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Q3 2013 Global Talent Market Quarterly

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This quarterly report from workforce solution provider Kelly Services delivers valuable insights about global labor market trends.
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Global Talent Market Quarterly THIRD QUARTER l 2013
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Page 1: Q3 2013 Global Talent Market Quarterly

Global Talent Market QuarterlyTHIRD QUARTER l 2013

Page 2: Q3 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 •IndependentandInternationalContractors

•Howeffectiveareyourtalentmanagementstrategies?

•2013KGWI–PerformanceBasedPay

•KellyKnowledge

Page 3: Q3 2013 Global Talent Market Quarterly

Global Economic SituationTHIRD QUARTER l 2013

Page 4: Q3 2013 Global Talent Market Quarterly

GLOBAL  ECONOMIC  BRIEFING  

 Global  economic  growth  remains  sluggish  in  2013,  constrained  by  ongoing  poli?cal  and  fiscal  issues  in  key  areas  including  the  U.S.,  Eurozone,  and  China.  A  soV  recovery  is  expected  to  take  hold  in  the  coming  months,  with  global  growth  set  to  accelerate  in  2014.  

Source:  IHS  Global  Insight  (July  2013)  4  

AMERICAS  Subdued  but  accelera:ng  growth  is  forecast  for  the  region  through  2015.  Brazil,  Mexico,  and  other  La:n  American  markets  are  expected  to  drive  regional  growth,  while  the  U.S.  and  Canada  will  see  more  moderate  expansion.    

EMEA    Significant  challenges  to  growth  persist  in  the  region,  with  many  Eurozone  markets  ba]ling  recessionary  condi:ons,  and  poli:cal  and  social  turmoil  con:nuing  in  the  Middle  East.  Growth  outlooks  for  some  of  the  mature  economies,  including  Germany  and  the  U.K.,  are  more  favorable.  

APAC  The  APAC  region  is  expected  to  con:nue  to  lead  global  growth,  driven  by  strong  domes:c  demand  in  Southeast  Asia.  China’s  economy  has  shown  signs  of  weakness  in  2013,  but  growth  will  s:ll  be  high  by  global  standards.  Moderate  growth  rates  are  projected  for  the  developed  APAC  economies  (Australia/NZ,  Japan).  

2.5%  2.5%  

3.5%  4.0%  

4.7%   4.7%  

5.4%  5.8%  

-­‐0.5%   -­‐0.7%  

0.6%  

1.3%  

2.7%   3.0%  

3.8%  4.2%  

2.2%  1.6%  

2.7%  

3.5%  

-­‐2%  

-­‐1%  

0%  

1%  

2%  

3%  

4%  

5%  

6%  

7%  

2012  (e)   2013  (p)   2014  (p)   2015  (p)  

REAL  GDP  GROWTH  BY  REGION,  2012-­‐2015  (p)  

World     APAC   Eurozone   La?n  America     U.S.  

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Page 5: Q3 2013 Global Talent Market Quarterly

ECONOMIC OUTLOOK

Key emerging markets, while still leading global economic growth, have shown some softness in recent months. Meanwhile, the outlook in many of the large developed economies is brighter; these mature countries are expected to support global expansion in the short term.

-2% 0% 2% 4% 6% 8% 10%

Italy

France

Germany

U.K.

U.S.

Canada

Japan

Australia

Brazil

Russia

India

China

REAL GDP GROWTH RATES, SELECTED MARKETS Ranked by 2013(p) growth

2013(p)

2014(p)

2015(p)

5

Global GDP Growth 2013(p): 2.5%

Sources: IHS Global Insight (July 2013); Reuters, 06.18.13

EMERGING MARKETS CHINA’s economy is facing challenges from falling exports and the need for structural

reforms. Growth is forecast at 7.5% in 2013—disappointing by China’s standards but still among the highest in the world—with strengthening seen through 2015.

Economic growth in INDIA is rebounding after a sharp deceleration in 2012. Boosting investment, continuing structural reforms, and favorable monetary policy are critical components of India’s return to historical growth rates.

RUSSIA’s economic engine is slowing in 2013, amid weaker demand and lower prices for exports, particularly natural resources. Acceleration is expected in 2014.

In BRAZIL, the global economic climate continues to constrain exports and high inflation is undermining consumer purchasing power, limiting GDP growth. Increased investment and infrastructure spending are expected to help drive the economy.

