an  equal  basis  aier  three  months.  In  protest  to  the   ruling,  the  Congress  of  South  African  Trade  Unions   has  called  for  a  ban  on  temporary  labor.   BRAZIL   New  resolu:ons  will  streamline  work-­‐visa   applica:on  procedures  and  create  new  work   visas  for  graduate  students.  The  new  laws  are   intended  to  a]ract  high-­‐skilled  foreign  workers   to  help  ease  talent  shortages  in  key  areas.   FRANCE   Parliament  passed  a  significant  labor  reform   which  includes  measures  to  make  it  easier   for  workers  to  change  jobs  and  for   companies  to  dismiss  employees.  The   reform  allows  companies  to  temporarily  cut   workers'  salaries  or  hours  during  :mes  of   economic  difficulty.   GERMANY   Three  collec:ve  agreements  will  gradually   raise  pay  for  temporary  agency  workers  in   the  following  sectors:  tex:le/clothing,   railway/  transport,  and  wood/plas:cs.  The   agreements  came  into  force  in  April  2013   and  will  be  valid  un:l  December  2017.   U.S.   Penal:es  for  employers  who  do  not   provide  health  insurance  for  their   workers  as  mandated  by  the   Affordable  Care  Act  will  now  take   effect  in  2015,  rather  than  in  2014.   MEXICO   Under  an  addi:onal  amendment  to  the  federal   labor  law,  Mexico  employers  must  implement   training  programs  for  employees  or  face  fines.   Employers  have  un:l  September  15,  2013,  to   come  into  full  compliance.  The  new  federal   labor  law,  which  came  into  effect  in  late  2012,   makes  hiring  and  firing  easier  in  an  effort  to   encourage  labor  market  flexibility.   Global Talent Market Quarterly BACK TO TABLE OF CONTENTS
  12. 12. U.S. Labor Market Overview THIRD QUARTER l 2013
  13. 13. SOLID  EMPLOYMENT  GAINS  IN  H1  2013   The  U.S  labor  market  con:nued  to  create  jobs   at  a  healthy  pace  in  June,  with  employers   adding  195,000  workers  to  their  payrolls,   similar  to  the  revised  employment  growth   figures  posted  in  the  previous  two  months.   Over  the  first  half  of  2013,  the  country  has   added  more  than  1.2  million  jobs.   The  unemployment  rate,  which  was  7.6%  in   June,  has  remained  largely  unchanged  over  the   past  few  months.  However,  the  U.S.  labor   force  grew  by  more  than  800,000  people  in  the   second  quarter  of  2013,  sugges:ng  that  the   economy  finally  may  be  genera:ng  enough   jobs  to  absorb  addi:onal  workers.     Consumer-­‐driven  sectors  including  retail  trade     and  leisure/hospitality  helped  drive  job  gains  in   the  first  half.  Professional  and  business   services  employment  also  grew  strongly,   accoun:ng  for  nearly  a  third  of  jobs  added   since  January.  The  sequester  has  kept  federal   government  employment  on  a  nega:ve  trend,   with  a  loss  of  46,000  jobs  so  far  in  2013.     U.S.  EMPLOYMENT  CONDITIONS     EMPLOYMENT  OVERVIEW   13   Source:  U.S  Bureau  of  Labor  Sta:s:cs;  IHS  Global  Insight   U.S.  MONTHLY  EMPLOYMENT  CHANGE  AND  UNEMPLOYMENT  RATE   6.0   7.0   8.0   9.0   10.0   0   100   200   300   400   Jun  11   Jul  11   Aug  11   Sep  11   Oct  11   Nov  11   Dec  11   Jan  12   Feb  12   Mar  12   Apr  12   May  12   Jun  12   Jul  12   Aug  12   Sep-­‐12   Oct-­‐12   Nov-­‐12   Dec-­‐12   Jan  13   Feb  13   Mar  13   Apr  13   May  13   Jun  13   Unemployment  Rate  (%)   Employment  (000s)   Total  non-­‐farm  employment  growth   Unemployment  rate   WILL  THE  POSITIVE  TRENDS  CONTINUE?   