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Global Talent Market Quarterly FIRST QUARTER l 2013

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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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Page 1: Q1 2013 Global Talent Market Quarterly

Global Talent Market QuarterlyFIRST QUARTER l 2013

Page 2: Q1 2013 Global Talent Market Quarterly

Global Talent Market Quarterly

CONTENTS

3 Global Economic Situation •Briefing

•Outlook

6 Global Labor Market Update •Americas

•EMEA

•APAC

•GlobalLaborMarketSpotlight

•LegislativeUpdate

12 U.S. Labor Market Overview •CurrentEmploymentConditions

•SupplyandDemand

•LaborMarketSpotlight

16 Workforce Solutions Industry Insight •BuildingaPipelineofSkilledWorkers

•TheHighlyVirtualWorkplace

•KellyKnowledge

Page 3: Q1 2013 Global Talent Market Quarterly

Global Economic SituationFIRST QUARTER l 2013

Page 4: Q1 2013 Global Talent Market Quarterly

GLOBAL  ECONOMIC  BRIEFING  

 The  global  economy  slowed  in  2012,  as  ongoing  fiscal  tensions  in  Europe  and  the  U.S.  and  soSening  in  key  Asian  markets  kept  business  and  consumer  ac>vity  muted.  Confidence  is  star>ng  to  rebound  in  many  parts  of  the  world,  albeit  unevenly,  as  2013  begins.  

AMERICAS  Economic  growth  across  the  region  is  >ed  to  U.S.  and  global  performance,  with  tepid  growth  in  2012  expected  to  con>nue  in  2013.  

Canada  Economic  growth  in  Canada  mirrored  that  of  the  U.S.  in  2012,  with  a  strong  beginning  to  the  year  tapering  off  by  year’s  end.  The  outlook  for  2013  is  slightly  weaker,  as  external  risks  may  weigh  on  the  economy’s  performance.    

U.S.  The  U.S.  economy  maintained  moderate  growth  in  2012,  boosted  by  strength  in  the  private  sector  and  indica:ons  of    recovery  in  the  housing  market.  Public  sector  finances,  however,  remain  a  key  ques:on  and  may  compromise  growth  in  2013.  

La>n  America  The  region’s  economies  are  healthy  but  most  are  not  forecast  to  see  significant    GDP  accelera:on  in  2013  as  trade  demand  remains  low.  The  excep:on  is  Brazil,  which  is  expected  to  rebound  from  a    very  weak  performance  in  2012  to  achieve  3%  growth  in  2013.      

   

EMEA    A  s>ll-­‐weak  economic  climate  in  the  Eurozone  is  dampening  the  regional  outlook  for  2013.  

Eurozone  The  Eurozone  recession  may  have  boVomed  out  in  late  2012,  helped  by  policy  developments  that  brought  some  easing  to  the  debt  crisis.  S:ll,  the  region  will  struggle  in  2013,  as  rela:vely  stronger  countries  such  as  Germany  will  be  dragged  down  by  troubled  markets  including  Italy  and  Spain.  

U.K.  Economic  growth  was  essen:ally  flat  in  2012,  and  the  outlook  for  2013  is  only  slightly  beVer.  Growth  will  be  constrained  by  extended  :ght  domes:c  fiscal  policy,  ongoing  Eurozone  problems,  and  the  soY  global  economic  climate.  Central  and  Eastern  Europe  The  cooler  external  economic  environment  kept  growth  muted  in  2012.  A  slight  accelera:on  is  expected  for  the  broader  CEE  region  in  2013;  Russian  GDP  growth  will  remain  around  3.5%.  

Middle  East  and  North  Africa  Many  MENA  economies  are  facing  challenging  growth  prospects  in  2013  due  to  ongoing  poli:cal  unrest  and  social  turmoil,  and  the  cool  global  economic  climate.  

APAC  While  strong  compared  to  other  economies,  APAC  economic  growth  was  rela>vely  soS  in  2012.  Improvement  is  expected  in  2013  in  some  key  markets  including  China  and  India.  

Japan  Japan’s  economic  performance  declined  in  late  2012,  as  a  poli:cal  feud  with  China  dampened  exports  and  a  slowdown  in  government  s:mulus  muted  domes:c  spending.  Growth  is  expected  to  rebound  by  the  end  of  2013.  

China  The  economy  is  expected  to  con:nue  to  accelerate  in  2013,  aYer  2012  growth  of  under  8%—the  lowest  China  has  seen  since  1999.    

India  Growth  in  2012  was  es:mated  at  just  over  5%.  While  high  by  global  standards,  this  was  the  country’s  slowest  growth  in  a  decade  and  is  expected  to  pick  up  only  modestly  in  2013.  

