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

1. Global Talent Market Quarterly
SECOND QUARTER l 2013

2. Global Talent Market Quarterly
CONTENTS
3 Global Economic Situation
• Briefing
• Outlook
6 Global Labor Market Update
• Americas
• EMEA
• APAC
• Global Labor Market Spotlight
• Legislative Update
12 U.S. Labor Market Overview
• Current Employment Conditions
• Supply and Demand
• Labor Market Spotlight
16 Workforce Solutions Industry Insight
• Worker Mobility Strategies
• Are Talent Investments Paying Off?
• Statement of Work Management
• Kelly Knowledge

3. Global Economic Situation
SECOND QUARTER l 2013

4. GLOBAL
ECONOMIC
BRIEFING
Global
growth
is
expected
to
be
modest
and
stable
overall
in
2013
before
ramping
up
in
2014-­‐2015,
but
the
underlying
paWerns
suggest
very
different
economic
condi=ons
among
markets
and
regions.
Many
emerging
markets
in
APAC
and
the
Americas
will
see
above-­‐trend
growth,
while
more
moderate
growth
is
forecast
for
the
mature
economies
in
these
regions.
Recessionary
condi=ons
are
expected
to
con=nue
in
2013
in
several
Eurozone
markets,
dampening
near-­‐term
economic
prospects
across
the
region.
Source:
IHS
Global
Insight
(April
2013)
4
AMERICAS
The
regional
economic
outlook
is
brightening,
despite
fiscal
policy
headwinds
in
the
U.S.
and
some
soVness
in
Canada.
Mexico
is
showing
healthy
growth,
while
Brazil
is
rebounding
from
a
very
slow
2012.
The
prospects
for
growth
in
other
La:n
American
economies
depend
on
their
domes:c
policies
and
investment
climates.
EMEA
Economic
condi:ons
are
stabilizing
in
the
Eurozone,
but
recessions
will
persist
in
many
European
markets
in
2013,
par:cularly
in
the
southern
periphery.
In
Central
and
Eastern
Europe,
Eurozone
weakness
will
con:nue
to
restrain
economic
growth,
while
ongoing
poli:cal
tensions
in
the
Middle
East
and
Africa
s:ll
pose
a
threat
to
growth
and
stability
in
many
regional
markets.
APAC
The
APAC
region
will
con:nue
to
lead
global
growth,
driven
by
China,
India,
and
southeast
Asia.
Solid
economic
ac:vity
is
accelera:ng
across
much
of
the
region,
and
many
markets
are
expected
to
see
healthy
growth
in
2013,
but
the
region’s
major
economies
face
some
challenges.
2.6%
2.6%
3.5%
4.0%
4.7%
4.8%
5.6%
6.0%
-­‐0.5%
-­‐0.6%
0.4%
1.2%
2.7%
3.4%
4.2%
4.1%
2.2%
2.0%
2.8%
3.2%
-­‐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.
Global Talent Market Quarterly
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TABLE OF CONTENTS

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Global Talent Market Quarterly
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6. Global Labor Market Update
SECOND QUARTER l 2013

