DCR TrendLine shares analyses of trends and happenings in the non-employee workforce industry. The May edition looks at wage growth in the United States and employment in the automobile manufacturing sector. We continue our global series on the ASEAN region by looking at the impact on oil prices on Malaysia’s economy. We uncover why recent indexes have been rating the U.S. economy as disappointing. Our feature article discusses the definition of innovation and provides information on how companies can get started on incorporate innovation into their organizations. Finally, we examine how the talent acquisition sector has been disrupted by changes in the way employers access and engage with talent. DCR National Temp Wage Index U.S. Economy: Disappointing..? Wage Growth Across The U.S. Industry Highlight: Automobile Manufacturing Index What Do Millennials Want? Malaysia: Oil Prices Pose Threat to Economy Innovation as Usual Recruiting Disrupted,.

1. innovation as usual | Page 27

2. It’s almost summer! As the weather starts to heat up, the editorial staff at DCR TrendLine is eager to share our analysis and insights into the hottest trends in the
non-employee workforce market. With thorough research and in-depth analysis of data, DCR TrendLine strives to provide you with a pulse of the staffing market.
The DCR National Temp Wage Index focuses on temporary worker wage rates, analyzing the utilization of contingent workers, and tracking related developments in
the economy. This month, we look at the top metro areas for temporary employment, examine the increase in wellness program incentives by employers, and look into
Colorado’s marijuana tax revenue.
Recently indexes from Bloomberg and Citigroup ranked the U.S. economy as the most disappointing major economy in the world. We look at the reasons behind how these
reputable indexes arrived at their conclusion.
Overall, job growth has had an upward trend over the past two years. However, economists argue that wages have not seen the same progress. We look at how variations
among industry segment and location impact the perception of wage growth across the United States.
Our industry highlight for May focuses on the automobile manufacturing sector. The DCR TrendLine Automobile Manufacturing Index provides an overview of
employment and wage trends in the sector over the last six years. We discuss how the growing imports of car parts from Mexico and China have had an impact on employ-
ment in the industry.
What do millennials want?With more millennials occupying leadership positions across the world, organizations are considering how they can best ensure their success and
engagement. We look at what it is that millennials want when it comes to leadership and work-life balance.
We’re also continuing our global series, with focus on the ASEAN region. This month, we examine Malaysia and the threat its economy faces due to oil prices.
Our feature article discusses a topic that’s red hot – innovation. We deliberate on the definition of innovation, and provide information on how companies can get started
on incorporating innovation into their organizations as a core business function.
This edition’s final article looks at the talent acquisition sector and how it’s been disrupted due to changes in the ways companies access and engage with talent. Keep an
eye out for our highlight on companies that are leading the way towards this new evolution of recruitment.
Ammu Warrier
Ammu Warrier, President
“
note from the editor
inside this issue “Although the leading economic index
still points to a moderate expansion in
economic activity, its slowing growth rate over
recent months suggests weaker growth may be
ahead.” ~Ataman Ozyildirim, Economist at The
Conference Board
1
Note from the Editor..............................................................................................................................................page 1
DCR National Temp Wage Index........................................................................................................................page 2
U.S. Economy: Disappointing..?..........................................................................................................................page 7
Wage Growth Across The U.S..............................................................................................................................page 9
Industry Highlight: Automobile Manufacturing Index...............................................................................page 13
What Do Millennials Want?.................................................................................................................................page 17
Malaysia: Oil Prices Pose Threat to Economy................................................................................................page 22
Innovation as Usual...............................................................................................................................................page 27
Recruiting Disrupted,............................................................................................................................................page 31
Methodology........................................................................................................................................................... page 34
References................................................................................................................................................................page 35
About DCR.................................................................................................................................................................page 36

3. “
DCR National Temp Wage Index
“Raising real wages is a big part of the unfinished business.”~Tom Perez, U.S. Secretary of Labor
2
The United States economy added only 126,000 jobs in March 2015, the lowest since December 2013, and way below the 250,000 new jobs economists were forecasting.
Among the jobs created, health care, business services, and the retail sector had the highest contributions. Professional and business services had the largest gains with
40,000 jobs added; the industry on average has seen 34,000 jobs added each month in the first quarter of 2015. Retail added 26,000 jobs, in line with the industry’s 12-month
average gain, and healthcare added 22,000 jobs. Due largely to the drop in oil prices, employment in mining declined by 11,000 jobs, for a total of 30,000 jobs in 2015 so far.