DEVELOPED ECONOMIES AUSTRALIA’s growth prospects for 2013 have been subdued by the domestic mining

sector slowdown, weakness in China and ongoing European troubles. Economic activity is expected to gradually accelerate over the next two years.

Aggressive monetary stimulus and strong consumer spending has lifted JAPAN’s economic momentum in 2013. Future growth will be limited by the ongoing structural shift from manufacturing to services, as well as demographic challenges.

Economic growth in North America is expected to be moderate but improving in the short term, with domestic headwinds limiting growth in both the U.S. and CANADA.

Weak but accelerating growth is forecast for the U.K. and GERMANY, and the Eurozone economy has begun to stabilize. Still, recessionary conditions have expanded to some northern markets including the NETHERLANDS, BELGIUM, and FINLAND, and contractions in the southern periphery will extend through mid-2014.

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Global Labor Market UpdateTHIRD QUARTER l 2013

Page 7: Q3 2013 Global Talent Market Quarterly

GLOBAL  LABOR  MARKET  UPDATE:  AMERICAS  

 Although  some  headwinds  remain  in  2013,  the  outlook  is  largely  posi?ve  for  labor  markets  in  the  Americas,  as  an  improving  economic  forecast  supports  con?nued  hiring  ac?vity.  Unemployment  is  expected  to  con?nue  to  fall  in  most  key  markets.      

Sources:  IHS  Global  Insight  (July  2013);    Reuters,  06.21.13;  Toronto  Star,  07.06.13  

7  

UNITED  STATES  Job  crea:on  was  rela:vely  strong  in  the  first  half  of  2013,  and  the  unemployment  rate  has  held  steady  despite  an  increased  labor  force.  The  labor  market  outlook  for  the  rest  of  2013  is  posi:ve,  but  the  extent  of  improvement  remains  highly  dependent  upon  macroeconomic  trends.  

BRAZIL  Slower  economic  growth  has  diminished  the  pace  of  hiring  in  Brazil,  but  the  unemployment  rate  s:ll  remains  at  or  near  record  lows  as  businesses  con:nue  to  retain  workers  in  an:cipa:on  of  an  economic  rebound.  

CANADA    Hiring  has  been  fairly  sluggish  in  2013  as  s:mulus  efforts  come  to  an  end  and  the  housing  market  has  slowed.  Employment  growth  is  expected  to  stay  muted  through  the  end  of  the  year  before  accelera:ng  in  the  near  term.  

MEXICO  Moderate  economic  growth  and  labor  market  reforms  that  allow  for  more  hiring  and  firing  flexibility  will  con:nue  to  generate  demand  for  new  workers.  As  a  result,  formal  employment  growth  is  expected  to  accelerate.  

8.1%  7.6%  

7.2%  

6.6%  

5.5%   5.6%   5.5%   5.4%  

7.3%   7.1%   7.0%   6.6%  

5.0%   5.0%  

4.4%   4.3%  

3%  

4%  

5%  

6%  

7%  

8%  

9%  

2012   2013  (e)   2014  (p)   2015  (p)  

AVERAGE  ANNUAL  UNEMPLOYMENT  RATE  

U.S.   Brazil   Canada   Mexico  

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GLOBAL  LABOR  MARKET  UPDATE:  EMEA  

 The  employment  situa?on    in  many  EMEA  countries  is  expected  to  remain  challenging  in  the  short-­‐  to  medium-­‐term,  par?cularly  in  the  Eurozone  as  it  struggles  to  climb  out  of  recession.    Labor  market  bright  spots  include  the  U.K.  and  Germany.  

Sources:  IHS  Global  Insight  (July  2013);  Reuters,  06.12.13,  06.26.13    

8  

GERMANY  The  German  labor  market  con:nues  to  outperform  most  others  in  the  region,  and  renewed  economic  growth  should  drive  down  unemployment  even  further  during  the  remainder  of  2013  and  beyond.  

FRANCE  Unemployment  remains  at  a  record  high  level  in  France,  with  further  deteriora:on  predicted  through  2014,  as  ongoing  weak  business  and  consumer  ac:vity  is  expected  to  weigh  on  employment  crea:on.  

