NOTE FROM THE EDITOR

INSIDE THIS ISSUE

“Can you believe that it’s already the second quarter of the year? As 2014 continues to speed by, the staff at TrendLine is hard at work to provide you with key insights into the temporary staffing industry. Our up-to-date research and analysis of industry trends ensure that you have a clear reading of what’s happening in the world of contingent worker supply and demand.

The DCR National Temp Wage Index focuses on wage trends over the year and analyzes the usage of temp workers and related developments in the economy and job market. This month, we look at the latest employment numbers from the U.S. Bureau of Labor Standards (BLS), and check in on global temp employment numbers.

As we promised last month, we conducted an in-depth analysis of the minimum wage increase on federal contract workers. In this article, we focus on the impact that the wage increment would have at both options ($9.00/hour and $10.10/hour) on employment and family income.

Our next topic focuses on trends and predictions for HR technology over the rest of the year. As HR strategy is becoming a larger part of the corporate agenda, managers everywhere are interested in what’s up and coming in talent management technology. In this TrendLine article, we strive to keep you updated on what’s buzzing in the market.

Everyone’s been talking about crowdsourcing for the past few years. Technology is rapidly transforming hiring practices in the temporary staffing market, and we take a thorough look at how crowdsourcing for talent is playing a part.

Last month, we talked about the opportunities for temporary workers in the healthcare sector. This month, we turn our attention to the Information technology job market to look at how and where demand for IT professionals is growing.

Many of those involved in the management of contingent workers often wonder how happy temp workers are with their positions. In our next article, we answer this question by examining how satisfied contract workers are with their staffing firms and client companies.

The TrendLine staff is always focused on what’s trending in anything to do with contingent worker supply and demand. And while TrendLine articles always offer deep analysis of trends, we’re really excited to unveil a new quarterly topic – ‘What’s Trending in the Temp Market?’ – that consolidates our research into a short list of critical trends in key talent sectors of the staffing industry. Take a look and let us know what you think!

So far 2014 is shaping up to be a great year for contingent staffing! In our next article, we’re looking into our crystal ball to give you insight into what the staffing landscape will look like in 2022! Keep an eye out for the chart of the jobs that will be experiencing the most growth over the next decade.

Our final article is the culmination of our series on the BRIC countries, as we take a glance at India and its potential for temporary work development. India is rapidly becoming a hot spot for temp workers, and we look at the economics and employment factors that support the emergence of a growing workforce population

Ammu WarrierAmmu Warrier, President

“I’m a massive fan of the staffing industry. Organizations have been looking to optimize every part of the business for a very long time, and the last bastion of that was human capital. Staffing firms present a very unique solution opportunity for companies to make sure they’re being as effective as possible with not just who they resource with, but how they resource on a talent perspective.” ~Peter Sheahan, CEO of ChangeLabs

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Note from the Editor.....................................................................................................................page 1DCR National Temp Wage Index...............................................................................................page 2The Impact of the Minimum Wage Increment......................................................................page 4 HR Tech in 2014.............................................................................................................................page 8Crowdsourcing: An Innovative Temp Paradigm...................................................................page 10IT Temp Work on the Rise...........................................................................................................page13How Happy are Temp Workers?...............................................................................................page 14What’s Trending in the Temp Market?...................................................................................page 17What the Staffing Landscape Will Look Like in 2022.......................................................page 18India: An Emerging Temp WorkforceHot Spot.....................................................................page 20Methodology....................................................................................................................page 27References........................................................................................................................page 28About DCR.........................................................................................................................page 29

DCR NATIONAL TEMP WAGE INDEX

“Temporary hourly wages are projected to rise in the latter half of 2014, especially in jobs that require specialized skills and experience. This forecast is attributed to a continued increase in demand combined with a tightening supply of contingent workers, due to a decreasing workforce participation rate and an aging U.S. population. This combination of these factors will quickly reduce the current surplus of available workers and drive up wages.

According to the U.S. Bureau of Labor Statistics (BLS) monthly employment report, the United States added 175,000 jobs in February 2014. Of these, 24,400 were temporary help services jobs. The U.S. temporary penetration rate is currently 2.03 percent. Temporary help employment is up 8.8% year-over-year, which is nearly six times higher than the rate of job creation for the overall economy. Monthly gains in the sector have averaged 19,000 over the past twelve months.

The ADP National Employment Report for February showed that private payroll added 139,000 jobs in February 2014. Industries adding employment included business services with 33,000 jobs, trade/transportation/utilities with 31,000 jobs, and construction with 14,000 jobs. The hiring rate for service-providing businesses was substantially higher than goods-producing businesses with 120,000 jobs added.

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ECONOMIC SITUATION IN FEBRUARY 2014

“February was another soft month for the job market. Employment was weak across a number of industries. Bad winter weather, especially in mid-month, weighed on payrolls. Job growth is expected to improve with warmer temperature.” ~Mark Zandi, Chief Economist at Moody’s Analytics

DCR NATIONAL TEMP WAGE INDEX“The international staffing association, Ciett, released its annual report on global private employment agencies in February 2014. Global temporary employment revenues were US $411.1 billion, up from US $359.7 billion in 2012. The total number of agency workers in 2012 was almost 36 million. The United States had the largest number with 11.5 million workers, and Brazil is at second place with 7.1 million workers.

According to a report by The Conference Board, U.S. online job ads rose by 268,100 to a total of 5.2 million in February 2014. Simply Hired reported that the industries with the largest increases in ads were legal jobs (up 29.1 percent) and travel (up 20.3 percent).

Source: Ciett, 2014 Economic Report

“After a very lackluster 2013, the large February increase is the first signal in many months of possible renewed strength in demand for labor.” ~June Shelp, Vice President of The Conference Board

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CHECKING IN ON GLOBAL TEMP EMPLOYMENT NUMBERS

ONLINE JOB ADS GROWTH

Total Number of Individuals Employed in Agency Work, 2012

THE IMPACT OF THE MINIMUM WAGE INCREMENT

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A BACKGROUND ON THE WAGE INCREASE

In last month’s edition of TrendLine (March 2014), we promised

you an in-depth analysis of the minimum wage increase for federal

contract workers. In this article, we delve into the impact that the

wage increment will have at each option ($10.10 per hour and $9.00

per hour) on employment and family income.

