DCR Trendline October 2014 - Non Employee Workforce Insight

MULTIPLE PRIORITIES, SINGLE GOAL | PAGE 19

Can you believe it’s already the last quarter of the year? As we enter the fourth quarter of 2014, the staff at DCR TrendLine has been hard at work to provide you with key insights into the temporary staffing industry. Our up-to-date research and analysis of the market ensure that you have a clear reading of what’s happening in the world of non-employee supply and demand.

The DCR National Temp Wage Index focuses on wage trends over the year and analyzes the usage of temporary workers and related developments in the economy and job market. This month we also discuss how hourly wages are continuing their upward trend and the U.S. Department of Veteran’s Affairs plans to hire thousands of workers.

Temporary employment is at an all-time high, with approximately 2.8 millions working in temp help jobs. We examine the year-over-year growth of temporary worker engagement, and the reasons more job seekers are choosing to become independent contractors. Keep an eye out for our highlight on how Dallas, Texas is becoming a major temp city in the country.

The “employee” from a decade ago is not the same as the employee we’re seeing in companies today. The definition and image of employees is changing dramatically. Our article identifies the drivers of this progression and examines how employees, workplaces, and even the nature of work have evolved.

There’s no denying that social media is a key business trend of the last few years, especially in talent management and sourcing. We look at why it’s important for recruiters and job seekers to understand this growing area of recruiting.

According to many sports fans, October is the most exciting month for sports since baseball playoffs are in full swing, the NHL and NBA officially start, college basketball begins, and college football rivalry matches are being held. It’s only fitting that in the biggest month for sports, we focus on sports-related employment. Our first article on this topic focuses on industry-wide employment with the DCR TrendLine Sports-Related Employment Index. Look for our highlight on sports occupations within the self-employment category, the top cities with job growth in sports-related jobs, and our job title focus on athletes and sports competitors. The next article lists the top 9 sports-related jobs that are experiencing high growth.

Our feature article this month is particularly applicable to companies with contingent workforce programs. We look at how vendor management systems can help companies fulfill the priorities and requirements of multiple stakeholders, while meeting the shared singular goal of eliminating complexity to increase operational effectiveness.

The final article for October discusses the value of talent supply chain management in meeting organizational talent needs. We offer tips on how companies can get started on building a talent supply chain.

Ammu WarrierAmmu Warrier, President

“NOTE FROM THE EDITOR

INSIDE THIS ISSUE “Steady as she goes in the job market. Businesses continue to hire at a solid pace. Job gains are broad based across industries and company sizes. At the current pace of job growth the economy will return to full employment by the end of 2016.” ~Mark Zandi, Chief Economist at Moody’s Analytics

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Note from the Editor...............................................................................................................................................page 1DCR National Temp Wage Index..........................................................................................................................page 2Temp Employment at an All-Time High............................................................................................................page 5The Progression of the “Employee”..................................................................................................................page 8Social Media’s Use in Recruiting.........................................................................................................................page 11Industry Highlight: Sports-Related Employment Index...............................................................................page 129 Sports Related Jobs with High Growth..........................................................................................................page 17Multiple Priorities, Single Goal............................................................................................................................page 19Getting Started with Talent Supply Chain Management.............................................................................page 22Methodology.............................................................................................................................................page 26References.................................................................................................................................................page 27About DCR..................................................................................................................................................page 28

DCR NATIONAL TEMP WAGE INDEX

Far from economist forecasts of 220,000 to 230,000, the latest Bureau of Labor Statistics (BLS) job numbers show that 142,000 new jobs were created in August 2014. This was the lowest job gain for 2014, following six straight months with employment gains of over 200,000 jobs each. Nationwide unemployment decreased slightly to 6.1 percent from 6.2 percent, but the change is attributed to fewer working-age Americans participating in the labor force.

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Source: The Wall Street Journal

Long-Term Unemployed


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Most industry sectors had low gains or actually lost jobs in August, with healthcare, construction, hospitality, and temporary jobs topping the list as the biggest gainers. The healthcare industry added 34,000 jobs, with 22,800 of those in the ambulatory services sector. Restaurants and bars added 21,500 jobs, but cuts in other sectors of the leisure and hospitality industry created a net gain of 15,000. Construction had strong growth, adding 20,000 jobs, with specialty contractors accounting for 11,500 jobs. The temporary and staffing sector added 15,400 jobs, with temp jobs accounting for 13,000.

According to the ADP national employment report, U.S. private sector employment rose by 204,000 jobs in August 2014, down from a 212,000 increase in the month before. Small businesses accounted for 78,000 jobs. In addition, Challenger Gray & Christmas reported that companies announced 40,010 layoffs in August, which is 21 percent below the number of job cuts in the year before.

The Conference Board’s recent report on online job ads stated that U.S. online job postings rose by 164,600 in August to a total of 5.2 million. The largest gains were seen in professional occupations, such as business and finance, computer and math, and healthcare.

