Transcript Staffing Industry Trends - Emily R. Owens

Staffing Industry Trends
Media Briefing
Key Topics
• Onboarding
– Importance
– Popularity
– Success
• Background checks
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Social media
Credit reports
Criminal background checks
Temporary workers
• Temporary staffing
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Economic influence
2011 trends
Annual/quarterly trends
2012 projections
Onboarding
• Why it is important
– U.S. and U.K. employees cost businesses an estimated
$37 billion every year because they do not fully
understand their jobs (IDC)
– Each year more than 25% of U.S. workers experience
career transitions; however
• 50% of all senior outside hires fail within 18 months in a new
position
• 50% of all hourly workers leave new jobs within the first 120
days (Society of Human Resource Management (SHRM))
– Estimated cost incurred when an employee leaves an
organization = 150% of an employee’s annual salary
(200% to 250% of salary for managerial and sales
positions) (Drake International)
Onboarding
• How popular is onboarding?
– More companies now realize that employees have
about 90 days to prove themselves in a new job;
the faster they feel welcome and prepared, the
faster they will be able to contribute (SHRM)
– According to a recent survey by the SHRM, more
than 80% of organizations surveyed have formal
or informal onboarding programs in place; almost
75% of respondents use onboarding more now
than five years ago as a key element of their
retention strategies (Seamless Workforce)
Onboarding
• How successful is onboarding?
– Survey results involving 2,829 participants (Inscape Publishing):
• Individuals who received a summary of their organization’s
mission felt they could significantly contribute to its efforts
about four weeks earlier than those who did not; they also
could determine how important decisions were made six
weeks earlier than those who did not
• Those who received a thorough overview of their job
responsibilities from another person felt they could
significantly contribute 25 days earlier than those who did
not; they also could figure out how important decisions
were made 37 days earlier than those who did not
Onboarding
• Success story: Booz Allen Hamilton
– Year-long program includes cultural mastery,
interpersonal network development, strategy
immersion & direction, and early career support
– Eliminated extensive administrative burden
through automation and process streamlining
– Resulted in productivity gains associated with
increased new hire job readiness levels
– Earned the firm a Bersin Learning Leaders Award
for Excellence and an ASTD Excellence in Practice
citation (HR Examiner)
Onboarding
• Success story: Cisco Systems
– Company uses a very through and effective
program
– Since launching Cisco Choice (one component of
the program) in 2006, Cisco’s retention of new
engineering hires is 98% after 2 years, which is
much higher than industry norms (HR Examiner)
Background Checks
• Leading influencers when making hiring decisions:
qualifications and interviews
• While candidates’ criminal records were ranked third in
importance, employers weigh background check
results as one element in a candidate’s overall body of
work
• 92% of employers will reach out to candidates or
consider job relevance when a background check
reveals adverse information; only 8% said they would
reject a candidate outright (EmployeeScreenIQ)
Background Checks
• Social media
– 66% of survey respondents never check social
networking sites such as Facebook, LinkedIn, and
others for the purposes of conducting background
checks (EmployeeScreenIQ)
– Benefits: learn the candidates hobbies and
interests; Drawbacks: overload of personal
information that could lead to discrimination,
issues of authenticity and accuracy, lack of privacy
(Healthcare Info Security)
Background Checks
• Credit reports
– 21% conduct credit checks on all employees, while
33% don’t perform them at all; most respondents only
check credit when it is relevant to the individual’s job
duties or because they are in a regulated industry
(EmployeeScreenIQ)
– Four states in the U.S. (Illinois, Oregon, Washington
and Hawaii) have limited the use of credit reports in
background screening since they may discriminate in
an unfair way against members of unprotected
groups. (Healthcare Info Security)
Background Checks
• Criminal background checks
– SHRM survey results reveal the prevalence of this type of check:
7%
19%
73%
All job candidates
Selected job candidates
No, my organization does not conduct this type of background check for any of its job candidates
– The Equal Employment Opportunity Commission has filed lawsuits
against some employers alleging that criminal records had been used to
create a negative impact on unprotected groups and were therefore
discriminatory. Employers must not automatically reject candidates with
a criminal record, unless there is a business justification (e.g., banking
industry) (Healthcare Info Security, ESR)
Background Checks
• Temporary workers
– Some employers do not perform background checks on
workers who are not on their payroll but are on their
premises
– When it comes to negligent hiring lawsuits, employers face
the same exposure from temporary employees as they do
from their own full-time employees; if a temporary worker
harms a member of the public or a co-worker, the employer
can be just as liable
– To ensure uniformity and consistency, many employers now
require a staffing firm to utilize the same background
screening firm the employer uses for their own hires (ESR)
Temporary Staffing
• Economic influence
– Many companies used contingent labor as a sustaining
force as part of their recession staffing solution
(Monster.com)
– After a recession, organizations across all industries
tend to increase temporary hiring (HireRight)
– "Coming out of a recession, temporary help picks up
first. It lets employers test the waters of recovery," said
Heidi Shierholz, an economist at Economic Policy
Institute (USA Today)
Temporary Staffing
• Economic influence
– Since September 2008, 88% of employers have either
maintained or increased the size of their non-employee
workforce, according to a December 2010 survey
(Monster.com)
– Temporary help services has been a primary driver of job
growth in administrative and waste services after the
2007-09 recession; temporary help has added 542,000
jobs since an employment low in August 2009 (BLS)
– “Five years ago, organizations may not have had the
appetite to prove the value of contract workers,” said Amy
Lewis, practice leader for talent strategy at Human Capital
Institute. “Now organizations are saying they want to be
able to measure the output of a contractor versus a fulltime employee.” (Monster.com)
Temporary Staffing
• 2011 Trends
– In March 2011, 2.3 million people held temporary jobs, up
from a low in mid-2009 of 1.7 million, as companies seek to
satisfy customer demand without making long-term
commitments to worker salary and benefits (CNN)
– Highlights from the second quarter 2011 IQNdex:
• Continued increases in temporary labor bill rates in the U.S.,
even as unemployment rose the first two months of the
quarter
• Although U.S. companies saw declining bill rates during the
economic downturn, the past seven months have shown
steady increases in the rates paid for all job sectors across
all U.S. regions
• Bill rates for temp technical/IT jobs increased the least; jobs
in business development, financial reporting and regulatory
compliance saw the fastest-rising bill rates (Business Wire)
Temporary Staffing
• 2011 Trends
– Staffing employment in September 2011 was 3% higher than it
was in August 2011, according to the ASA Staffing Index (ASA)
– In September 2011, employment in professional and business
services increased by 48,000; small job gains occurred in a
number of component industries, including temporary help
services, computer systems design, and management and
technical consulting (BLS)
– From October 3–9, 2011, temporary/contract employment
rose by 0.15%, maintaining the ASA Staffing Index at 90; U.S.
staffing employment has risen 2.8% over the past 13 weeks
and is currently 2.1% lower than the same weekly period in
2010 (ASA)
Temporary Staffing
BLS
Quarterly Trends in
Temp Help Services
Annual Trends in
Temp Help Services
American Staffing Association
Temporary Staffing
• 2012 Projections
– “By 2012, contingent employment will have returned to
2008 levels,” said Dana Shaw, senior vice president for
strategy and solutions at Staffing Industry Analysts
(Monster.com)
– U.S. staffing growth projected to decelerate from 10% in
2011 to 7% in 2012 (Staffing Industry Analysts)
– IT is the hottest temporary staffing market with 12%
growth projected for 2012 (Staffing Industry Analysts)
– Contingent employment will continue to appeal to workers
since they appreciate the flexible employment options
offered by staffing firms (Staffing Week article)