On February 12th, 2014, U.S. President Barack Obama signed an

executive order to increase minimum wages for federal contract

workers to $10.10 per hour starting in 2015. The President also urged

employers nationwide to increase wages for their workers.

A report by the nonpartisan Congressional Budget Office (CBO) says

the federal minimum wage would cause the loss of approximately

500,000 jobs but would boost earnings for about 16.5 million

low-wage workers.

The CBO further examined the effects of two options for increasing

the federal wage:

$10.10 Option: This would increase the federal minimum

wage from the current rate of $7.25 per hour in three

steps – in 2014, 2015, and 2016. After reaching $10.10 in

2016, the minimum wage would be adjusted annually for

inflation.

$9.00 Option: This option would increase the federal

minimum wage from the current rate to $9.00 per hour in

two steps – in 2015 and 2016. After reaching $9.00 in 2016,

the minimum wage would not be adjusted for inflation.

The $10.10 option would have a considerably greater effect on employment and income, as more workers would see their wages rise, and the change in their wages would be greater. At the $10.10 option, The CBO estimates that we will see a loss in employment by 500,000 workers. In terms of income, the increased earnings for low-wage workers under the $10.10 option would total $31 billion.

However, since many low-wage workers are not members of low-income families, only 19 percent of this $31 billion would contribute to families with earnings below the poverty threshold, while, at the top, 29 percent would go to families earning more than three times the poverty threshold. Additionally, some workers will become jobless as businesses cut costs to accommodate the minimum wage increase. Taking into account the increases and decreases in income for all workers, overall real income would increase by $2 billion.

For families below the poverty threshold under current law, real income would increase by a net of $5 billion, boosting average family income by 3 percent, and moving 900,000 people above the poverty threshold.

At the $9.00 option, the CBO estimates that there will be a loss of employment by 100,000 workers. As far as income, the increased earnings for low-wage workers would total $9 billion.

Of this $9 billion, 22 percent would contribute to families with income below the poverty threshold, whereas 33 percent would accrue to families earning more than three times the poverty threshold. Considering the increases and decreases in income for all workers, overall real income would grow by $1 billion. Real income for families whose incomes are below the poverty threshold would increase by a net of $1 billion, boosting average family income by about 1 percent and moving 300,000 people above the poverty threshold.

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THE IMPACT OF THE MINIMUM WAGE INCREMENTTHE $10.10 OPTION

THE $9.00 OPTION

Impact on Poverty Threshold

THE IMPACT OF THE MINIMUM WAGE INCREMENT

At either option, besides affecting employment and family income, increasing the federal minimum wage would have an impact on the federal budget directly by increasing the wages that the federal government pays to hourly workers, and indirectly due to increasing prices on some goods and services purchased by the government. Most of these costs would be covered by discretionary appropriations.

Indirectly, federal spending and taxes would be impacted as workers with increased earnings pay more in taxes and receive less in federal benefits. However, people who become unemployed due to minimum wage increases will see a reduction in real income and pay less in taxes and receive more federal benefits. The CBO concludes that the net effect will probably be a small decrease in budget deficits for several years, but a small increase in budget deficits after that. Long-term impact of the federal wage increase is uncertain.

With the White House urging employers to increase minimum wages for their workers, it becomes important to evaluate the impact of the wage increase on small employers. Additionally, employers will also have to contend with the costs associated with insuring their full-time workforce, under the ACA regulations coming into effect.

Let’s look at a quick example to examine the impact of the $10.10 option:

Over the course of three years, Employer A would pay $102,960 more in minimum wages than current, with no changes to staff or hours or days worked.

And every year after 2016, the employer would pay over $50,000 extra as the minimum wage is subsequently adjusted for inflation per the Consumer Price

Index. Additionally, that since employer contribution to employment taxes are based on a percentage of income, employers will also incur additional costs

on top of actual wage paid.

Wages Paid Now

$127,600

Extra Wages Paid by Employer After Wage Increment in 2014

$17,600

Extra Wages Paid by Employer After Wage Increment in 2015

$35,200

Extra Wages Paid by Employer After Wage Increment in 2016

$50,160

Company A has 100 employees; all working at minimum wage.Each employee works 8 hours per day. There are 22 working days in the month.The current hourly rate is $7.25.The proposed hourly rate is $10.10.The incremental change ($10.10 - $7.25) is $2.85.

Considering that the increment takes place in three steps, we assume that the $2.85 is separated as $1 in 2014, $1 in 2015, and $.85 in 2016.

The table below shows the extra wages paid by employer due to the wage increment each year.

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IMPACT ON FEDERAL BUDGET

AN EXAMPLE: IMPACT OF WAGE INCREASE ON EMPLOYERS

“A survey by Towers Watson & Co. in 2013 showed that 29 percent of companies plan to adopt a new HR software system in 2014. And of these, 25 percent will only consider a software-as-a-service (SaaS) product.

Another key factor in the software decision is the level of simplicity. HR departments are pacing a higher focus on simplification and easy user adaption. Part of this simplification focuses on improved user interfaces, and the drive to mirror the user experience of popular sites such as Amazon or Google. The goal for 2014 is not to just implement new technology, but to also make it simple and easy to use.

“2013 was a big year for HR technology. When you consider such realities as companies still trying to fully understand how to best leverage workforce analytics, the continued use of HR in the cloud, and a growing popularity of Social Media HR practices, 2014 is looking to be a pivotal year in the industry.” ~Lynne Mealy, President of The International Association for Human Resource Management (IHRIM)

“Buying is still viewed as more expeditious than building. So if a startup has an interesting product, good code and a handful of clients, they could be a target for acquisition this year.” ~Katherine Jones, Analyst with Bersin by Deloitte

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HR TECH IN 2014

In 2013, big data and social media helped to shift the landscape of HR technology by creating new challenges and opportunities for organizations in managing their blended workforces. This year, with global economic growth creating a new level of competition for talent, HR organizations are transferring their focus from cost reduction to retention and engagement.