4. DCR National Temp Wage Index
3
A further disappointment was that wage growth remained sluggish. A year ago, American earned an average of $24.34 per hour, and today that is $24.86
an hour. The Federal Reserve Bank of Atlanta forecast the economy remained flat in the first quarter compared to a year ago.
The unemployment rate remained unchanged at 5.5 percent, the lowest since May 2008. A broader guage of unemployment that includes workers who
have part-time jobs but would like full-time work dropped to 10.9
Employment Growth In Past Year
Source: BLS

5. DCR National Temp Wage Index
4
According to a separate forecast by CareerBuilder, nearly 4 out of 10 employers plan to hire temporary or contract workers in the second quarter of 2015,
up from 33 percent in 2014. And a third of employers surveyed say they plan to transition some contract or temporary staff into permanent employees in
the second quarter.
A new survey from Glassdoor and Harris Poll of 515 human resources and business managers in the United States finds that recruiters say that a talent
shortage is their number one hiring challenge today. Forty-eight percent of respondents said they are having trouble finding qualified canddiates for
open positions.
The survey reveals that 52 percent of hiring managers say that “passive recruiting” has been less effective in the past year, and 51 percent believe that
canddiates are growing tired of emails from networking sites and responding at a lower late. Forty-seven percent indiciate that candidates are not
responding to emails, and 44 percent say that they are reluctant to return phone calls as well.
“The brisk hiring anticipated for the second quarter comes against the backdrop of stronger sales, new product development and
market expansion among companies of all sizes.”~Matt Ferguson, CEO of CareerBuilder
1
2
3
4
5
6
7
8
9
10
Metro
Memphis, TN-MS-AR
Grand Rapids-Wyoming, MI
Indianapolis-Carmel-Anderson, IN
Chicago-Naperville-Elgin, IL-IN-WI
Nashville-Davidson-Murfreesboro-Franklin, TN
Atlanta-Sandy Springs-Roswell, GA
Louisville/Jefferson County, KY-IN
Dallas-Fort Worth-Arlington, TX
Columbus, OH
Milwaukee-Waukesha-West Allis, WI
Percentage of Temporary Jobs
5%
4.7%
3.9%
3.4%
3.4%
3.2%
3.1%
3%
3%
2.9%
10 Metros with the Highest Percentage of Temp Jobs (in relation to overall employment)
Source: CareerBuilder
A recent CareerBuilder study forecasts that temporary employment will continue on an upward trajectory. The study also found that some United States
metros have a concentration of temporary jobs 45-150 percent higher than the national average of 2 percent.
Metros with the Highest Percentage of Temporary Jobs
Talent Shortage is Getting Worse
“

6. 5
DCR National Temp Wage Index
Employers Offering More in Wellness Programs Incentives
H-1B Cap Reached Quickly
Recent findings by Fidelity Investments and the National Business Group on Health have found that 79 percent of employers now offer wellness programs,
which can include health questionanaires, blood tests, biometric screenings, and smoking cessation and weight-loss classes. On average, employers are
offering a record $693 per employees as a financial incetive for participating in wellness programs.This is up from an average of $594 in 2014 and $430 five
years ago. Companies with more than 20,000 employees are offering an average of $878 per employee, while companies with between 5,000 to 20,000
employee are offering $661 per employee. These incentives take the form of cash, reduced insurance premiums or contributions to a healthcare account.
Meanwhile, fewer employers are imposing penalties such as charging more for insurance if workers do not participate or achieve goals. For example, only
6 percent of employers say they penalize workers for not answering health risk assessments, down from 11 percent in 2014.
However only 47 percent of employees earned their full incentive amount in 2014, translating into millions of dollars of unclaimed incentives.
Every year on April 1st, businesses submit applications on behalf of their foreign workers for temporary employment visas, knows as the H1-B. A maximum
of 85,000 work visas, including 20,000 for holders of master’s degrees, are available each year under limits set by Congress. If the number of applications
exceeds the 85,000 quota within the first week, visas are granted via a lottery system.
This year, 233,000 people applied for the H1-B, up significantly from the 172,500 applications in 2014, and nearly double the 124,000 applications in 2013.
Advocates of raising the H-1B visa quota argue that this volume of applications is further proof that the government needs to take action. According to
estimates from Complete America, a coalition representing major technology companies including Amazon, Facebook, and Microsoft, the United States
loses about 500,000 jobs a year because of the limits on H1-B visas.
“Year after year, the government falls back on a lottery system to determine which U.S. employers will ‘win’ the ability to hire top
world talent. This year, employers had a mere 36 percent chance of being granted an H-1B visa. U.S. economic growth should not
be left up to this gamble.”~Lynn Shotwell, Executive Director of the Council for Global Immigration
“