MANUFACTURING HIRINGEXPECTED TO RISE

WAGES STILL INCREASING

Monthly Changes in Payroll Employment (in thousands)

A national employment report by the Society for

Human Resource Management (SHRM) shows that

hiring in the U.S. manufacturing sector is expected to

increase. The report’s survey found that 50.5 percent

of manufacturing companies have plans to hire in

September 2014. A net of nine percent of

manufacturing companies reported increasing

new-hire compensation in August 2014.

While the August job numbers fell below economists’

expectations, they still are an addition to payrolls.

Nonfarm payrolls in August were up 1.8 percent

compared to August 2013.

Hourly wages for nonsupervisory workers increased

0.3 percent in August 2014, and are up 2.5 percent

from a year ago. Average hourly earnings in August

were $24.53, up 6 cents from the previous month and

50 cents from the year before. Over the past 12 months,

average hourly earnings have risen by 2.1 percent.

Source: BLS

Source: The Wall Street Journal

Wages Climbing


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The U.S. Department of Veterans Affairs (VA) just recently announced plans to launch a major recruitment campaign to source doctors, nurses, and other health care professions. Additionally, the agency is planning to add jobs for support staff with a variety of roles such as clerks, chaplains, electricians, librarians, and plumbers. While the exact number of vacancies has not been released, the VA said that they had over 36,000 unfilled healthcare positions earlier in the summer of 2014.

A recent report from the Social Science Research Council reveals that one in seven young people, or about 5 million 16-24 year olds are not working and are not in school. These “disconnected youth” cost taxpayers $83.7 billion in government support and lost tax revenue. However, the unemployment rate of this generation is improving. As per the BLS, the July 2014 unemployment rate for this group was the lowest since the recession started, at 13.6 percent.

According to the Social Security Administration, more than 70 million Baby Boomers will retire by 2030 at an average rate of 10,000 Baby Boomers retiring every day. Georgetown University says that their absence in the workforce will help create over 30 million job openings by 2020.

According to industry experts, recruiting healthcare professionals is not going to be an easy task for the VA. In a highly competitive industry, the VA has

had recent salary freezes and bans on bonuses, and job locations are in less desirable areas. Matt Stevenson, the executive leading workforce planner at

Mercer, says that the VA needs to build a strong employee value proposition to attract job candidates. This could include appealing to patriotic duty, or

highlighting unusual benefits that the department offers workers.

Healthcare industry experts say that the general recruiting cycle for a doctor is upwards of six months, meaning that the VA may turn to temporary staffing

agencies to fill gaps in the short-term.

THE VA’S UPCOMING HIRING SPREE

DISCONNECTED YOUTH AND BABY BOOMERS

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“We need tens of thousands of new doctors, new nurses, new clinicians.” ~Robert McDonald, Veterans Affairs Secretary

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TEMP EMPLOYMENT AT AN ALL-TIME HIGH

According to the National Employment Law Project (NELP), an all-time high of 2.8 million Americans are working in temporary help jobs. The report states that temporary jobs make up 2 percent of total employment in the United States. Additionally, 75 percent of Fortune 500 companies are using temporary workers, especially in their warehouses.

Additionally, the American Staffing Association (ASA) shows figures stating that more than 12 million people, or 10 percent of the labor force, worked for a temporary employment agency at some point in 2013.

Some experts believe that employers are turning to temporary workers to fill their workforce needs in order to combat the costs associated with the Affordable Care Act (ACA), since employers are not required to offer healthcare coverage for these workers. Others point to employers’ concerns about economic uncertainty as a reason prompting them to seek out flexible workforces.

The latest figures from the U.S. Bureau of Labor Statistics show that the American economy added 13,000 new temporary help services jobs in August 2014.

The surge in temporary worker engagement is expected to continue. A study from MBO Partners forecasts that more than 24 million people will work as independent workers by 2018. And according to CareerBuilder, 42 percent of employers have plans to hire temporary or contract workers in 2014. Experts expect that the staffing industry will grow by 7 percent in 2015.

In Q2 of 2014, staffing companies employed an average of 3.15 million temporary and contract workers per week, according to the American Staffing Association. Staffing firm employment increased by 6.2 percent from the first quarter to the second quarter of the year, adding more than 182,600 workers.

Source: BLS

Year-over-Year Growth in Temp Employment

TEMP EMPLOYMENT AT AN ALL-TIME HIGH“

Once considered a gateway to permanent employment, temporary work is now the new normal. Many workers prefer the flexibility and access to a wide variety of work assignments that temporary positions offer. Technology and new talent platforms have made it easier for independent workers to find jobs. Approximately 65 percent of workers with temp jobs say that the Internet has made it easier to find work.