Many of the large enterprise software providers, including Salesforce.com, have spent the last two years acquiring midsize and startup providers of HR software tools in the marketplace. This tech-buying spree is driven by a desire to offer a full suite that caters to every HR software need, from recruiting to performance management to payroll.

Particularly sought after are startups with “one-trick” technology point solutions that focus on recruiting and talent management.

In 2014, hot targets for purchase will be gamification vendors that offer inventive ways to apply rewards and promote competition within an organization. Companies offering payroll options are expected to add finance-focused features, such as payment cards that act as ID cards, as this is a natural extension of the general business model.

Another sub-trend is going to be the focus on integration. With all these acquisitions, vendors will now face the difficult task of integrating all these offerings into a single, seamless solution. Integrated and consolidated suite solutions will increase operability of systems, databases and tools, and also serve to integrate information and processes throughout the entire HR organization.

BUY RATHER THAN BUILD!

HR SYSTEM UPGRADES

““Once you sort through the heaps of data and find what’s relevant, leadership and HR can see what’s going on throughout the organization and make more informed decisions. This shift towards data-driven decision-making is what can separate a good HR department from a great HR department.” ~Pat Greer, Academic Director of the Strategic Human Resource Management Program at University College, University of Denver

HR TECH IN 2014

Everyone has been talking about big data, but many companies are confused as to what it means or what to do with it. Last year, the HR industry spent a great deal of time evaluating the benefits that workforce intelligence could bring to companies when used to their best advantage. According to Gartner research, business intelligence and analytics are expected to become the top focus for CIOs until 2017.

Bersin by Deloitte says that more than 60 percent of companies are investing in big data and analytics to make their HR departments more data-driven. According to Bersin, companies using data to their full potential are twice as likely to deliver high impact recruiting solutions, widen their leadership pipeline, and improve their financial performance.

HR departments are increasingly looking for technology to help them spot trends and patterns in their data, so that they can better understand the impact of their HR approaches and use this intelligence to make strategic talent decisions.

An increasing number of vendors are recognizing this need, and are developing tools and systems to make analytics easier for companies. Their goal is to provide HR users with solutions that are more than a data dump, that include user-friendly analytic tools which show data in easy-to-understand graphical format to provide workforce insights. Many HR vendors are starting to compile benchmark data from the mass volume of customer information they manage, so that they can deliver information that employers can examine and evaluate their own data against.

With the emphasis on big data and workforce intelligence, predictive analytics will emerge as one of the must-have technologies in 2014.

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WORKFORCE INTELLIGENCE

HR TECH IN 2014

The concept of SoMoClo, initiated by the Aberdeen Group, is a union of three technological trends that provide new opportunities for companies: Social + Mobile + Cloud.

SocialMany talent management solutions added collaboration features in recent years in response to demand for social media in all areas of business. HR de-partments, in particular, are asking for more social media in their business practices. A study by WANTED Analytics in September 2013 found a 43 percent year-over-year increase in demand for HR professionals with social media skills and experience.

According to Josh Bersin of Bersin by Deloitte, HR departments have been dealing with social software tools as add-ons to HR technologies, but now want social systems that open employee communication, incorporate candidate relationship management, create talent networks, and more.

Mobile & Device-Independence In years past, mobile has always been an extra feature. This year though, developers are designing with mobile in mind by choosing interfaces and functionality that is specific to a mobile environment. Industry vendors are embedding mobile capabilities in their core solution, rather than offering them as separate applications.

With a large majority of the workforce using mobile devices, companies face the challenge of providing access to HR information in the same seamless user experience across every device. It goes beyond responsive design to understanding what functions users need to do when they access HR systems via tablet, smartphone, terminal, or PC, and designing the user experience to simplify that.

New devices are continuously entering the market and ‘bring your own device’ (BYOD) is becoming more popular in many companies. HR departments that offer self-service functionality are looking for solutions that can easily be deployed to any device.

CloudBack in 2012, Paul Hamerman, VP and Principal Analyst at Forrester Research, said that cloud had already become a pre-requisite for companies choosing HR software.

While the benefits of cloud computing have been discussed at length, many cloud solutions have only focused on a single application or function. In 2014, as vendors build their HCM suites, having all of it, not just pieces, available on the cloud, will be a key focus.

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SOMOCLO

““In 2014, HR has to take ‘social’ as the ‘standard’ in every HR solution you deliver.” ~Josh Bersin, Bersin by Deloitte

“Mobile-enabled HR process adoption jumped 67 percent since 2012, with the biggest uses coming in payroll, recruiting, performance management, and learning and development processes.” ~2013-2014 CedarCrestone HR Systems Survey

CROWDSOURCING: AN INNOVATIVE TEMP PARADIGM

In a recent report on global workforce trends by the Society for Human Resource Professional Foundation (SHRM), an interesting topic was how technology is transforming temporary hiring practices. An example of this is the growing model of crowdsourcing talent.

Globally, temporary employment models are becoming a normal and permanent method of talent acquisition and workforce management. As Work-as-a-Service (WaaS) becomes the norm, talent exchanges like oDesk, Amazon Mechanical Turk, Create.it, TaskRabbit, Gigwalk and more are gaining importance as an alternative staffing model. Crowdsourcing platforms are giving employers the opportunity to access an on-demand and scalable workforce at a cost savings to traditional recruiting channels. This ability to discover untapped talent often provides companies the ability to control project costs and hours, while uncovering highly skilled talent outside of geographic boundaries and standard demographics. Additionally, having the flexibility to split large transactional workloads across remote workforces not only lowers costs but also speeds up the task.

Product R&D, in particular, has seen much activity in crowdsourcing, with open inventive campaigns by large companies such as BMS, General Mills, and 3M. For example, Lego is embracing the idea of open innovation – the idea that companies benefit by bringing in external stimuli – by using crowdsourcing campaigns to co-create with their customers.

