2011 Workforce Trends Study

How the recession has changed today’s workforce

Workforce Composition Transformation

Contents

Respondent Profile

Increased Dependency on Contract Labor

Post Recovery Forecast & Investments

Contract Labor Decision Criteria

Misalignment

Recommendations

Respondent Profile

Respondent Profile




Misalignment

Recommendations

Proudct Manufacturing

Other

Health Care

Banking/Financial Services

Consumer Products

High Tech

Professional Services

Aerospace & Defense

TelecommunicationsLife Science Media/Entertainment Federal Government

Respondent Profile

Annual Revenue: > $750M

Disciplines: Business LeadershipProcurement Human Resources

Nonemployees: 5% to 20%

Industries: High TechConsumer ProductsFinancial ServicesHealth CareLife SciencesProduct ManufacturingTelecomProfessional ServicesMedia / EntertainmentPublic Sector

Increased Contract Labor Dependency

Greater Investment Post Recovery Poor

Alignment

Increased Risk & Poor

Collaboration

80%Levels

Remain or Increase

85%Report

Increased Use

2011 Workforce Trends StudyWorkforce Composition and Management Transformation


Respondent Profile




Misalignment

Recommendations

Remained the same

Increased by a small percentage

Increased by over 5%

Decreased by a small percentage

Decreased by over 5%

Dramatic Dependency on Non-Employees

88.5%

Since September of 2008 88.5% report the size of their non-employee workforce has either stayed the same or INCREASED

Utilization of ‘non-employees’ either decreases or introduces NO management complexity

Benefits of Non-employee Workforce

0% 20% 40% 60% 80% 100%

No changeDecreases labor related expense

Increases labor related expense

0% 25% 50% 75% 100%

No ChangeDecreases Mgt.

ComplexityIncreases Mgt.

Complexity

88.5% Overall labor related expense decreases or remains consistent with increased use of ‘non-employees’

83.5%

DECREASED management COMPLEXITY and labor

related EXPENSES create incentive to expand the ‘non-

employee’ segment of the workforce


Respondent Profile




Misalignment

Recommendations

Recovery Yields Transformed Workforce

Reported Non-employee use stays the same or increases Reported decrease dependency on non-employees0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Strong economic recovery will see continued use and INCREASES in the non-employee workforce

80%

Stays at current level

Small increase

Increase > 5%

Increased Focus on ‘Non-employees’

Investments in non-employee Processes No investment in non-employee processes0%

10%

20%

30%

40%

50%

60%

70%

Increased Employee Engagement

Vendor Consolidation

Improved Employee Communication

Include ‘Non-employees’ on All

Teams

Significant INVESTMENTS are being made to improve the management and effectiveness of the ‘non-employee’ segment of the workforce.

63%


Respondent Profile




Misalignment

Recommendations

Consumer: Non-employee Decision Priorities

Posses

s ab

ove a

vera

ge sk

ill o

r a s

pecifi

c an

d uniq

ue sk

ill s

et

Can a

gree

upon spec

ific

serv

ice

leve

l req

uirem

ents

Afford

abili

ty

Potentia

l to b

ecom

e an

indis

pensi

ble c

ontributo

r to th

e te

am

Flexi

bility

to e

nd the

rela

tionsh

ip a

s busi

ness

conditi

ons ch

ange

Previ

ous w

orkin

g rel

atio

nship

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Most Important Average Importance Least Important

Organization: Non-employee Decision Priorities

Posses

s ab

ove a

vera

ge sk

ill o

r a s

pecifi

c an

d uniq

ue sk

ill s

et

Afford

abili

ty

Can a

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upon spec

ific

serv

ice

leve

l req

uirem

ents

Potentia

l to b

ecom

e an

indis

pensi

ble c

ontributo

r to th

e te

am

Flexi

bility

to e

nd the

rela

tionsh

ip a

s busi

ness

conditi

ons ch

ange

Previ

ous w

orkin

g rel

atio

nship

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Most Important Average Importance Least Important

Misalignment

Respondent Profile




Misalignment

Recommendations

Consumer Organization

Quality CostAvailability Availability

Cost Longevity

Longevity Flexibility

Flexibility QualityRelationship Relationship

Cost centric decision making minimizes quality, and the value, impact and integration of the non-employee segment of the workforce.

