q4 2012 global talent market quarterly

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Global Talent Market Quarterly FOURTH QUARTER l 2012

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

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Page 1: Q4 2012 Global Talent Market Quarterly

Global Talent Market QuarterlyFOURTH QUARTER l 2012

Page 2: Q4 2012 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 •ContingentWorkforceManagementEvolution

•FromCapabilitytoProfitability

•TheAutonomousandEmpoweredWorkforce

•KellyKnowledge

Page 3: Q4 2012 Global Talent Market Quarterly

Global Economic SituationFOURTH QUARTER l 2012

Page 4: Q4 2012 Global Talent Market Quarterly

GLOBAL  ECONOMIC  BRIEFING  

 The  global  economy  is  stuck  in  low  gear  in  2012,  with  many  European  countries  either  mired  in  recession  or  struggling  to  grow,  the  U.S.  facing  a    poten>al  “fiscal  cliff”  of  tax  and  revenue  measures,  and  growth  in  emerging  economies  on  a  decelera>ng  trend.        

AMERICAS  Sluggish  economic  growth  con>nues  across  the  Americas  region,  driven  by  concerns  over  U.S.  policies  and  the  ongoing  European  crisis.  

Canada  Canada’s  GDP  growth  rate  is  around  2%—slow  but  rela:vely  healthy  compared  to  other  advanced  economies.  Business  and  consumer  spending  are  helping  to  counterbalance  lower  government  expenditures  and  slower  exports.    

U.S.  U.S.  GDP  growth  dipped  to  1.3%  in  Q2  2012,  but  increased  to  an  es:mated  2.0%  in  Q3  on  stronger  government  and  consumer  spending.  Similar  modest  growth  is  forecast  for  the  rest  of  2012,  as  the  country  faces  risks  from  the  impending  fiscal  cliff  and  the  Eurozone  crisis.  

La>n  America  The  region  is  seeing  cooler  economic  growth  in  2012,  as  the  global  slowdown  has  lowered  commodity  prices,  demand  for  exports,  and  foreign  investment.  Economic  ac:vity  is  forecast  to  accelerate  in  2013,  due  to  s:mulus  measures  in  many  countries  including  Brazil,  which  has  seen  a  dras:c  dip  in  growth.    

   

EMEA  Despite  some  progress,  the  Eurozone  crisis  remains  a  cri>cal  ongoing  issue,  with  several  European  countries  firmly  in  recession  and  dim  growth  prospects  across  the  region.  

Eurozone  The  Eurozone  recession  is  expected  to  have  deepened  in  Q3  2012,  with  improvement  not  expected  un:l  2014.  The  region  has  not  seen  posi:ve  economic  growth  since  Q3  2011.  

U.K.  AWer  three  quarters  of  contrac:on,  the  U.K.  economy  returned  to  growth  in  Q3  2012,  with  a  liW  coming  from  the  Olympics  games,  rela:vely  strong  employment,  and  low  infla:on.  Central  and  Eastern  Europe  Economic  growth  in  Central  and  Eastern  Europe  con:nues  to  be  subdued  as  a  result  of  the  area’s  dependence  on  the  Eurozone.    

Middle  East  and  North  Africa  Strong  growth  is  s:ll  predicted  for  oil  expor:ng  countries  in  the  region.  However,  significant  risks  remain  for  many    MENA  economies,  including  ongoing  poli:cal  transi:ons,  social  unrest,  and  weaker  external  demand.      

APAC  Economic  growth  in  export-­‐driven  Asian  markets  con>nues  to  cool,  as  domes>c  demand  struggles  to  compensate  for  the  effects  of  uncertainty  in  Europe  and  the  U.S.  

Japan  Japan’s  economy  has  been  losing  momentum  aWer  a  strong  start  in  2012,  weighed  down  by  lower  export  and  domes:c  demand.  Growth  is  not  expected  to  return  to  normal  (2%+)  levels  un:l  2014.  

China  China’s  GDP  growth  reached  a  three-­‐year  low  of  7.4%  in  Q3  2012.  Rising  wages  should  help  raise  domes:c  demand  and  begin  to  prop  up  growth  in  early  2013.  

India  Government  reforms  designed  to  encourage  foreign  investment  and  domes:c  growth  should  help  soWen  the  risk  of  infla:on  and  help  spur  economic  growth  in  India.  

Australia  Healthy  economic  growth  driven  by  strength  in  the  mining  sector  is  expected  to  cool  in  the  last  part  of  2012  and  into  2013,  as  Australia  feels  the  effects  of  slowdowns  in  Asia  and  Europe.  