7. GLOBAL
LABOR
MARKET
UPDATE:
AMERICAS
Employment
growth
hit
a
slow
patch
in
several
key
Americas
markets
in
early
2013,
as
concerns
over
policy
issues
in
the
U.S.
and
the
s=ll-­‐uncertain
global
economic
climate
may
have
caused
employers
to
put
some
hiring
plans
on
hold.
S=ll,
the
outlook
for
most
regional
labor
markets
is
posi=ve,
with
job
crea=on
forecast
to
accelerate
and
unemployment
rates
expected
to
fall
through
2015.
Sources:
IHS
Global
Insight
(April
2013);
Reuters,
03.28.13;
Sta:s:cs
Canada;
CBC,
04.05.13;
Dow
Jones
Global
News,
04.19.13;
US
Bureau
of
Labor
Sta:s:cs
7
UNITED
STATES
AVer
a
strong
finish
to
2012
and
a
bright
start
in
2013,
the
U.S.
labor
market
faltered
in
March
with
weak
job
crea:on
and
a
shrinking
labor
force.
Hiring
levels
are
expected
to
remain
modest
throughout
the
rest
of
the
year,
with
more
robust
job
growth
expected
in
2014
and
2015.
BRAZIL
Despite
the
recent
slowdown
in
the
economy,
demand
for
workers
in
Brazil
remains
strong
with
unemployment
con:nuing
to
reach
record
lows.
The
:ght
labor
market
is
driving
up
wages
and
spurring
fears
of
rising
infla:on.
CANADA
Canada
lost
more
than
25,000
jobs
on
net
in
the
first
quarter
of
2013,
a
surprising
dip
aVer
strong
job
growth
in
2012.
The
outlook
for
the
rest
of
2013
calls
for
subdued
hiring
in
the
face
of
a
sluggish
economic
climate.
MEXICO
Formal
job
crea:on
in
Mexico
slowed
somewhat
in
the
first
quarter
of
2013,
but
the
labor
market
is
expected
to
con:nue
to
generate
jobs
and
unemployment
is
forecast
to
gradually
decrease
over
the
medium
term.
8.1%
7.7%
7.3%
6.7%
5.5%
5.5%
5.3%
5.4%
7.3%
7.1%
7.0%
6.7%
4.9%
4.6%
4.3%
4.2%
3%
4%
5%
6%
7%
8%
9%
2012
2013
(e)
2014
(p)
2015
(p)
AVERAGE
ANNUAL
UNEMPLOYMENT
RATE
U.S.
Brazil
Canada
Mexico
Global Talent Market Quarterly
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8. GLOBAL
LABOR
MARKET
UPDATE:
EMEA
Although
the
economic
situa=on
in
Europe
has
somewhat
stabilized,
employment
will
take
much
longer
to
recover
throughout
the
region.
Unemployment
rates
will
con=nue
to
rise
in
many
Eurozone
countries,
and
will
remain
elevated
in
many
others,
with
more
substan=al
improvements
not
expected
un=l
2015.
Germany
and
Russia
con=nue
to
outperform
other
regional
labor
markets.
Sources:
IHS
Global
Insight
(April
2013);
Bloomberg,
04.17.13;
Federal
State
Sta:s:cs
Service
(Russia);
Dow
Jones
Global
News,
03.28.13
8
GERMANY
Labor
market
condi:ons
remain
much
healthier
in
Germany
than
in
most
other
countries
in
Europe.
The
economy
con:nues
to
generate
jobs
and
the
unemployment
rate,
already
near
a
historic
low,
is
forecast
to
edge
even
lower
in
the
coming
years.
FRANCE
The
number
of
jobless
people
in
France
has
risen
every
month
for
nearly
two
years,
causing
unemployment
to
reach
a