7. DCR National Temp Wage Index
It’s been over a year since Colorado became the first state in the country to allow people to legally sell and buy marijuana in January 2014. When the
state made marijuana legal for everyone, not just medical patients, it also implemented a 25 percent tax rate on sales. In February 2014, Governor John
Hickenlooper’s office projected that Colorado would take in $118 million in taxes on recreational marijuana in its first full year after legalization. However,
recent projections based on seven months of revenue data say that the state will collect $69 million through the end of the fiscal year in June, missing intial
estimates by 42 percent.
Experts believe that the projections were off for several reasons, including economists overestimating the number of people who would stop buying
marijuna on the black market and the number of medical patients that would switch to recreational marijuana. Medical marijuana is taxed at a much lower
rate of 2.9 percent. According to Andrew Freedman, Colorado’s Director of Marijuna Coordination, the biggest drag on revenues is that much of the market
remains unregulated. A 2014 report by the state’s Department of Revenue estimated that 130 metric tons of marijuna was consumed in Colorado that year,
while only 77 metric tons was sold through medical dispensaries and recreational marijuana retailers. Samantha Chin, the Director of Marketing at Colorado
Pot Guide, says retail prices have fallen between 16 and 30 percent in the Denver area since November 2014.
The fiscal benefit of changing marijuna policies has been a driving force behind its legalization throughout the country.
6
A Look at Colorado’s Marijauna Tax Revenue
“Tax revenue is nice to have, but in most states it is not going to be enough to change the budget picture significantly. The stakes
in reducing criminal activity and incarceration and protecting public health are way higher than the stakes in generating revenue.”
~Mark Kleiman, Drug Policy Expert at University of California – Los Angeles
“
Sale Statistics for Colorado Marijuana
Source: Colorado Department of Revenue

8. 7
U.S. Economy: Disappointing?
Recently, the Bloomberg Economic Surprise Index ranked the U.S. economy as the most dissapointing major economy in the world. The index which
measures incoming economic data against economic expectations says that U.S. economic data has consistently been falling short of expert’s predictions
in the last six years.
Corroborating this statement is Citigroup’s U.S. Economic Surprise Index, whose scoreboard shows that the U.S. is the most disappointing relative to
consensus forecasts. The Citigroup U.S. Economic Surprise Index gauges how U.S. economic data performs relative to expectations on a rolling
three-month basis. While American policymakers frequently talk about weakness in the European and Chinese economies, both are exceeding
expectations.
While the media often focuses on the positive – the 1.3 million jobs added over the past 4 months and the low unemployment rate – other measures fall
short of expectations. This month alone, personal income and spending, manufacturing, automobile sales, factory orders, and retail sales are all weak.
Most Disappointing Countries
Source: Citigroup

9. U.S. Economy: Disappointing?
8
First-Quarter Growth Forecasts: First-quarter U.S. growth forecasts continue to be cut by leading banks. Michael Feroli of JPMorgan Chase cut his forecast
to 2.0 percent from 2.5 percent, while Barclay Capital reduced its estimate to 1.5 percent.
Wage Growth: While monthly job gains continue to gain
consumer confidence, wage growth has not seen an improvement.
Job Creation: Economists says that despite job creation, the
biggest disappointment has been the types of jobs being created
and the overall strength of the labor market.
The U.S. Dollar: According to some economists, in the past six
months, the dollar has increased by a near-record amount making
U.S. goods about 25 percent more expensive on global markets.
Manufacturing Output: According to Federal Reserve data, in
March 2015, manufacturing output had a 0.1 percent gain, its first
advance in four months.
Industrial Output: In March 2015, U.S. industrial production fell
sharply by 0.6 percent. A year ago, industrial output was up 2
percent.
Utilities Output: Utilities output fell 5.9 percent in March 2015, the
biggest decrease since January 2006.
U.S. Firm Borrowing: U.S. corporations have been borrowing large amounts to buy back stocks, increasing their leverage without building new production
capacity.
Housing: The Commerce Department recently released a report showing a smaller than expected rebound in housing starts. Economists were expecting
housing starts to jump to a rate of 1.05 million in March 2015, but they actually only rose 2 percent to 926,000. Also, building permits, an indicator of future
housing demand, fell 5.7 percent to an annual rate of 1.039 million.
Jobless Claims: A report from the Labor Department showed an increase in initial jobless claims in the week ending April 11th, 2015. Initial jobless claims
climbed to 294,000, an increase of 12,000 from the previous week. Economists had expected jobless claims to edge down to 280,000.
March’s Job Report: The U.S. economy added 126,000 jobs in March 2015, the lowest monthly job gains since December 2013. Economists were expecting
245,00 new jobs.
“[The latest figures add] to a growing list of dissapointing U.S.
economic indicators, suggesting that the economy ended
the quarter on a very weak footing. Moreover, there is little
indication of an impending rebound.” ~Millan Mulraine,
Analyst at TD Securities
“Are we creating enough jobs that people with a range of skills
can possibly take on? Do we have the right skills? Are we creating
jobs that fit the skills we can create?” ~Jerry Webman, Chief
Economist at Oppenheimer Funds
“The dollar is a wet blanket on manufacturing. If the dollar
remains this strong, we’re going to have headwinds in
manufacturing for a while.” ~Guy Berger, U.S. Economist at RBS
Securities, Inc.
““
“