“Many people build successful careers as temporary workers and don’t pursue permanent placement. They like the flexibility, and they like having a variety of worker experiences. Some workers prefer assignments within their wheelhouse. Others like to try out new functions. Either way, you get exposure to different learning opportunities.” ~Eric Gilpin, President of CareerBuilder’s Staffing & Recruiting Group

According to recent research by the Freelancers Union, 43 percent of freelancers expect their income to increase, and 77 percent say that they earn the same or more wages than they did before taking on independent work. According to government reports, freelancers contribute an estimated $716 million annually in earnings to the economy.

Millennials, especially, are freelancing more than any other age group. According to the report, 38 percent of 18 to 34 year olds work as temporary workers.

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Top Reasons for Working at Temp Jobs

Source: Freelancer’s Union

TEMP WORK IS NO LONGER A STEPPING STONE

Source: Harvard Business Review

Temp Work Segments

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TEMP EMPLOYMENT AT AN ALL-TIME HIGH

The Dallas-Fort Worth area has created almost 24,000 temp jobs in the temp sector in the year ending in July 2014. That is a growth rate of 23 percent year-over-year, which is three times the level of the segment nationwide and the highest among large metros.

Staffing experts cite increases in business relocation and demand for technology workers, along with oil and gas companies’ labor demands as reasons for the large growth in temp employment.

In the Dallas area, temp spending totaled $3.4 billion last year. Almost half of this spend was on temp positions in light industrial, construction, and office positions. The rest was for high-paid workers in technology, engineering, healthcare, and finance and accounting.

CITY HIGHLIGHT: DALLAS – TEMP CAPITAL OF THE U.S.?

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“There’s not much mystery here. Employment is growing much faster in Dallas, so it makes sense that staffing would be outpacing everywhere, too.” ~ Richard Wahlquist, CEO of the American Staffing Association

One-Year Growth in Employment Services, July 2014

Source: Dallas News

THE PROGRESSION OF THE “EMPLOYEE”

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DRIVERS OF CHANGE

Over the past decade, the definition and image of employees has changed. With the influence of social media, mobile apps, and constant connectivity, technology is seamlessly woven into workers’ everyday reality, blurring the distinction between traditional hours of work, school, and personal life. And employers have shifted their view of workforces as well - workers were once considered disposable cogs and now have become the most important asset that a company has. Both companies and workers are focused on the 3 Cs: connectivity, communication, and collaboration.

The global economy has an impact on the evolution of workers and how we work. Rapidly advancing technology, constantly shifting competitive pressures, and destabilizing events around the world occur so frequently that employers have difficulty predicting what will happen in the short-term and long-term future. This uncertainty is causing more organizations to seek out flexibility.

Technology has been a tremendous driver in the changing nature of work. Technologies such as mobile devices, cloud computing, and web conferencing have impacted connectivity across the globe. Workers can now work from anywhere and still be able to collaborate and share information 24/7 with their peers.

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THE PROGRESSION OF THE “EMPLOYEE”WHO ARE “EMPLOYEES” TODAY?

THE CHANGING WORKPLACE

In the past, workers were full- time employees of a company who worked fixed hours in the corporate office, whereas today work has become truly flexible. Companies are relying more and more on temporary work arrangements to bring in the talent they need for specific projects. And there is no longer a need for most of these workers to work from an office or to work from 9 to 5. Leading companies, such as Unilever, Aetna, and American Express, are rolling out flexible work arrangements for their workers across the globe.

Many years ago, employees would stay employed with companies from the time they began their career to retirement. Even ten years ago, employment advisors would tell people to expect to have approximately seven or eight jobs over a 30-year career. Now the tenure of employment positions is shorter than it has ever been before. According to experts, the average tenure of a Fortune 500 CEO is now down to less than four years. And most people will likely go through 15 or 20 job changes over a 50-year career.

While contingent, subcontracted employment has always existed, the share of jobs that are temporary is increasing, especially in positions that were historically full-time and salary-based. For example, in the world of academia, where full-time professors are on track for tenure, many college campuses now are hiring adjunct faculty who are part-time and contingent. Since 1975, the percentage of faculty that was adjunct has risen from 30 percent to over 50 percent.

There’s been much talk in the news and media recently about the design of the workplace. Organizations are trying to optimize costs by reducing unneeded office space, especially when workers can effectively work from anywhere, and prefer to do so. The “office” in many companies is becoming a collaboration hub, where workers can meet face-to-face and spend time connecting with each other. Individual work, however, is increasingly occurring outside the office altogether.

In the past, workers often carried two devices – their work device and their personal device. With many companies implementing Bring-Your-Own-Device (BYOD) policies, company provisioned phones and computers are being phased out.

THE PROGRESSION OF THE “EMPLOYEE”

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THE NATURE OF WORK IS DIFFERENT

Ten years ago, most positions had a career path. Generally, when starting a career, a worker entered a new company at the bottom of the corporate ladder and then steadily climbed his or her way up to a higher position. For example, in the world of sales, one began as a sales coordinator, then a sales manager, senior sales manager, sales director, to a vice-president of sales, and so on. However, due to the growing freelance economy, collaboration platforms, and new management approaches, workers are starting to shape their own career ladders. Some forward-thinking companies now offer programs where workers can change work preferences twice a year. And other companies even allow workers to have complete autonomy in which projects they want to work on and who they want to work with.