   

Sources:  IHS  Global  Insight  reports  (October  2012);  US  BEA,  09.28.12;  Wall  Street  Journal,  09.29.12,  10.02.12,  10.18.12  4  

Global Talent Market Quarterly

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Global Talent Market Quarterly

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Page 6: Q4 2012 Global Talent Market Quarterly

Global Labor Market UpdateFOURTH QUARTER l 2012

Page 7: Q4 2012 Global Talent Market Quarterly

GLOBAL  LABOR  MARKET  UPDATE:  AMERICAS  

 The  cooler  economic  climate  in  the  U.S.  and  overseas  has  kept  employment  growth  somewhat  subdued  in  the  Americas  region  in  2012,  but  signs  of  more  robust  growth  have  begun  to  emerge,  par>cularly  outside  the  United  States.  Labor  market  growth  is  expected  to  con>nue  to  accelerate  across  the  region,  with  stronger  job  crea>on  and  lower  unemployment  forecast  for  2013.  

UNITED  STATES  Moderate  job  crea:on  con:nues  in  the  U.S.,  but  employers  are  s:ll  hesitant  to  ramp  up  hiring  plans  in  the  face  of  domes:c  and  global  uncertain:es.  Resolu:on  of  poli:cal  and  fiscal  concerns  is  expected  to  usher  in  slightly  stronger  job  growth  in  2013.  

 

BRAZIL  The  unemployment  rate  :cked  up  to  5.4%  in  September  as  more  workers  entered  an  already  :ght  labor  market.  Despite  the  small  rise,  the  unemployment  rate  is  at  a  historic  low  and  is  forecast  to  con:nue  to  drop  as  the  economy  picks  up  speed.    

CANADA  The  labor  market  con:nues  to  show  decent  growth.  Several  posi:ve  signs—including  increases  in  full-­‐:me  jobs,  more  people  returning  to  the  labor  market,  and  rising  wages—point  toward  further  improvements  headed  into  2013.  

MEXICO  Mexico’s  unemployment  rate  fell  to  4.7%  in  September,  its  lowest  point  in  nearly  four  years.  Proposed  labor  market  and  economic  reforms  expected  to  take  effect  aWer  the  change  in  government  in  December  are  liWing  the  country’s  outlook.  

Sources:  IHS  Global  Insight  reports  (October  2012);  Reuters,  10.25.12;  TD  Economics,  10.05.12  

8.2%  

5.7%  

7.3%  

4.8%  

8.0%  

5.6%  

7.0%  

4.6%  

7.7%  

5.3%  

6.7%  

4.3%  

0%  

2%  

4%  

6%  

8%  

10%  

U.S.   Brazil   Canada   Mexico  

Average  Annual  Unemployment  Rate  

2012  (p)  

2013  (p)  

2014  (p)  

7  

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GLOBAL  LABOR  MARKET  UPDATE:  EMEA  

 The  ongoing  fiscal  crisis  in  Europe  con>nues  to  weigh  on  businesses’  demand  for  workers,  leading  to  slow  employment  growth  and  rising  joblessness  across  much  of  the  region,  and  the  Eurozone  unemployment  rate  at  a  record  high.  Labor  market  condi>ons  in  some  markets,  including  Germany,  the  U.K.,  and  Russia,  remain  rela>vely  resilient  despite  the  broader  economic  troubles.  

GERMANY  The  German  labor  market  con:nues  to  hold  up  beler  than  its  European  peers,  but  the  ongoing  fiscal  crisis  is  expected  to  put  increasing  pressure  on  labor  demand  and  limit  employment  growth  through  2013.  

FRANCE  Unemployment  in  France  con:nues  to  rise  to  levels  not  seen  in  over  a  decade.  The  labor  market  is  forecast  to  con:nue  to  deteriorate  through  2013  as  the  business  climate  and  broader  economic  condi:ons  remain  poor.  

UNITED  KINGDOM  Labor  market  performance  has  been  surprisingly  healthy  in  2012,  despite  a  lackluster  economy.  The  outlook  for  further  progress  is  uncertain,  however,  as  effects  from  the  Eurozone  crisis  may  limit  U.K.  firms’  hiring  in  2013.  

RUSSIA  Demand  for  workers  in  Russia  remains  rela:vely  healthy  and  unemployment  con:nues  to  fall;  the  posi:ve  trend  is  expected  to  con:nue  as  the  country’s  economic  outlook  is  solid.    

ITALY  With  the  economy  stuck  in  a  recession,  double-­‐digit  unemployment  rates  are  forecast  to  con:nue  to  worsen  through  2014.  