10. Wage Growth Across The U.S.
9
While overall job growth is on a upward trend, economists question how variations in this growth among and within industry segments impacts
wage growth. Over the majority of the past two years, job growth in the United States has averaged over 200,000 new jobs per month. However,
during the same period, hourly wages grew much slower at only about 4 percent in total. And this wage growth rate was exactly the same as the
change in prices for the same period, which means that real average hourly wage did not increase.
While many economists broadly interpret this as a sign that wage growth is stationary, the reality is quite different. The diversity of job creation at
different wage levels paints a different picture.
Between the period from July 2012 to July 2014, the sectors contributing the largest number of jobs were a mix between those that pay a higher
wage on average (business and professional services and construction) and those that pay a lower wage on average (retail and leisure and
hospitality). In some sectors, such as information workers and financial workers, wages grew faster than average, while in other sectors, such as
utilities, wage growth was below average.
Wage Growth Across Industries
Employment and Hourly Wage by Sector
Source: BLS

11. 10
Wage Growth Across The U.S.
National aggregate numbers also mask another important source of variation – location. States have different average hourly wages, ranging from
a low of $19.34 in Mississippi to a high of $29.01 in Massachusetts. Thus, the national average wage depends to some degree on where new jobs
are being created. Additionally, the states vary widely in the distribution of jobs across industries. For instance, 15.2 percent of total Massachusetts
nonfarm employment is in professional and businesses services, which has a higher wage growth than average. In Mississippi, this sector makes up
8.9 percent of employment.
Comparing total private
employment growth to wage
growth by state, it appears
that several states are actually
experiencing a wage decline. But
in reality, while this is true with
regard to these states’ average
wages, the situation is likely a
reflection of faster growth in
some low-wage industries or in
lower-wage occupations within
an industry.
Wage Growth Across States
Source: Deloitte University Press
Total Private Employment Growth vs. Wage Growth, by State

12. 11
Wage Growth Across The U.S.
The professional and business services sector, which contributes substantially towards the employment of temporary workers, has experienced
large job growth over the period from July 2012 to July 2014. And jobs in professional and business services tend to pay higher-than-average wages.
The industry has been a major job creator since the beginning of the economic recovery in 2009. Currently, this sector employs 1.2 million more
people than it did when the recession started in December 2007.
Since professional and business services is an industry which provides services to other businesses, its health depends largely on the health of the
businesses it serves. The industry has benefited from the turnaround in the U.S. economy. Additionally, the long-term trend of outsourcing non-core
functions to professional and businesses services has played a large part towards the industry’s growth.
Looking at Professional and Business Services
Professional and Business Services Employment and Hourly Wages
Source: BLS

13. 12
Wage Growth Across The U.S.
Looking at the types of occupational areas served by professional and business services, they are quite varied, ranging from administrative and
support services that comprises 43 percent of the industry and has an average hourly wage of $18.40 to the higher-paying computer and system
design services, which has an average hourly wage of $42.73 per hour.
Professional and Business Services Employment Growth Compared to National Average
Sector Growth, By State
Source: BLS

14. 13
Industry Highlight: Automobile Manufacturing Index
Due to strong domestic demand and a steady increase in exports, United States auto production is nearing an all-time high. According to
WardsAuto.com, American automakers built 11.37 million light vehicles in 2014, among the higher output totals since the record of 12.59 million
produced in 1999. Exports of American-made vehicles was over 2 million for the first time last year.
However, this growth in automobile manufacturing is not creating the jobs that analysts would expect, due to these American-made cars and
trucks being made with parts imported from Mexico, China, and other foreign countries.