Collaboration technologies have also played a role in giving workers at any level throughout the organization the opportunity to share ideas, thoughts, and concepts. Leadership does not come simply by job title alone anymore, but rather by the content and knowledge that is shared, and the following that is gathered from it.

SOCIAL MEDIA’S USE IN RECRUITING

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Recent research by CareerBuilder found that 43 percent of employers currently use social networking sites to research job candidates, and an additional 12 percent plan to start soon.

A report by PwC surveying 10,000 workers worldwide and 500 HR professionals predicts that online monitoring of social media profiles by employers will rise over the next ten years.

With the entry of recruiters, human resources professionals, and hiring managers on social media, it is important for job seekers to understand this growing arena of recruiting.

While most social media networks had roots in personal use and have only recently expanded to include business applications, professional networking sites like LinkedIn allow candidates to brand and market themselves to the job positions and employers they are interested in.

Bullhorn’s recently published annual “Social Recruiting Activity Report” finds that 97 percent of U.S. recruiters use LinkedIn, a slight decrease from the year before.One of the growing areas of LinkedIn usage is groups. LinkedIn groups give job seekers the opportunity to join communities that are relevant to their profession or industry or HR and recruiting groups. By joining groups, job hunters can connect with group members and expand their first-degree network or communicate via direct messages. Having access to recruiters and hiring mangers is often invaluable to those looking for job positions.

Twitter is used by employment experts for real-time communication on topics such as job search advice, on-the-job performance, and work-life balance. Often, employers use their Twitter accounts to point to job opportunities, even before they are posted on job boards.

Many leading companies actively communicate with their talent communities, giving job seekers the opportunity to follow and engage with them. Recruiters are increasingly using live Twitter chats to engage with potential talent and keep them aware of upcoming job openings.

Recent research by Bullhorn shows that there are approximately 271 million active Twitter accounts, but the percent using the network has dropped by five percent from the previous year to 21 percent.

The percentage of recruiters in the U.S. using Facebook rose to 19.3 percent in 2014 from 19.0 percent in the previous year. While LinkedIn is still the predominantly used network for recruiters, Facebook is the only social network that has had an increase in job search activities this year. Also, while Linkedin job postings receive twice as many applications as Facebook or Twitter postings, Facebook is the only network through which job applications increased in 2014.

Research shows that often the biggest and best job leads come from a friend, family member, or other acquaintances on Facebook. Companies are increasing their recruiting presence on Facebook, making it an instrumental resource for job hunting.

LINKEDIN

TWITTER

FACEBOOK

INDUSTRY HIGHLIGHT: SPORTS-RELATED EMPLOYMENT INDEX

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It’s football season! Actually, October and the fall season is generally considered the time for a wide variety of sports in the United States, including football, basketball, hockey, baseball and more. According to Bleacher Report, October is the most exciting month for sports fans since the baseball playoffs are in full swing, the NHL and NBA officially start, college basketball begins, and college football rivalry matches are being played. Other sports also feature major events in October, such as the Head of the Charles Regatta, one of the world’s preeminent rowing competitions, that which is celebrating its 50th race this year.

It’s only fitting that in the biggest month for sports we take a peek at sports-related employment. The increasing popularity of sports and the number of tournaments played in the U.S. and around the world has caused a surge of employment in sports-related occupations. The commercialization of sports has created a large awareness and demand for spectatorship and viewership, leading to growth in supporting industries such as media, journalism, facilities and maintenance, marketing and event planning, security, and leisure and hospitality.

The sports industry was projected to grow by $145.3 billion between 2010 and 2015, and is currently full of opportunities in areas such as sports marketing and sponsorship, sports media, and sports facilities. Over the past 30 years, there has been large growth in sports management education programs as well, with undergraduate and master’s level courses and MBAs that have a sports management concentration. From 1980 to 2010, the number of undergraduate sports management programs in the United States grew from just three to over 300.

DCR TrendLine Sports-Related Employment Index

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With the huge growth of the industry, there is ample volume for temporary work positions both within the core sector and the surrounding industries. Each of the numerous agencies, organizations, and institutions in the U.S. sports industry employs a number of interns as well.

Among the broad self-employment categories, most sports professionals fall under that of “arts, design, entertainment, sports, and media occupations.” Approximately 30 percent of those working in this category are self-employed. From 2003 to 2013, among all workers in arts and media occupations, employment grew by 13 percent and self-employment grew by 17 percent.