MisalignmentOrganizational and Business Priorities

Cost

Inab

ility

to fi

nd the

right t

alen

t

Qual

ity o

f pro

ject

exe

cutio

n

Accounta

bility

of n

on-em

ploye

es

Indep

enden

t contra

ctor c

omplia

nce

Co-em

ploym

ent r

isk

0%

10%

20%

30%

40%

50%

60%

70%

80%

Cost is the overwhelming concern over contracted labor use

Accountability and Risk currently not given top priority

MisalignmentAccountability and Risk Exposure

Human Resources

Hiring managers / Project managers

Sourcing / Procurement

Finance -5%

5%

15%

25%

35%

45%

55%

Influence over introducing contracted labor into the workforce rests with hiring managers and is shared with human resources

MisalignmentPoorly integrated collaboration

Procurement Business Leadership

0%

10%

20%

30%

40%

50%

ProcurementControlsBusiness Controls

STARTLING indicator of continued lack of control over efficient acquisition of contracted labor.

MisalignmentLoose Supply Chain Control

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Human Resources Procurment

60%

65%

70%

75%

80%

85%

90%

Stays at current level

Small increase

Increase > 5%Workforce planning appears to be poorly aligned with operational planning

MisalignmentWorkforce Plans vs. Operational Plans

0%

10%

20%

30%

40%

50%

60%

70%

Increased Employee Engagement

Vendor Consolidation

Improved Employee Communication

Include ‘Non-employees’ on All

Teams

63%

vendor consolidation

engagement

improved communications

Add more

make no changes

0% 15% 30% 45%

While investments are being made they appear to be isolated and outweighed by inaction

MisalignmentIsolated process investments

Procurement BusinessLeadership

0%

5%

10%

15%

20%

25%

0% 20% 40% 60% 80% 100%

No changeDecreases labor related expense

Increases labor related expense

88.5% Overall labor related expense decreases or remains consistent with increased use of ‘non-employees’

The business does not have expectation of cost savings when using contacted labor – an opportunity for procurement to assist

MisalignmentPoorly Identified Expectations

Recommendations

Respondent Profile




Misalignment

Recommendations

Workforce Composition

Analysis

Procurement Human Resources Business LeadershipContract definition Workforce plan alignment Contract labor inventory

RecommendationsAligning Procurement, Human Resources, Business Leadership


Analysis

Evaluate Integration

Call CenterPMO/Resource ManagementR&D Applications Support

Procurement Human Resources Business LeadershipEffective and easy processes Suggest contract labor use ID Process Circumvention



Analysis


Define Shared Accountability


Procurement Human Resources Business LeadershipCost to value metrics Job description consistency Communicate change in needs



Analysis


Evaluate Supply ChainDefine Shared

Accountability


Procurement Human Resources Business LeadershipSummarize engaged suppliers Provide quality metrics Performance report history



Analysis


Map Out Processes



Evaluate Supply Chain

Procurement Human Resources Business LeadershipID acceptable flexibility Identify ‘best-use’ scenarios Adopt process suggestions



Analysis

Evaluate Integration Risk

MitigationStrategies

Map Out Processes




Procurement Human Resources Business LeadershipIndemnity education Compliance checklist Communicate risk expectations



Analysis


Educated and Enable

Risk MitigationStrategies

Map Out Processes




Procurement Human Resources Business LeadershipQuarterly Business Reviews


How the recession has changed today’s workforce

Joel Capperellawww.twitter.com/joelcapperellawww.seamlessworkforce.com

Workforce Composition Transformation

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http://www.seamlessworkforce.com/

Date post:	09-May-2015
Category:	Business
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