15. 14
Industry Highlight: Automobile Manufacturing Index
In 2014, the U.S. imported a record $138 billion in car parts last year, equivalent to $12,135 of content in every American vehicle built. Mexico was
the largest supplier of car parts to the U.S. last year, accounting for 34 percent of imports, followed by China at 13 percent. Since 2008, imports from
China have more than doubled, while imports from Mexico have increased by 86 percent.
While the U.S. is manufacturing the highest volume of automobiles since 1999, and has hit a record with its volume of exports, the growth of parts
imports has left the nation with a growing deficit in overall trade in cars and parts of $168.3 billion in 2014. This is compared to $156.2 billion in 2013.
“We’ve never produced so many cars in the U.S., but we’ve never made so few of the parts.” ~Sean McAlinden, Chief
Economist at the Center for Automotive Research
American Cars, Foreign Parts
Percentage of U.S. Content for Car Models, 2010 vs. 2015
Source:
The Wall Street Journal
“

16. 15
Industry Highlight: Automobile Manufacturing Index
The shift of parts production to foreign countries has shrunk an industry that has long been considered one of the largest sources of
manufacturing jobs in the country. In 2014, employment at manufacturers of car parts averaged about 537,000, a decline of 36 percent from
2000. Meanwhile, while the output has grown, employment at manufacturers of completed vehicles declined 32 percent from 2000 to 2014.
Industry experts attribute this decline in part to productivity imporvements that include automation.
To compete in a growing global market, the larger U.S. automobile parts makers have invested in foreign countries. For example, American Axle,
based in Detroit, has plants in Mexico, Brazil, Poland, the U.K., India, China, and Thailand. Only about 30 percent of the company’s employees are
in the United States.
Wages in the sector have also been trending downwards. In 2014, the average hourly wage for production and other nonsupervisory workers
at car-parts markers was $19.91, a decrease of 23 percent from a decade earlier. According to the Bureau of Labor Statistics (BLS), automobile
manufacturers saw a wage decline of 22 percent to $27.83 in the same period.
“The U.S. tech industry continues to make significant contributions to our economy. The tech industry accounts for 7.1
percent of the overall U.S. GDP and 11.4 percent of the total private sector payroll. With annual average wages that are
more than double that of the private sector [overall], we should be doing all we can to encourage the growth and vitality
of our nation’s tech industry.” ~Todd Thibodeaux, President and CEO of CompTIA
“
How This Impacts Employment
Automobile Manufacturing Employment and Hourly Wages
Source: BLS

17. 16
Industry Highlight: Automobile Manufacturing Index
In 2007, U.S. automakers were concerned with how to close a $30-per-hour labor cost gap with their Asian rivals. Today, however, Fiat Chrysler
Automobiles (FCA US) has labor costs for its U.S. workers that are on par with Toyota and Honda, and General Motors (GM) and Ford are at about
$10 less per hour. According to the Center for Automotive Research, FCA US pays its workers about $48 per hour (with all benefits and bonuses
included), while GM pays $58 per hour, and Ford pays $57 per hour. These per-hour labor costs averages include pay for temporary workers who
are formally employed by staffing agencies, but work full-time alongside workers employed directly by automakers.
The Center for Automotive Research (CAR) says that Japanese-owned plants utilize temporary workers as a larger percentage of their workforces
than U.S. automakers. CAR estimates that Nissan uses temps for as much as 43 percent for its U.S. workforce, while Toyota uses them for 10 to 20
percent of their workforce. Meanwhile, at Ford, temporary workers make up about 2 percent of the workforce, and as much as 4 percent during
high-production months.
According to Rick Hesterberg, a spokesman for Toyota, the company uses temporary workers to handle fluctuations in demand and to screen
hires. Since 2011, Toyota has permanently hired 1,900 of its temp workers in its Georgetown, Kentucky plant.
Temp Workers at Auto Manufacturing Plants
Source: Center for Automotive Research
Average Hourly Total Labor Costs Per U.S. Worker by Auto Manufacturer