“For anyone trying to break into the sports industry at the entry level, internship experience is critical” ~Carolyne Savini, Senior Vice President of Recruiting at Turnkey Sports and Entertainment

Temporary Sports Employment Trend

TEMPORARY EMPLOYMENT WITHIN SPORTS-RELATED OCCUPATIONS

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Over the past four years, jobs in all sports-related industries have grown by 12.6 percent, which is more than double the growth of the national job market of 5.5 percent. Wages have also risen, with average wages in sports-related occupations surpassing the national average of $47,947 at $78,455.

On the national level, much of the growth in sports-related jobs has been on the business end, with the category of “Promoters of Performing Arts, Sports, and Similar Events” growing by 30 percent between 2010 and 2014.

Arts and Media Occupations with an Increase in Concentration of Self-Employment, 2003 to 2013

Source: Department for Professional Employees

TEMPORARY EMPLOYMENT WITHIN SPORTS-RELATED OCCUPATIONS

SPORTS-RELATED JOBS BY INDUSTRY

Sports Employment by Industry Source: CareerBuilder


Sports Employment Growth by City

Source: CareerBuilder


LOCAL SPORTS-RELATED EMPLOYMENT GROWTH

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A report by CareerBuilder and Economic Model Specialists Intl (EMSI) focused on cities with national football teams to demonstrate the multiplier effect and how sports-related jobs have impacted local economies.

Jobs That Would Be Added in Non-Sports Related Industries as a Result of 100 New Jobs Being Created in Sports Teams & Clubs

422

444

187

552

504

539

561

552

434

343

Job Growth in All Industries (since 2010)

2%

8%

8%

2%

6%

4%

10%

9%

10%

2%

Sports Job Growth (since 2010)

56%

38%

29%

26%

22%

22%

22%

21%

19%

18%

2014 Sports Jobs

5,660

2,872

7,363

2,079

7,183

3,196

4,033

13,863

10,956

7,622

Pittsburgh, PA

Jacksonville, FL

Atlanta, Georgia

Buffalo, NY

Boston, MA

Cincinnati, OH

Denver, CO

Miami, FL

Dallas, TX

Philadelphia, PA


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The Bureau of Labor Statistics (BLS) defines this job title as those who participate in organized, officiated sporting events to entertain spectators. While the news and media is full of stories of the huge salaries of top athletes, the mean annual wage for athletes and sports competitors was $71,850 in May 2013. The employment estimate of this occupation is 13,880 with the majority (9,730) employed in the spectator sports industry. The state with the highest employment for this occupation is Florida with an annual mean wage of $39,500, followed by Pennsylvania with an annual mean wage of $116,510.

Top Paying States for Athletes and Sports Competitors

Source: BLS

JOB TITLE FOCUS – ATHLETES AND SPORTS COMPETITORS

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“Sports is a major part of our culture and a key economic driver in cities nationwide. The growth in sports-related jobs since 2010 is notably higher than that of the national average for all jobs, indicating a greater investment in one of America’s favorite pastimes.” ~Matt Ferguson, CEO of CareerBuilder

“SPORTS-RELATED JOBS WITH HIGH GROWTH

9 SPORTS RELATED JOBS WITH HIGH GROWTH

When discussing sports-related employment, the focus is often on the quarterbacks and coaches or even the sideline commentators; however, sports-related jobs span a wide range of occupations, and some of them are growing rapidly.

Since 2010, jobs across all sports-related industries are up 12.6 percent, more than double the growth in the national job market. Average wages in these occupations also surpasses the national average of $57,947 at $78,455.

Sports-related employment is particularly important as it often has a strong multiplier effect by creating job growth in other areas beyond athletics. According to a report by CareerBuilder and Economic Model Specialists Intl (EMSI), 100 new sports-related jobs in Pittsburgh, Pennsylvania have the potential of creating $46.2 million in earnings for the city along with 422 new jobs in healthcare, sales, food preparation and service, and construction.

Certain sports-related industries have seen strong growth in employment over the past four years. For example, agents and managers have seen a growth of 16.8%; promoters of performing arts, sports, and similar events with facilities of 30.4%; and sports teams and clubs of 8.6%

Athletes and coaches are far from the only occupations that are supported by the sports industry. Actually, these professions have seen the least growth compared to other sports-related employment, with coaches and scouts gaining 7% more jobs, and athletes and sports competitors growing by 3%. Several occupations have experienced substantial employment gains since 2010 due to sports-related industries.

Sports Employment by Occupation


9 SPORTS RELATED JOBS WITH HIGH GROWTH

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MULTIPLE PRIORITIES, SINGLE GOAL

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More and more, companies are continuing to leverage a non-employee workforce. Employing this area of labor offers many benefits including increased flexibility and scalability, along with costs savings. However, the risks and complexities of sourcing and managing non-employee workers can be daunting.

When managing a contingent workforce program, companies have to deal with and accommodate the priorities and needs of various parties. Hiring managers want to find workers with the right skillsets and bring them onboard as quickly as possible. Procurement officials are concerned with lowering cost and managing spend. HR professionals want to ensure worker quality and compliance. IT personnel need to ensure that any technology selected can be supported, will work with other applications, and will not threaten the security of the company. Executive management is focused with a total talent management strategy that aligns with business goals.

