staffing & recruiting 2011 mid year job forecast

CareerBuilder’s 2011 Mid-Year Job Forecast

1

From the desk oF eriC Gilpin

Greetings,

As we head into the second half of 2011, I am both excited and apprehensive about what the coming months and years will bring with regard to the U.S. economy, the labor market and emerging technologies. The economy is recovering, but at a rate that lends itself to cautionary decision-making. Fortunately, the temporary employment sector has never been better positioned to capitalize on this shift in the market.

Consider the following statistics around the rise of contingent work in the United States:

Temporary employment in May 2011 was 9.1 percent higher than May of 2010.

Staffing Industry Analysts project revenue growth of 12 percent in 2011 and 9 percent in 2012 in the temporary employment sector.

In addition, the Bureau of Labor Statistics projects a 19.1 percent growth in Employment Services from 2008 to 2018.

As we work toward a robust economic recovery, and as more companies realize the need to bring more people on board, flexible staffing solutions will be the conduit to drive business forward. We know, however, that the success of this industry and our organizations is not subject purely to external factors; the experience and value we deliver to our clients, candidates and internal employees have the most profound impact on our bottom line.

This forecast provides the knowledge you need, gathered from business consultants, industry experts and your peers, to stay informed on the latest trends and position you to capture this growth as companies continue to embrace the value of a flexible workforce.

We appreciate your business and look forward to serving as a resource to you and the staffing industry in the coming months.

Sincerely,

Eric GilpinPresident, Staffing & Recruiting Group, [email protected]

Will escalating energy costs impact hiring in the back half of the year? Eighty-three percent of U.S. employers say no. CareerBuilder’s latest job forecast shows employers remain positive in their hiring expectations for the remainder of 2011 despite ongoing concerns over threats to economic growth. Nearly half of employers (47 percent) plan to hire new employees from July through December, up from 41 percent in 2010. The number of companies hiring specifically for full-time, permanent staff rose 7 percentage points over last year:

• Hiring full-time, permanent employees – 35 percent, up from 28 percent in 2010

• Hiring part-time employees – 15 percent, the same as 2010

• Hiring contract or temporary employees – 12 percent, up from 9 percent in 2010

2011 Mid-Year Job Forecast | 2

CareerBuilder’s 2011 Mid-Year Job Forecast

do you plan to hire new employees in thesecond half of 2011 (Jul. 1st to dec. 31st)?

do you plan to hire new employees in thesecond half of 2011 (Jul. 1st to dec. 31st)?

Similar to last year’s study, the top three functional areas for which businesses plan to hire first are those on the front lines with customers and those driving innovation. Customer Service remains in the No. 1 spot for recruitment with Information Technology slightly edging out Sales this year for the No. 2 ranking on the list:

1. Customer Service - 23 percent2. Information Technology - 21 percent3. Sales - 20 percent4. Administration – 15 percent5. Business Development – 11 percent6. Accounting/Finance – 10 percent7. Marketing – 9 percent

“Last year, certain sectors or departments in companies were producing jobs. This year, the U.S. is seeing job creation in all industries, functions and company sizes,” said Matt Ferguson, CEO of CareerBuilder. “Our survey, listings on CareerBuilder.com, and conversations we have with employers on a daily basis all indicate that hiring activity will sustain and improve in the months to come with a diverse mix of jobs. While higher energy prices, debt, inflation and other factors may deter a significant acceleration in hiring, employers have encouraging news for the millions of Americans who are looking for jobs.”

The CareerBuilder survey of more than 2,600 hiring managers was conducted by Harris Interactive from May 19 to June 8, 2011.

3 | 2011 Mid-Year Job Forecast

hiring By regionAll regions are trending above 2010 in hiring prospects for the second half of 2011 with the South appearing the most optimistic.

