q4 2013 global talent market quarterly

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Global Talent Market Quarterly FOURTH QUARTER l 2013

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Kelly´s Global Talent Market Quarterly provides a summary of the current economic and labor market conditions around the world and gives insight into how they might impact you.

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Page 1: Q4 2013 Global Talent Market Quarterly

Global Talent Market QuarterlyFOURTH QUARTER l 2013

Page 2: Q4 2013 Global Talent Market Quarterly

Global Talent Market Quarterly

CONTENTS

3 Global Economic Situation •Outlook

•Briefing

6 Global Labor Market Update •Americas

•EMEA

•APAC

•GlobalLaborMarketSpotlight

•LegislativeUpdate

12 U.S. Labor Market Overview •CurrentEmploymentConditions

•SupplyandDemand

•LaborMarketSpotlight

16 Workforce Solutions Industry Insight •2013KGWI:EmployeeEngagementandRetention

•BenefitsofBoostingEngagement

•ContingentWorkforceManagementStrategies

•TheTalentProject

Page 3: Q4 2013 Global Talent Market Quarterly

Global Economic SituationFOURTH QUARTER l 2013

Page 4: Q4 2013 Global Talent Market Quarterly

GLOBAL ECONOMIC OUTLOOK

Global economic growth has been subdued in 2013, limited by U.S. policy battles, weakness in Europe, and a cooldown in large emerging markets. The global economy is expected to gradually and modestly accelerate in 2014, with projected growth of 3.3%.

Source: IHS Global Insight (October 2013) 4

AMERICAS Sluggish growth in North America is expected to improve in 2014, and Latin American economies will also continue to strengthen. Much of the regional outlook depends on the U.S. and the resolution of its ongoing policy issues.

EMEA The Eurozone has finally begun to climb out of recession, spurring brighter growth prospects across the region, but recovery is expected to be gradual. Across the Middle East and Africa, political and civil unrest still pose risks to growth.

APAC The region still leads global economic growth, as most APAC economies have adjusted to the cooler export climate. Maintaining strong domestic consumer demand remains critical to future market expansion in the region.

2.6% 2.4% 3.3%

3.8%

4.7% 4.8%

5.3% 5.7%

1.0% 0.9%

2.1%

2.6%

-0.6% -0.5%

0.8%

1.3%

2.4%

3.1% 3.4%

4.0%

2.8%

1.5%

2.5% 3.2%

-1%

0%

1%

2%

3%

4%

5%

6%

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

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

World APAC EMEA Eurozone Latin America U.S.

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Page 5: Q4 2013 Global Talent Market Quarterly

ECONOMIC BRIEFINGS

Strengthening in developed economies including Germany, the U.K., and North America is forecast to drive global economic growth in 2014. Emerging market economies have struggled over the past year, particularly compared to historical performances, but are poised to regain some momentum.

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

Italy

France

Germany

Japan

U.K.

Australia

U.S.

Canada

Brazil

Russia

India

China

REAL GDP GROWTH RATES, SELECTED MARKETS Ranked by 2014(p) growth

2013(p)

2014(p)

2015(p)

5

Global GDP Growth 2014(p): 3.3%

Sources: IHS Global Insight (October 2013); Reuters 09.03.13

EMERGING MARKETS CHINA’s economic growth has stabilized in recent months. Modest stimulus measures

will help sustain a gradual rebound and keep GDP growth near 8% for 2014.

In INDIA, GDP growth is expected to climb to 5.6% in 2014, but is still sub-par by historical standards. The country’s long-term potential is solid, with economic reforms key to future growth.

The Eurozone crisis slowed exports and dampened RUSSIA’s economic growth, but a moderate recovery is expected to gain momentum beginning in 2014. Growth in other Central and Eastern European economies is also projected to accelerate.

BRAZIL’s GDP growth is expected to continue to strengthen, surpassing 3% in 2014, driven by increased investment and ongoing government stimulus.