Australia  The  mining  sector,  which  has  been  Australia’s  growth  engine  in  recent  years,  has  seen  some  weakening.  This  slowdown,  along  with  ongoing  government  austerity  programs,  is  expected  to  usher  in  lower  economic  performance  in  2013.  

   

Sources:  IHS  Global  Insight  reports  (January  2013);  D&B’s  Global  Economic  Outlook  2012-­‐2013;  Oxford  Economics;  US  BEA,  12.20.12;  Wall  Street  Journal,  12.10.12  and  01.21.13  4  

Global Talent Market Quarterly

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Global Talent Market Quarterly

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Global Labor Market UpdateFIRST QUARTER l 2013

Page 7: Q1 2013 Global Talent Market Quarterly

GLOBAL  LABOR  MARKET  UPDATE:  AMERICAS  

 Job  crea>on  is  expected  to  maintain  a  solid  pace  across  much  of  the  Americas  region  in  2013,  despite  the  forecast  for  somewhat  sluggish  economic  condi>ons.  The  steady  hiring  momentum  should  begin  to  spur  more  significant  declines  in  unemployment  in  2014.  

UNITED  STATES  Monthly  employment  gains    averaged  just  150,000  in  both  2011  and  2012.  AYer  two  years  of  mediocre  hiring,  the  U.S.  labor  market  is  expected  to  pick  up  the  pace  and  add  over  two  million  jobs  in  2013.  

 

BRAZIL  Despite  sluggish  economic  growth,  the  Brazilian  economy  con:nued  to  create  jobs  in  2012,  with  unemployment  falling  to  near  record  lows.  Hiring  is  expected  to  con:nue  as  the  economy  strengthens  in  2013.    

CANADA  Canada’s  labor  market  finished  2012  on  a  high  note,  with  nearly  100,000  jobs  added  in  the  last  two  months  and  unemployment  falling  to  a  four-­‐year  low.  Slower  economic  growth  may  temper  employment  gains  in  2013.  

MEXICO  A  solid  economy  will  con:nue  to  create  demand  for  workers  in  the  formal  labor  market  and  lower  the  official  unemployment  rate.  Formal  employment  only  accounts  for  around  a  third  of  the  labor  force  in  Mexico,  however.  

Sources:  IHS  Global  Insight  reports  (January  2013);    Reuters,  12.21.12;  Globe  and  Mail,  01.04.13  

8.1%  

5.6%  

7.3%  

4.8%  

7.7%  

5.5%  

7.3%  

4.6%  

7.3%  

5.3%  

7.0%  

4.3%  

0%  

2%  

4%  

6%  

8%  

10%  

U.S.   Brazil   Canada   Mexico  

Average  Annual  Unemployment  Rate  

2012  (e)  

2013  (p)  

2014  (p)  

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GLOBAL  LABOR  MARKET  UPDATE:  EMEA  

 Job  prospects  in  the  Eurozone  remain  very  weak  as  employers  con>nue  to  trim  payrolls  as  a  result  of  diminished  demand.  Labor  markets  in  some  countries,  including  Germany,  Russia,  and  the  U.K,  have  shown  surprisingly  ligle  nega>ve  effects  from  the  downturn.  

GERMANY  Hiring  was  up  slightly  in  2012  as  the  labor  market  remained  rela:vely  resilient  despite  the  region’s  economic  woes.  Ongoing  effects  from  the  crisis  are  expected  to  nudge  the  unemployment  rate  up  in  2013,  however.    

FRANCE  Unemployment  accelerated  in  France  in  2012  and  is  expected  to  con:nue  to  intensify  as  business  condi:ons  remain  weak.  Although  the  government  has  pledged  to  make  jobs  its  key  priority,  liVle  recovery  is  seen  un:l  late  2014.  

UNITED  KINGDOM  The  U.K.  labor  market  con:nues  to  perform  beVer  than  expected  in  light  of  the  economic  situa:on.  Unemployment  is  forecast  to  edge  up  in  2013  as  private  hiring  is  not  likely  to  offset  ongoing  public  sector  job  cuts.  

RUSSIA  Russia  achieved  record-­‐low  unemployment  levels  in  2012,  a  trend  that  is  expected  to  persist  along  with  moderate  economic  growth  through  2014.    

ITALY  Hiring  demand  is  expected  to  con:nue  to  weaken  and  unemployment  will  accelerate  throughout  2013  as  the  country  struggles  through  recession.  