• South – 38 percent hiring full-time, up from 27 percent last year

• West – 35 percent hiring full-time, up from 28 percent last year

• Northeast – 34 percent hiring full-time, up from 29 percent last year

• Midwest – 32 percent hiring full-time, up from 28 percent last year

employee turnoverThe competition for specialized talent is expected to heat up as employers recruit and try to retain top performers for hard-to-fill positions in areas like healthcare and technology. More than one-third (35 percent) of employers are concerned that key talent will leave their organizations as the economy improves, a trend that became increasingly evident over the last six months. Eighteen percent of employers reported top workers left their organization in the second quarter, up from 14 percent in the first quarter.

hiring Full-time employees in the second half of 2011 By region

this quarter, have top workers left your organization for other jobs as

the economy has improved?

is there an area of expertise where there is a shortage of skilled workers

within your organization?

does your company, at your location, currently have open positions for which

you cannot find qualified candidates? (sample of human resource managers)

shortage of skilled WorkersOne half (50 percent) of employers reported there is a shortage of skills within their organization, up from 48 percent last year. The biggest shortages were reported in the areas of Information Technology, Customer Service and Communications.

Looking at a subset of Human Resource managers, more than one-third (36 percent) reported they have positions for which they can’t find qualified candidates, up from 32 percent last year.

2011 Mid-Year Job Forecast | 4

hiring in Q2 2011Twenty-nine percent of employers added full-time, permanent headcount in the second quarter, up from 24 percent last year and 28 percent last quarter. Eleven percent decreased headcount while 59 percent made no change in staff levels and 1 percent were unsure.

this quarter (2nd quarter, Apr. 1 - Jun. 30, 2011), is your company, at your location, increasing,

decreasing or making no change in the number of full-time, permanent employees?

if your company, at your location, employs hourly workers, how have their hours on

average changed in the second quarter 2011 compared to the same period in 2010?

In terms of hourly employment, 59 percent of employers reported no change in the number of hours offered in the second quarter compared to the same time last year. Eleven percent said hours were cut while another 11 percent stated hours had increased.

hiring in Q3 2011 For eight consecutive quarters, actual hiring exceeded what was originally anticipated, indicating that employers tend to be more conservative in projections than hiring behavior. Looking forward, 26 percent of employers plan to add full-time, permanent employees in the third quarter, but if trends persist, that number may come in higher at quarter end.

Eight percent expect to downsize staffs. Sixty-one percent anticipate no change while 5 percent are undecided.

Looking at actual hiring for the third quarter in 2010, 25 percent of employers reported they had hired full-time, permanent staff while 12 percent decreased headcount.

in the third quarter (Jul. 1 - sep. 30, 2011) does your company, at your location, plan to

increase, decrease or make no change to its number of full-time, permanent employees?

For more inFormAtion ABout Current reCruitment trends, JoB ForeCAsts or CAreerBuilder solutions, ContACt your

ACCount representAtive or CAll 800-960-5203.

5 | Key Economic Indicatiors

spotliGht: key eConomiC indiCAtors

EMpLoyMEnT SITuATIon updATE froM BurEAu of LABor STATISTIcS

stAFFinG industry stAtistiCs

As the economy continues to improve, there are many indicators to watch that monitor both the pace of the recovery and the health of the staffing industry. This page is meant to provide a snapshot of several indicators available to help you stay educated and plan for the future.

for MorE InforMATIon on payroll employment and government data, visit the Bureau of Labor Statistics at

www.bls.gov.

To get the latest report from the American Staffing Association’s weekly Staffing Index, visit www.americanstaffing.net.

*Due to the slight delay between when this report was written and when it was released, some industry statistics included in this section may not be the most current available. Please reference the actual source to verify.

To get more details on TechServe Alliance’s Pulse Survey visit www.techservealliance.org.

Total Nonfarm Payroll Employment (Month-over-Month)

+400 K

+300 K

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+500 K

+100 K

0 K

-100 K

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July 2009 June 2011SOURCE U.S. DEPARTMENT OF LABOR

-300 K -300K

217K

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p: preliminary

2.3%puLSE SurVEyon Market Conditions

JUNE2011

The five Star Standard: create a Memorable – and recommendable – client Experience, hosted by business expert, former yahoo! executive and New York Times Best-Selling author, Tim Sanders.