16-­‐year
high
in
early
2013.
The
unemployment
rate
is
expected
to
climb
to
11%
later
in
2013,
as
the
weak
economy
and
:ght
fiscal
policies
con:nue
to
limit
job
crea:on.
UNITED
KINGDOM
The
cooler
economic
climate
is
finally
showing
its
effects
on
the
U.K.
labor
market,
aVer
a
surprisingly
resilient
performance
in
2012.
Unemployment
is
forecast
to
remain
elevated
in
2013
and
2014,
as
cau:ous
private
sector
hiring
is
not
expected
to
offset
con:nued
public
sector
job
losses.
RUSSIA
The
labor
market
is
holding
steady
despite
a
slowdown
in
economic
ac:vity
in
Russia.
The
unemployment
rate
rose
in
January,
but
then
dropped
in
February
and
March.
Moscow
and
St.
Petersburg
have
extremely
:ght
labor
markets,
with
the
unemployment
rate
in
both
ci:es
just
above
1%.
6.8%
6.8%
6.6%
6.3%
10.2%
10.9%
11.2%
11.1%
7.9%
7.9%
8.0%
7.5%
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
Global Talent Market Quarterly
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9. GLOBAL
LABOR
MARKET
UPDATE:
APAC
Although
some
APAC
labor
markets
are
s=ll
feeling
the
dampening
effects
of
an
uncertain
economic
environment,
hiring
levels
are
rela=vely
healthy
and
unemployment
rates
are
low
throughout
much
of
the
region.
Demand
for
workers
is
expected
to
con=nue
to
accelerate
as
the
global
economic
picture
brightens
and
export
levels
recover.
Sources:
IHS
Global
Insight
(April
2013);
Wall
Street
Journal,
03.15.13
and
04.11.13;
Staffing
Industry
Daily
News,
03.12.13;
India
Economic
Times,
04.09.13;
Reuters,
03.2813;
Bloomberg;
9
CHINA
Employers
in
China
con:nue
to
show
strengthening
hiring
inten:ons,
par:cularly
in
the
service
sector
and
for
experienced
workers.
Wage
increases
are
accelera:ng
along
with
the
growth
in
demand.
JAPAN
Although
the
Japanese
economy
is
recovering,
labor
market
improvements
are
lagging
somewhat.
S:ll,
the
jobs-­‐to-­‐applicants
ra:o
con:nues
to
rise
slowly,
sugges:ng
that
demand
for
workers
is
star:ng
to
grow.
INDIA
Hiring
prospects
are
improving
along
with
India’s
recovering
economy
in
2013,
although
job
demand
took
a
slight
seasonal
dip
in
March.
The
BPO
and
pharmaceu:cal
sectors
remain
among
the
leaders
in
hiring
ac:vity.
AUSTRALIA
Employment
trends
have
been
vola:le
in
early
2013,
with
a
gain
of
74,000
jobs
in
February
followed
by
a
drop
of
36,000
in
March.
The
labor
market
is
expected
to
con:nue
to
fluctuate
throughout
the
year
as
employers
gauge
the
health
of
the
economy,
before
improving
in
2014
and
beyond.
4.1%
4.1%
4.0%
3.9%
4.3%
4.4%
4.5%
4.6%
8.5%
8.4%
8.0%
7.7%
5.2%
5.6%
5.4%
4.9%
3%
4%
5%
6%
7%
8%
9%
2012
2013
(e)
2014
(p)
2015
(p)
AVERAGE
ANNUAL
UNEMPLOYMENT
RATE
China
Japan
India
Australia
Global Talent Market Quarterly
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TABLE OF CONTENTS
9