Sources:  IHS  Global  Insight  reports  (October  2012);  Wall  Street  Journal  Europe,  10.18.12  

6.8%  

10.2%  

8.1%  

5.7%  

10.5%  

6.8%  

10.6%  

8.4%  

5.4%  

11.3%  

6.7%  

10.3%  

8.5%  

5.2%  

11.5%  

0%  

2%  

4%  

6%  

8%  

10%  

12%  

Germany   France   U.K.   Russia   Italy  

Average  Annual  Unemployment  Rate  

2012  (p)  

2013  (p)  

2014  (p)  

8  

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GLOBAL  LABOR  MARKET  UPDATE:  APAC  

 Labor  markets  across  the  APAC  region  are  showing  some  nega>ve  effects  from  both  the  economic  slowdown  in  China  and  India,  and  declining  export  demand  from  the  U.S.  and  Europe.  The  employment  environment  in  APAC  is  expected  to  be  stable  in  2013,  with  unemployment  rates  across  much  of  the  region  remaining  among  the  lowest  in  the  world.  

JAPAN  A  slowdown  in  economic  growth  is  triggering  a  similar  dip  in  labor  market  performance.  Recent  improvements  in  unemployment  have  come  from  workers  leaving  the  labor  force,  and  employment  demand  has  been  flat.      

CHINA  Despite  a  cooldown  in  China’s  economy,  demand  for  workers  remains  high  and  wages  con:nue  to  grow.  The  service  sector,  rather  than  manufacturing,  appears  to  be  driving  the  current  growth  in  employment  demand.  

INDIA  High  unemployment  and  low  educa:onal  alainment  among  young  people  in  India  are  growing  concerns.  Governments  in  several  Indian  states  have  announced  ini:a:ves  to  boost  youth  training  and  employment.  

AUSTRALIA  The  employment  situa:on  in  Australia  is  favorable,  with  a  generally  posi:ve  outlook  for  2013.  The  unemployment  rate  is  forecast  to  edge  up  slightly,  however,  as  more  workers  return  to  the  labor  market.  

Sources:  IHS  Global  Insight  reports  (October  2012);  ;The  Mainichi  Japan,  09.28.12;  Wall  Street  Journal,  10.22.12;  United  News  of  India,  10.25.12;  Mail  Today,  10.20.12;  The  Pioneer,  10.18.12;  Times  of  India,  10.17.12;  Asia  Pacific  Labour  Market  Update,  ILO,  10.12  

4.7%  4.2%  

9.2%  

5.2%  5.0%  4.1%  

9.1%  

5.3%  4.9%  4.0%  

9.1%  

4.9%  

0%  

2%  

4%  

6%  

8%  

10%  

Japan   China   India   Australia  

Average  Annual  Unemployment  Rate  

2012  (p)  

2013  (p)  

2014  (p)  

9  

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GLOBAL  LABOR  MARKET  SPOTLIGHT:  SOCIAL  MEDIA  

 Social  media  con>nues  to  shape  the  way  organiza>ons  worldwide  are  recrui>ng  and  sourcing  talent.  But  talent  management  professionals  are  finding  that  a  one-­‐size-­‐fits-­‐all  approach  may  not  be  best,  as  social  networking  amtudes  and  prac>ces  vary  across  countries.  

 

Sources:  Jobvite  2012  Social  Recrui:ng  Survey  Results;  2012  Kelly  Global  Workforce  Index  ;  Wall  Street  Journal,  01.04.12  and  08.01.12;  eMarketer,  08.16.12  KGWI  regional  difference  may  be  alributed  in  part  to  the  genera:onal  composi:on  of  the  survey  samples.  10  

AN  OVERWHELMING  MAJORITY  OF  RECRUITERS  USE  SOCIAL  MEDIA  A  global  survey  of  HR  professionals  reported  that  92%  are  currently  using  social  networks  or  social  media  to  support  their  recruitment  efforts,  up  from  82%  in  2010.  Nearly  three  quarters  of  recruiters  say  that  they  have  successfully  hired  a  candidate  via  social  media.  

DIFFERENCES  IN  ENGAGEMENT  IN  SOCIAL  NETWORKING    Global  companies  need  to  understand  the  differences  in  social  media  usage  as  they  formulate  their  recrui:ng  and  sourcing  strategies.  While  many  in  North  America  and  Western  Europe  have  a  presence  on  social  networks,  research  shows  that  users  in  emerging  markets  are  more  ac:ve  and  engaged  on  social  sites.  Emerging  markets  are  also  predicted  to  see  the  fastest  growth  in  social  network  usage  in  the  coming  years.  

SITE  SELECTION  VARIES  LinkedIn  is  the  most  popular  social  network  used  in  recrui:ng,  with  Facebook  and  Twiler  growing  in  popularity.  In  a  global  organiza:on,  however,  other  sites  may  be  equally  important.  Facebook,  for  example,  shows  a  much  lower  penetra:on  rate  in  Asia  Pacific  compared  to  other  global  regions.  Companies  looking  to  recruit  in  China  are  increasingly  turning  to    sites  like  Renren  (a  Facebook-­‐like  site),  Sina  Weibo  (similar  to  Twiler),  or  Tianji  (a  Chinese-­‐language  professional  networking  site  similar  to  LinkedIn).  