DEVELOPED ECONOMIES Subdued regional growth and a slowdown in the mining sector are expected to keep

economic expansion in AUSTRALIA limited, with growth remaining at 2.4% in 2014.

JAPAN’s economy is back on track with growth nearing the 2% range, helped by stimulus efforts and increased consumer demand. Future growth depends on continued strong consumer activity and rising exports.

Sluggish economic growth in the U.S. and CANADA is expected to accelerate to around 2.5% in 2014. A key risk is the contentious U.S. political climate; the recent government shutdown was expected to weigh down the country’s GDP growth by 0.6 percentage points in the fourth quarter of 2013.

After six consecutive quarters of recession, the Eurozone economy has begun to recover, led by solid gains in GERMANY and FRANCE. The U.K. has also seen marked economic improvement. Nevertheless, the path to recovery is expected to be slow, as contractions are expected to persist in ITALY, SPAIN, and GREECE through mid-2014.

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Page 6: Q4 2013 Global Talent Market Quarterly

Global Labor Market UpdateFOURTH QUARTER l 2013

Page 7: Q4 2013 Global Talent Market Quarterly

GLOBAL LABOR MARKET UPDATE: AMERICAS

Despite relatively positive unemployment figures, key countries across the Americas region have failed to generate significant momentum in their labor markets, as hiring has been constrained by economic, structural, and political tensions. Declining labor force participation is also a critical concern in many markets. The outlook calls for continued moderate employment growth in the region.

Sources: IHS Global Insight (October 2013) EIU, 09.23.13 and 09.27.13; Dow Jones News Service, 10.11.13

7

UNITED STATES Although unemployment in the U.S. continues to trend downward, the pace of new job growth has been lackluster. Future improvements depend on resolution of policy issues and increasing business confidence.

BRAZIL Job creation in Brazil has remained steady, in spite of the country’s sluggish economic performance. The unemployment rate is also projected to remain stable in the 5.5% range over the coming years.

CANADA Modest employment growth is expected to continue, with ongoing strength in energy-related sectors and geographies. The unemployment rate edged below 7% in September—the lowest since 2008—but unemployment is still high, and labor force participation is trending down.

MEXICO The slowdown in the Mexican economy is affecting the labor market, as both unemployment and labor force participation rates have been volatile in 2013. More consistent improvements are expected in 2014 and 2015.

8.1%

7.5% 7.1%

6.5%

5.5% 5.5% 5.6% 5.5%

7.3% 7.1% 7.0%

6.7%

5.0% 4.9% 4.8%

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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Page 8: Q4 2013 Global Talent Market Quarterly

GLOBAL LABOR MARKET UPDATE: EMEA

Although economic conditions have begun to improve in Europe, many of the hardest hit countries are not projected to see labor market improvements until late 2014 or 2015. In countries that were less affected by the economic crisis, including Germany and the U.K., favorable employment conditions are expected to continue to strengthen.

Sources: IHS Global Insight (October 2013) ; Reuters 10.16.13

8

GERMANY The economic crisis has had very little effect on employment conditions in Germany, which continue to outpace most of the rest of Europe. Unemployment declines are expected to accelerate over the coming years.

FRANCE Although the economy has begun to rebound, the French labor market is expected to remain very challenging through 2014, with unemployment rising above 11% and continuing to surpass historically high levels.

UNITED KINGDOM The U.K. labor market is improving, as greater economic activity drives more solid hiring trends and gradual improvements in unemployment. Jobless claims dropped by over 41,000 in September, the largest fall in 16 years, and employment is at its highest point in over 40 years.

RUSSIA Despite a significant slowdown in the economy, unemployment in Russia has been on a gradual downward trend—a pace that is expected to continue in the coming years.

6.8% 6.8% 6.6% 6.3%

10.2%

10.9% 11.2% 11.1%

7.9% 7.7% 7.4%

7.1%

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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Page 9: Q4 2013 Global Talent Market Quarterly

GLOBAL LABOR MARKET UPDATE: APAC

The slowdown in economic activity has had very little effect on labor markets across the APAC region. Forecasts vary for the region’s key countries, with a brighter outlook for India and Japan offset by more challenging employment conditions predicted for Australia.