While many human resource software providers offer basic tools to track contingent workforce populations, and to meet payment and hourly compliance requirements, they lack detailed and sophisticated management options. Because non-employee workers are paid differently and operate under different employment rules, it’s important to track them using a different talent management tool. Vendor Management Systems (VMS) offer a flexible approach to manage contingent workforces. Most VMS software automate the end-to-end life cycle of managing an organization’s contingent workforce and the suppliers who provide them. Most are cloud-based and offer tools to track time and deliverables, as well as analytics and forecasting features so companies can manage contingent labor costs and better align workers with projects.

Often VMS is associated simply with the management of agency-supplied contractors, rather than independent contractors or Statement of Work project teams. However, advanced VMS technologies are able to support an effective management program that handles the complexities and requirements of all non-employee labor. The primary mission of VMS goes beyond simply managing spend, and real value is achieved through improving efficiencies in operations in all areas.

A good VMS technology that will result in a successful contingent workforce program takes into account the multiple priorities of all the stakeholders, and delivers a solution that meets the single shared goal of eliminating complexity to increase operational effectiveness.

Beyond an organization’s internal stakeholders, the concerns and requirements of external stakeholders also need to be considered. Companies often have staffing suppliers and contingent workers already in place, with whom they want to maintain successful relationships. Sometimes, organizations already have a third-party company in place as the Managed Services Provider (MSP).

When compiling requirements to be incorporated into a VMS, companies and VMS providers should also consider the perspective of other parties, such as their MSP. Often it is the MSP who serves as the primary user of the system and this major stakeholder should be involved in the technology selection and implementation process.

In order to combat staffing agency resistance, companies can select a VMS that is vendor-neutral, and has features that will be beneficial to suppliers, such as automated billing and other processes that will reduce supplier costs and efforts. And during implementation, organizations should ensure that there is a well-defined plan for supplier training, clarify payment terms, and clearly communicate the requirements distribution system.

Understanding that a good VMS solution will fulfill the organizational goal of operational effectiveness while also addressing the priorities of the various stakeholders makes selecting a VMS that meets business needs less challenging. All good VMS provide the same level of basic features:

Looking beyond these standard features, some industry leading technology providers offer innovative solutions that assist in workforce composition, peer benchmarking, big data workforce intelligence, social sourcing, and online talent exchanges that include alumni, retirees, and interns.

Strong Vendor Management Systems provide companies with all-in-one capabilities, with flexible administration, intuitive user experiences, business intelligence, decision support, and anytime access.

A cloud-based, SaaS delivery model that is device independent Readily available and comprehensive training and support An automated, fully transparent process A requirement distribution system that can configured by job type or location An evaluation of each supplier before they join the program, and over time. Help in onboarding candidates and verifying compliance requirements Automating the process of work scheduling, time reporting and approval, and invoicing Tracking and reporting on contingent workers and program metrics Integration with enterprise data management systems Managing a variety of non-employee workers, including temporary staff, independent contractors and freelancers, and SOW workers.

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MULTIPLE PRIORITIES, SINGLE GOALBEYOND HR & PROCUREMENT

SELECTING THE RIGHT TECHNOLOGY

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Social recruiting has been gaining traction in various industries. Recent research studies show that 73 percent of companies have used social media to make hires. Social recruiting offers many advantages including higher quality candidates and lower time to hire. Companies today are increasingly using social media platforms to find the talent that suits their needs. Staffing companies are embracing social search capabilities to gain visibility with a large number of job seekers.

Results from a DCR Workforce survey reveal that the largest issues holding companies back from using social recruiting technology is candidate screening, the risk of misclassification, and quality of candidate pool. To overcome these challenges, companies should look for a VMS that assures a unified talent management system with a pre-vetted pool of talent, and includes screening and classification compliance within its benefits.

MULTIPLE PRIORITIES, SINGLE GOAL

SOCIALLY RECRUITING NON-EMPLOYEE WORKERS

The Typical VMS Platform

DCR Survey: What’s Holding You Back from Using Social Recruiting Technology?

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Failing to manage your company’s talent is the equivalent of failing to manage your supply chain” ~Peter Cappelli, Professor of Management at The Wharton School

“Managing supply chains is about managing uncertainty and variability. This same uncertainty exists inside companies with regard to talent development. Companies rarely know what they will be building five years out and what skills they will need to make that happen; they also don’t know if the people they have in their pipelines are going to be around.” ~Peter Capelli, Professor of Management at The Wharton School,

Countless studies and surveys show that there’s no doubt that talent management is at the top of the HR agenda. This is because it’s also at the top of CEO and executives lists of concerns. A survey by McKinsey & Co. of CEOs and business leaders around the world revealed that approximately 50 percent worry that their talent management practices are not aligned with business outcomes. And more than half felt that within their organizations there was insufficient commitment to developing talent and insufficient time spent on talent management in general.