JOB  SEEKERS’  USAGE  OF  SOCIAL  MEDIA  Candidates’  percep:on  and  usage  of  social  media  also  varies  by  region.  Workers  in  APAC  countries    are  much  more  likely  to  use  social  media  in  their  job  searches  and  also  place  much  more  importance  on  their  employers’  usage  of  social  networks,  according  to  the  2012  Kelly  Global  Workforce  Index  research.  

30%   29%  26%   29%  24%   23%  

47%  39%  

0%  

10%  

20%  

30%  

40%  

50%  

More  inclined  to  search  for  jobs  via  social  media  

Important  that  employer  has  social  media  presence  

Candidates’  Views  of  Social  Media  Differ  by  Region    

Overall   Americas   EMEA   APAC  

82%  89%   92%  

58%  63%  

73%  

50%  

70%  

90%  

110%  

2010   2011   2012  

Social  Media  is  Growing  as  a  Recruitment  Tool  %  of  recruiters  that  use  social  networks  

%  of  recruiters  that  have  successfully  hired  via  social  networks  

Global Talent Market Quarterly

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GLOBAL  LEGISLATIVE  UPDATE  

 Recent  global  legisla>ve  ac>vity  reflects  the  growing  prevalence  of  more  flexible  and  fluid  labor  models—par>cularly  in  emerging  markets  such  as  China,  India,  and  Mexico,  as  they  con>nue  to  build  new  regulatory  frameworks  that  address  modern  working  paqerns.  

AUSTRALIA  Several  changes  to  laws  governing  Australia's  workplace  rela:ons  will  be  made  aWer  a  review  of  the  Fair  Work  Act.  Changes  include  extending  the  :me  limit  for  lodging  unfair  dismissal  complaints  and  limi:ng  some  union  bargaining  provisions.  

Sources:  Wall  Street  Journal,  09.29.12;  SIA  Daily  News,  09.09.12,  09.14.12,10.03.12;  SIA  Western  Europe  Legs  &  Regs,  August  2012;  LiveMint,  10.10.12;Fraser  Coast  Chronicle  10.15.12  

11  

BRAZIL  The  Brazilian  government  is  exploring  ways  to  alract  more  skilled  immigrants  in  an  effort  to  spur  economic  growth.   ITALY    

New  legisla:on  allows  companies  to  use  temporary  labor  without  needing  a  specific  reason  to  do  so.  The  law,  which  came  into  effect  in  July,  also  outlines  :me  constraints  for  temporary  contracts.  

CHINA  Proposed  changes  to  China’s  staffing  law  would  restrict  the  use  of  temporary  employees.  Temporary  workers  would  only  be  allowed:  if  their  employment  is  less  than  six  months;  if  they  are  replacing  employees  on  leave;  or  if  they  are  used  to  meet  high  demand.  

NETHERLANDS  Temporary  workers  will  have  their  en:tlement  to  sick  pay  reduced  to  three  months  under  a  new    law.  Permanent  employees  will  s:ll  have  the  right  to  two  years’  sick  pay.  

MEXICO  Reforms  that  seek  to  make  the  labor  market  more  flexible  have  been  approved.  The  reforms  will  introduce  hourly  (rather  than  daily)  remunera:on,  make  it  easier  and  cheaper  for  firms  to  hire  and  fire,  create  new  types  of  temporary  employment  contracts,  and  regulate  outsourcing  prac:ces.  

INDIA  The  government  is  considering  an  amendment  to  the  contract  labor  act  that  would  ensure  equal  pay  for  temporary  workers.  

U.K.  A  controversial  proposal  by  Britain’s  ruling  party  would  allow  small  companies  to  offer  their  employees  shares  in  the  firm  in  return  for  lower  protec:ons  from  employment  laws.  

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U.S. Labor Market OverviewFOURTH QUARTER l 2012

Page 13: Q4 2012 Global Talent Market Quarterly

JOBS  GROW  AT  A  MODERATE  PACE  The  U.S.  labor  market  showed  some  signs  of  renewed  strength  in  the  third  quarter,  showing  modest  employment  gains  as  the  economy  gradually  moves  towards  more  consistent  and  solid  growth.  Job  crea:on  has  averaged  173,000  per  month  thus  far  in  the  second  half  of  2012,  more  than  2.5  :mes  the  pace  in  Q2  but  s:ll  below  the  rate  expected  at  this  point  in  a  recovery  cycle.  