UNITED  KINGDOM  A  more  favorable  economic  outlook  is  boos:ng  the  forecast  for  the  U.K.  labor  market.  Private  sector  job  growth  is  expected  to  be  slow  but  steadily  increasing,  nudging  the  unemployment  rate  down  in  the  coming  years.    

RUSSIA  The  gradual  pace  of  declining  unemployment  is  expected  to  persist  in  the  coming  years,  as  the  private  sector  will  create  jobs  but  demographic  issues  and  public  sector  :ghtening  are  expected  to  limit  employment  growth.  

6.8%   6.8%   6.6%  6.3%  

10.2%  10.9%   11.2%   11.1%  

7.9%   7.8%   7.6%  7.3%  

5.5%   5.4%   5.2%   5.0%  

3%  

4%  

5%  

6%  

7%  

8%  

9%  

10%  

11%  

12%  

2012   2013  (e)   2014  (p)   2015  (p)  

AVERAGE  ANNUAL  UNEMPLOYMENT  RATE  

Germany   France   U.K.   Russia  

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GLOBAL  LABOR  MARKET  UPDATE:  APAC  

 Employment  prospects  vary  across  APAC  countries,  as  labor  markets  con?nue  to  adjust  to  the  challenging  global  economic  climate  and  slowdowns  in  key  markets  including  China,  India,  and  Australia.      

Sources:  IHS  Global  Insight  (July  2013)  ;  Xinhua  Economic  News  Service,  07.16.13;  Times  of  India,  06.11.13;  India  Infoline,  06.21.13;  Nikkei  Weekly,  07.01.13;  Market  News  Interna:onal,  06.28.13  

9  

CHINA  China’s  labor  market  remained  rela:vely  stable  in  the  first  half  of  2013  despite  a  slowdown  in  the  economy.  Maintaining  a  steady  pace  of  job  crea:on  going  forward  will  be  cri:cal,  par:cularly  in  light  of  the  record-­‐high  of  nearly  7  million  college  students  entering  the  workforce  this  year.  

JAPAN  The  jobless  rate  has  remained  steady  and  employment  demand  con:nues  to  improve,  par:cularly  in  professional  and  consumer-­‐related  sectors,  underscoring  the  view  that  the  Japanese  economy  is  steadily  recovering.  

INDIA  Unemployment  remains  high  and  job  crea:on  has  stagnated,  as  employers  have  been  hesitant  to  hire  in  the  face  of  lower  domes:c  and  global  growth.    The  employment  outlook  is  brightest  for  the  trade  and  services  sectors.  

AUSTRALIA  Vola:le  hiring  trends  and  a  climbing  unemployment  rate  suggest  that  the  Australian  labor  market  is  struggling  to  adjust  to  the  slowdown  in  the  mining  sector.  Demand  for  workers  will  improve  as  the  economic  picture  brightens.  

4.1%   4.1%   4.0%   3.9%  

4.3%   4.2%   4.2%   4.3%  

8.8%   8.6%  8.3%  

7.9%  

5.2%  5.6%   5.5%  

4.9%  

3%  

4%  

5%  

6%  

7%  

8%  

9%  

2012   2013  (e)   2014  (p)   2015  (p)  

AVERAGE  ANNUAL  UNEMPLOYMENT  RATE  

China   Japan   India   Australia  

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Page 10: Q3 2013 Global Talent Market Quarterly

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GLOBAL  LEGISLATIVE  UPDATE  

 As  tradi?onal  and  rigid  views  on  employment  are  replaced  by  a  growing  acceptance  of  more  agile  workstyles,  countries  con?nue  to  implement  legisla?on  making  labor  markets  more  flexible  and  manda?ng  equal  treatment  for  all  workers.  Other  significant  recent  legisla?ve  ac?on  addresses  issues  related  to  health  benefits,  immigra?on,  and  employee  training.  

Sources:  SIA  Daily  News,  05.15.13,  06.21.13,  07.02.13;  SIA  ROW  Legs  &  Regs  Advisor,  May  2013;  SIA  WE  Legs  &  Regs  Advisor,  April  2013;  SHRM,  04.15.13;  Lexology,  07.02.13  

11  

VIETNAM  A  new  regula:on  recognizes  and  provides  rules  for  the  prac:ce  of  temporary  labor  provision.  Temporary  staffing  will  only  be  permi]ed  in  17  fields,  and  only  for  a  maximum  period  of  12  months.  The  law  also  introduces  a  pay  equality  requirement  for  temporary  workers.    