Sources: IHS Global Insight (October 2013); Thai News Service, 08.06.13; Kyodo News, 09.20.13; Staffing Industry Analysts, 09.16.13

9

CHINA Despite a slowing economy, the Chinese labor market has been relatively resilient, adding 7.25 million jobs in the first six months of the year, an increase of 310,000 year-over-year. The service sector, and in particular Internet-based businesses, have helped create employment opportunities.

JAPAN The unemployment rate, which had dropped below 4%, rose in August as more Japanese workers began looking for jobs. The country’s job availability index has shown six straight months of improvement, reaching 0.95, or 95 employment offers per 100 job seekers, in August.

INDIA Hiring in India is expected to pick up in the coming months, after lackluster economic growth had limited job creation in the first part of 2013. IT and e-commerce are among the bright spots for employment growth.

AUSTRALIA While business confidence has improved somewhat following the elections in Australia, hiring intentions remain soft. The labor force participation rate has sunk to a nearly seven-year low, and unemployment is forecast to continue to increase over the short-term.

4.1%

4.1% 4.0%

3.9%

4.3%

4.0% 3.9%

4.2%

8.1% 8.4%

8.2% 8.1%

5.2%

5.7% 6.0%

5.4%

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: Q4 2013 Global Talent Market Quarterly

GLOBAL LABOR MARKET SPOTLIGHT: ADULT SKILL LEVELS

Source: Skilled for Life? Key Findings From the Survey of Adult Skills, OECD, 2013

10

HOW SKILLED IS YOUR COUNTRY’S LABOR FORCE? The OECD’s first Survey of Adult Skills offers a fascinating, multi-national picture of labor force skills and competencies. The survey used assessment tests to evaluate literacy, numeracy, and technology problem solving skills among people ages 16-65 across 24 countries. It shows marked differences in skills among countries as well as within each labor force, and suggests that developing and using skills can have a profound impact on employment prospects, quality of life, and a country’s economic growth potential.

The survey shows that workers in the Nordic countries and Japan tend to be highly proficient. In others, notably in Southern Europe, Ireland, and the U.S., many adults struggle with the most basic literacy and numeracy skills. It also shows that many adults do not possess basic computer skills, including nearly one in four in Italy, Korea, Poland, Spain and the Slovak Republic.

ADDITIONAL KEY FINDINGS: OECD SURVEY OF ADULT SKILLS Economic and social impact of skills

• Those with low literacy skills are more than twice as likely to be unemployed, and have median earnings 60% lower than those with higher literacy skills. Countries with greater inequality in skills also exhibit higher income inequality.

Gap between skills and educational attainment • In some countries (Australia, Finland, Japan, Netherlands, Norway),

many adults without a high school degree have high literacy skills, suggesting that people can learn skills despite limited early schooling.

Impact of social background varies • In England, Germany, Poland and the U.S., the children of parents with

low education levels have much weaker reading skills as adults than those with better educated parents. Australia, Estonia, Japan and Sweden show the smallest difference between these two groups.

Uneven progress across generations • In some countries (Korea, Japan, Finland), the younger generations

have made significant steps in closing the skills gap, particularly in technology areas. But in others (England, U.S.), younger workers are not as skilled as those near retirement.

Literacy Numeracy Technology

Problem Solving Australia Austria Canada Czech Republic Denmark Estonia Finland France n/a Germany Ireland Italy n/a Japan Korea Netherlands Norway Poland Slovak Republic Spain n/a Sweden United States Belgium* UK* Cyprus n/a

*Belgium: Flanders only; UK: England and N. Ireland only Cyprus, France, Italy, and Spain did not field the technology problem solving assessment

Significantly below average Significantly above average Not significantly different from average

PROFICIENCY IN KEY SKILLS: ADULTS AGES 16-65

Literacy was defined as the ability to understand, evaluate, use and engage with written texts. Numeracy was defined as the ability to access, use, interpret and communicate mathematical information and ideas. Problem solving in technology-rich environments was defined as the ability to use digital technology, communication tools and networks to acquire and evaluate information, communicate with others and perform practical tasks.