18. 1717
What Do Millennials Want?
Projected Demographics in the U.S.
Source: U.S. Census Bureau
What is it that millennials want? As more millennials are occupying leadership positions across the world, organizations are trying to discover
what they can do to ensure their success.
According to the U.S. Census Bureau, millennials will comprise the majority of the workforce by 2025. When it comes to employee engagement,
this means that there is a large variance in the current workforce and each worker needs to be treated differently. Each category of worker
has their own priority, from work-life balance to health care benefits. And employees today don’t just care about salary; they are looking for
additional benefits from employers.
Adding to the urgency to determine what millennials want at work is that most of the existing research on the generation is skewed towards a
Western population. Conclusions based on this limited sample could lead to missed opportunities about attracting, retaining, and developing
millenial leaders in a global business environment.
Why Does it Matter?

19. 18
What Do Millennials Want?
Why Do you Want to Be a Leader?
Source: HBR
INSEAD’s Emerging Markets Institute, Universum, and the HEAD Foundation recently conducted a survey on millennials, surveying 16,637 people
between the ages of 18 and 30 in 43 countries. On average, 40 percent of respondents claimed that becoming a manager or leader was “very
important” to them. The reasons, ranging from money to building career foundations, varies across countries. High future earnings stood out as
the most dominant global theme, but the range was still wide. Half of respondents from Central and Eastern Europe chose high future earnings
as a reason to pursue leadership, while only 17 percent of African respondents did.
Leadership

20. 19
What Do Millennials Want?
Work-Life Balance
Numerous articles have been written about how millennials want a strong work-life balance, but it is rare to find research on the kind of balance
this means. For previous generations, work-life balance often meant a work-family balance. For millennials, it seems to mean more of a work-me
balance. Millennials want time for themselves and space for their own self-expression. In the survey by Insead et al, the dominant definition
of work-life balance was “enough time for my private life” followed by “flexible work hours”. This might be explained by the fact that a large
population of millenials are currently single, do not have children, and are not providing care for aging parents.
What Does Work-Life Balance Mean?
Source: HBR

21. 20
What Do Millennials Want?
Millennials and the Future of Work
Human resource experts are recognizing that millennials might understand the future of work better than other generations, and that
companies can learn a lot about where the workplace is heading by watching how millennials approach and define their careers.
The internet has opened more doors to the millennial generation than any other. Their whole lives, millennials have been told that they can and
should pursue as many interests as they want, so they are a generation with diverse interests. This is why the idea of a portfolio of work comes
naturally to them. Millennials have been doing web design for thir mom’s coworkers after school, and teaching themselves video editing through
online courses and picking up gigs to supplement their part-time job.
This natural flexibility positions millenials to take advantage of where the future of work is heading. According to a national survey conducted
by Freelancers Union and Elance-oDesk, 38 percent of millenials are freelancing, and 82 percent are optimistic about the future of freelancing.
Millennials understand networks and hubs, which make for successful freelancers. They understand the power of affiliations, more so than earlier
generations. And they are putting this understanding to use in areas besides their career. In the U.S., the Occupy movement took up the cause
of social justice and economic equality and built a networked infrastructure to advance their ideas. In Spain, Podemos, founded by millennials,
is one of the fastest-growing political parties in the country.

22. 21
What Do Millennials Want?
Things to Know about Millennials

23. 22
Malaysia: Oil Prices Pose Threat to Economy
Many labor experts consider Malaysia to be one of Southeast Asia’s success stories. With a population of around 30 million, it is the region’s third-largest economy and has
a relatively strong literacy rate. It is a moderate and democratic Muslim state, where the Islamic majority lives mostly in harmony with the country’s Chinese and Indian
communities.
However, recently the delicate political and ethnic balance of the country is starting to unravel. Since 1957, Malaysia has been ruled by the United Malays National
Organization (UMNO). In recent years, however, the opposition political party has won more of the popular vote. Experts worry that if political tension grows it could have a
damaging impact on Malaysia’s economy.
In 2014, Malaysia had a real GDP growth of 6 percent, the second-highest performance in South East Asia. But the country is a significant net exporter of energy, which
makes it vulnerable to fluctuations in oil prices. Also, foreign bond ownership is high at more than 40 percent, and political and economic unstability could make foreign
bondholders wary.
Malaysia Labor Market at a Glance
Source: Trading Economics