10. GLOBAL
LABOR
MARKET
SPOTLIGHT:
HIGH-­‐SKILLED
IMMIGRATION
Source:
BBC,
03.26.13;
Europa
Based
on
data
for
30
countries:
24
OECD
countries
for
which
informa:on
was
available,
plus
Brazil,
India,
Russia,
Hong
Kong,
South
Africa,
and
Singapore.
10
HIGHLY-­‐SKILLED
MIGRANTS
IN
DEMAND
Over
200
million
people
in
the
world
are
interna:onal
migrants,
living
and
working
in
a
different
country
than
where
they
were
born.
Among
them,
highly-­‐skilled
migrants
are
minority,
but
are
becoming
increasingly
important
in
the
growing
climate
of
global
skills
shortages.
Many
developed
countries
ac:vely
encourage
immigra:on
of
high-­‐skilled
workers
in
areas
of
short
supply.
Australia
and
other
countries
use
a
points-­‐
based
system
that
evaluates
would-­‐be
immigrants
based
on
their
skills
rela:ve
to
current
shortages.
Many
European
countries
have
adopted
the
EU
Blue
Card
direc:ve,
which
encourages
migra:on
of
highly
skilled
non-­‐EU
ci:zens.
The
U.S.
keeps
a
“Schedule
A”
list
of
shortage
occupa:ons
for
which
immigra:on
condi:ons
are
somewhat
eased.
KEY
AREAS:
HEALTHCARE,
ENGINEERING,
AND
IT
The
BBC
examined
official
immigra:on
quota
data
and
skills
shortage
lists
for
30
developed
countries,
and
found
that
healthcare,
engineering,
and
IT
professionals
are
the
most
sought
aVer.
Out
of
the
20
professions
that
are
in
top
demand
for
skilled
immigrants,
18
fall
into
one
of
these
three
categories.
And
New
Zealand
topped
the
list
of
countries
looking
for
skilled
immigrants,
with
its
official
list
containing
all
20
of
the
top
occupa:ons.
0
5
10
15
20
Chefs
Audiologists
&
Speech
Therapists
Radiographers
Psychologists
Physiotherapists
Mining
&
Petroleum
Engineers
Chemical
Engineers
Electronics
Engineers
Industrial
&
Produc:on
Engineers
Pharmacists
Den:sts
Accountants
IT
Database
&
Network
Professionals
Civil
Engineering
Professionals
IT
Engineers
&
Analysts
IT
Developers
&
Programmers
Electrical
Engineering
Professionals
Doctors
Mechanical
Engineers
Nurses
TOP
20
MOST
WANTED
PROFESSIONS
AMONG
IMMIGRANTS
#
of
countries
0
5
10
15
20
25
New
Zealand
Australia
Singapore
Ireland
UK
Sweden
COUNTRIES
WITH
HIGH
DEMAND
FOR
SKILLED
IMMIGRANTS
#
of
top
20
professions
wanted
Global Talent Market Quarterly
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11. GLOBAL
LEGISLATIVE
UPDATE
Countries
con=nue
to
introduce
legisla=on
that
aWempt
to
address
the
challenges
that
arise
from
today’s
complex
labor
market
environment.
Regula=ons
regarding
immigra=on
are
also
a
significant
issue
affec=ng
labor
markets
in
many
countries.
Sources:
Mondaq,
041.15.13;
SIA
Daily
News,
03.19.13;
Lexology,
04.01.13
and
03.25.13;
SIA
Legs
and
Regs
Advisor,
January-­‐March
2013;
Global
Insight,
04.19.1;
SHRM,
04.16.13
11
U.K.
All
permanent
employees
with
at
least
26
weeks’
con:nuous
employment
and
all
employed
agency
workers
with
at
least
one
year’s
service
will
have
the
right
to
request
flexible
working
op:ons.
AUSTRALIA
Under
a
new
amendment
to
Australia’s
immigra:on
law,
employers
will
be
held
responsible
for
verifying
the
legal
status
of
new
and
exis:ng
employees.
Employers
could
face
penal:es
for
employing
a
person
who
does
not
have
a
valid
right
to
work
in
Australia.
JAPAN
Changes
to
the
Labor
Contract
Act
effec:ve
April
1,
2013
s:pulate
that
contract
workers
who
have
been
employed
for
five
con:nuous
years
and
who
ask
for
permanent
status
must
be
given
it.
The
amended
LCA
also
prohibits
having
unreasonable
differences
in
terms
and
condi:ons
of
employment
between
permanent
and
fixed
term
employees.
SWEDEN,
DENMARK
Sweden’s
new
regula:ons
brought
into
force
the
EU
Agency
Workers
Direc:ve
(AWD)
on
January
1,
2013,
while
Denmark
has
just
introduced
legisla:on
that
is
expected
to
usher
in
the
AWD
later
this
year.
The
AWD
creates
equal
treatment
standards
between
temporary
and
permanent
employees
regarding
working
condi:ons
and
pay,
and
was
intended
to
have
been
implemented
throughout
the
EU
by
the
end
of
2011.
U.S.
A
proposed
bill
would
expand
immigra:on
by
crea:ng
new
types
of
visas
for
both
high-­‐skilled
and
lower-­‐
skilled
workers,
and
mandate
the
use
of
e-­‐Verify.
The
bill
is
expected
to
garner
much
debate
in
the
coming
months.
CANADA
The
government’s
new
Start-­‐Up
Visa
Program,
launched
in
January
2013,
is
aimed
at
afrac:ng
innova:ve
immigrant
entrepreneurs
to
Canada.
The
program
links
foreign
entrepreneurs
with
Canadian
private
sector
investors.
CHINA
Amendments
to
China’s
labor
contract
law
that
place
limits
on
the
use
of
temporary
agency
workers
come
into
effect
on
July
1,
2013.
MEXICO
New
mandatory
privacy
no:ce
guidelines
went
into
effect
in
April
2013.
Under
the
new
guidelines,
employers
and
others
that
collect,
process,
and/or
transfer
personal
data
must
furnish
extensive
data
privacy
no:ces
and
obtain
consent
before
personal
data
is
collected.
COLOMBIA
A
new
tax
reform
that
replaces
payroll
taxes
with
higher
income
tax
rates
is
expected
to
have
a
posi:ve
effect
on
formal
job
crea:on.
Global Talent Market Quarterly
BACK TO
TABLE OF CONTENTS