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Page 11: Q4 2013 Global Talent Market Quarterly

GLOBAL LEGISLATIVE UPDATE

Regulations surrounding temporary employment, and in particular those concerning contract limits, continue to be redefined. Temp-to-hire contracts are now permissible in Belgium, indefinite contracts have been proposed in France, and discussions to loosen assignment limits are occurring in Japan. South Africa, meanwhile, has tightened restrictions on temporary workers’ contract lengths.

Sources: Globe and Mail, 08.08.13; SIA Daily News, 07.29.13 and 09.24.13; SIA European Legs & Regs Advisor, July and September 2013; SIA ROW Legs & Regs Advisor, July and August 2013; SHRM, 08.27.13

11

JAPAN A proposal to revise the Temporary Dispatch Law is being discussed, which would loosen the assignment limit rules for temporary workers and abolish the current 26 designated job categories in which workers can be engaged indefinitely. Potential changes are likely to be submitted to the Diet in 2014.

PHILIPPINES A bill filed in the Senate seeks to end age discrimination by penalizing employers or recruitment agencies that make a person’s age the basis for employment.

BAHRAIN Employers may now apply for one-year visas for foreign workers, in addition to the two-year work permits previously allowed. The new visas may be renewed for a period of six months or one year. .

BRAZIL New legislation prohibits bribery of foreign government officials by Brazilian companies, as well as bribery of local government officials by companies operating in Brazil.

FRANCE Trade unions and the French staffing association PRISME have introduced a proposal to allow indefinite contracts, or a “benched resources” model, for staffing firms. The government must review the proposal’s viability under the Labor Code.

BELGIUM Staffing firms are now allowed to provide temp-to-hire employment, beginning in September 2013. Staffing firms were previously limited to providing temporary workers only in the case of the absence or dismissal of a permanent employee, or to face a temporary rise in demand.

SOUTH AFRICA Under a new bill, temporary workers’ contracts are limited to three months, after which the workers are eligible to become permanent employees.

CANADA New measures that encourage employers to hire Canadians rather than temporary foreign workers include an application fee to recruit overseas workers and an obligation to advertise jobs first to Canadians.

GERMANY Minimum wage increases for temporary workers will come into effect on January 1, 2014. Minimum wage rises for temporary workers which take effect in mid-2015 and mid-2016 were also announced.

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Page 12: Q4 2013 Global Talent Market Quarterly

U.S. Labor Market OverviewFOURTH QUARTER l 2013

Page 13: Q4 2013 Global Talent Market Quarterly

LACKLUSTER JOB CREATION September’s employment report—which was delayed by more than two weeks due to the U.S. federal government shutdown—showed that the pace of job creation in the country continues to be frustratingly modest. Employment gains have slowed over the course of the year, averaging just 143,000 per month in the third quarter of 2013, down from 183,000 in the second quarter and 207,000 in the first. So far in 2013, job growth has averaged around 180,000 per month—nearly identical to the lackluster rate the U.S. economy has generated for the past two years.

UNEMPLOYMENT INCHING DOWN Despite the lack of momentum in payroll gains, the unemployment picture in the U.S. has been slowly improving. The unemployment rate dipped to 7.2% in September 2013, its lowest point since 2008. The number of people unemployed has fallen by more than 4 million since the peak in late 2009, but there are still more than 11.2 million unemployed workers in the U.S., and the labor force participation rate remains at a 35-year low.