PHILIPPINES  Two  new  labor  laws  give  workers  more  say  in  how  they  are  treated.  The  first  mandates  that  employers,  employees  and  the  government  be  involved  in  sesng  na:onal  labor  policies.  The  second  law  requires  concilia:on,  or  media:on  and  arbitra:on  sessions,  in  all  labor  disputes.    

SOUTH  AFRICA  Parliament  voted  to  require  employers  to  treat  all  temporary,  fixed-­‐contract  and  part-­‐:me  workers  on  an  equal  basis  aier  three  months.  In  protest  to  the  ruling,  the  Congress  of  South  African  Trade  Unions  has  called  for  a  ban  on  temporary  labor.  

BRAZIL  New  resolu:ons  will  streamline  work-­‐visa  applica:on  procedures  and  create  new  work  visas  for  graduate  students.  The  new  laws  are  intended  to  a]ract  high-­‐skilled  foreign  workers  to  help  ease  talent  shortages  in  key  areas.  

FRANCE  Parliament  passed  a  significant  labor  reform  which  includes  measures  to  make  it  easier  for  workers  to  change  jobs  and  for  companies  to  dismiss  employees.  The  reform  allows  companies  to  temporarily  cut  workers'  salaries  or  hours  during  :mes  of  economic  difficulty.  

GERMANY  Three  collec:ve  agreements  will  gradually  raise  pay  for  temporary  agency  workers  in  the  following  sectors:  tex:le/clothing,  railway/  transport,  and  wood/plas:cs.  The  agreements  came  into  force  in  April  2013  and  will  be  valid  un:l  December  2017.  

U.S.  Penal:es  for  employers  who  do  not  provide  health  insurance  for  their  workers  as  mandated  by  the  Affordable  Care  Act  will  now  take  effect  in  2015,  rather  than  in  2014.  

MEXICO  Under  an  addi:onal  amendment  to  the  federal  labor  law,  Mexico  employers  must  implement  training  programs  for  employees  or  face  fines.  Employers  have  un:l  September  15,  2013,  to  come  into  full  compliance.  The  new  federal  labor  law,  which  came  into  effect  in  late  2012,  makes  hiring  and  firing  easier  in  an  effort  to  encourage  labor  market  flexibility.  

Global Talent Market Quarterly

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U.S. Labor Market OverviewTHIRD QUARTER l 2013

Page 13: Q3 2013 Global Talent Market Quarterly

SOLID  EMPLOYMENT  GAINS  IN  H1  2013  The  U.S  labor  market  con:nued  to  create  jobs  at  a  healthy  pace  in  June,  with  employers  adding  195,000  workers  to  their  payrolls,  similar  to  the  revised  employment  growth  figures  posted  in  the  previous  two  months.  Over  the  first  half  of  2013,  the  country  has  added  more  than  1.2  million  jobs.  

The  unemployment  rate,  which  was  7.6%  in  June,  has  remained  largely  unchanged  over  the  past  few  months.  However,  the  U.S.  labor  force  grew  by  more  than  800,000  people  in  the  second  quarter  of  2013,  sugges:ng  that  the  economy  finally  may  be  genera:ng  enough  jobs  to  absorb  addi:onal  workers.    

Consumer-­‐driven  sectors  including  retail  trade    and  leisure/hospitality  helped  drive  job  gains  in  the  first  half.  Professional  and  business  services  employment  also  grew  strongly,  accoun:ng  for  nearly  a  third  of  jobs  added  since  January.  The  sequester  has  kept  federal  government  employment  on  a  nega:ve  trend,  with  a  loss  of  46,000  jobs  so  far  in  2013.  