In  the  first  half  of  2013,  unemployment  con:nued  to  edge  down  and  job  crea:on  finally  reached  the  benchmark  level  of  200,000  per  month,  a  rather   resilient  performance  considering  the  substan:al  economic  headwinds  both  in  the  U.S.  and  globally.  A  cri:cal  ques:on  is  whether  the  country’s   employers  will  be  able  to  sustain  the  pace  of  hiring  in  the  second  half  of  the  year.  IHS  Global  Insight  predicts  that  the  U.S.  economy  will  add  2.1   million  jobs  overall  in  2013,  sugges:ng  somewhat  slower  gains  in  the  second  half,  but  employment  growth  is  forecast  to  gain  trac:on  in  2014  and   2015  as  the  economy  picks  up  speed.     JAN   FEB   MAR   APR   MAY   JUN   Total  non-­‐farm  employment  growth   148K   332K   142K   199K   195K   195K   Private  sector  employment  growth   164K   319K   188K   157K   207K   202K   Unemployment  rate   7.9%   7.7%   7.6%   7.5%   7.6%   7.6%   Global Talent Market Quarterly BACK TO TABLE OF CONTENTS
  14. 14. U.S.  LABOR  MARKET:  SUPPLY  AND  DEMAND     “Labor  demand  in  the  first  half  of  this  year  has  been  disappoin:ng.”     —    June  Shelp,  Vice  President,  The  Conference  Board,  July  3,  2013   14   U.S.  MARKET  -­‐  MONTHLY  LABOR  DEMAND  VS.  LABOR  SUPPLY   Sources:  Conference  Board  Help  Wanted  OnLine,  Bureau  of  Labor  Sta:s:cs   Unemployed  Workers   (in  thousands)   Online  Job  Ads     (in  thousands)   0   1000   2000   3000   4000   5000   6000   7000   8000   9000   10000   0   2000   4000   6000   8000   10000   12000   14000   16000   18000   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   #  of  Unemployed  Workers   #  of  Online  Job  Ads   JOB  DEMAND  UNEVEN  IN  H1  2013   Demand  for  workers  has  been  somewhat  vola:le   in  the  first  half  of  2013,  with  gains  in  June,  April,   and  January  offset  by  declines  in  job  ads  in  the   other  months.  Overall,  online  job  ad  growth  has   averaged  just  over  800  per  month  thus  far  in   2013.  The  supply/demand  ra:o  stands  at  2.4,   meaning  that  there  are  more  than  two   unemployed  workers  in  the  U.S.  for  each  online   vacancy.  S:ll,  labor  demand  is  near  5  million  ads,   close  to  an  all-­‐:me  high  and  above  the  pre-­‐ recession  peak  of  4.3  million.   PROFESSIONAL  DEMAND  HIGH  BUT  SLOWING   Online  demand  has  declined  slightly  this  year  for   many  high-­‐wage  professional  occupa:ons,   including  healthcare,  architecture,  business  and   finance,  and  computer  workers.  S:ll,  the  talent   balance  is  very  :ght  for  professional  jobs,  as   most  of  these  occupa:ons  have  supply/demand   ra:os  of  less  than  one.  Construc:on,  educa:on,   legal,  food  service,  and  transporta:on  jobs  have   been  among  the  leaders  in  demand  growth  in   the  first  half  of  2013.     Global Talent Market Quarterly BACK TO TABLE OF CONTENTS
  15. 15. U.S. LABOR MARKET SPOTLIGHT: STEM TALENT SHORTAGES 15 Sources: EMSI, May 28, 2013; New York Times, May 22, 2013; American Society for Engineering Education; How to Find (and Keep) STEM Talent, Kelly Services 41% ENOUGH STEM WORKERS? Is there a shortage of STEM (science, technology, engineering and math) workers in the United States? A recent report by the Economic Policy Institute ignited discussion when it concluded that the country has a “more than sufficient supply” of people with STEM skills who are available to work. But other experts claim that the US has a serious deficiency of workers with the technical background and skills necessary to drive innovation and economic growth. In any case, demand for STEM-qualified workers is expected to continue to accelerate, increasing the tight labor market conditions for these critical skill sets. In