12. U.S. Labor Market Overview
SECOND QUARTER l 2013

13. JOB
GROWTH
DIPS
AVer
several
months
of
strong
job
crea:on
in
late
2012
and
early
2013,
U.S.
employment
growth
stumbled
in
March.
Just
88,000
new
jobs
were
created
during
March,
driven
by
reduc:ons
in
retail
staff
and
a
decline
in
government
jobs.
Employment
gains
had
been
averaging
over
220,000
per
month
from
November
2012
to
February
2013.
UNEMPLOYMENT
RATE
FALLS,
ALONG
WITH
THE
LABOR
FORCE
The
unemployment
rate
con:nued
to
edge
down,
reaching
7.6%
in
March,
the
lowest
rate
seen
since
December
2008.
However,
the
decrease
in
March
was
largely
driven
by
nearly
a
half
million
people
leaving
the
labor
force.
Worryingly,
the
labor
force
par:cipa:on
rate—
the
share
of
working-­‐age
Americans
who
are
either
employed
or
looking
for
work—
con:nues
to
drop;
the
rate
now
stands
at
63.3%,
a
figure
not
seen
since
the
late
1970s.
U.S.
EMPLOYMENT
CONDITIONS
EMPLOYMENT
OVERVIEW
13
Source:
U.S
Bureau
of
Labor
Sta:s:cs
U.S.
MONTHLY
EMPLOYMENT
CHANGE
AND
UNEMPLOYMENT
RATE
6.0
7.0
8.0
9.0
10.0
0
100
200
300
400
Jan-­‐11
Feb-­‐11
Mar-­‐11
Apr-­‐11
May-­‐11
Jun-­‐11
Jul-­‐11
Aug-­‐11
Sep-­‐11
Oct-­‐11
Nov-­‐11
Dec-­‐11
Jan-­‐12
Feb-­‐12
Mar-­‐12
Apr-­‐12
May-­‐12
Jun-­‐12
Jul-­‐12
Aug-­‐12
Sep-­‐12
Oct-­‐12
Nov-­‐12
Dec-­‐12
Jan
13
Feb
13
Mar
13
Unemployment
Rate
(%)
Employment
(000s)
Total
non-­‐farm
employment
growth
Unemployment
rate
MAR
FEB
JAN
DEC
NOV
Total
non-­‐farm
employment
growth
88K
268K
148K
219K
247K
Private
sector
employment
growth
95K
254K
164K
224K
256K
Unemployment
rate
7.6%
7.7%
7.9%
7.8%
7.8%
LABOR
MARKET
ON
SHAKY
GROUND
The
broader
U.S.
economy
has
shown
some
signs
of
growth
recently,
with
encouraging
data
coming
from
the
housing
and
consumer
sectors.
But
the
effects
of
the
government’s
sequestra:on
cutbacks
on
the
U.S.
labor
market
have
yet
to
be
felt
or
determined.
This,
along
with
the
discouraging
slowdown
in
hiring
in
March
and
the
ongoing
erosion
of
the
labor
force,
suggest
that
the
condi:on
of
the
U.S.
job
market
is
s:ll
very
fragile.
Global Talent Market Quarterly
BACK TO
TABLE OF CONTENTS