UNEMPLOYMENT  IS  TRENDING  DOWN  The  unemployment  rate  con:nues  to  improve,  and  has  fallen  below  8%—the  lowest  rate  seen  since  January  2009,  but  s:ll  a  long  way  away  from  the  pre-­‐recession  lows  of  4.5%  to  5%.    Some  economists  have  argued  that  the  recession  has  raised  the  natural  rate  of  unemployment  –  that  is,  the  amount  of  joblessness  that  is  likely  to  exist  even  in  a  healthy  economy  –  from  around  5%,  to  6%  or  above.  But  even  reaching  those  higher  levels  of  natural  unemployment  will  require  job  crea:on  to  pick  up  from  its  current  pace.  

 

U.S.  EMPLOYMENT  CONDITIONS  

 

EMPLOYMENT  OVERVIEW  

13  Sources:  Bureau  of  Labor  Sta:s:cs;  Bloomberg,  08.20.12  

U.S.  MONTHLY  EMPLOYMENT  CHANGE  AND  UNEMPLOYMENT  RATE  

UNCERTAINTIES  CONTINUE  TO  CONSTRAIN  HIRING  Unresolved  poli:cal  and  economic  issues  including  the  ongoing  crisis  in  Europe,  the  slowdown  in  China  and  other  emerging  markets,  the  U.S.  presiden:al  elec:on,  and  the  “fiscal  cliff”  of  tax  and  spending  measures  that  are  scheduled  to  take  effect  in  2013  con:nue  to  weigh  on  employers’  hiring  ac:vity.    Resolu:on,  or  at  least  progress,  on  these  and  other  key  issues  will  be  cri:cal  in  sustaining    posi:ve  U.S.  labor  market  momentum  into  2013.    

OCT   SEPT   AUG   JUL   JUN  

Total  non-­‐farm  employment  growth   171K   148K   192K   181K   45K  

Private  sector  employment  growth   184K   128K   134K   163K   63K  

Unemployment  rate   7.9%   7.8%   8.1%   8.3%   8.2%  

4.0  

6.0  

8.0  

10.0  

12.0  

0  50  

100  150  200  250  300  

Oct

-­‐10  

Nov

-­‐10  

Dec-­‐

10  

Jan-­‐

11  

Feb-­‐

11  

Mar

-­‐11  

Apr-­‐

11  

May

-­‐11  

Jun-­‐

11  

Jul-­‐1

1  Au

g-­‐11

 Se

p-­‐11

 O

ct-­‐1

1  N

ov-­‐1

1  De

c-­‐11

 Ja

n-­‐12

 Fe

b-­‐12

 M

ar-­‐1

2  Ap

r-­‐12

 M

ay-­‐1

2  Ju

n-­‐12

 Ju

l-­‐12  

Aug-­‐

12  

Sep-­‐

12  

Oct

-­‐12   Une

mploy

men

t  rate  (%

)  

Employ

men

t  (00

0s)  

Total  non-­‐farm  employment  growth   Unemployment  rate  

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U.S.  LABOR  MARKET  -­‐  SUPPLY  AND  DEMAND    

JOB  DEMAND  STALLS  BUT  SUPPLY/DEMAND  GAP  REMAINS  RELATIVELY  NARROW  U.S.  labor  demand  hit  a  soW  patch  to  start  the  second  half  of  2012,  as  online  vacancies  decreased  in  July,  August,  and  October.  S:ll,  labor  demand  has  been  on  a  weakly  posi:ve  trend  overall  in  2012,  with  an  average  rise  of  around  41,000  vacancies  a  month  through  the  first  ten  months.  

There  are  now  around  2.5  unemployed  workers  for  every  online  job  opening,  half  the  5.0  supply/demand  ra:o  level  seen  at  the  official  end  of  the  recession  in  June  2009.  At  that  :me,  there  were  11.8  million  more  unemployed  workers  than  job  vacancies;  that  figure  is  now  down  to  7.5  million.  

A  cri:cal  issue  in  further  bridging  the  gap  between  supply  and  demand  is  the  skills  mismatch  of  available  talent.  The  number  of  U.S.  job  vacancies  is  split  roughly  50/50  between  professional  and  non-­‐professional  occupa:ons.  However,  there  aren’t  enough  professional  workers  to  meet  the  demand:  only  around  20%  of  the  unemployed  are  categorized  as  professional  workers,  while  80%  of  unemployed  workers  have  held  non-­‐professional  occupa:ons.  

 

 

 

   

 

 

 

“The  average  labor  demand  for  the  last  five  months  (since  May  2012)  is  neither  up  nor  down  but  basically  flat.”    

—    June  Shelp,  Vice  President,  The  Conference  Board,  October  31,  2012  

14  

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

Sources:  Conference  Board  Help  Wanted  OnLine,  Bureau  of  Labor  Sta:s:cs  Using  the  Federal  government's  Standard  Occupa:onal  Classifica:on  (SOC)  system  codes,  the  Professional  category  is  represented  by  SOC  codes  11  through  29.  Non-­‐professional  occupa:ons  are  SOC  codes  31  through  53.  