A recent survey reported that approximately two-thirds of U.S. employers do not do any kind of planning for their talent needs. These companies basically wait for a need to develop or a vacancy to arise and then try to find suitable talent to fill the position.

As companies realize the importance of anticipating labor shortages and planning for their talent needs, the principles of supply chain management become more relevant to talent management. Talent supply chain management (TSCM) is a proactive approach to securing and optimizing talent supply and services through a supplier network to meet the talent needs of companies. TSCM combines the disciplines of workforce analytics, strategic workforce planning, talent sourcing, and managing supplier networks

Studies show that a large percentage of talent buyers face shortages for key skill sets. These organizations often turn to temporary labor to fill critical shortages and key high-demand roles within the organization. In a recent survey 59 percent of companies reported that attracting and retaining high-caliber temporary talent is a core strategy within the organization. As such, when planning a talent supply chain management strategy, companies need to consider and make strategic decisions regarding both their employee and non-employee workforce.

GETTING STARTED WITH TALENT SUPPLY CHAIN MANAGEMENT

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To develop an effective Talent Chain Supply Management (TCSM) strategy, an organization should analyze three main elements:

After this base analysis, companies should engage in workforce modeling, which involves asking the following questions:

Following this analysis HR department, with support from hiring managers and operations, can begin developing their talent supply chain.

1) Talent Supply Change Assessment - What does our workforce look like currently, and is it optimized for supporting today’s business needs and the needs of the future? 2) Environmental Factors – What external trends, issues, and potential risks will have an impact on the business in the near-term and the long-term?3) Historical Data – how have these types of environmental factors impacted the company in the past, and what was the reaction?

• What is the current composition of the workforce by worker type?• What percentage consists of independent contractors, temp workers, or SOW workers?

GETTING STARTED WITH TCSM

BUILDING A TALENT SUPPLY CHAIN

Overview of the Talent Supply Chain

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The talent supply chain consists of three main phases: attraction, engagement, and retention. Each phase is then broken down in two major activities.

1. Brand Establishment

According to CareerBuilder, 49 percent of workers say that an employer’s reputation or employment brand has a significant influence on their decision to work with that organization. Building an employment brand aids companies in attracting qualified candidates and creating a community of talent which is eager to work for the organization.

To create an employer brand, the first step is determining the characteristics that define the brand and the organizational culture, and then understanding what ideal workers look for in a company. With this information, employers can create a message that accurately reflects the ideal brand of the company.

2. Candidate Attraction

The candidate attraction stage is where companies broadcast their employment message to target candidates, and engage them to take interest in opportunities. Understanding how job seekers apply to certain jobs is essential to determine channels on which to disseminate the employment messaging. Overall, analyzing the reach a company has with their target candidate pool provides a benchmark for building and implementing a candidate attraction plan.

Attraction

Talent Supply Chain Process


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1. Candidate Experience

Once a candidate is aware of an opportunity and motivated to apply, that candidate is engaged with the organization. It is important for organizations to have a well-defined process to continuously engage with potential workers throughout the application process, so that the candidate’s experience with the company is positive. Even if the candidate does not actually fill the position, they should leave with a good impression of the company, motivating them to apply again in the future.

2. Onboarding

Experts say that the majority of turnover in companies occurs in the first 90 days of the job. As such, onboarding has become a focus for human resources and training departments. New hire orientation, training and mentoring programs are tools for keeping new employees engaged within the first 90 days. The onboarding process should provide new hires with the knowledge, tools, and contacts that they need to succeed in their new positions.

Research shows that an effective onboarding program reduces new hire turnover and, consequently recruitment costs. It also tends to increase the average tenure of the workforce. Finally, it helps to reinforce the employment branding messages as it encourages current workers to become the strongest brand advocates.

Throughout the process, organizations should evaluate their activities across the entire talent supply chain, and look beyond the common measurement of evaluating the effectiveness of the process by how efficient they are at bringing people into the organization. Talent supply chain analytics should not stop at the point where a candidate becomes a worker, but consider the continuous flow of talent through the business, including how long they stay and at how effectively suppliers perform in delivering talent.

Research by The Conference Board recommends that HR leaders should think like economists and maintain a 360-degree view of their key performance indicators, which includes also looking at external factors such as regulatory changes, economic outlook, and labor supply trends.

1. Worker Engagement

Human resource experts say that long-term employee retention is the product of the culture of the organization and the company’s commitment to its employment brand.

Improving retention includes engaging workers through recognition programs, job rotations, and career paths.

2. Succession Planning

A clear goal of talent supply chain management is to anticipate talent needs. Part of this forecasting of needs is tied to succession planning. Ensuring leadership continuity and building talent from within is important for organizations to maintain a competitive edge.