14. U.S.
LABOR
MARKET:
SUPPLY
AND
DEMAND
UNEVEN
SUPPLY
AND
DEMAND
TRENDS
Demand
for
jobs
in
the
U.S.
dipped
in
February
and
March,
aVer
reaching
a
peak
of
more
than
5.1
million
online
ads
in
January.
Overall,
the
number
of
online
job
ads
declined
by
nearly
77,000
in
the
first
quarter
of
2013,
the
first
quarterly
job
demand
decline
since
Q1
2009.
Uncertainty
surrounding
the
economic
and
poli:cal
situa:on
in
the
U.S.
likely
contributed
to
the
soVness
in
demand
for
new
workers.
Just
as
labor
demand
has
been
uneven
over
the
past
year,
the
differences
in
demand
for
workers
among
professions
remain
significant.
The
supply/demand
ra:o
(unemployed
workers
per
job
ad)
is
more
than
four
to
one
in
the
field
of
food
prepara:on
and
serving,
and
more
than
three
to
one
for
transporta:on
occupa:ons.
But
demand
for
workers
con:nues
to
outstrip
supply
in
professional
occupa:ons
including
IT,
healthcare,
business/finance,
and
engineering.
S:ll,
the
long-­‐term
trend
shows
that
the
worker
supply/
demand
gap
in
the
U.S.
con:nues
to
narrow.
The
number
of
unemployed
workers
now
exceeds
the
number
of
adver:sed
vacancies
by
less
than
7
million,
compared
to
around
12
million
during
the
recession.
And
the
supply/
demand
ra:o
is
now
2.4,
down
from
over
5
in
mid-­‐2009.
“Labor
demand
has
been
up
and
down
for
the
last
six
months,
leaving
the
new
March
level
basically
the
same
as
it
was
in
September
2012.”
—
June
Shelp,
Vice
President,
The
Conference
Board,
April
3,
2013
14
U.S.
MARKET
-­‐
MONTHLY
LABOR
DEMAND
VS.
LABOR
SUPPLY
Sources:
Conference
Board
Help
Wanted
OnLine,
Bureau
of
Labor
Sta:s:cs
Unemployed
Workers
(in
thousands)
Online
Job
Ads
(in
thousands)
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
Jan
09
Apr
09
Jul
09
Oct
09
Jan
10
Apr
10
Jul
10
Oct
10
Jan
11
Apr
11
Jul
11
Oct
11
Jan
12
Apr
12
Jul
12
Oct
12
Jan
13
#
of
Unemployed
Workers
#
of
Online
Job
Ads
Global Talent Market Quarterly
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TABLE OF CONTENTS

15. U.S.
LABOR
MARKET
SPOTLIGHT:
COLLEGE
ENROLLMENT
RATES
15
Sources:
BLS;
Wall
Street
Journal,
04.17.13
41%
FEWER
HIGH
SCHOOL
GRADUATES
GOING
TO
COLLEGE
The
college
enrollment
rate
—
the
share
of
recent
U.S.
high
school
graduates
that
enter
college
—
is
falling.
Of
the
students
who
graduated
high
school
in
2012,
only
66.2%
were
afending
a
college
or
university
in
that
same
year,
down
from
a
high
of
over
70%
in
2009.
Some
analysts
suggest
that
the
falling
enrollment
rates
may
be
an
indicator
of
an
improving
labor
market.
High
school
graduates
who
had
been
going
to
college
simply
because
jobs
were
scarce
may
now
be
finding
employment
instead,
par:cularly
in
industries
like
construc:on
and
manufacturing
that
were
hard-­‐hit
during
the
recession.
Indeed,
the
college
enrollment
rate
for
men
in
2012
was
61.3%,
an
all-­‐:me
low.
55%
60%
65%
70%
75%
80%
2007
2008
2009
2010
2011
2012
Recent
High
School
Graduates:
%
Enrolled
in
College
Total
Men
Women
NO
COLLEGE,
WORSE
JOB
PROSPECTS
But
the
data
also
show
that
high
school
graduates
who
don’t
go
to
college
may
not
be
faring
so
well
in
the
job
market.
Unemployment
rates
for
recent
graduates
who
are
not
in
college
have
remained
rela:vely
flat
since
2009.
Prior
to
the
recession,
the
unemployment
rate
for
recent
high
school
graduates
who
were
not
in
college
hovered
around
20%
to
25%.
Since
2009,
the
rate
has
exceeded
33%,
meaning
that
around
two-­‐thirds
of
high
school
graduates
who
didn’t
go
to
college
were
unable
to
find
jobs
that
same
year.
21%
25%
20%
27%
35%
33%
34%
34%
0%
10%
20%
30%
40%
50%
2005
2006
2007
2008
2009
2010
2011
2012
Recent
High
School
Graduates
Not
in
College:
Unemployment
Rate
Global Talent Market Quarterly
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TABLE OF CONTENTS