Sources:  IHS  Global  Insight  reports  (January  2013);    dw.de,  01.03.13;  Wall  Street  Journal,  01.11.13  and  12.12.12  

6.8%  

10.3%  

8.0%  

5.7%  

10.7%  

7.0%  

10.9%  

8.1%  

5.4%  

11.4%  

6.8%  

10.7%  

8.2%  

5.2%  

11.3%  

0%  

2%  

4%  

6%  

8%  

10%  

12%  

Germany   France   U.K.   Russia   Italy  

Average  Annual  Unemployment  Rate  

2012  (e)  

2013  (p)  

2014  (p)  

8  

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GLOBAL  LABOR  MARKET  UPDATE:  APAC  

 Regional  labor  markets  weakened  in  2012  as  the  uncertain  global  economy  constrained  business  ac>vity  and  dampened  demand  for  exports.  Hiring  in  APAC  countries  will  remain  subdued  in  2013,  with  improvements  seen  in  2014  as  economic  growth  rebounds.    

JAPAN  The  Japanese  labor  market  held  up  reasonably  well  in  2012  despite  a  weakening  economy,  as  declines  in  manufacturing  jobs  were  offset  by  gains  in  the  construc:on  and  healthcare  areas.  The  outlook  for  2013  is  not  as  favorable.  

CHINA  China’s  ci:es  created  around  12  million  jobs  in  2012,  and  economic  growth  should  sustain  hiring  in  2013.  Despite  ongoing  rural  immigra:on,  aging  combined  with  the  one-­‐child  policy  caused  China’s  labor  force    to  shrink  in  2012.  This  trend  is  expected  to  intensify  skills  shortages  in  the  future.    

INDIA  Youth  unemployment  and  underemployment  remain  a  significant  issue  in  India,  but  opportuni:es  in  professional  careers  are  growing  for  young  Indian  workers.  

AUSTRALIA  The  labor  market  showed  signs  of  weakness  to  close  2012,  with  a  rise  in  unemployment  and  a  net  job  loss  in  December.  Sluggishness  is  expected  to  persist  in  2013  as  demand  levels  remain  low.  

Sources:  IHS  Global  Insight  reports  (January  2013);  Reuters,  01.16.13  and  01.24.13;  Financial  Times,  01.18.13;  Kashmir  Images,  10.25.12  

4.4%   4.1%  

9.3%  

5.3%  4.9%  4.1%  

9.4%  

5.4%  4.9%  

4.0%  

9.1%  

5.2%  

0%  

2%  

4%  

6%  

8%  

10%  

Japan   China   India   Australia  

Average  Annual  Unemployment  Rate  

2012  (e)  

2013  (p)  

2014  (p)  

9  

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GLOBAL  LABOR  MARKET  SPOTLIGHT:  2013  HIRING  FORECAST  

 

Source:  CareerBuilder  2013  Global  Job  Forecast  10  

PLANS  FOR  HIRING  IN  2013  VARY  WIDELY  BY  REGION  The  hiring  outlook  is  brightest  in  the  BRIC  countries  (Brazil,  Russia,  India,  China),  where  employers  feel  most  confident  about  their  financial  posi:ons,  according  to  CareerBuilder’s    2013  Global  Job  Forecast.    European  countries,  con:nuing  to  baVle  the  recession,  are  less  op:mis:c  about  hiring  condi:ons  for  2013.  One  third  of  employers  in  Italy  and  nearly  a  quarter  of  French  companies  say  they  plan  to  downsize  their  workforces  in  2013.  U.S.  companies  are  cau:ously  op:mis:c  when  it  comes  to  their  hiring  plans  for  2013.  More  than  a  quarter  (26%)  of    U.S.  employers  say  that  they  plan  to  increase  their  full  :me  headcount  in  2013,  and  more  than  60%  of  companies  say  that  their  company  is  in  a  beVer  financial  posi:on  than  a  year  ago.  HOT  HIRING  AREAS  INCLUDE  TECH,  SALES  &  PRODUCTION  Across  the  world’s  largest  economies,  employers  say  they  plan  to  focus  hiring  in  areas  that  generate  revenue  and  extend  their  reach  such  as  sales/marke:ng  and  customer  service.  Employers  are  also  looking  for  IT  workers  to  help  navigate  the  changing  technology  landscape,  as  well  as  skilled  produc:on  workers.    