Succession management is a crucial part of managing the company’s pipeline of talent. Current high-performing workers should be top-line candidates for anticipated open positioning. To develop an internal talent development plan, companies should track internal candidate talent, and constantly monitor for openings for which they might be a fit. The goal is to lead to the development of a strong candidate management system and an internal referral program.

Engagement

Retention


TALENT SUPPLY CHAIN ANALYTICS

METHODOLOGY

The DCR National Temp 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 TrendLine 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 TrendLine 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

REFERENCEShttp://www.ere.net/2014/09/05/augusts-142000-jobs-is-weakest-growth-this-year/?utm_medium=twitter&utm_source=Jacco+Valkenburg

http://online.wsj.com/articles/private-businesses-create-204-000-in-august-adp-says-1409833982

http://www.shrm.org/about/pressroom/pressreleases/pages/2014-september-line-report.aspx

http://blogs.wsj.com/briefly/2014/09/05/5-takeaways-from-the-august-employment-report/

http://blogs.wsj.com/briefly/2014/09/04/5-things-to-watch-in-fridays-jobs-report-2/

http://blogs.wsj.com/briefly/2014/09/05/august-jobs-report-the-numbers/

http://www.wsws.org/en/articles/2014/09/02/temp-s02.html

http://www.forbes.com/sites/kathryndill/2014/03/27/the-fastest-growing-temp-jobs/2/

http://wotv4women.com/2014/09/03/how-you-can-thrive-in-todays-changing-workforce/

http://jobs.aol.com/articles/2014/09/04/freelance-increasingly-its-how-america-works/

http://blogs.hbr.org/2014/09/breaking-down-the-freelance-economy/

http://money.cnn.com/2014/09/10/news/companies/veterans-affairs-hiring-blitz/

http://www.4029tv.com/money/5-big-trends-shaking-up-the-job-market/27887400

http://www.measureofamerica.org/one-in-seven/

http://www.careerbuildergovernmentsolutions.com/wp-content/uploads/2009/07/Talent-Supply-Chain.pdf

http://www.kellyocg.com/uploadedFiles/7-KellyOCG/2-Knowledge/Talent_Supply_Chain/Talent_Supply_Chain_Management_Readiness.pdf

http://knowledge.wharton.upenn.edu/article/talent-on-demand-applying-supply-chain-management-to-people/

http://www.kellyocg.com/uploadedFiles/7-KellyOCG/2-Knowledge/Talent_Supply_Chain/Does%20Your%20Talent%20Supply%20Chain%20Measure%20Up.pdf

http://www.theguardian.com/money/2014/aug/18/social-media-monitoring-employers-rise-pwc

http://www.theworkbuzz.com/find-the-job/networking/employment-related-social-media-you-should-be-using/

http://www.bizjournals.com/kansascity/news/2014/09/12/facebook-twitter-linkedin-job-hunt-tools.html?page=all

http://pages.bullhorn.com/rs/bullhorninc/images/2014%20Social%20Recruiting%20Activity%20Report.pdf

http://bleacherreport.com/articles/1094743-ranking-the-best-months-of-the-year-for-sports-fans/page/13

http://www.forbes.com/sites/jasonbelzer/2014/02/05/sports-industry-101-breaking-into-the-business-of-sports/

http://business.itbusinessnet.com/article/Sports-Related-Employment-Is-on-the-Rise-and-Creating-Jobs-in-Other-Industries-According-to-New-Research-from-Career-

Builder-and-Economic-Modeling-Specialists-3466363

http://www.bls.gov/oes/current/oes272021.htm

http://www.talentmgt.com/blogs/2-beyond-x-y/post/your-future-employee-in-2030-are-you-ready

http://www.higheredjobs.com/Articles/articleDisplay.cfm?ID=291

http://www.organisationsolutions.com/Resources/Strategy-Execution/Workplace-Transformation-and-the-Changing-Nature-of-Work

http://www.forbes.com/sites/joshfreedman/2014/04/25/the-decline-of-employment-how-work-has-changed-in-the-modern-university/

http://www.forbes.com/sites/jacobmorgan/2014/09/02/the-evolution-of-the-employee/

http://www.dallasnews.com/business/columnists/mitchell-schnurman/20140913-schnurman-just-in-time-hiring-takes-off-in-dallas.ece

http://www.workforce.com/articles/companies-turning-to-tools-to-manage-contingent-labor

http://dpeaflcio.org/programs-publications/issue-fact-sheets/professionals-in-the-contingent-workforce/

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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.

DCR Workforce serves global clientele including several Fortune 1000 companies. Customers realize greater efficiencies; spend control, improved workforce quality and 100% compliance with our services.

For more information about DCR Workforce and its Forecasting Toolkit (Rate, Demand, Supply and Intelligence) including Best Practice Portal, visit dcrworkforce.com

For more information call +1-888-DCR-4VMS or visit www.trendline.dcrworkforce.com

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ABOUT DCR

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