16. Workforce Solutions
Industry Insight
SECOND QUARTER l 2013

17. WORKER
MOBILITY
STRATEGIES
Worker
mobility,
once
seen
as
a
straighlorward
transfer
of
skills
from
one
geographic
area
to
another,
has
become
a
more
complex
and
complicated
concept.
Organiza=ons
are
approaching
global
mobility
in
a
more
strategic
and
innova=ve
way,
as
they
react
and
adapt
to
the
changing
business
environment,
the
diverse
needs
of
their
employees,
and
their
opera=onal
goals.
17
Source:
Global
Mobility
Effec:veness
Survey,
Ernst
&
Young,
2012;
Talent
Mobility
2020
and
Beyond,
PWC
23%
RIGHT
SKILLS,
RIGHT
PLACE,
RIGHT
TIME
Overseas
moves
may
have
less
than
ideal
outcomes:
research
from
Ernst
and
Young
shows
that
more
than
one
in
ten
interna:onal
assignees
leave
their
jobs
within
two
years
of
returning
to
their
home
countries.
New
and
innova:ve
ways
of
approaching
mobility
are
allowing
companies
to
make
the
process
more
beneficial
to
both
the
organiza:on
and
the
individual,
and
to
address
cri:cal
talent
and
business
needs
at
the
same
:me.
Current
mobility
trends
include
more
long-­‐distance
commu:ng
and
intra-­‐country
moves,
as
well
as
short-­‐term
or
“purposed-­‐based”
assignments.
Currently
20%
of
assignments
last
less
than
a
year,
compared
with
10%
in
2002,
according
to
research
by
PWC.
And
these
short-­‐term
assignments
are
predicted
to
increase
by
20%
in
the
next
several
years.
Short-­‐term/
Project-­‐based
Assignments
Intra-­‐country
Mobility
Rota:onal
Employee
Programs
Reverse
Transfers
from
Emerging
to
Developed
Markets
Long-­‐distance
Commu:ng
and
Extended
Business
Travel
Virtual
Mobility
Global
Nomads
with
No
“Home
Country”
MODERN
MOBILITY
SOLUTIONS
BUSINESS
NEEDS
ADDRESSED
BY
MOBILITY
STRATEGIES
Employee
development
and
reten=on
Business
development
and
strategy
• The
need
to
develop
well-­‐rounded
leaders
of
the
future,
with
a
truly
interna:onal
perspec:ve.
• The
need
to
offer
exci:ng
career
opportuni:es
to
the
best
talent
as
compe::on
to
afract
and
retain
the
best
intensifies.
• The
recogni:on
that
an
organiza:on
can
benefit
from
a
two-­‐way
transfer
of
knowledge,
skills
and
experience.
• The
recogni:on
that
in
an
increasingly
interna:onal
world,
key
roles
oVen
have
a
regional
or
global
perspec:ve.
Global Talent Market Quarterly
BACK TO
TABLE OF CONTENTS

18. ARE
TALENT
INVESTMENTS
PAYING
OFF?
More
and
more
global
organiza=ons
are
realizing
that
human
capital
is
a
cri=cal
component
of
success
in
today’s
economy,
and
many
are
increasing
their
investments
in
talent
and
workforce
planning.
But
companies
are
less
certain
about
the
effec=veness
that
their
current
talent
efforts
are
having
on
their
business
results.
A
rigorous
and
systema=c
approach
to
workforce
planning
can
provide
numerous
benefits
in
helping
organiza=ons
reach
their
growth
objec=ves.
18
Source:
Mercer’s
Talent
Barometer
Survey,
March
2013
23%
WORKFORCE
PLANS
NEED
WORK
According
to
a
recent
Mercer
survey,
talent
investments
have
increased
for
most
companies
in
recent
years,
and
more
than
three
out
of
four
companies
said
they
have
a
plan
in
place
to
forecast
their
talent
needs.
But
those
planning
efforts
may
be
less
than
adequate.
Few
organiza:ons
are
taking
a
long-­‐term
look
at
their
talent
needs—less
than
one
in
eight
has
a
workforce
plan
that
extends
more
than
five
years.
And
the
majority
of
respondents
to
Mercer’s
study
felt
that
their
workforce
planning
efforts
were
only
somewhat
effec:ve.
A
forward-­‐looking
strategic
workforce
plan
can
iden:fy
cri:cal
jobs
and
possible
talent
gaps,
and
then
outline
strategies
for
mee:ng
human
capital
requirements.
Making
talent
a
strategic
impera:ve
can
help
companies
determine
the
most
effec:ve
prac:ces
and
policies
going
forward.
“Employers
need
to
apply
the
same
level
of
rigor
and
analysis
to
their
strategic
talent
plans
as
they
do
any
other
area
of
compe::ve
business
advantage.
By
viewing
HR
programs
and
prac:ces
though
this
strategic
lens,
organiza:ons
can
focus
on
those
efforts
that
drive
posi:ve
and
measureable
results.”
―
Orlando
Ashford,
President
of
Mercer’s
Talent
business
Increased,
60%
Stayed
the
same,
29%
Decreased,
11%
Talent
investment
in
recent
years
Next
year,
31%
Next
2-­‐3
years,
34%
Next
5+
years
,
12%
No
workforce
plan,
23%
Dura=on
over
which
current
workforce
plans
forecast
talent
needs
14%
62%
22%
2%
Effec=veness
of
current
workforce
plan
in
mee=ng
immediate
and
long-­‐term
talent
needs
Not
effec:ve
Somewhat
effec:ve
Very
effec:ve
Extremely
effec:ve
Global Talent Market Quarterly
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TABLE OF CONTENTS