81%   80%  67%   63%   62%  

50%   45%   38%   34%  25%  

India   Brazil   China   Russia   U.S.   U.K.   Germany   France   Japan   Italy  

EMPLOYERS  WHO  ARE  IN  A  BETTER  FINANCIAL  POSITION  THAN  THIS  TIME  LAST  YEAR  

71%   67%   52%   48%  30%   29%   26%   24%   22%   19%  

5%  13%   27%  

15%  21%   15%   9%   24%   19%   33%  

Brazil   India   China   Russia   U.K.   Germany   U.S.   France   Japan   Italy  

EMPLOYERS  WHO  PLAN  TO  INCREASE  OR  DECREASE  FULL-­‐TIME    EMPLOYEES  IN  2013   Increase  

Decrease  

Remaining  %  is  no  change/undecided  TOP  AREAS  FOR  RECRUITMENT  2013:  BY  COUNTRY    

U.S.   Brazil   China   India     Japan  

Sales  IT  Customer  Service  

Customer  Service  IT  Administra:ve  

Sales  R&D  Produc:on  

IT  Marke:ng  Customer  Service  

IT  Engineering  Customer  Service  

France   Germany   Italy   Russia   U.K.  

Produc:on  Sales  IT/Customer  Svc  (:e)  

IT  Sales    Produc:on  

Produc:on  Sales  Administra:ve  

Produc:on  Customer  Service  Engineering  

Sales  Administra:ve  Customer  Service  

Global Talent Market Quarterly

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GLOBAL  LEGISLATIVE  UPDATE  

 The  challenging  global  economic  situa>on  con>nues  to  lead  countries  such  as  the  U.K.  and  France  to  consider  loosening  their  labor  laws  to  encourage  more  flexibility.  And  as  flexible  work  models  become  more  ingrained  into  the  modern  workplace,  legisla>on  that  seeks  to  frame  and  define  temporary  work  constructs  also  is  becoming  more  prevalent.  

Sources:  www.arnnet.com.au;  Staffing  Industry  Analysts  11.19.12  and  10.12.12;  IHS  Global  Insight,  12.19.12;  SIA  Legs  and  Regs  Advisor,  November/December  2012;  www.esrcheck.com;  JPMorgan,  01.14.13;  IHS  Global  Insight,  01.14.13;  Mondaq  Business  Briefing  

11  

U.K.  A  new  reform  reduces  the  minimum  consulta:on  period  required  before  companies  can  make  large  scale  redundancies.  

AUSTRALIA  The  new  Workforce  Gender  Equality  Act  focuses  on  fostering  gender  equality  in  the  workplace  by  promo:ng  equal  pay  between  women  and  men,  and  helping  eliminate  discrimina:on  on  the  basis  of  family  and  caring  responsibili:es.  

INDONESIA  Widespread  labor  protests  have  prompted  Indonesia’s  Manpower  Ministry  to  issue  a  decree  which  would  restrict  the  use  of  temporary  and  contract  workers.    

FINLAND  Temporary  work  contracts  will  become  more  transparent,  as  employers  will  be  required  to  provide  informa:on  on  reasons  for  using  temporary  employees  and  the  length  of  their  assignments  in  early  2013.  

U.S.  States  con:nue  to  implement  rules  regarding  E-­‐Verify,  an  internet-­‐based  program  that  confirms  that  employees  are  authorized  to  work  in  the  country.  As  of  January  2013,  four  more  states  now  require  employers  to  use  E-­‐Verify.  

FRANCE  A  new  agreement  designed  to  encourage  labor  market  flexibility  has  been  approved  by  unions  and  employers.  The  agreement  paves  the  way  for  labor  reform  legisla:on,  which  could  come  into  effect  by  the  middle  of  2013.  

CANADA  Changes  to  the  Labour  Code  simplify  the  method  for  calcula:ng  holiday  pay  and  create  a  deadline  by  which  employers  must  pay  vaca:on  pay.  

VIETNAM  The  new  Labor  Code,  which  will  take  effect  in  May  2013,  will  legalize  the  prac:ce  of  sub-­‐leasing  workers—a  hybrid  of  temporary  staffing  and  labor  outsourcing—and  add  protec:ons  for  the  sub-­‐leased  workers.  

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U.S. Labor Market OverviewFIRST QUARTER l 2013

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STEADY  PACE  OF  HIRING  The  U.S.  labor  market  has  maintained  a  solid  pace  since  mid-­‐2012.  The  economy  added  an  average  of  nearly  160,000  jobs  per  month  in  the  last  half  of  the  year,  and  unemployment  con:nued  to  edge  down  as  U.S  employers  cau:ously  added  to  their  payrolls.    

Overall,  the  labor  market’s  performance  in  2012  very  closely  mirrored  that  of  2011,  with  both  years’  monthly  employment  gains  averaging  153,000  and  a  total  of  around  1.8  million  jobs  added  in  each  year.    