It’s common knowledge that getting the customer experience right is critical to business growth. So why do so many businesses still get it wrong? In this presentation, business expert and The New York Times bestselling author Tim Sanders will demonstrate effective customer experience and customer relationship management strategies.

Gain all-new insight into growing and maintaining a strong customer base. Sanders will also discuss how an ever-evolving business landscape calls for change – not just within the organization, but among managers

themselves. Learn the management strategies necessary to drive organizational change, the ways to identify when change is needed and solutions for overcoming any challenges along the way.

FoCus: Clients September 27, 2011 (10:30 a.m. to 11:30 a.m. Central)

ThE fIVE STAr STAndArd: crEATE A MEMorABLE – And rEcoMMEndABLE – cLIEnT ExpErIEncE

reGister todAy At: WWW.CAreerBuilder.Com/stAFFinGWeBinArs

In your best-selling novel, Love is the Killer App: How to Win Business and Influence Friends, you teach your readers what it means to become a lovecat. How could staffing and recruiting firms benefit from practicing business the lovecat way?

When I say that someone is a business lovecat, I mean that she is successful because she’s focused on growing relationships through giving. She creates success in other people’s lives, and they in turn bring incredible opportunities into hers. It’s a virtuous circle.

Of course, this is easier said than done. For many, we believe that business is a dog-eat-dog world, where few can really be trusted. For staffing and recruiting firms, the secret then is to focus on helping your end customers succeed – both at the enterprise and professional level.

If, for example, you mentor your clients on the market, the playing field and the industry, you will expand your relationship. This leads to loyalty, better information for future RFPs, forgiveness when things go wrong and a host of other business benefits.

In short, don’t just sell solutions, sell relationship driven solutions.

Your most recent book, Today We Are Rich: Harnessing the Power of Total Confidence, explains the importance of confidence on both a personal and professional level. Do you think these principles apply to professionals in an industry in which technology is used increasingly in place of human interaction?

When you possess a confident business outlook, you’ll embrace new technologies and leverage them. If you are just ‘trying to get by’, you’ll hold on to legacy ways of doing things and fear anything that requires an investment of time or money. I’ve learned that confidence is the key to being innovative and current.

For many staffing and recruiting professionals, the last few years might have sucked the confidence out of you – dealing with customers that were more concerned with price than value (convenience, quality, speed). This might impact the quality of your relationships internally or with customers, where you’ve become transactional.

To move the conversation forward again (from problems to solutions) is to move the business forward again. The good news is that the recession is an equal opportunity fear machine – as bad as you have it, your competitors have it just the same. Whoever gets their ‘mojo’ back first is likely to be the disrupter not the disrupted.

What are a few of the main takeaways staffing executives and recruiters can expect from listening to your webinar on September 27th?

•You must feed your mind good stuff. Reduce the Chicken Little talk. Increase your professional development and innovation research. Will recommend several books and resources towards this end.

•Move the conversation forward. Focus on the Solutions required by your customers and what your company can bring to bear on them.

•Invest in relationships. Program mentoring and networking into your ‘Customer Relationship Management’ approach. Will offer several takeaway practices towards this end.

•Measure business success beyond your balance sheet. Look at the difference you make for the customer’s business instead.

An InTErVIEW WITh: TIM SAndErS

Staffing Leader Webinar Series | 6

don’t forget to share the ondemand webinars from Joseph Michelli and chester Elton with your teams.

Check them out at: www.careerbuilder.com/StaffingWebinars

7 | Q&A Panel

in the

These executives are focused on providing the best experience for their internal employees to help drive their business forward. Take a moment to review their responses and then answer these questions for your own business.

Andrew limouris president & Ceomedix staffing solutions

how much emphasis does your firm place on the internal employee experience?

The internal employee experience is the lifeblood of our company.

Without the fuel of an enthusiastic, dedicated team, Medix would not be the thriving organization it is today. Medix focuses on constantly empowering our employees to be experts and innovators. We also want our employees to embrace a company culture that is supportive and fun, much like a family. Medix strives diligently to identify new ways to empower, entertain and enrich our employees.

have there been any major changes in your company that had a significant impact on the internal employee experience? did they have an impact on your bottom line?