Platforms for crowdsourcing temporary talent for specialized tasks also exist, such as Gaggle, crowdSPRING, or Tongal. The ‘crowd’ for these projects is typically comprised of diverse, qualified workers, including software engineers, artists, designers, management consultants, and individuals with advanced academic degrees or industry experience. And more companies are reframing their organizational structures to enable sourcing from within their own existing talent pool.

Crowdsourcing and online talent exchanges are being used outside of the traditional business world as well. The U.S. ski team used a crowdsourcing platform to find members for its Olympic aerial skiing team, even encouraging those outside its normal demographic, like gymnasts and tumblers, to apply. Many top companies are embracing crowdsourcing as a solution to reach temporary talent capable of executing tasks faster and more cost effectively than employees.

Many top companies are embracing crowdsourcing as a solution to reach temporary talent capable of executing tasks faster and more cost effectively than employees.

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Who is the Crowd?

CROWDSOURCING: AN INNOVATIVE TEMP PARADIGM

As crowdsourcing picks up steam, more and more providers are entering the market promising to deliver high-quality work more efficiently and affordably than full-time workers. Each uses different approaches to recruiting workers, distributing the tasks, conducting work, verifying results, and ensuring quality. While industry standards remain largely undefined, three primary models of crowdsourcing are emerging:

Platforms: These crowdsourcing providers provide an online platform that gives companies access to an unvetted pool of talent. They have limited customization, and the company has to design their own crowd-based workflow and monitor project quality.

Managed Service Partners: These providers differentiate themselves by partnering with the company to design and adapt task workflow for a crowd. Most provide a qualified, vetted crowd to deliver results. While this approach is closer to Business Process Outsourcing, it does offer more flexibility and less overhead costs.

Freelance Matching: These providers offer to match companies with a handful or single individuals with specialized skills, rather than bringing the power of a huge crowd of workers. This model is particularly useful for complex or specialized tasks and creative-based projects.

Crowdsourcing.org, a group that tracks financials and trends in the crowdsourcing market, said that by 2012, venture capital firms had invested more than $300 million in crowdsourcing companies. And in January 2013, the organization’s research found that there were more than 6.3 million workers in the crowdsourcing market.

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SEGMENTATION IN CROWDSOURCING

CROWDSOURCING: AN INNOVATIVE TEMP PARADIGM

Crowdsourcing is blurring the line between employees and independent contractors. Employment regulations have not been defined or established yet to guide the employer-worker relationship through crowdsourcing. In fact, how to define the ‘worker’ is still a question. For example, in crowdsourcing platforms with an open innovation campaign, where the crowd is asked to submit ideas towards a product/service, under what conditions are the participants considered ‘workers’? And while minimum wage is being debated on a federal level (see the article in this edition of TrendLine on the impact of a minimum wage increase), the average pay for a worker on Amazon Mechanical Turk in the United States is $2.30 per hour, way below minimum wage.

The question of intellectual property risk also arises, where a crowd worker might be able to obtain knowledge of a piece of intellectual property by completing even a small task. And in the open innovation campaign platform when ideas are crowdsourced, ownership is often unclear.

Legal intervention in crowdsourcing is starting to emerge, and recent lawsuits should help set precedent on how labor laws apply to crowdsourcing activities. In 2012, CrowdFlower, Inc., a crowdsourcing provider, was sued by a worker for violating U.S. Fair Labor Standards Act by paying less than the federal minimum wage. The company was also sued by workers who claimed that they were improperly classified as independent contractors. And in October 2013, a group of Yelp reviewers filed a class-action lawsuit against the site, claiming that they were unpaid writers whose contributions created the database necessary to the company’s commercialized services.

Since most crowdsourcing is conducted over the Internet, it’s unclear how rules, when they’re developed, would be enforced. While crowdsourcing temp talent is becoming a key strategy in talent acquisition, employers should be aware of the complexities and risks associated with the model.

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REGULATING CROWDSOURCING

Crowdsourcing Revenue Growth

Source: MassSolutions

IT TEMP WORK ON THE RISE

According to DiscoverOrg, a provider of IT sales and marketing intelligence tools, healthcare ranks as the top industry for information technology job growth in 2014. The survey additionally found that the top three IT titles for this year were:

• Mobile Developer/Mobile App Developer • Business Intelligence Developer • Big Data Engineers/Architects

After many years of slow growth, the information technology and engineering job markets are starting to expand. According to the TechServe Alliance’s IT employment index, the number of U.S. IT jobs in February 2014 rose by 0.38 percent from the previous month, to a total of approximately 4.6 million. And engineering jobs rose by .20 percent in the same period, to approximately 2.5 million jobs. According to U.S. Bureau of Labor Statistics (BLS) employment numbers, the IT labor market added almost 75,000 jobs in 2013.

In line with the growth of the industry, companies are turning to temporary workers to fulfill their open positions. Computer Economics, an IT research firm, recently said that the use of temp labor in large IT organizations (companies with IT budgets of over $20 million) has grown to 15 percent, its highest since 1998.

According to the BLS employment projections, employment in all computer occupations is expected to increase by 22 percent from 2012 to 2020. Within that, demand for software developers will be the strongest with increases ranging from 28 percent to 32 percent.

The Staffing Industry Pulse Survey showed that IT staffing experienced a median year-over-year growth of 13 percent, the highest of any staffing segment. It also had the strongest bill rate trend of all segments. The industry also had a higher level of difficulty in recruiting, implying a tight talent market for candidates, especially in categories where the unemployment rate is very low, such as network and computer systems administrators and database administrators.

There is a large demand for temporary workers with skills in mobile, social, big data and analytics, and IT security. Additionally, the traditionally popular skills of JAVA programming and SAP are also being actively sought after.

Compared to the overall unemployment rate at 6.7 percent, the IT job market is faring better, with an unemployment rate of only 3.3 percent. InfoWorld, a leading source of information on emerging enterprise technologies, revealed it’s top 10 states for IT jobs, with median salaries total number of IT firms.