UNEMPLOYMENT  INCHING  DOWN  The  unemployment  rate  fell  below  8%  in  September  2012—a  three-­‐year  low—and  has  remained  fairly  constant  since  then.  While  s:ll  high  by  historical  standards,  it  is  well  below  the  10%  peak  reached  in  2009.    

Long-­‐term  unemployment,  which  skyrocketed  during  the  recession,  has  also  begun  to  ease.    The  number  of  long-­‐term  unemployed  workers  (those  jobless  for  27  weeks  or  more)  fell  by  nearly  15%  in  2012  and  is  down  more  than  25%  since  December  2010.    

 

U.S.  EMPLOYMENT  CONDITIONS  

 

EMPLOYMENT  OVERVIEW  

13  Source:  U.S  Bureau  of  Labor  Sta:s:cs  

U.S.  MONTHLY  EMPLOYMENT  CHANGE  AND  UNEMPLOYMENT  RATE  

OUTLOOK  FOR  2013  IS  FAVORABLE  The  steady  pace  of  hiring  in  late  2012  reflects  a  show  of  confidence  among  U.S.  businesses,  as  they  took  on  more  workers  despite  ongoing  uncertain:es  including  fiscal  cliff  nego:a:ons.  While  the  solid  rate  of  job  crea:on  and  the  steady  drop  in  unemployment  are  encouraging,  there  are  s:ll  4  million  fewer  jobs  now  in  the  U.S.  than  before  the  recession  began,  and  unemployment,  while  improving,  is  stubbornly  high.  Although  the  U.S.  labor  market  has  favorable  growth  prospects  for  2013,  reaching  pre-­‐recession  employment  levels  will  depend  on  healthy  and  sustained  economic  expansion.  

5.0  

6.0  

7.0  

8.0  

9.0  

10.0  

0  50  100  150  200  250  300  

Dec-­‐10  

Jan-­‐11  

Feb-­‐11  

Mar-­‐11  

Apr-­‐11  

May-­‐11  

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   Une

mploy

men

t  Rate  (%

)  

Employ

men

t  (00

0s)  

Total  non-­‐farm  employment  growth   Unemployment  rate  

DEC   NOV   OCT   SEPT   AUG  

Total  non-­‐farm  employment  growth   155K   161K   137K   132K   192K  

Private  sector  employment  growth   168K   171K   203K   122K   134K  

Unemployment  rate   7.8%   7.8%   7.9%   7.8%   8.1%  

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U.S.  LABOR  MARKET  -­‐  SUPPLY  AND  DEMAND    

DEMAND  FOR  WORKERS  ENDS  2012  ON  A  HIGH  NOTE  Online  job  demand  rose  in  December  2012,  boosted  by  an  increased  need  for  workers  in  the  Northeast  in  the  aYermath  of  Hurricane  Sandy.  Despite  December’s  substan:al  gains,  job  demand  has  been  rela:vely  flat  in  the  second  half  of  2012  aYer  a  strong  first  six  months.  The  average  monthly  growth  in  job  ads  was  around  50,000  per  month  for  the  year,  matching  the  rate  seen  in  2011.  

The  supply/demand  rate  con:nues  to  edge  down,  and  currently  stands  near  2.5,  signifying  that  there  are  s:ll  more  than  two  and  a  half  :mes  as  many  unemployed  workers  as  adver:sed  vacancies.    S:ll,  this  represents  a  significant  and  con:nued  improvement  over  2011  and  2010,  when  the  supply/demand  rates  were  3.2  and  4.1  respec:vely.  

The  labor  market  con:nues  to  be  :ght  for  professional  workers,  with  five  occupa:onal  groups—business  and  financial  opera:ons;  computer  and  mathema:cal  science;  architecture  and  engineering;  life,  physical  and  social  science;  and  healthcare  prac::oners—  showing  greater  demand  than  available  workers  (supply/  demand  ra:os  below  1.0).    

 

 

 

 

   

 

 

 

“Labor  demand  rose  across  the  na:on  in  December,  with  the  largest  gain  in  the  Northeast.  All  in  all,  2012  and  2011  ended  with  the  same  monthly  average  gain  of  about  50,000.”    