 

U.S.  EMPLOYMENT  CONDITIONS  

 

EMPLOYMENT  OVERVIEW  

13  Source:  U.S  Bureau  of  Labor  Sta:s:cs;  IHS  Global  Insight  

U.S.  MONTHLY  EMPLOYMENT  CHANGE  AND  UNEMPLOYMENT  RATE  

6.0  

7.0  

8.0  

9.0  

10.0  

0  

100  

200  

300  

400  

Jun  

11  

Jul  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  

May

 12  

Jun  

12  

Jul  1

2  Au

g  12

 Se

p-­‐12

 O

ct-­‐1

2  N

ov-­‐1

2  De

c-­‐12

 Ja

n  13

 Fe

b  13

 M

ar  1

3  Ap

r  13  

May

 13  

Jun  

13   Une

mploy

men

t  Rate  (%

)  

Employ

men

t  (00

0s)  

Total  non-­‐farm  employment  growth   Unemployment  rate  

WILL  THE  POSITIVE  TRENDS  CONTINUE?  In  the  first  half  of  2013,  unemployment  con:nued  to  edge  down  and  job  crea:on  finally  reached  the  benchmark  level  of  200,000  per  month,  a  rather  resilient  performance  considering  the  substan:al  economic  headwinds  both  in  the  U.S.  and  globally.  A  cri:cal  ques:on  is  whether  the  country’s  employers  will  be  able  to  sustain  the  pace  of  hiring  in  the  second  half  of  the  year.  IHS  Global  Insight  predicts  that  the  U.S.  economy  will  add  2.1  million  jobs  overall  in  2013,  sugges:ng  somewhat  slower  gains  in  the  second  half,  but  employment  growth  is  forecast  to  gain  trac:on  in  2014  and  2015  as  the  economy  picks  up  speed.  

 

JAN   FEB   MAR   APR   MAY   JUN  

Total  non-­‐farm  employment  growth   148K   332K   142K   199K   195K   195K  

Private  sector  employment  growth   164K   319K   188K   157K   207K   202K  

Unemployment  rate   7.9%   7.7%   7.6%   7.5%   7.6%   7.6%  

Global Talent Market Quarterly

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U.S.  LABOR  MARKET:  SUPPLY  AND  DEMAND    

“Labor  demand  in  the  first  half  of  this  year  has  been  disappoin:ng.”    

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

14  

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

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

Une

mploy

ed  W

orkers  

(in  th

ousand

s)  

Online  Job  Ad

s    (in

 thou

sand

s)  

0  

1000  

2000  

3000  

4000  

5000  

6000  

7000  

8000  

9000  

10000  

0  

2000  

4000  

6000  

8000  

10000  

12000  

14000  

16000  

18000  

Jan  

09  

Apr  0

9  Ju

l  09  

Oct

 09  

Jan  

10  

Apr  1

0  Ju

l  10  

Oct

 10  

Jan  

11  

Apr  1

1  Ju

l  11  

Oct

 11  

Jan  

12  

Apr  1

2  Ju

l  12  

Oct

 12  

Jan  

13  

Apr  1

3  

#  of  Unemployed  Workers   #  of  Online  Job  Ads  

JOB  DEMAND  UNEVEN  IN  H1  2013  Demand  for  workers  has  been  somewhat  vola:le  in  the  first  half  of  2013,  with  gains  in  June,  April,  and  January  offset  by  declines  in  job  ads  in  the  other  months.  Overall,  online  job  ad  growth  has  averaged  just  over  800  per  month  thus  far  in  2013.  The  supply/demand  ra:o  stands  at  2.4,  meaning  that  there  are  more  than  two  unemployed  workers  in  the  U.S.  for  each  online  vacancy.  S:ll,  labor  demand  is  near  5  million  ads,  close  to  an  all-­‐:me  high  and  above  the  pre-­‐recession  peak  of  4.3  million.  

PROFESSIONAL  DEMAND  HIGH  BUT  SLOWING  Online  demand  has  declined  slightly  this  year  for  many  high-­‐wage  professional  occupa:ons,  including  healthcare,  architecture,  business  and  finance,  and  computer  workers.  S:ll,  the  talent  balance  is  very  :ght  for  professional  jobs,  as  most  of  these  occupa:ons  have  supply/demand  ra:os  of  less  than  one.  Construc:on,  educa:on,  legal,  food  service,  and  transporta:on  jobs  have  been  among  the  leaders  in  demand  growth  in  the  first  half  of  2013.    