Ranking12345678910

StateCaliforniaTexasFloridaIllinoisNew YorkVirginiaGeorgiaNew JerseyPennsylvaniaNorth Carolina

Median Salary in Metro Area$109,000$77,900$70,930$79,800$80,700$82,100$76,060$79,700$75,660$76,100

Number of IT Firms34,00024,12121,51719,85618,64515,85112,99512,67711,05710,980Source: InfoWorld

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Janco Associates, which tracks the IT job market, in January 2014 released results from a survey of 102 CIOS, which revealed that hiring plans for 2014 remain either stagnant or headed downwards. According to Janco, the continued decline of participation in the labor market is a sign of trouble.

Contractions in the PC market are also expected to impact IT jobs. Gartner tracked a 10 percent decline for PC shipments globally from last year, as the market increases its demand for mobile technology.

NOT EVERYONE IS POSITIVE ABOUT THE DEMAND FOR IT WORKERS

TOP STATES FOR IT JOBS IN 2014

A few recent studies have been focusing on the satisfaction levels and happiness of temporary workers. Overall, it appears that temporary workers in the United States are happy!

A 2014 Survey by Staffing Industry Analysts of 7,000 temp workers looked at how satisfied temporary workers are with both their staffing agencies and their placements at client companies. The reports used Net Promoter Scores as their tool to measure happiness.

The Net Promoter Score (NPS) is a management metric designed to measure the loyalty that exists between a provider and a consumer. The provider can be a company or employer, while a consumer can be a customer or employee. The NPS is based on a direct question: How likely are you to recommend our company/product/service to your friends and colleagues? Scoring is based on a scale of 1 to 10, with 10 being the highest. Responses are sifted into three groups:

1) Promoters (score of 9-10): loyal enthusiasts 2) Passives (score of 7-8): satisfied but unenthusiastic3) Detractors (score of 0-6): unhappy

Calculating the NPS requires taking the percentage of Promoters and subtracting the percentage of Detractors.

The overall NPS was 42%, which is a number comparable to the NPS of companies such as Johnson & Johnson or BMW. Sixty-one percent (61%) of respondents were in Promoter category while nineteen percent (19%)were considered Detractors. And 49 percent of all respondents reported that they were “extremely likely” (with a score of 10) to recommend their staffing firm to a friend or colleague.

HOW HAPPY ARE TEMP WORKERS?

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NPS FOR TEMP WORKERS AT STAFFING FIRMS

““Following impressive numbers in January, I am pleased to see that IT and engineering job growth continued on a strong trajectory in February. I am very bullish on the future. Absent a geopolitical or macroeconomic shock, we should see strong demand for IT and engineering talent throughout 2014.” ~Mark Roberts, CEO of TechServe Alliance

“The number of independent IT professionals [is now] at about 1 million and growing, and contract workers as a portion of the internal IT workforce at many medium to large size organizations has been rising, often between 10 percent and 25 percent.” ~David Foote, Chief Analyst at Foote Partners

HOW HAPPY ARE TEMP WORKERS?

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The score of 42% serves as a clear indicator that temp workers engaged with a staffing firm are generally happy with their experience. NPS scores in 2012 and 2013 were steady at 45%, so this small drop in 2014 indicates there is room for improvement.

The Net Promoter Scores were also categorized by occupation, where the highest loyalty was seen in business and finance professions, and the lowest in healthcare practitioners/workers. With the increasing demand for healthcare workers in the industry, staffing agencies will need to find strategies to improve this score.

When asked about various aspects of their staffing agencies, most workers “agreed” with the following statements, all of which are indicative of the quality of the relationship:

• People at this agency are responsive and polite• My relationship with my recruiter is productive• This agency is trustworthy and honest

Calculation of NPS

Source: Staffing Industry Analysts

NPS by Occupation

HOW HAPPY ARE TEMP WORKERS?

The most “disagreed with statements are all related to factors of employment benefits:

• Agency provides quality training programs • Satisfied with benefits provided • I am satisfied with the rate of pay

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TEMP WORKER’S THOUGHTS ON CLIENT COMPANIES

WHAT’S KEEPING TEMP WORKERS HAPPY?

Overall, temporary workers were happy with their placement at client companies, with approximately one-third of workers expressing praise or appreciation. The most common requests among these workers were for increased and improved communication and feedback, increased pay, and transitions to full-time positions.

Healthcare workers, as with their relationships with staffing agencies, were the least satisfied. Seven percent of healthcare workers complained about inefficient or insufficient orientation or training programs, and six percent complained about bad treatment or exclusion. Five percent complained about an unfair or excessively heavy workload.

An industry report by the International Freelancers Academy (IFA) found that 38 percent of survey respondents said they made more money as freelancers than as a permanent employee. Additionally, most (46 percent) said they have more free time than they did as in-house workers, and over half (57 percent) said they feel more secure as a freelancer than as a full-time employee. Over 70 percent said they are happier as temp workers, and 79 percent say they feel more productive. And finally, 55 percent said that they would not want to go back to traditional work.

A survey by Elance asked respondents to list the best aspects of working as a temporary worker or freelancer:

• Controlling their own schedule • Having more choices of work projects • Following their passions • Being their own boss • Not commuting

Workers Expressing Unsolicited Praise or Appreciation

Source: Staffing Industry Analysts

WHAT’S TRENDING IN THE TEMP MARKET?

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“Talent. Talent. Talent is the key. Finding a sufficient number of consultants in high-demand skill sets to meet client demand represents one of the professional staffing industry’s greatest challenges.” ~Mark Roberts, CEO of TechServe Alliance

“

Singulyarra / Shutterstock.com

#TALENT

Aggressive talent sourcing and cultivation is going to be the focus of the staffing industry over the coming months. Industry practitioners will be busy dealing with concerns that arise from skill gaps in the market and H-1B limitations to sourcing international talent, to focus on developing effective recruiting teams and processes.

As we discussed in last month’s edition of TrendLine (TrendLine – March 2014), the demand for temp worker in the healthcare industry is growing rapidly. Staffing agen-cies are going to look for ways to increase their speed and flexibility to meet this need, while also dealing with increasing healthcare worker loyalty and happiness (see our article on temp worker happiness in this issue).