24. 23
Malaysia: Oil Prices Pose Threat to Economy
The World Bank recently stated that lower oil prices would slow growth through delays in capital expenditures in the oil and gas sector. In 2015, Malaysia’s economic growth
is expected to slow down to 4.7 percent, before normalizing at 5 percent in 2016.
Comparativley, the World Bank expects other countries in Southeast Asia to grow, with Indonesia projected to grow 5.2 percent this year, Thailand to grow 3.5 percent, and
the Philippines to grow 6.5 percent.
According to the World Bank reports, a fifth of the government’s revenues depend on oil, so a decline in oil prices is a key risk to near-term growth, fiscal and external
accounts.
“As a net hydrocarbon exporter, lower oil prices will dampen the outlook for investments and growth. The outlook for 2016 and beyond
is clouded by uncertainty in the direction of commodity prices and the pace of structural reforms to move investments decisively to
skills-intensive sectors.”~World Bank
Malaysia’s Imports and Exports
Source: Trading Economics
Malaysia’s Economy Expected to Slow
“

25. Malaysia: Oil Prices Pose Threat to Economy
In Malaysia, traditional sources of employment in extractive industries (mining, quarrying, dredging, and oil and gas extraction) and light manufacturing are slowing down.
Many labor experts believe that employment will depend on how quickly Malaysia can adopt the workplace methods of a global economy.
A recent study by the Organization for Economic Cooperation and Development (OECD) ranked Malaysian students at number 39 among its 44 countries in
problem-solving, comprehension, language, computation, and analysis. A recent government study says this has long-term implications for employment, as Malaysia’s
percentage of skilled workers in the workforce is 25 percent, less than half that of neighboring Singapore. The use of English, the language of the global economy, has
actually declined in Malaysia over the last 40 years.
“People here are willing and able to work, and the country has good connections to the region and decent infrastructure.They could make
this place the back-office to the economy of the Internet. But they need more and better basic education for this to become a reality.”
~Kal Joffres, Local Consultant at Tandemic
24
Malaysia’s Education by Attainment
Source: Ministry of Education, Malaysia
Education at the Crux of the Employment Challenge
“

26. 25
Malaysia: Oil Prices Pose Threat to Economy
Educational Attainment of Population Aged 25 and Older
Source: UNESCO Institute for Statistics

27. Malaysia: Oil Prices Pose Threat to Economy
26
In recent years, electronic companies have pulled thousands of jobs out of Malaysia, in order to pay lower wages for comparable skills in China and other nearby countries.
According to the World Bank, Malaysia faces the challenge of implementing productivity-enhancing reforms to support long-term growth. This includes modernizing
social policies towards income-targeted programs focused on equality of opportunities, reforming the education system without public spending, reducing dependence on
energy revenues, and enhancing competition in the economy.
In Malaysia, according to the Fair Labour Association, workers come from more than 12 countries in Asia with the majority coming from Indonesia. At the National Council
of Professors (MPN) Conference in December 2014, it was stated that there were about 2.9 million legal foreign workers in Malaysia. National labor statistics show that 40
percent of migrant workers have no formal education.
The Malaysia Employers Federation (MEF) says that foreign labor, especially blue-collar workers, contribute significantly to the national economy. Datuk Shamsuddin Bardan,
Executive Director of MEF, says that while these foreign workers contribute positively to the country, there is a negative perception towards them among Malaysians, with
migrant workers being blamed for increasing crime rates and other issues.
According to the International Labour Organization (ILO), foreign workers make up around 50 percent of the construction workforce in the country, and nearly 60 percent
of the workforce in the manufacturing sector.
Average Monthly Wages, Manufacturing
Source: Trading Economics
Malaysia’s Migrant Workers

28. 27
What is innovation? To many managers and executives, the idea of defining innovation can be daunting. Innovation may not be simple but it is
straightforward. And in today’s fast-paced market, it is just as standard and as essential as any other core business function.
To frame it in another way, was there a time when HR was not a core function of a company? Many might say no since HR has been a critical business
function for quite some time. However, the concept of HR is fairly new – in the early 1900s, we started to recognize its value and in the 1920s, we started to
formalize worker rights and HR processes. In today’s business world full of multi-billion dollar companies with thousands of employees, it would be impos-
sible to imagine a company where HR is not a core business function.
In many companies, innovation today is a business process in the same transition period that HR was in during the early 1900s. No matter what you read,
everyone is talking about innovation. Executives and managers know that innovation is a priority, and many companies are trying to find ways to innovate
within their industries. The problem is that some companies are unsure of how to get started.
Innovation as Usual