One considerable change we have made as an organization in the past year has been adopting a “Carrot Culture” at Medix. We invited speaker Chester Elton to speak at our National Sales Conference last year to teach our team how to embrace the Carrot Culture, which is rooted in emphasizing daily, weekly and monthly employee recognition. This has positively affected our bottom line, as the Carrot Culture has incited more productivity and excitement in our offices.

tammi heaton, Coopridestaff


We believe that when you have a great culture and great people,

greater things happen. At PrideStaff we have a heavy emphasis on the internal employee experience as it helps us achieve our goals: to attract talented professionals, to provide them with challenging and rewarding work, and to retain our staff members. We believe personal goals drive business goals. When we are able to show individuals they are able to reach their personal goals through defined business objectives that cascade up or down and tie into the mission and vision, it helps with overall retention, which ultimately impacts the bottom line.

What staffing Firm executives have to say on the internal employee experience

spotlight:

Q&A Panel | 8

does your firm currently have a process in place for gauging employee satisfaction or collecting feedback on the quality of their work environment?

We foster daily and weekly communication with all employees. We strive to always be acutely aware of the relationship an employee has with their direct supervisor, as this can have a significant impact on their job satisfaction. Professional development and coaching is provided at every level within the organization.

lori schultz, presidentyoh

have there been any major changes in your company, which significantly impacted the internal employee experience? did they have an impact on your bottom line?

Yoh and our parent company, Day & Zimmermann, launched an internal blog for the company’s executive staff that gives them a platform for interacting directly with our employees. The blog has not only helped to better connect us as leaders to our employees, but it also helps make the strategic planning process more open and gives opportunity for any employee to contribute. These efforts are going a long way in making employees feel like they are part of a close knit community and not just a lone employee in a huge corporation.


Absolutely – I don’t think we would be where we are today without one. In addition to regular performance reviews and goal setting discussions employees have with their managers, we run an in-depth annual employee engagement survey. The results are critical to helping us identify which investments on the internal customer experience are working best and areas where we need to improve.

tom daley, presidentvolt Workforce solutions


Understanding the tremendous advantage inspired and motivated internal employees bring to our

candidates and clients, Volt places a high level of emphasis on our internal employee experience. This begins on day one,

when new hires learn about Volt’s 61-year history of success as explained by the Company’s Co-founder Jerome Shaw. Our goal is to foster the same innovative and entrepreneurial spirit in each employee. Throughout their careers with Volt, internal employees are given opportunities to improve their knowledge and capabilities through interactive, online training. Leadership development training and career pathing are further catalysts for innovative thinking and empowering each employee to be part of our solutions.

have there been any major changes in your company that had a significant impact on the internal employee experience? did they have an impact on your bottom line?

Volt’s implementation of Six Sigma in 2002 has had a significant impact on the internal employee experience through a culture shift from “tribal knowledge” to a culture that balances statistics-based analytical methods with employee expertise and creativity.

eric Gilpin, president, staffing & recruiting GroupCareerBuilder


One of the things I love most about working at CareerBuilder is that we

truly practice what we preach – that an organization’s biggest asset is its people. Our company is at a stage of growth in which we are continuously evolving. We depend on employees at every level to grow and adapt with all of the changes and obstacles that come our way. It is my job as a leader to provide the tools to help our team perform at a high level.


Each year, we reach out to our employees across the globe to gather anonymous feedback on how they feel we are delivering on our company values. The responses we receive from this survey contain valuable insight that we use in our ongoing efforts to build a customer-focused and employee-driven organization. Although leaders meet with their employees through regular one-on-ones where they solicit candid feedback, this survey helps us benchmark our progress and hear the voice of the entire company on the areas that shape the organization.

9 | Internal Employee Experience

The internal employee experience plays a monumental role in the success of your staffing firm. do you know what your employees are saying about you? What they value most in a workplace? Their overall level of satisfaction?

We do. In the 2011 Opportunities in Staffing guide (coming in Q3), CareerBuilder and Inavero have partnered to bring you the first nationwide study to include not only candidate and client perceptions of the staffing industry, but also those of your internal employees.

internAl employee experienCe

did you know?• nearly 70 percent of staffing firm employees expect their compensation

to increase in the next 12 months, and nearly half believe that growth will exceed 5 percent.