Staffing Industry Analysts estimates that the online staffing industry will grow to $46 billion by 2020. Conventional staffing industries are looking at ways to incorporate online staffing in their business models, as more and more workers increase their comfort with bidding for contingent work online.

At TrendLine, we’re always focused on what’s trending in anything to do with contingent workers supply and demand. This month, we are introducing a new quarterly section that focuses on consolidating our research into a list of critical trends in key talent sectors of the staffing industry.

#HEALTHCARE #ONLINESTAFFING

WHAT THE STAFFING LANDSCAPE WILL LOOK LIKE IN 2022

Within the temporary help industry, industrial staffing - the largest segment - is forecast to increase at 4.5 percent CAGR to have annual revenues of $43.2 billion in 2022. Information technology staffing and healthcare staffing have the highest CAGR at 5.6% to reach a market size of $39.0 billion and $16.4 billion respectively in 2022.

According to the U.S. Bureau of Labor Statistics (BLS), nationwide employment will rise 10.8 percent from 2012 to 2022, with jobs in healthcare, construction, and educational services experiencing the largest job growth.

The Staffing Industry Analysts (SIA) forecasts that temporary help services employment will grow to 3,387,000 jobs by 2022 at a CAGR of 3.1 percent. Annual revenue growth projection (at $155.8 billion in 2022) is higher at a CAGR of 4.6 percent, due to inflation and a growing share of higher-paying professional jobs.

The SIA projection of 3,387,000 jobs in temporary services by 2022 yields a temporary penetration rate of 2.26 percent.

U.S. Temporary Services Employment, 1993-2022

U.S. Staffing Industry Revenue Forecasts for 2020 (in billions)

Source: Staffing Industry Analysts

Source: Staffing Industry Analysts

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U.S. TEMPORARY SERVICES EMPLOYMENTS

EMPLOYMENT PROJECTIONS FOR 2022

The BLS made employment projections for the 22 major occupational groups for 2022, enabling identification of the fastest-growing occupations in each segment for temporary staffing.

Source: U.S. Bureau of Labor Statistics & Staffing Industry Analysts

Staffing Skill Segment

Clinical/ScientificEducation/LibraryEngineeringFinance/AccountingHealthcare

Industrial

Information TechnologyLegalMarketing/Creative & Other ProfessionalOffice/ClericalOther Professional

Various Segments

BLS Major Occupational Group

Life, Physical, & Social Science OccupationsEducation, Training & LibraryArchitectural & EngineeringBusiness & Financial OperationsHealthcare Practitioners/TechnicalHealthcare Support Food Preparation & ServingTransportation & Material MovingProductionConstruction & Extraction OccupationsPersonal Care & ServiceBuilding/Grounds Cleaning & MaintenanceInstallation, Maintenance, & Repair OccupationsProtective ServiceFarming, Fishing, & ForestryComputer & MathematicalLegalArts, Design, Entertainment, Sports, & Media

Office & Administrative SupportCommunity & Social Service Sales & RelatedManagement Occupations

Fastest Growing Occupation

Environmental Science & Protection TechniciansHealth Specialties Teachers, Post-SecondaryBiomedical EngineersMeeting, Convention, and Event PlannersDiagnostic Medical SonographersHome Health AidesFood Servers, Non-restaurantAmbulance Drivers & Attendants, Except EmergencyComputer Control Programmers & OperatorsInsulation Workers, MechanicalPersonal Care AidesPest Control WorkersMedical Equipment RepairersSecurity GuardsForest & Conservation WorkersInformation Security AnalystsParalegals & Legal AssistantsInterpreters & Translators

Medical SecretariesSubstance Abuse & Behavioral Disorder CounselorsDemonstrators & Product PromotersMedical & Health Services Managers

Occupation Growth Rate, 2012 - 202218.8%36.1%26.6%12.5%21.5%28.1%20.1%31.1%16.5%46.7%48.8%19.7%30.3%12.1%4.5%18%16.7%46.1%

36.0%31.4%16.1%23.2%

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WHAT THE STAFFING LANDSCAPE WILL LOOK LIKE IN 2022

INDIA: AN EMERGING TEMP WORKFORCE HOT SPOT

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India is the second largest of the BRIC countries, not only by the size of its economy but also by population. In 2012, after the country’s economy expanded modestly by 3.2 percent, the International Monetary Fund (IMF) in its annual report on the state of the Indian economy estimated that India will expand by 4.6 percent in 2013, 5.4 percent in 2014, and 6.4 percent by 2015.

Recently, investors have been cautious on making overseas investments in India. With the Indian rupee (INR) losing 13 percent against the U.S. dollar in 2013, combined with a portfolio including $500 billion in nonproductive infrastructure assets (such as unfinished roads and businesses), and political dilemma with the upcoming elections, it seems like the country is experiencing an investment slowdown.

However, there are huge investment opportunities in niche areas. India has always been a leader in innovation, often skipping the traditional layered growth model. For example, the wireless revolution in India happened before fixed line. E-commerce is growing and has vast space for investment, currently at $2 billion, and comprising 0.25 percent of the overall retail industry. By comparison, e-commerce as a percentage of retail is 6 percent in China, 4 percent in Latin America, and 9 percent in the United States. Mobile banking also has been experiencing rapid growth and some experts expect it to replace credit and debit cards soon. And in healthcare, new opportunities exist in hospital growth, doctor and nurse training, medical record keeping, and ancillary businesses that support health care. India is considered a global player in pharmaceuticals, where in generic medications the country controls a significant portion of the world market. So despite skepticism, it is expected to see investments and growth in specialized sectors of the Indian economy. And with growth comes an increasing demand for a specialized workforce.