U.S. EMPLOYMENT CONDITIONS

EMPLOYMENT OVERVIEW

13 Source: U.S Bureau of Labor Statistics

U.S. MONTHLY EMPLOYMENT CHANGE AND UNEMPLOYMENT RATE

POLICYMAKING AND ECONOMIC CLIMATE TAKING A TOLL The sluggish and slowing hiring momentum through the third quarter suggests that, even before the U.S. government shutdown, employers remained very hesitant to add significantly to their payrolls. IHS Global Insight forecasts that the shutdown will lower U.S. economic performance in the fourth quarter of 2013 by about 0.6 percentage points—and the negative impacts on employment growth, as well as consumer and business confidence, are yet to be determined. Although the outlook is for stronger hiring in 2014, achieving that outcome depends upon stronger economic growth and perhaps a less uncertain policymaking climate.

APR MAY JUN JUL AUG SEP

Total non-farm employment growth 199K 176K 172K 89K 193K 148K

Private sector employment growth 157K 187K 194K 100K 161K 126K

Unemployment rate 7.5% 7.6% 7.6% 7.4% 7.3% 7.2%

6.0

7.0

8.0

9.0

10.0

0 50

100 150 200 250 300 350

Une

mpl

oym

ent R

ate

(%)

Empl

oym

ent (

000s

)

Total non-farm employment growth Unemployment rate

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Page 14: Q4 2013 Global Talent Market Quarterly

U.S. LABOR MARKET: SUPPLY AND DEMAND

“The 210,000 gain for September is the first optimistic sign this year that employers are seeking additional workers.”

— June Shelp, Vice President, The Conference Board, October 2, 2013

14

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

Sources: Conference Board Help Wanted OnLine, Bureau of Labor Statistics

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Wor

kers

(in

thou

sand

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Onl

ine

Job

Ads

(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

09

Jul 0

9 O

ct 0

9 Ja

n 10

A

pr 1

0 Ju

l 10

Oct

10

Jan

11

Apr

11

Jul 1

1 O

ct 1

1 Ja

n 12

A

pr 1

2 Ju

l 12

Oct

12

Jan

13

Apr

13

Jul 1

3

# of Unemployed Workers # of Online Job Ads

JOB DEMAND FINALLY UP IN SEPTEMBER U.S. demand for jobs increased strongly in September, up nearly 210,000. This was the first significant rise in 2013, as the number of online job ads had been essentially flat over the previous eight months. The supply/demand ratio dropped to 2.2 unemployed workers for each online advertised job vacancy in the United States.

STRONG DEMAND FOR TRANSPORTATION JOBS In September, job demand increased across a wide number of sectors, from food services to computer and mathematical science occupations. Transportation occupations have been among those in greatest demand, with job vacancies up by nearly 40,000 over the past three months.

GEOGRAPHICAL DIFFERENCES IN SUPPLY/DEMAND Salt Lake City leads the country with a supply/demand ratio of 0.9, indicating that there are more job vacancies than unemployed workers in the metro area. Other metro areas with favorable supply/ demand ratios include Minneapolis–St. Paul (1.2), Washington DC (1.2), and Seattle–Tacoma (1.25). In contrast are Riverside CA, with 5.8 unemployed workers for every advertised vacancy, and Memphis and Las Vegas, each with supply/demand ratios of 3.5.

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Page 15: Q4 2013 Global Talent Market Quarterly

U.S. LABOR MARKET SPOTLIGHT: UNDERCOVER IT HUBS

15

41%

OUT WITH THE OLD, IN WITH THE NEW While focus in IT talent often falls to traditional epicenters like Silicon Valley, Washington DC, Seattle, and Boston, high wage pressures and lackluster projected demand are expected to lower these metro areas’ future potential. Data from Kelly’s Talent Market Analyst tool suggests that there may be better opportunities for finding IT professionals in less obvious metropolitan areas moving forward.

Provo UT, Phoenix AZ, Huntsville AL, and Madison WI are among the top “hidden” IT sourcing areas in the US. These areas are projected to see the largest growth in demand over the next five years, and an increasing IT concentration index (representing a growing importance of IT professions within the labor force).