the U.S., demand for STEM professionals is expected to increase 17% from 2010 to 2020—adding nearly 1.3 million new STEM jobs to the workforce. FOREIGN-BORN STEM WORKERS Central to the skills shortage debate is the role of foreign students and workers in STEM fields. A significant percentage of STEM graduates from U.S. universities are foreign-born—particularly at advanced degree levels. More than 40% of all STEM doctorates in the U.S., and more than half of all engineering PhDs, are awarded to foreign students, according to research from labor market forecasting specialist EMSI. But only around a third of foreign students end up staying in the country on temporary work visas. This issue is expected to continue to gain attention as Congress considers proposed immigration reform. The current proposal would increase the number of temporary H1-B visas for skilled workers, along with other provisions intended to attract more immigrants with STEM and other high-level skills. Proponents of the bill say that foreign workers are helping to fill the talent gaps in STEM positions; opponents claim that letting in more foreign workers depresses wages and discourages US students and workers from STEM fields. 43% 37% 11% 54% 44% 19% PhD Master's All Degrees PERCENT OF DEGREES AWARDED TO FOREIGN-BORN STUDENTS All STEM fields Engineering 22% 10% 15% 17% Technology (IT/Computer) Architecture & Engineering Science Mathematics STEM PROJECTED EMPLOYMENT GROWTH, 2010-2020 STEM Jobs Average 17% Global Talent Market Quarterly BACK TO TABLE OF CONTENTS
  16. 16. Workforce Solutions Industry Insight THIRD QUARTER l 2013
  17. 17. INDEPENDENT—AND  INTERNATIONAL—CONTRACTORS       Independent  contractors  (ICs)  have  become  an  integral  part  of  many  organiza?ons’  con?ngent  workforces,  as  companies  and  workers   alike  con?nue  to  embrace  more  flexible  and  non-­‐tradi?onal  workstyles.    One  benefit  of  using  this  type  of  free  agent  talent:  work  is  no   longer  ?ed  to  a  specific  loca?on.  As  such,  more  companies  are  using  IC  talent  from  around  the  globe  to  meet  their  needs.   17   Sources:  State  of  the  Freelance  Market,  Elance,  09.2012;  Global  Business  Survey  2012,  Elance;  Online  Staffing  on  the  Global  Stage,  Staffing  Industry  Analysts,  01.30.13   23%   FREELANCE  WORK  IS  A  GLOBAL  PHENOMENON   While  the  US  and  other  developed  economies  s:ll  lead  the  list  in  terms  of  client  spend   on  ICs,  emerging  economies  are  also  increasingly  turning  to  independent  contractors.     According  to  the  online  IC  service  oDesk,  the  fastest  growing  countries  in  terms  of  client   spend  are  Ukraine,  Russia,  India,  Malaysia,  and  China.  Nearly  40%  of  oDesk’s  client   spend  now  comes  from  outside  the  U.S.,  up  from  22%  in  2007.   Much  of  the  freelance  talent  on  online  IC  services  also  comes  from  advanced  economies   such  as  the  US  and  UK,  but  other  countries  such  as  India,  Pakistan,  and  Ukraine  are  also   key  sources  of  ICs.  This  talent  is  primarily  young  (nearly  half  of  the  independent   contractors  on  the  online  marketplace  Elance  are  Millenials)  and  well-­‐educated  (around   three-­‐quarters  possess  a  bachelor’s  degree  or  higher).  And  most  of  them  don’t  care   where  their  next  job  is  coming  from:  78%  of  Elance  contractors  say  they  have  no   preference  as  to  the  country  in  which  their  clients  are  located.       