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U.S. LABOR MARKET SPOTLIGHT: STEM TALENT SHORTAGES

15 Sources: EMSI, May 28, 2013; New York Times, May 22, 2013; American Society for Engineering Education; How to Find (and Keep) STEM Talent, Kelly Services

41%

ENOUGH STEM WORKERS? Is there a shortage of STEM (science, technology, engineering and math) workers in the United States? A recent report by the Economic Policy Institute ignited discussion when it concluded that the country has a “more than sufficient supply” of people with STEM skills who are available to work. But other experts claim that the US has a serious deficiency of workers with the technical background and skills necessary to drive innovation and economic growth. In any case, demand for STEM-qualified workers is expected to continue to accelerate, increasing the tight labor market conditions for these critical skill sets. In the U.S., demand for STEM professionals is expected to increase 17% from 2010 to 2020—adding nearly 1.3 million new STEM jobs to the workforce.

FOREIGN-BORN STEM WORKERS Central to the skills shortage debate is the role of foreign students and workers in STEM fields. A significant percentage of STEM graduates from U.S. universities are foreign-born—particularly at advanced degree levels. More than 40% of all STEM doctorates in the U.S., and more than half of all engineering PhDs, are awarded to foreign students, according to research from labor market forecasting specialist EMSI. But only around a third of foreign students end up staying in the country on temporary work visas.

This issue is expected to continue to gain attention as Congress considers proposed immigration reform. The current proposal would increase the number of temporary H1-B visas for skilled workers, along with other provisions intended to attract more immigrants with STEM and other high-level skills. Proponents of the bill say that foreign workers are helping to fill the talent gaps in STEM positions; opponents claim that letting in more foreign workers depresses wages and discourages US students and workers from STEM fields.

43% 37%

11%

54%

44%

19%

PhD Master's All Degrees

PERCENT OF DEGREES AWARDED TO FOREIGN-BORN STUDENTS

All STEM fields Engineering

22% 10% 15% 17%

Technology (IT/Computer)

Architecture & Engineering

Science Mathematics

STEM PROJECTED EMPLOYMENT GROWTH, 2010-2020

STEM Jobs Average 17%

Global Talent Market Quarterly

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Workforce Solutions Industry Insight

THIRD QUARTER l 2013

Page 17: Q3 2013 Global Talent Market Quarterly

INDEPENDENT—AND  INTERNATIONAL—CONTRACTORS    

 Independent  contractors  (ICs)  have  become  an  integral  part  of  many  organiza?ons’  con?ngent  workforces,  as  companies  and  workers  alike  con?nue  to  embrace  more  flexible  and  non-­‐tradi?onal  workstyles.    One  benefit  of  using  this  type  of  free  agent  talent:  work  is  no  longer  ?ed  to  a  specific  loca?on.  As  such,  more  companies  are  using  IC  talent  from  around  the  globe  to  meet  their  needs.  

17  Sources:  State  of  the  Freelance  Market,  Elance,  09.2012;  Global  Business  Survey  2012,  Elance;  Online  Staffing  on  the  Global  Stage,  Staffing  Industry  Analysts,  01.30.13  

23%  

FREELANCE  WORK  IS  A  GLOBAL  PHENOMENON  While  the  US  and  other  developed  economies  s:ll  lead  the  list  in  terms  of  client  spend  on  ICs,  emerging  economies  are  also  increasingly  turning  to  independent  contractors.    According  to  the  online  IC  service  oDesk,  the  fastest  growing  countries  in  terms  of  client  spend  are  Ukraine,  Russia,  India,  Malaysia,  and  China.  Nearly  40%  of  oDesk’s  client  spend  now  comes  from  outside  the  U.S.,  up  from  22%  in  2007.  

Much  of  the  freelance  talent  on  online  IC  services  also  comes  from  advanced  economies  such  as  the  US  and  UK,  but  other  countries  such  as  India,  Pakistan,  and  Ukraine  are  also  key  sources  of  ICs.  This  talent  is  primarily  young  (nearly  half  of  the  independent  contractors  on  the  online  marketplace  Elance  are  Millenials)  and  well-­‐educated  (around  three-­‐quarters  possess  a  bachelor’s  degree  or  higher).  And  most  of  them  don’t  care  where  their  next  job  is  coming  from:  78%  of  Elance  contractors  say  they  have  no  preference  as  to  the  country  in  which  their  clients  are  located.  