—    June  Shelp,  Vice  President,  The  Conference  Board,  January  3,  2013  

14  

U.S.  MARKET  -­‐  MONTHLY  LABOR  DEMAND  VS.  LABOR  SUPPLY  

Sources:  Conference  Board  Help  Wanted  OnLine,  Bureau  of  Labor  Sta:s:cs  

2,000  

3,000  

4,000  

5,000  

6,000  

7,000  

8,000  

9,000  

10,000  

2,000  

4,000  

6,000  

8,000  

10,000  

12,000  

14,000  

16,000  

Jan  09  

Apr  0

9  Jul  09  

Oct  09  

Jan  10  

Apr  1

0  Jul  10  

Oct  10  

Jan  11  

Apr  1

1  Jul  11  

Oct  11  

Jan  12  

Apr  1

2  Jul  12  

Oct  12  

Online  Job  Ad

s    (in

 000

's)  

Une

mploy

ed  W

orkers  

(in  000

's)  

#  of  unemployed  workers   #  of  online  ads  

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44%   38%  

15%   24%  

2011   2012  

Compensa>on    Compe>>veness  

Concerned   Very  Concerned  

U.S.  LABOR  MARKET  SPOTLIGHT:  2013  COMPENSATION  FORECAST  

 

15   Sources:    CareerBuilder  2013  U.S.  Job  Forecast;  Empsight  Interna:onal  Policies,  Prac:ces  &  Merit  Survey  

COMPENSATION  SET  TO  RISE…..  BUT  NOT  BY  MUCH  As  the  compe::on  for  top  talent  con:nues  to  heat  up,  issues  such  as  skills  shortages  and  reten:on  of  key  employees  are  growing  in  importance.  Nearly  a  third  of  U.S.  companies  now  say  they  are  very  concerned  about  employee  reten:on,  up  from  less  than  20%  last  year,  and  the  percentage  of  employers  who  are  very  concerned  over  skills  shortages  has  nearly  doubled.    

Employers  are  increasingly  becoming  more  willing  to  raise  pay  rates  in  order  to  address  some  of  those  concerns.  Nearly  three  quarters  of  U.S.  companies  plan  to  provide  higher  compensa:on  for  exis:ng  employees  in  2013,  and  almost  half  will  bump  up  salary  offers  for  new  employees,  according  to  CareerBuilder  research.  

Nearly  a  quarter  of  companies  say  that  the  average  pay  raise  for  current  employees  will  be  greater  than  4%.  But  most  salary  increases  will  be  at  the  low  end  of  the  scale,  between  1%  and  3%,  for  both  new  and  exis:ng  employees.    

41%  

72%  

47%  62%  

32%  

Exis>ng  Employees   New  Employees  

PLANNING  TO  INCREASE  PAY  2013  

2012  

50%  

13%  

7%  

2%  

26%  

3%  Exis>ng  Employees  

1%-­‐3%   4%-­‐5%   6%-­‐10%   11%+   No  increase   Decrease  

28%  

11%  

6%  2%  

50%  

4%  New  Employees  

AVERAGE  INCREASE  IN  SALARIES  IN  2013  

36%   34%  

11%   19%  

2011   2012  

Skills  Shortages  

42%   38%  

19%   31%  

2011   2012  

Employee  Reten>on    

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Workforce Solutions Industry Insight

FIRST QUARTER l 2013

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BUILDING  A  PIPELINE  OF  SKILLED  WORKERS  

 Despite  persistently  high  unemployment  rates  in  many  parts  of  the  globe,  companies  s>ll  report  an  inability  to  find  the  qualified  talent  that  they  need  to  grow  their  business.  According  to  McKinsey  and  The  Conference  Board,  demographic  shiSs,  skills  mismatches,  training  deficiencies,  and  high  growth  in  emerging  markets  are  among  the  forces  that  are  combining  to  intensify  the  shortage  of  skilled  workers.  

17  Source:  The  State  of  Human  Capital  2012,  McKinsey  &  Company  and  The  Conference  Board,  October  2012  

23%  GLOBAL  AND  REGIONAL  SHORTAGES  Nearly  9  in  10  companies  are  experiencing  a  talent  shortage,  according  to  research  by  McKinsey,  with  significant  consequences  for  business  opera:ons.  Three  quarters  say  that  the  inability  to  find  skilled  workers  con:nues  to  have  a  nega:ve  effect  on  their  business.    

Talent  shortages  are  evident  across  the  globe,  and  most  significant  in  Asia  and  North  America.  More  than  3  in  10  respondents  to  a  McKinsey  survey  said  that  the  limited  availability  of  talent  for  open  posi:ons  is  most  pronounced  in  Asia;  just  slightly  fewer  said  that  North  America  is  seeing  the  greatest  scarcity  of  talent  overall.  

Of  par:cular  concern  is  the  lack  of  qualified  technical  talent  and  STEM  (science,  technology,  engineering  and  mathema:cal)  workers.  This  shortage  is  also  a  global  issue,  most  evident  in  Asia  and  North  America.  

Another  key  concern  is  building  a  talent  pool  of  future  leaders:  nearly  half  of  respondents  say  that  an  inadequate  supply  of  senior  managers  is  a  cri:cal  issue  on  a  global  scale.  