Many of these high potential sourcing areas also feature relatively lower wages for IT talent. Current IT wages in Provo are 18% below the national average, while those in Madison and Salt Lake City are 9% below national average IT wages.

Source: Talent Market Analyst

Notes: Based on metropolitan areas with at least 10,000 employees in IT occupations in 2013. Concentration Index: employment in IT occupations as a % of the total labor force, compared to the national average of 1.00. Concentration Index % Change: projected change in the concentration index 2013-2018. Wages: median hourly IT occupational earnings compared to national average occupational wage of $36.72/hr (lower=more favorable).

MO

RE

F

AV

OR

AB

LE

Metropolitan Area Current Supply

(2013) Projected Demand

(2013-2018) Concentration Index

(2013)

Concentration Index % Change

(2013-2018)

Wages % Above/ Below National Average (2013)

Provo, UT 11,206 17% 1.50 0.7% -18%

Phoenix, AZ 72,813 15% 1.19 1.7% -4%

Huntsville, AL 14,949 14% 2.23 2.2% 10% Madison, WI 17,964 13% 1.62 4.9% -9% Baltimore, MD 64,294 12% 1.45 2.1% 11% Indianapolis, IN 29,754 12% 1.02 2.0% -7% Salt Lake City, UT 28,149 12% 1.27 0.8% -9%

HIGH POTENTIAL IT TALENT AREAS (Ranked by projected demand growth)

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Workforce Solutions Industry Insight

FOURTH QUARTER l 2013

Page 17: Q4 2013 Global Talent Market Quarterly

2013 KGWI: EMPLOYEE ENGAGEMENT AND RETENTION

The 2013 Kelly Global Workforce Index shows that many workers have experienced a significant shift in their attitudes toward their employers in the wake of the global financial crisis. Workers’ loyalty and commitment to their employers is wavering, as economic and labor market conditions remain volatile.

17 Source: Employee Engagement and Retention, 2013 KGWI

EMEA WORKERS SHOW GREATER TURNOVER, LOWER ENGAGEMENT Around the globe, employees show varying degrees of engagement with their jobs in 2013. Worldwide, only around half of all workers say that they are happy with their current position and only a third say they are totally committed to their current employer. Those in the EMEA region are less likely to recommend their employers, feel less committed, and are less happy in their jobs than workers in other regions.

And the dissatisfaction seems to be leading to greater job churn. Almost half of all respondents globally have changed employers in the past year, with the greatest rate of job-changers in the EMEA region. Around two-thirds of respondents in the EMEA region say they intend to look for a job this year, also highest among all regions.

29% 33%

52% 42% 40%

53%

24% 28%

46%

28% 34%

63%

Would recommend their employer* Feel "totally committed" to current employer Feel happy or very happy in job

EMPLOYEE ENGAGEMENT

Global Americas EMEA APAC

*Respondents rating 9 or 10 on scale of 1–10 where 1 = “Definitely would not” and 10 = “Definitely would” recommend

47%

63%

45% 56%

51%

67%

42%

61%

Have changed employers in the last year

Intend to look for another job this year

EMPLOYEE TURNOVER Global Americas EMEA APAC

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BENEFITS OF BOOSTING ENGAGEMENT

Particularly in a time of economic uncertainty, having a committed and engaged workforce can be one of the most critical ingredients in the success of a business. A recent report from Aon Hewitt suggests that organizations should pay attention to their employees’ attitudes and feelings, as there is a strong correlation between employee engagement and a company’s financial performance.

18 Source: Trends in Global Employee Engagement, Aon Hewitt

WORTHWHILE TO IMPROVE EMPLOYEE ENGAGEMENT A recent report from Aon Hewitt suggests that increasing employee engagement can have a direct and positive effect on a company’s future revenue and profitability growth. Higher engagement levels also predict greater shareholder return for companies.