GDP Growth Rates in BRIC Countries, %

Source: International Labour Organization, Global Employment Trends 2014

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INDIA: AN EMERGING TEMP WORKFORCE HOT SPOT

Countries with Large Temp Workforces, 2010

Source: Indian Staffing Federation

INDIA: AN EMERGING TEMP WORKFORCE HOT SPOT

Overall, growth in India has been heavily reliant on the services sector and private consumption. However, the decline of GDP growth for India in recent years suggests that sustaining high rates of growth rests on strong output from industry and high investment rates. The International Labour Organization, in their Global Employment Trends 2014 Report, implies that poor performance in the manufacturing sector and low levels of investment might be responsible for the current economic slowdown in India. While both factors are barriers for high and sustainable growth, overcoming them will also lead to job creation.

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GDP Growth in India

International Labour Organization, Global Employment Trends 2014

SUSTAINING GROWTH IN INDIA

INDIA: AN EMERGING TEMP WORKFORCE HOT SPOT Distribution of Informal Employment, 2011

Source: Indian Staffing Industry Research, 2012

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““There is nothing ominous in the temporary job market having the lion’s share of the staffing industry. This is similar to all the largest staffing markets in the world and shows the sophistication of the Indian markets. Employers understand the importance of temporary workers to aid them through the peaks and trough of the economy.” ~Adam Pode, Director of International Research at Staffing Industry Analysts.

Recently, total employment in India expanded from 2010 to 2012 by a healthy 13.9 million. The working age group population estimate was 743.8 million in 2011, roughly 61 percent of the total population. Of this, the labor force was estimated at 418.4 million in 2011.

A study of the Indian labor market by Staffing Industry Analysts shows that the employment situation in the country is unique, where approximately 90 percent of Indians work in the unorganized or ‘informal’ sector, which consists of jobs such as job-based-work, self-employment, household enterprises, agricultural work, construction work, and other forms of casual or temporary employment.

THE TEMPORARY WORKFORCE OF INDIARecruiting Percentage of Temporary Workforce, by Country

India has a highly fragmented, organized employment structure based on formal, written employment contracts. This market has been stagnant for many years, leaving room for unorganized employment, which as discussed above, provides jobs for 90 percent of the workforce.

Recently, the temporary staffing industry has been playing a key role in reducing unemployment and undeclared work by creating new, formal job opportunities every year. India currently has 1.3 million temporary workers in the organized sector. Experts predict that by 2025, 10 percent of the overall workforce would be working as contingent workers through various staffing companies.

Companies in growing industries, such as e-commerce, retail, and healthcare, are increasingly looking to bolster their workforces with temporary staff for a variety of projects.

The Indian Staffing Federation (ISF) attributes the growth of temp work in India to the changing economic scenario and the demand for talent optimization. Firms in growth sectors are starting to recognize contingent staffing as a key HR management strategy. The ISF believes that temporary staffing helps to create new jobs and boost employment by turning available work into jobs that otherwise would not exist.

Source: Indian Staffing Federation Indicus Survey, 2012

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INDIA: AN EMERGING TEMP WORKFORCE HOT SPOT

““Companies across traditional sectors such as Retail, Telecom, Hospitality, Pharma, Manufacturing, and Agriculture are increasingly shifting to the flexi staffing model. The size of India’s Retail sector, one of the major sources of demand for flexi staff in India, is currently estimated at around US$ 450 billion and is expected to grow at 10-12% per annum. Given this positive future outlook, the sector is expected to witness a strong demand for flexi staff.” ~Indian Staffing Industry Research 2012

Indian Companies Primary Reasons for Flexible Staffing

There are three main areas of staffing in India: professional, general (white collar), and general (blue collar). People with bachelor degrees, approximately 54% of the total temp population, hold the largest share of contingent work.

Approximately 79 percent of temp workers are in the age group of 21-30. A study by the Government of India Ministry of Labour and Employment for 2012-2013, found that in a group of 1000 people, 413 people are self-employed and 347 fall under the casual worker classification. Within the urban sector (U), most workers are wage/salaried employees, whereas in the rural sector (R), self-employment and casual work make up the majority.

WHO IS THIS TEMP WORKER?INDIA: AN EMERGING TEMP WORKFORCE HOT SPOT

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Distribution of Works by Different Age Groups, in thousands

Source: Government of India, Ministry of Labour & Employment

““

“Well run staffing companies can be a valuable institutional innovation, much needed in India, to resolve the dilemma between flexibility to adjust employee levels that companies need and the commitment to their skill development and employability that employees need.” ~Arun Maira, Member Planning Commission.

As the temp staffing industry in India transitions from functioning solely in the capacity of replacing absentee workers with temporary ones to a strategic resource and partner for clients by providing a range of employment solutions and services, multiple challenges arise.

The regulatory environment in India is ambiguous, where a multitude of labor laws on both national and state levels leads to a considerable degree of overlap, especially as many are outdated and not frequently updated. Additionally, the lack of effective monitoring of labor laws tends to decrease transparency and leads to unlawful practices and agreements. In the staffing industry, the rate of job creation is limited, as staffing companies are not recognized as the primary employer, leading to the growth of the unorganized sector and to increases in agreements that are full of risk and non-compliance.

The industry is highly fragmented, with low barriers to entry, making it easy for a wide range of providers to set up practice. The fragmented market combined with vague laws creates room for abusive practices by staffing agencies and employers, affecting growth and reputation.

CHALLENGES FOR INDIA’S TEMP STAFFING INDUSTRY

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“““Indian industry is mired in archaic labour laws. The possible panacea for all sectors of the economy engaging human resource

is through legitimate engagement of manpower through temporary or flexi engagement; while guaranteeing not only a decent wage but social security that is meaningful.” ~Michael Dias, Secretary of The Employers Association

“Yes the temporary workforce in India’s formal sector can grow phenomenally, but only if the existing financial and legislative roadblocks are removed. There are certain issues with regard to service tax, TDS deduction pertaining to staffing companies. Besides, there has to be a proper and structured legal framework about what can be outsources and what cannot be. Once these issues are sorted out, temporary workforce will automatically grow significantly because that makes more sense from the employers’ point of view. Because that will take overhead costs from fixed cost to variable cost and the cost of retrenchment or getting rid of people will be much lower.” ~T Muralidharan, Chairman of TMI Group

INDIA: AN EMERGING TEMP WORKFORCE HOT SPOT

METHODOLOGY

The DCR Wage Index is developed to assess the relative movements of temporary wage rates in the U.S. economy. The wage rates for temporary workers or contingent workforce are based on payments made by staffing firms to these workers based upon hours worked. Data collected from sources such as Bureau of Labor Standards (BLS) and other government sites as well as an internal pool of staffing companies and consultants, is aggregated and classified based on regions and skill categories, to arrive at an aggregate index.