 

48%  

23%  

28%  

24%  

23%  

51%  

31%  

29%  

2%  

5%  

2%  

2%  

17%  

11%  

24%  

31%  

6%  

4%  

7%  

8%  

The  shrinking  talent  pipeline  for  senior  management  roles    

The  heightened  concern  regarding  the  impact  of  delayed  

Baby  Boomer  re:rements  

The  scarcity  of  available  technical  workers  or  STEM  candidates  

The  limited  availability  of  qualified  talent  for  open  

posi:ons  

Globally   North  America   Europe   Asia   La:n  America/Caribbean  

IN  WHAT  REGION  IS  EACH  TALENT  ISSUE  MOST  PRONOUNCED?  

87%    OF  COMPANIES  SAY  THAT  THEY  ARE  EXPERIENCING  A  TALENT  SHORTAGE  

75%    SAY  THE  TALENT  SHORTAGE  CONTINUES  TO  NEGATIVELY  AFFECT  THEIR  BUSINESS  

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BUILDING  A  PIPELINE  OF  SKILLED  WORKERS  

As  the  war  for  skilled  talent  con>nues  to  ramp  up,  employers  are  seeking  innova>ve  ways  to  acquire  and  develop  workforces  that  will  deliver  superior  business  results.  Companies  need  to  understand  their  internal  needs  and  competencies  as  well  as  the  external  business  environment,  as  they  work  towards  a  fundamental  goal  of  building  and  managing  a  robust,  reliable  pipeline  of  qualified  workers.  

18  Source:  The  State  of  Human  Capital  2012,  McKinsey  &  Company  and  The  Conference  Board,  October  2012  

23%  SOLUTIONS  TO  BRIDGE  THE  TALENT  GAP  Companies  are  looking  to  solve  the  talent  shortage  by  expanding  and  strengthening  their  internal  talent  pools,  and  at  the  same  :me,  increasing  engagement  with  outside  par:es  to  develop  a  broader  base  of  poten:al  workers.  Many  companies  are  partnering  with  educa:onal  ins:tu:ons  and  governments  in  order  to  help  develop  workers  with  the  capabili:es  that  they  need.  These  types  of  external  talent  strategies  are  more  common  in  emerging  markets,  including  La:n  America,  Africa,  and  the  Middle  East.  Others  are  looking  to  more  effec:vely  leverage  the  workers  that  they  already  have,  including  increasing  mobility  programs  and  recrui:ng  more  non-­‐tradi:onal  workers,  such  as  re:rees,  for  part-­‐:me  or  project-­‐based  roles.  More  than  four  in  ten  companies  say  that  they  are  increasing  use  of  temporary  and  con:ngent  workers,  and  broadening  rela:onships  with  con:ngent  workforce  suppliers,  in  order  to  improve  their  access  to  skilled  talent.    

ACTIONS  TO  ADDRESS  THE  GLOBAL  TALENT  SHORTAGE  

9%  

13%  

27%  

39%  

42%  

45%  

43%  

33%  

12%  

9%  

14%  

13%  

10%  

8%  

12%  

24%  

Promote  industry-­‐wide  coopera:on  to  develop  talent  

Engage  government  to  work  on  regulatory  barriers  to  impor:ng  talent  

Expand  talent  pools  by  recrui:ng  non-­‐tradi:onal  workers  (e.g.  re:rees)  

Partner  with  local  educa:onal  ins:tu:ons  to  shape  curricula  

Invest  in  external  educa:onal  systems  to  improve  workforce  readiness  

Increase  use  of  temporary/  con:ngent  workers  

Develop/  broaden  rela:onships  with  con:ngent  workforce  suppliers  

Increase  use  of  mobility  programs  across  the  company  

Already  doing  this    A  high  priority  

32%  40%   45%  

53%   55%  

North  America   APAC   Europe   La:n  America   Middle  East/  Africa  

*External  partners  include  educa:onal  ins:tu:ons,  government,  and  other  industry  par:cipants.  

CURRENTLY  PURSUING  TALENT  STRATEGIES  WITH  EXTERNAL  PARTNERS*  

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KGWI:  THE  HIGHLY  VIRTUAL  WORKPLACE  

 As  the  boundaries  between  work  >me  and  free  >me  become  more  blurred,  employers  and  workers  alike  need  to  manage  their  use  of  mobile  technologies  in  order  to  strike  the  right  balance.  The  2012  Kelly  Global  Workforce  Index  (KGWI)  sheds  some  light  on  the  benefits  and  challenges  that  stem  from  the  emerging  phenomenon  of  24/7  workplace  connec>vity.  