TOP   COUNTRIES:     Freelance   Client  Spend   FASTEST   GROWING   COUNTRIES:   Freelance   Client  Spend   TOP   COUNTRIES:     Freelance   Workers   •  US   •  Australia   •  UK   •  Canada   •  UAE   •  Ukraine   •  Russia   •  India   •  Malaysia   •  China   •  India   •  US   •  Pakistan   •  Ukraine   •  Philippines   •  UK   Top  countries  based  on  combined  data  from  Elance  and  oDesk,  2012/13;  fastest-­‐ growing  countries  based  on  oDesk  spend  data  only,  2010-­‐2012  CAGR   78%   12%   10%   FREELANCER  PREFERENCE:  CLIENT  LOCATION     No  Preference   Same  Country  As  Me   Different  Country  From  Me   47%   38%   14%   <1%   FREELANCERS  BY  GENERATION   Millenial  (1981-­‐ present)   Genera:on  X   (1965-­‐1980)   Baby  Boomer   (1940-­‐1964)   Silent  Genera:on   (pre-­‐1940)   9%   24%   42%   5%   12%   8%   FREELANCERS  BY  EDUCATION   Doctorate/   Professional  Degree   Master's  Degree   Bachelor's  Degree   Associate's  Degree   Some  College   High  School/  Trade   School   Global Talent Market Quarterly BACK TO TABLE OF CONTENTS
  18. 18. HOW  EFFECTIVE  ARE  YOUR  TALENT  MANAGEMENT  STRATEGIES?     In  a  recent  survey,  corporate  directors  iden?fied  talent  management  as  the  single  greatest  strategic  challenge  facing  their   organiza?ons  today.  But  despite  the  perceived  importance,  the  vast  majority  of  board  members  say  that  their  companies  are  not   highly  effec?ve  at  any  aspect  of  talent  management.   18   Source:  Talent  Management:  Boards  Give  Their  Companies  an  “F”,  hbr.org,  05.28.13   23%   A  recent  survey  asked  over  1000  board   members  across  the  globe  to  rate  their   companies’  performance  across  nine   dimensions  of  talent  management.  The  findings   show  that  most  companies  are  falling  well   short  in  all  areas  of  talent  management,  with   the  worst  performances  in  the  areas  of   dismissing  employees  and  leveraging  diversity.     Regional  differences  in  talent  management   effec:veness  are  also  apparent.  Board   members  in  Australia/New  Zealand  and  North   America  give  their  companies  the  highest   marks  on  talent  management  prac:ces,  while   in  Eastern  Europe  and  Russia,  no  respondents   rated  their  companies  as  very  effec:ve  in  four   of  the  nine  talent  categories.     While  board  members’  increased  awareness  of   the  impact  of  talent  management  is  a  hopeful   sign,  there  remains  much  room  for   improvement  in  talent  strategy  execu:on.   Boards  must  next  consider  how  they  can  help   their  organiza:ons  build  and  implement  be]er   talent  management  processes  and  prac:ces.       0%   5%   10%   15%   20%   25%   30%   35%   Aurac?ng  top   talent   Hiring  top  talent   Assessing  talent   Developing   talent   Rewarding  talent  Retaining  talent   Firing   Leveraging   diversity   Aligning  talent   strategy  w/   business  strategy   PERCENT  OF  BOARD  MEMBERS  WHO  STRONGLY  AGREE  THEIR  ORGANIZATION  IS  EFFECTIVE  AT…   North  America   Western  Europe   Eastern  Europe/  Russia   Asia   Australia/NZ   TALENT  MANAGEMENT  CHALLENGES     Global Talent Market Quarterly BACK TO TABLE OF CONTENTS
  19. 19. 2013  KGWI:  PERFORMANCE-­‐BASED  PAY     Performance-­‐based  compensa?on  is  gathering  momentum  across  the  globe,  according  to  the  2013  Kelly  Global  Workforce  Index   (KGWI).    Par?cularly  in  fast-­‐growing  emerging  markets,  many  employees  say  they  are  willing  to  accept  some  element  of  risk  or   uncertainty  in  their  salaries  in  return  for  the  opportunity  to  meet  benchmarks  that  will  trigger  performance  bonuses.     19   Source:  Kelly  Global  Workforce  Index  2013.     Performance-­‐based  pay  includes  any  arrangement  where  an  element  of  the  total  remunera:on  package  is  :ed  to  mee:ng  performance  targets  and  may  include,  profit  sharing,  performance  bonuses  and  sales  commissions.   