The baseline for the index is set at 100 for January 2007. Index value for a particular month indicates relative wages with the said baseline and is representative in terms of direction and scale of change. Five years of data has been included to observe seasonal patterns and distinguish seasonality from long-term wage movements. The data and the model has been further refined over last six months.

DCR Wage Index combines the exhaustive data from BLS with practical and more recent developments and data from on-field consultants and clients, to provide timely near-term indications of trends and consistent long-term actionable and objective information.

DCR Work Index uses multiple economic variables to ensure the robustness of its forecasts and cross-validation of trends.

Key data sources and parameters of interest included and influencing the index are:Unemployment dataGross Domestic ProductPrime rate of interestNew and seasonal Job openingsNon Form employmentJob OpeningAll ExportAll ImportAverage Hourly Earnings of All Employees Total PrivateAggregate consultant data on job market parameters

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SOURCE DATA

REFERENCES

http://www.forbes.com/sites/samanthasharf/2014/03/05/adp-says-private-sector-added-139k-jobs-in-frigid-february/http://www.staffingindustry.com/site_member/Research-Publications/Research-Topics/March-Jobs-Reporthttp://www.ere.net/2014/02/12/temp-bill-rates-predicted-to-rise-this-year/ http://www.ciett.org/fileadmin/templates/ciett/docs/Stats/Economic_report_2014/CIETT_ER2013.pdf http://www.staffingindustry.com/site_member/Research-Publications/Daily-News/Online-job-ads-rise-in-February-29230 http://www.staffingindustry.com/site_member/Research-Publications/Daily-News/Online-job-ads-rise-most-in-legal-travel-industries-29214 http://www.cbo.gov/sites/default/files/cbofiles/attachments/44995-MinimumWage.pdfhttp://www.cbo.gov/publication/44995 http://www.washingtonpost.com/blogs/wonkblog/wp/2014/02/19/wonkbook-what-you-need-to-know-about-the-cbos-minimum-wage-report/ http://talentmgt.com/articles/view/hr-tech-the-year-ahead/1 http://www.shrm.org/hrdisciplines/technology/articles/pages/what-are-new-hr-technology-predictions-for-2014.aspx http://forbesindia.com/blog/technology/somoclo-awakening-to-a-new-buzzword/ https://blogs.oracle.com/OracleHCM/entry/top_10_hr_resolutions_for http://www.staffingindustry.com/site_member/Research-Publications/Daily-News/IT-and-engineering-jobs-on-strong-trajectory-29315 http://www.javaworld.com/article/2099508/mobile-java/as-it-hiring-slows-freelancers-are-getting-more-work.html http://www.computerworld.com/s/article/9225673/IT_jobs_will_grow_22_through_2020_says_U.S. http://www.infoworld.com/t/it-jobs/2014-isnt-looking-any-better-it-jobs-233988 http://www.infoworld.com/slideshow/140385/the-top-10-states-it-jobs-236431#slide12 http://www.staffingindustry.com/site/Research-Publications/Blogs/Sona-Sharma-s-Blog/Riding-the-IT-Staffing-Growth-Wave http://www.staffingindustry.com/site_member/Research-Publications/Daily-News/Healthcare-sector-top-for-IT-job-growth-survey-finds-29114 http://www.staffingindustry.com/site_member/Research-Publications/Research-Topics/Region-North-America/What-temps-think-about-treatment-at-client-companies http://www.staffingindustry.com/site_member/Research-Publications/Research-Topics/Region-North-America/How-happy-are-workers-with-their-agencies http://en.wikipedia.org/wiki/Net_Promoter http://www.officingtoday.com/2014/03/the-freelance-revolution/ http://www.thestaffingstream.com/2014/02/24/get-behind-these-six-trends-or-get-left-behind/ http://www.staffingindustry.com/site_member/Research-Publications/Research-Topics/Region-North-America/2022-employment-projec-tions-and-long-term-U.S.-staffing-industry-forecast http://edition.cnn.com/2013/10/04/business/crowdsourcing-hidden-talent-how-recruit/ http://blog.lionbridge.com/enterprise-crowdsourcing/2014/01/27/five-crowdsourcing-predictions-2014/ http://www.wired.com/insights/2014/01/crowdsourcing-2014-great-power-comes-great-responsibility/ http://idahobusinessreview.com/2014/03/07/crowdsourcing-the-new-temporary-worker-model/ http://yannigroth.com/2014/01/07/should-creative-crowdsourcing-participants-get-working-contracts-and-salaries/ http://www.crowdsource.com/blog/2012/11/behind-the-scenes-of-crowdsourcing-who-are-crowd-workers/ http://www.inc.com/eric-markowitz/will-crowdsourcing-ever-live-up-to-its-hype.html http://finance.yahoo.com/news/enterprise-crowdsourcing-market-achieves-over-214500322.html http://www.cnbc.com/id/101408304 http://timesofindia.indiatimes.com/business/india-business/75-Indian-aspirants-got-temporary-jobs-in-2012-Study/articleshow/31356836.cms http://www.staffingindustry.com/row/Research-Publications/Daily-News/India-Demand-rising-for-temporary-workers-27202 http://indianstaffingfederation.org/images/TURNING_AVAILABLE_WORK_INTO_JOBS.pdf http://labourbureau.nic.in/Youth%20Report%20Final.pdf%

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DCR Workforce is an award winning, best-in-class service provider for contingent workforce and services procurement management. Our proprietary SaaS platform (SMART TRACK) assists in providing customizable VMS and MSP Solutions to manage, procure and analyze your talent with complete transparency, real-time control, high performance and decision-enabling business intelligence.

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