19  Source:  Kelly  Global  Workforce  Index  2012  

23%  THE  AROUND-­‐THE-­‐CLOCK  WORKER  According  to  the  latest  findings  from  the  2012  Kelly  Global  Workforce  Index,  more  than  three  quarters  of  employees  spend  at  least  some  :me  each  week  connected  to  their  workplace  outside  their  typical  working  hours,  and  16%  say  they  spend  more  than  ten  hours  of  personal  :me  every  week  engaging  with  their  work  via  mobile  technologies.    Workers  in  the  APAC  region  are  more  likely  to  spend  their  leisure  :me  connected  to  work:  only  around  one  in  ten  APAC  workers  say  they  spend  no  :me  connected  to  their  jobs,  less  than  half  the  rate  of  those  in  EMEA  or  the  Americas.  

29%  

12%  

26%  

Americas   APAC   EMEA  

23%  

49%  

12%  

16%  

None  

<  5  Hours  

6-­‐10  Hours  

>  10  Hours  

CONNECTIVITY:  BENEFIT  OR  CURSE?  The  poten:al  downsides  that  come  with  24/7  connec:vity  to  the  workplace—increased  workloads,  intrusion  on  free  :me,  and  pressure  to  stay  connected—may  contribute  to  job  dissa:sfac:on.  Nearly  a  third  of  KGWI  respondents  said  that  working  remotely  aYer  hours  has  made  them  feel  fa:gued  or  burned  out.  But  flexible  and  mobile  access  to  work  also  has  a  number  of  benefits  for  both  workers  and  employers.  The  ability  to  redefine  working  hours  can  promote  greater  work/life  balance.  And  more  than  half  of  KGWI  respondents  say  that  using  remote  technologies  improves  produc:vity.    

TIME  SPENT  CONNECTED  TO  WORK  OUTSIDE  THE  TYPICAL  WORKWEEK    

%  WHO  SPEND  NO  TIME  CONNECTED  TO  WORK  OUTSIDE  

THE  TYPICAL  WORKWEEK  Global  

%  WHO  AGREE  THAT  THE  USE  OF  MOBILE  TECHNOLOGY  HAS  IMPROVED/INCREASED:    

53%  

Produc>vity  

40%  

Work-­‐life  balance  

32%  

Fa>gue/Burnout  

Global Talent Market Quarterly

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Page 20: Q1 2013 Global Talent Market Quarterly

Kelly  offers  a  complete  library  of  white  papers,  reports,  case  studies,  and  webcasts  that  advance  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  

TITLE   PRESENTED  BY:   DESCRIPTION  

Mi>ga>ng  and  Managing  Risk  -­‐  Con>ngent  Labor  

Eric  S.  Williams,  Senior  Director,  Global  Services  Procurement  Solu:ons,  Kelly  Services  

As  companies  con:nue  to  expand  their  use  of  third  party  labor  and  outsourced  services,  governments  across  the  globe  are  ramping  up  their  scru:ny  and  regula:on  of  these  types  of  work  constructs.  This  whitepaper  outlines  some  of  the  areas  of  key  concern  and  provides  some  ini:al  steps  to  take  to  manage  risks.  

Four  Reasons  to  Improve  Employee  Engagement  

Anthony  Raja  Devadoss,  Vice  President,  APAC,  KellyOCG  

Charles  Bedard,  Vice  President,  Global  Strategy,  BullsEye  Evalua:on  

The  greater  the  propor:on  of  your  staff  that  make  it  into  the  ‘engaged’  category,  the  higher  your  performance  is  likely  to  be  on  almost  every  count.  This  e-­‐book  gives  you  key  insights  into  how  engaged  employees  can  elevate  your  business  results.  

The  Autonomous,  Empowered,  and  Highly  Virtual  Workforce  

Lance  J.  Richards,  GPHR,  SPHR,  Vice  President,  Office  of  Innova:on,  Kelly  Services  

Megan  RaYery,  Director,  Americas  Marke:ng,  Kelly  Services  

AVend  this  webcast  to  find  out  how  the  changing  dynamics  of  the  modern  workforce  are  giving  rise  to  special  challenges  for  both  employees  seeking  to  advance  their  careers  and  employers  wishing  to  retain  the  best  talent.  

20  

KELLY  KNOWLEDGE  

 

Global Talent Market Quarterly

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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 550,000 employees annually. revenue in 2011 was $5.6 billion. visit kellyservices.com and connect with us on Facebook, linkedin, & Twitter. Download The Talent Project, a free iPad app by Kelly Services..

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