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  

Sep  

08  

Dec  

08  

Mar

 09  

Jun  

09  

Sep  

09  

Dec  

09  

Mar

 10  

Jun  

10  

Sep  

10  

Dec  

10  

Mar

 11  

Jun  

11  

Sept

 11  

Dec  

11  

Mar

 12  

Jun  

12  

Sept

 12  

No.  of    Online  Job  Ad

s    (in

 000

's)  

No.  of  U

nemploy

ed    

(in  000

's)  

#  of  unemployed  workers   #  of  online  ads  

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U.S.  LABOR  MARKET  SPOTLIGHT:  POST-­‐RECESSION  HOT  SPOTS    

 

15   Source:  U.S.  Bureau  of  Labor  Sta:s:cs;  Employment  Surges  for  Community  College  Grads,  USA  Today,  10.17.12;  Service  Sector  Leads  in  Job  Gains,  USA  Today,  07.16.12  

RECOVERY  CONCENTRATED  IN  THE  SERVICE  SECTOR  The  U.S.  economy  has  finally  recovered  more  than  half  of  the  8.8  million  jobs  it  shed  during  the  recession  in  2008-­‐2009.  But  through  September  2012,  only  12%  of  the  jobs  lost  in  manufacturing  and  construc:on  have  come  back,  while  90%  of  the  jobs  lost  in  service  industries  have  returned.      

Technological  changes  and  greater  access  to  a  global  labor  market    have  contributed  to  the  service  sector’s  rising  dominance  over  manufacturing  in  the  U.S.,  both  during  the  recovery  and  on  a  longer-­‐term  basis.  Over  the  past  40  years,  the  service  sector  has  grown  from  less  than  two-­‐thirds  of  U.S.  employment  to  84%.    ACCOUNTING,  HEALTHCARE,  IT  AMONG  FASTEST  GAINERS  Broader  business,  economic,  and  demographic  trends  have  helped  some  service  sectors  get  back  on  track  quickly  aWer  the  recession.  Accoun:ng  firms,  for  example,  have  gained  back  80%  of  the  jobs  they  lost  in  the  recession,  boosted  by  growth  in  start-­‐up  businesses,  new  financial  rules,  and  company  expansions.  Employment  in  educa:on,  health  services,  and  computer-­‐related  fields  remained  rela:vely  strong  during  the  recession,  and  these  sectors  have  con:nued  to  add  jobs  in  the  past  few  years.    NEWEST  AREA  OF  GROWTH:  MID-­‐SKILL  JOBS  More  recently,  healthy  employment  gains  have  been  seen  among  community  college  graduates.  Employment  for  those  with  associate’s  degrees  or  some  college  has  increased  by  over  1  million  since  January  2012;  in  the  past  six  months,  job  gains  by  community  college  grads  have  outpaced  bachelor’s  degree  holders.  The  trend  suggests  a  brighter  outlook  for  some  mid-­‐skill  occupa:ons—skilled  produc:on  workers,  hea:ng  and  air  condi:oning  repair  people,  or  X-­‐ray  technicians,  for  example—that  require  hands-­‐on  or  voca:onal  training.        

41%  

63%   69%   75%   79%   84%  

0%  

50%  

100%  

1972   1982   1992   2002   2012  

Growth  of  Service  Occupa>ons,  1972-­‐2012  

Produc:on  Occupa:ons   Service  Occupa:ons  

Employment    by  sector  Jan.  2008-­‐Dec.  2009  vs.  Jan.  2010-­‐Sept.  2012  

%  of  Jobs  Lost  During  the  Recession  that  Have  Returned      

53%  

Overall  

90%  

Service  Occupa>ons  

12%  

Produc>on  Occupa>ons  

Jobs  Added  by  Educa>on  Level   Past  6  Months   Past  9  Months  

Bachelor’s  degrees  or  higher   314,000   1.30  million  

Associate’s  degree  or  some  college   578,000   1.02  million  

High  school  graduate  or  lower   -­‐230,000   -­‐377,000  

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Workforce Solutions Industry Insight

FOURTH QUARTER l 2012

Page 17: Q4 2012 Global Talent Market Quarterly

CONTINGENT  WORKFORCE  MANAGEMENT  EVOLUTION  

 As  con>ngent  labor  programs  con>nue  to  grow  and  become  more  complex,  organiza>ons  have  an  increasing  need  to  improve  visibility  into  and  efficiently  manage  all  facets  of  their  temporary  and  contract  workforce.  Recent  research  by  Aberdeen  shows  more  companies  are  considering  the  benefits  of  a  more  cohesive  and  comprehensive  con>ngent  workforce  management  strategy.  