INVESTING IN TALENT TO TAME THE ECONOMIC CYCLE An engaged workforce can help smooth the effects of a volatile economic climate. During downturns, organizations invest in employee engagement to help stabilize the workplace and mitigate negative effects from downsizing. During recovery periods, engagement becomes even more crucial as organizations ask fewer people to do more; a committed workforce can help set the stage for greater business growth.

Each incremental percentage of employees who become engaged predicts an incremental 0.6% growth in sales in the following year, as well as a significant impact on profitability.

Companies with engagement levels in the top quartile attained 50% higher total shareholder return than the average organization.

Economic Forces

Company Decisions

Employee Engagement

Company Performance

EMPLOYEE ENGAGMENT, BUSINESS AND ECONOMIC CYCLE

3% 14%

27%

1% engagement improvement

5% engagement improvement

10% engagement improvement

POTENTIAL EFFECT OF INCREASED ENGAGEMENT ON OPERATING INCOME

Gro

wth

in o

pera

ting

inco

me

Sensitivity of lagged operating income to changes in employee engagement for a $5b organization with 15% operating margin

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CONTINGENT WORKFORCE MANAGEMENT STRATEGIES

As organizations continue to shift towards more flexible and non-traditional work options, electing and implementing a contingent workforce management strategy has never been more important. According to research by Aberdeen, leading companies are turning to holistic programs including VMS and MSP to maximize the potential value of contingent workers.

19 Source: Contingent Labor Management: Strategies and Solutions for a Flexible Workforce, Aberdeen, August 2013

23%

More companies are turning towards a formal, cohesive program that manages all aspects of their contingent workforce, according to Aberdeen: 27% reported using this type of system in 2013, up from 23% in 2012. A key best practice is outsourcing contingent workforce management. Among best-in-class organizations, 40% use an MSP or VMS to manage their contingent workforce, compared to around 20% of all others.

Using an outsourced solution can help organizations better achieve their primary goals, such as improving visibility into spending across all contingent labor categories. Outsourced solutions can also provide organizations with more efficient and effective practices ranging from on-boarding/off-boarding, to forecasting contingent usage.

MSP AND VMS USAGE DRIVE VISIBILITY, EFFICIENCIES

23% 27%

23% 27%

22% 20%

0%

5%

10%

15%

20%

25%

30%

Formal program managing all aspects of

contingent labor

Disparate management of contingent labor

No management of contingent labor

MANAGEMENT OF CONTINGENT LABOR

2012 2013

0% 20% 40% 60% 80%

Able to forecast contingent labor use

Able to track and monitor quality

Data analytics and reporting

Visibility into spending across all subsets

Internal process for compliance to government labor and tax policies

Proper on-boarding/ off-boarding

ADVANTAGES OF MSP

Use MSP

No MSP

Improve visibility

48%

Improve total talent

management 42%

Drive efficiencies

39%

TOP PRIORITIES FOR CONTINGENT WORKFORCE MANAGEMENT

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

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

TITLE PRESENTED BY: DESCRIPTION

Gen Now: Understanding the Multi-Gen Workforce

Jason Morga, VP, Americas Marketing

Lance Richards, VP, Innovation

Employers worldwide face the concurrent challenges of optimizing an aging workforce and embracing upcoming younger talent. This webcast takes a closer look at the fundamental reasons why entire organizations, not just HR departments, must learn to respond to generational issues today.

Talent Supply Chain Management Readiness

Teresa Carroll, SVP & General Manager, KellyOCG

This research aims to uncover to what extent organizations are rethinking their approach to talent supply chain management, where their highest priorities lie, and what they find particularly challenging. It also looks closely at top performers to understand what they do differently from their peers, and how others can emulate them.

Building the New Silk Road: The Talent Challenge for Asia-Pacific in 2013/14

Anthony Raja Devadoss, VP, APAC, KellyOCG

Organizations operating within APAC need to understand the forces that are impacting supply and demand for talent across this dynamic and diverse region. This report outlines the new and emerging workforce imperatives in APAC, and how employers can stay ahead of the talent curve.

20

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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.

A Kelly ServiceS rePorT

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