• c-level executives and executive search recruiters are most optimistic about their salary growth in the next 12 months.

• Temporary and contract recruiters are the most likely to expect their salaries to remain unchanged or drop in the next 12 months.

Look for the Opportunities in Staffing guide within the next three months to learn what staffing employees are saying about their companies, their work environment and the industry. With cutting edge industry insights, you can drive your business forward from the inside out.

Find out when you download our recent webinar on the internal employee experience, How One Great Team Can Change an Organization.

Learn from New York Times Best-Selling author and business consultant Chester Elton about proven ways to…

•Effectivelypromoteteamwork.•Increaseemployeeengagement,productivityandloyalty.•Createbottomlineresults.

To view this webinar, see a previous webinar or register for an upcoming webinar, visit: www.careerbuilder.com/staffingwebinars

how does employee satisfaction drive bottom line results?

Staffing Leader Webinar Series | 10

events CAlendAr: there’s more to see in Q3 (And Q4)

CareerBuilder looks forward to every opportunity to foster our relationship with clients and become more engrained in the staffing industry. With that in mind, we hope you’ll check us out at the following events:

septemBer 22-23, 2011STAFFING INDUSTRY ANALYSTS’ HEALTHCARE STAFFING SUMMIT www.staffingindustry.com/Conferences-Webinars/Conferences/2011-Healthcare-Staffing-Summit Location: Philadelphia Marriot Downtown, PA

oCtoBer 11-14, 2011AMERICAN STAFFING ASSOCIATION’S STAFFING WORLDwww.americanstaffing.net/conventionLocation: Hilton New Orleans Riverside, New Orleans, LA

novemBer 2-4, 2011TECHSERVE ALLIANCE’S IT SERVICES INDUSTRY CONFERENCE & TRADESHOWwww.techservealliance.org/conference2011/index.cfmLocation: Sheraton Wild Horse Pass Resort & Spa, Phoenix, AZTwo additional breakout sessions hosted by leaders from CareerBuilder’s Staffing & Recruiting Group.

tWenty speAkinG enGAGements, 14 stAtes, And 11 industry meetinGs...On behalf of CareerBuilder, thank you for making these visits over the last two quarters worthwhile.

Through these events, you’ve shared experiences and insights that are invaluable to our ability to understand your organization, your challenges and your goals. For that we’re grateful. We’ve always believed that our success is tied to yours and never has that been so evident as it is right now. We look forward to continuing these conversations and working together to promote the success of the staffing industry as a whole.

If you would like to have a careerBuilder leader speak at your local chapter meeting or association event, please contact:

nATALIA VIdMArBusiness Development ManagerStaffing & Recruiting Group

E: [email protected]: 773.527.2975

survey methodologyThis survey was conducted online within the U.S. by Harris Interactive© on behalf of CareerBuilder among 2,662 U.S. hiring managers (non-government) between May 19, 2011 and June 8, 2011 (percentages for some questions are based on a subset, based on their responses to certain questions). With a pure probability sample of 2,662, one could say with a 95 percent probability that the overall results have a sampling error of +/- 1.90 percentage points. Sampling error for data from sub-samples is higher and varies.

About CareerBuilder® careerBuilder is the global leader in human capital solutions, helping companies target and attract their most important asset - their people. Its online career site, CareerBuilder.com®, is the largest in the United States with more than 24 million unique visitors, 1 million jobs and 40 million resumes. CareerBuilder works with the world’s top employers, providing resources for everything from employment branding and data analysis to recruitment support. More than 9,000 websites, including 140 newspapers and broadband portals such as MSN and AOL, feature CareerBuilder’s proprietary job search technology on their career sites. Owned by Gannett Co., Inc. (NYSE:GCI), Tribune Company and The McClatchy Company (NYSE:MNI), CareerBuilder and its subsidiaries operate in the United States, Europe, Canada and Asia. For more information, visit www.careerbuilder.com.

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