17   Source:  Con:ngent  Workforce  Management,  The  Next  Genera:on  Guidebook  to  Managing  the  Modern  Con:ngent  Workforce  Umbrella,  Aberdeen,  2012    

23%  

21%  

21%  

16%  

13%  

A  SINGLE  STRATEGY  FOR  A  MULTIFACETED  WORKFORCE  According  to  Aberdeen,  more  than  one  out  of  every  four  workers  in  the  average  organiza:on  is  considered  con:ngent,  up  12%  over  the  past  year.  The  modern  con:ngent  workforce  includes  not  just  temporary  workers,  but  a  variety  of  just-­‐in-­‐:me  employees,  including  independent  contractors,  consultants,  and  statement  of  work  (SOW)  projects  and  services.    

As  the  workplace  con:nues  to  become  more  complex,  companies  are  placing  a  priority  on  gaining  visibility  into  the  various  types  of  con:ngent  labor,  as  well  as  driving  efficiencies  and  improving  cost  control.  Gaining  insight  into  the  en:re  talent  spectrum  –  both  con:ngent  and  permanent  employees  –  is  also  growing  in  importance.  

However,  while  many  organiza:ons  recognize  the  importance  of  a  cohesive  con:ngent  workforce  strategy,  less  than  a  quarter  of  them  are  currently  managing  all  of  their  con:ngent  workers  under  a  centralized  program.  Nearly  two-­‐thirds  of  companies  say  they  plan  to  move  towards  a  single  con:ngent  workforce  management  program  over  the  next  two  years.  

56%  

41%   41%   38%  

0%  

10%  

20%  

30%  

40%  

50%  

60%  

Improve  visibility  into  all  facets  of  

CWM  

Drive  efficiencies  across  all  aspects  of  

CWM  

Improve  overall  cost  control  of  

con:ngent  labor  

Improve  total  talent  management  

Current  and  Planned  Structure  of  CW  Management  

Structure   Current     Planned  

All  aspects  managed  under  the  same  program   23%   64%  

Strong  management  of  temporary  labor,  but  disparate  management  of  SOW-­‐based  projects   27%   22%  

Disparate  management  of  all  CW  aspects   27%   8%  

Managed  on  an  as-­‐needed  basis   23%   6%  

Top  Con>ngent  Workforce  Management  (CWM)  Priori>es  

Up  12%  from  2011  

Current  Use  of  Con>ngent  Workers  

Average  Organiza:on’s  

Con:ngent  Workforce,    

26%  

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FROM  CAPABILITY  TO  PROFITABILITY  

 New  research  shows  that  companies  that  have  mastered  the  art  of  managing  people  may  also  lay  claim  to  tangible  financial  rewards.  High  performing  companies  understand  that  having  a  broad  array  of  integrated  and  comprehensive  talent  strategies  can  translate  into  financial  success  and  provide  superior  compe>>ve  advantages.  

18  Source:  From  Capability  to  Profitability,  Boston  Consul:ng  Group,  July  2012  

23%  PEOPLE  SUCCESS  =  FINANCIAL  SUCCESS  A  new  study  from  Boston  Consul:ng  Group  finds  a  direct  correla:on  between  highly  successful  HR  capabili:es  and  financial  performance  –  both  top  line  and  bolom  line.  

Companies  in  the  study  that  rated  their  HR  capabili:es  as  “very  high”  showed  significantly  beler  revenue  growth  and  profit  margins  compared  to  those  companies  that  were  not  as  adept  at  talent-­‐oriented  prac:ces.  

The  benefits  were  strongest  in  the  area  of  recruitment,  with  the  companies  that  performed  best  in  finding  and  delivering  talent  experiencing  3.5  :mes  the  revenue  growth  and  2  :mes  the  profit  margins  of  their  less  capable  peers.  Other  cri:cal  areas  that  corresponded  to  the  greatest  financial  performance  included  onboarding,  reten:on,  and  talent  management.  

Highly  capable  organiza:ons  were  shown  to  dis:nguish  themselves  by  engaging  in  several  specific  people  management  ac:vi:es.  Making  leadership  planning  an  integral  part  of  the  overall  HR  planning  process,  promo:ng  advancement  and  mobility,  and  using  clear,  global  performance  standards  were  among  the  ways  in  which  successful  companies  were  driving    business  success.  

 

HR  Capability  Impact  between  most  and  least  

capable  companies  in..  