23%  MORE  THAN  FOUR  IN  TEN  GLOBAL  WORKERS  RECEIVE  SOME   FORM  OF  VARIABLE  PAY   Performance-­‐based  compensa:on  is  most  common  in  the  robust   economies  of  the  APAC  region,  where  nearly  60%  of  respondents   receive  some  kind  of  incen:ve  pay.  The  highest  incidence  of   performance-­‐based  pay  is  in  China,  Indonesia,  Thailand,  and   Malaysia,  where  around  three-­‐quarters  of  workers  say  that  their   compensa:on  is  variable.   Conversely,  less  than  40%  of  workers  in  both  the  Americas  and   EMEA  regions  have  variable  pay  structures;  the  prac:ce  is  least   common  in  the  US,  UK,  Ireland,  Australia,  and  the  Nordic  countries.       59%   39%   36%   APAC   EMEA   Americas   Global  Average:  44%   KEY  MARKETS   China  (75%)   Indonesia  (75%)   Malaysia  (72%)   India  (67%)   Australia  (29%)   Russia  (70%)   Poland  (55%)   Germany  (43%)   France  (36%)   UK  (30%)   Brazil  (48%)   Puerto  Rico  (47%)   Mexico  (47%)   Canada  (40%)   US  (32%)   56%   44%   41%   APAC   Americas   EMEA   WOULD  YOU  PERFORM  BETTER  IF  YOUR  PAY   WAS  TIED  TO  YOUR  PERFORMANCE?  (%  YES)   Global  Average:  46%   IS  ANY  OF  YOUR  PAY  DEPENDENT  ON  INDIVIDUAL  PERFORMANCE  TARGETS?   VARIABLE  PAY  SCALES  WOULD  ELEVATE  PERFORMANCE     Among  those  respondents  not  receiving  performance-­‐based  pay,  there   is  a  strong  view  that  they  would  perform  at  a  higher  level  if  they  were  to   switch  to  such  an  arrangement.     Nearly  half  of  workers  globally  say  they  would  perform  at  a  higher  level   with  performance  pay;  the  greatest  interest  is  again  in  the  APAC  region   (56%),  followed  by  the  Americas  (44%)  and  EMEA  (41%).   Global Talent Market Quarterly BACK TO TABLE OF CONTENTS
  20. 20. Kelly  offers  a  complete  content  library  that  advances  the  discussion  and  thinking  around  current  trends,  strategies,  and  issues   impac?ng  global  talent  management.     To  register  for  webcasts  or  for  more  informa:on,  visit  www.kellyocg.com   Download  The  Talent  Project,  a  free  iPad  ®  app  by  Kelly  Services.   TITLE   PRESENTED  BY:   DESCRIPTION   4  Reasons  to   Improve  Employee   Engagement   Anthony  Raja  Devadoss,  Vice   President    -­‐    APAC,  KellyOCG   Thomas  McCoy,  Director  -­‐  The   Employee  Engagement  Ins:tute   It  is  possible  to  create  a  highly  engaged  workforce  quickly,  easily  and   without  dispropor:onate  investment  in  :me,  money  or  technology.   In  this  webcast,  our  experts  share  4  reasons  to  improve  employee   engagement  as  well  as  :ps  to  get  you  started.   Reconstruc?ng   Leadership   Chris  Jock,  Vice  President  -­‐  Global   BPO  Prac:ce  Lead,  Kelly  OCG   Read  this  whitepaper  to  understand  how  the  cri:cal  quali:es  of   leadership  are  at  the  same  :me  constant  and  also  evolving  to  adapt   to  today’s  marketplace,  and  how  modern  workplace  leaders  can   keep  strategies  real  and  relevant.     Remote  Work   Under  the   Microscope   Linda  Stuit,  Vice  President  -­‐  Global   Solu:ons,  Kelly  Services   Recent  policy  shiis  in  high-­‐profile  corporate  America  have  ignited  a   na:onal  debate  about  workplace  flexibility.  This  e-­‐book  explores   trends  in  remote  working,  and  discusses  the  balances  and  benefits  to   both  organiza:ons  and  employees.   20   KELLY  KNOWLEDGE     Global Talent Market Quarterly BACK TO TABLE OF CONTENTS
  21. 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. Y1079 kellyservices.com