 

 

TOP  COUNTRIES:    Freelance  

Client  Spend  

FASTEST  GROWING  COUNTRIES:  Freelance  

Client  Spend  

TOP  COUNTRIES:    Freelance  Workers  

•  US  •  Australia  •  UK  •  Canada  •  UAE  

•  Ukraine  •  Russia  •  India  •  Malaysia  •  China  

•  India  •  US  •  Pakistan  •  Ukraine  •  Philippines  •  UK  

Top  countries  based  on  combined  data  from  Elance  and  oDesk,  2012/13;  fastest-­‐growing  countries  based  on  oDesk  spend  data  only,  2010-­‐2012  CAGR  

78%  

12%  10%  

FREELANCER  PREFERENCE:  CLIENT  LOCATION    

No  Preference  

Same  Country  As  Me  

Different  Country  From  Me  

47%  

38%  

14%  

<1%  

FREELANCERS  BY  GENERATION  

Millenial  (1981-­‐present)  

Genera:on  X  (1965-­‐1980)  

Baby  Boomer  (1940-­‐1964)  

Silent  Genera:on  (pre-­‐1940)  

9%  

24%  

42%  

5%  

12%  8%  

FREELANCERS  BY  EDUCATION  Doctorate/  Professional  Degree  Master's  Degree  

Bachelor's  Degree  

Associate's  Degree  

Some  College  

High  School/  Trade  School  

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HOW  EFFECTIVE  ARE  YOUR  TALENT  MANAGEMENT  STRATEGIES?  

 In  a  recent  survey,  corporate  directors  iden?fied  talent  management  as  the  single  greatest  strategic  challenge  facing  their  organiza?ons  today.  But  despite  the  perceived  importance,  the  vast  majority  of  board  members  say  that  their  companies  are  not  highly  effec?ve  at  any  aspect  of  talent  management.  

18   Source:  Talent  Management:  Boards  Give  Their  Companies  an  “F”,  hbr.org,  05.28.13  

23%  A  recent  survey  asked  over  1000  board  members  across  the  globe  to  rate  their  companies’  performance  across  nine  dimensions  of  talent  management.  The  findings  show  that  most  companies  are  falling  well  short  in  all  areas  of  talent  management,  with  the  worst  performances  in  the  areas  of  dismissing  employees  and  leveraging  diversity.    

Regional  differences  in  talent  management  effec:veness  are  also  apparent.  Board  members  in  Australia/New  Zealand  and  North  America  give  their  companies  the  highest  marks  on  talent  management  prac:ces,  while  in  Eastern  Europe  and  Russia,  no  respondents  rated  their  companies  as  very  effec:ve  in  four  of  the  nine  talent  categories.    

While  board  members’  increased  awareness  of  the  impact  of  talent  management  is  a  hopeful  sign,  there  remains  much  room  for  improvement  in  talent  strategy  execu:on.  Boards  must  next  consider  how  they  can  help  their  organiza:ons  build  and  implement  be]er  talent  management  processes  and  prac:ces.    

 

0%  

5%  

10%  

15%  

20%  

25%  

30%  

35%  

Aurac?ng  top  talent  

Hiring  top  talent   Assessing  talent   Developing  talent  

Rewarding  talent  Retaining  talent   Firing   Leveraging  diversity  

Aligning  talent  strategy  w/  

business  strategy  

PERCENT  OF  BOARD  MEMBERS  WHO  STRONGLY  AGREE  THEIR  ORGANIZATION  IS  EFFECTIVE  AT…  

North  America   Western  Europe   Eastern  Europe/  Russia   Asia   Australia/NZ  

TALENT  MANAGEMENT  CHALLENGES    

Global Talent Market Quarterly

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2013  KGWI:  PERFORMANCE-­‐BASED  PAY  

 Performance-­‐based  compensa?on  is  gathering  momentum  across  the  globe,  according  to  the  2013  Kelly  Global  Workforce  Index  (KGWI).    Par?cularly  in  fast-­‐growing  emerging  markets,  many  employees  say  they  are  willing  to  accept  some  element  of  risk  or  uncertainty  in  their  salaries  in  return  for  the  opportunity  to  meet  benchmarks  that  will  trigger  performance  bonuses.  

 

19  Source:  Kelly  Global  Workforce  Index  2013.    Performance-­‐based  pay  includes  any  arrangement  where  an  element  of  the  total  remunera:on  package  is  :ed  to  mee:ng  performance  targets  and  may  include,  profit  sharing,  performance  bonuses  and  sales  commissions.  