…revenue  growth   …profit  margin  

Delivering  on  recrui:ng   up  to  3.5x   up  to  2.0x  

Onboarding  new  hires  and  reten:on   up  to  2.5x   up  to  1.9x  

Improving  employer  branding   up  to  2.4x   up  to  1.8x  

Managing  talent   up  to  2.2x   up  to  2.1x  

Performance  management  and  rewards  

up  to  2.1x   up  to  2.0x  

Developing  leadership   up  to  2.1x   up  to  1.8x  

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THE  AUTONOMOUS  AND  EMPOWERED  WORKFORCE  

 The  changing  dynamics  of  the  workplace  are  causing  many  employees  to  re-­‐think  the  way  they  approach  their  career  paths.  New  findings  from  the  Kelly  Global  Workforce  Index  survey  reflect  a  restless  and  proac>ve  global  workforce,  and  suggest  a  future  in  which  opportuni>es  for  career  growth  increasingly  lie  in  mobility.    

19  Source:  The  Autonomous  and  Empowered  Workforce,  Kelly  Global  Workforce  Index,2012  

23%  A  NEW  BREED  OF  DYNAMIC  AND  ASPIRATIONAL  EMPLOYEES  Less  than  a  third  of  employees  around  the  world  feel  that  a  “career  for  life”  mindset  is  relevant  in  today’s  work  sewng.  Those  in  the  Americas  region  are  much  more  likely  to  hold  a  more  tradi:onal  view  of  long-­‐term  employment.  

70%  of  employees  consider  work  experience  with  mul:ple  employers  to  be  an  asset  to  their  career  growth  and  advancement,  with  professional  and  technical  workers  much  more  likely  to  have  a  posi:ve  view  of    broader  employment  experience.  

Many  employees  also  say  they  are  in  a  perpetual  job  search.  Almost  half  of  those  surveyed  in  the  KGWI  admit  that  they  are  ac:vely  looking  for  beler  job  opportuni:es  or  evalua:ng  the  external  job  market,  even  when  they  are  happy  in  their  job.    

70%  

66%  

74%  

60%  

70%  

80%  

All  Workers   Non  Professional/  Technical  

Professional/  Technical  

BY  P

ROFE

SSIO

NAL

/  TE

CHN

ICAL

 OCC

UPA

TIO

N  

Marke:ng  Sales  Finance  Engineering  IT  Science  Healthcare  Legal  Educa:on  

77%  76%  75%  74%  74%  74%  73%  73%  70%  

31%  

49%  

21%  29%  

0%  

10%  

20%  

30%  

40%  

50%  

All  Countries   Americas   EMEA   APAC  

31%  say  that  a  “career  for  life”  is  s>ll  relevant  

70%  agree  that  work  experience  with  mul>ple  employers  is  an  asset  49%  of  workers  ac>vely  look  for  beqer  job  opportuni>es  even  when  they  are  happy  in  a  job  

Countries  with  the  most  ac>ve  job  seekers  

Countries  with  the  least  ac>ve  job  seekers  

Indonesia  Norway  Portugal  China  

74%  64%  62%  61%  

Thailand    US  Canada  Russia  

35%  36%  36%  37%  

Global Talent Market Quarterly

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Page 20: Q4 2012 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  

Don’t  Tell  Me  Who  You  Are,    Show  Me  

Sally  Hunter,  RPO  Prac:ce  Lead  -­‐  EMEA,  Kelly  OCG  

Bill  Boorman,  Recrui:ng  Consultant  and  Founder  of  #TruEvents      

It  may  be  :me  to  replace  your  carefully  polished  ‘employer  brand’  in  favor  of  all  that’s  real  and  human  about  your  workplace.  

Read  this  e-­‐book  to  discover  why  organiza:ons  should  consider  peeling  back  their  employer  brand  to  reveal  the  ‘culture  brand’  hiding  underneath.  

Talent  in  the  21st  Century  

Tammy  Klugh,  VP  of  Diversity  and  Inclusion,  Kelly  Services  

Robert  Lawrence  Wilson,  Director,  Diversity  and  Inclusion,  Nissan–Americas  

Diversity  &  inclusion  strategies  can  be  cri:cal  tools  in  solving  a  growing  worldwide  business  challenge:  the  shrinking  supply  of  qualified  talent.  

This  whitepaper  lays  out  the  case  for  the  changes  required  to  alract  and  retain  a  genuinely  diverse  workforce  and  the  key  steps  to  making  it  happen.  

The  STEM  Talent  Gap  

Tim  McAward,  VP,  Centers  of  Excellence  –  Engineering,  Kelly  Services  

Megan  RaWery,  Sr.  Manager,  Workforce  Research  &  Intelligence,  Kelly  Services  

STEM  (science,  technology,  engineering  and  mathema:cs)  jobs  are  part  of  a  cri:cal  cycle  of  economic  growth.  Unfortunately,  there  are  a  number  of  factors  that  are  inhibi:ng  new  entrants  to  STEM  fields  and  luring  exis:ng  par:cipants  away  to  others.    

View  this  webcast  to  learn  more  about  these  forces  and  what  employers  can  do  today  to  turn  the  :de.  

20  

KELLY  KNOWLEDGE  

 

Global Talent Market Quarterly

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