19. STATEMENT
OF
WORK
MANAGEMENT
As
free
agent
and
other
project-­‐based
workers
become
a
more
prevalent
and
more
strategic
part
of
an
organiza=on’s
workforce,
companies
are
seeking
to
improve
visibility
and
management
across
all
talent
categories.
Given
the
poten=al
efficiencies,
integra=ng
statement
of
work
(SOW)
ac=vity
within
exis=ng
managed
services
programs
is
a
natural
next
step.
19
Sources:
SOW:
A
Global
Trend?
SIA,
February
2013;
Staffing
Industry
Analysts
VMS/MSP
Landscape
Reports,
2010-­‐2012;
Staffing
Industry
Analysts
Con:ngent
Buyers
Survey
2011-­‐2012
23%
SOW
MANAGEMENT
IS
A
GROWING
TREND
Organiza:ons
are
expanding
their
successful
con:ngent
management
programs
to
cover
other
categories
of
employees,
par:cularly
statement
of
work
(SOW)
.
SOW
spending
under
managed
services
programs
more
than
doubled
from
2009
to
2011,
according
to
Staffing
Industry
Analysts.
North
America
is
the
key
region
for
SOW
management,
but
interest
and
adop:on
are
growing
worldwide.
SIA
reports
that
in
India,
Japan,
and
China
more
than
80%
of
MSP
spend
is
on
SOW
employees.
And
in
Europe,
more
than
half
of
staffing
buyers
say
they
are
seriously
thinking
about
incorpora:ng
SOW
employees
into
their
con:ngent
worker
management
programs.
SOW
management
programs
are
also
moving
beyond
just
invoicing
and
milestone
tracking
to
encompass
more
value-­‐added
func:ons
including
worker,
contract,
and
supplier
management.
53%
29%
31%
52%
North
America
Europe
Likely
to
Explore
within
2
Years
Current
usage
Incorpora=ng
SOW
into
Con=ngent
Worker
Management
Programs
$0
$10
$20
$30
$40
$50
$60
$70
2009
2010
2011
Managed
Services
Providers:
Spend
Under
Management
by
Worker
Type
Temporary/
Contract
SOW
Outsourced
$B
US
SOW
Management
Program
Offerings
Providing
invoicing
and
bill
pay
services
90%
Tracking
milestones
and
deliverables
88%
On-­‐
and
off-­‐boarding
SOW
workers
64%
Managing
contracts
for
SOW
workers
55%
Nego:a:ng
contract
terms
and
pricing
for
SOW
services
48%
Shortlis:ng
suppliers
for
SOW
services
46%
Reviewing
and
scoring
RFP
response
bids
for
SOW
services
40%
DraVing
contracts
and
SOWs
for
services
39%
Crea:ng
RFPs/SOWs
on
behalf
of
client
29%
Iden:fy/source
qualified
SOW
suppliers
24%
Global Talent Market Quarterly
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20. Kelly
offers
a
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TITLE
PRESENTED
BY:
DESCRIPTION
Mapping
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Acquisi=on
Jillyan
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20
KELLY
KNOWLEDGE
Global Talent Market Quarterly
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21. 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.
A Kelly Services Report
All trademarks are property of their respective owners. An Equal Opportunity Employer © 2013 Kelly Services, Inc. Y0722
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