23%  MORE  THAN  FOUR  IN  TEN  GLOBAL  WORKERS  RECEIVE  SOME  FORM  OF  VARIABLE  PAY  Performance-­‐based  compensa:on  is  most  common  in  the  robust  economies  of  the  APAC  region,  where  nearly  60%  of  respondents  receive  some  kind  of  incen:ve  pay.  The  highest  incidence  of  performance-­‐based  pay  is  in  China,  Indonesia,  Thailand,  and  Malaysia,  where  around  three-­‐quarters  of  workers  say  that  their  compensa:on  is  variable.  

Conversely,  less  than  40%  of  workers  in  both  the  Americas  and  EMEA  regions  have  variable  pay  structures;  the  prac:ce  is  least  common  in  the  US,  UK,  Ireland,  Australia,  and  the  Nordic  countries.    

 

59%   39%   36%  

APAC   EMEA   Americas  

Global  Average:  44%  

KEY  MAR

KETS  

China  (75%)  Indonesia  (75%)  Malaysia  (72%)  India  (67%)  Australia  (29%)  

Russia  (70%)  Poland  (55%)  Germany  (43%)  France  (36%)  UK  (30%)  

Brazil  (48%)  Puerto  Rico  (47%)  Mexico  (47%)  Canada  (40%)  US  (32%)  

56%   44%   41%  

APAC   Americas   EMEA  

WOULD  YOU  PERFORM  BETTER  IF  YOUR  PAY  WAS  TIED  TO  YOUR  PERFORMANCE?  (%  YES)  

Global  Average:  46%  

IS  ANY  OF  YOUR  PAY  DEPENDENT  ON  INDIVIDUAL  PERFORMANCE  TARGETS?  

VARIABLE  PAY  SCALES  WOULD  ELEVATE  PERFORMANCE    Among  those  respondents  not  receiving  performance-­‐based  pay,  there  is  a  strong  view  that  they  would  perform  at  a  higher  level  if  they  were  to  switch  to  such  an  arrangement.    

Nearly  half  of  workers  globally  say  they  would  perform  at  a  higher  level  with  performance  pay;  the  greatest  interest  is  again  in  the  APAC  region  (56%),  followed  by  the  Americas  (44%)  and  EMEA  (41%).  

Global Talent Market Quarterly

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Kelly  offers  a  complete  content  library  that  advances  the  discussion  and  thinking  around  current  trends,  strategies,  and  issues  impac?ng  global  talent  management.    

To  register  for  webcasts  or  for  more  informa:on,  visit  www.kellyocg.com  Download  The  Talent  Project,  a  free  iPad  ®  app  by  Kelly  Services.  

TITLE   PRESENTED  BY:   DESCRIPTION  

4  Reasons  to  Improve  Employee  Engagement  

Anthony  Raja  Devadoss,  Vice  President    -­‐    APAC,  KellyOCG  

Thomas  McCoy,  Director  -­‐  The  Employee  Engagement  Ins:tute  

It  is  possible  to  create  a  highly  engaged  workforce  quickly,  easily  and  without  dispropor:onate  investment  in  :me,  money  or  technology.  In  this  webcast,  our  experts  share  4  reasons  to  improve  employee  engagement  as  well  as  :ps  to  get  you  started.  

Reconstruc?ng  Leadership  

Chris  Jock,  Vice  President  -­‐  Global  BPO  Prac:ce  Lead,  Kelly  OCG  

Read  this  whitepaper  to  understand  how  the  cri:cal  quali:es  of  leadership  are  at  the  same  :me  constant  and  also  evolving  to  adapt  to  today’s  marketplace,  and  how  modern  workplace  leaders  can  keep  strategies  real  and  relevant.    

Remote  Work  Under  the  Microscope  

Linda  Stuit,  Vice  President  -­‐  Global  Solu:ons,  Kelly  Services  

Recent  policy  shiis  in  high-­‐profile  corporate  America  have  ignited  a  na:onal  debate  about  workplace  flexibility.  This  e-­‐book  explores  trends  in  remote  working,  and  discusses  the  balances  and  benefits  to  both  organiza:ons  and  employees.  

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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 560,000 employees annually. revenue in 2012 was $5.5 billion. visit kellyservices.com and connect with us on Facebook, linkedin, & Twitter. click to download The Talent Project, our free iPad app.

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