29. 28
Often when we think about innovation, we automatically consider it to be an amorphic concept which has no structure, is complex, and immeasurable.
But in reality, innovation can be quite the opposite. It is possible to structure the innovation process, and make it as measurable as any other function in
business.
The difficulty is not that innovation is too complex, but rather that companies do not precisely define what innovation means to their organization.
Companies need to consider what makes innovation a success.
One of the first steps a company should take towards solving the problem of innovation is to define what innovation means to the organization. This
involves considering how important innovation is to the company and its business model, and what strategic purpose innovation would serve. Managers
should consider where the company currently stands in terms of innovation, and identify the greatest areas of opportunity for innovation within the
organization. Also important is to consider if innovation is a priority, and if so, does the organization or its key functions need to be re-structured to make
room for innovation. And finally, it is important to discuss the implications of not innovating.
Many managers think of innovation as simply new products or services. But really, innovation applies to all business activities, not just end products.
Innovation can be in logistics, merchandising, business strategy, marketing, selling, or even within human resources and recruiting. The idea behind
integrating innovation within the core business model is to think creatively and holistically about the entire business concept and to rethink the way the
company does things.
Innovation as Usual
Why is it Difficult?
Getting Started on Innovation
Types of Innovation

30. 29
In companies that embrace innovation as business as usual, innovation has its own budget, goals, teams, and projects. In many leading companies known
for their innovation, managers encourage “what could be?” thinking rather that “what should be?” thinking. It’s a continuous ongoing process that goes
beyond one specific project. For example, Google allows employees to work on innovative project for 5-6 hours per week, and 3M encourages workers to
use office time to develop innovative ideas.
Bringing innovation into the core business involves creating an environment that encourages collaboration, creative thinking and accepts failure as a part
of that process.
While innovation programs can be costly, when they help to meet corporate strategic goals, they are often worth the investment. So it’s important to
align innovation objectives with the company’s strateic agenda. Assessing the connection between the innovation program and the company’s goals
provides an opportunity to measure innovation. Some common innovation metrics include looking at the impact of innovation. For example, after the
implementation of a service innovation, is the company seeing better customer service ratings? Or after a transformation of a business process, is there
more efficiency or productivity? For an innovation program to really become business as usual, it needs to generate value.
Innovation as Usual
Measuring Innovation

31. 30
Innovation as Usual
Other metrics look at at the process of innovation itself. For example, how many innovative ideas were actually acted upon and implemented? Or how quick
is the turnaround beween idea suggestion and implementation. Innovation programs are naturally creative, and require flexibility and some risk-taking,
but the rules of planning and goal setting still apply.
Measuring the Innovation Process

32. 31
Recruiting Disrupted
For years, leading companies’ process for finding talent has followed a typical routine involving investing in several college and university programs,
sponsoring events and conferences, and expecting applicants to apply by the hundreds. However, with the war for talent intensifying and as millennials
become a larger percentage of job seekers, the model is changing. The future of recruiting is about accessing and engaging talent in new ways.
Deloitte recently introduced the concept of the“open talent economy”which is“a collaborative, transparent, technology-enabled, rapid-cycle way of doing
business.”Similar to the way the film industry operates, Deloitte believes that the way recruiting is headed involves employers and candidates finding each
other on a playing field that is more level and open.
The workforce today is evolving; now comprised of a mixture of employees, contractors, freelancers, and people with no formal ties to the organization.
According to the Harvard Business Review, 1.3 billion people will work virtually in the next few years.
“
“Welcome to the open talent economy – a collaborative, transparent, technology-enabled, rapid-cycle way of doing
business. What the open source model did for software, the open talent economy is doing for work.”~Deloitte
Open Talent Economy Continuum
Source: Deloitte

33. In this economy, access to talent is more important than ownership of talent. People will move freely from role to role and across organizational and
geographic boundaries. Driven by personal mobility, connected markets, social media, and mobile technology, the open talent economy is forcing
businesses to reframe the way they think about talent and talent acquisition.
Rather than just a business expense, talent of all kinds will become an asset and a strategic investment that will drive performance and productivity in
business operations.
Several global trends are driving the shift towards an open talent market.
Globalization: The emergence of a global talent market is changing the way recruiters and managers acquire, develop, and manage talent and work. The
open transmission of ideas, practices, and people, lets different parts of the world to influence each other in new ways.
Technology:The increase in computing speed, storage, and power is making global, real-time collaboration possible in almost every area. In HR, technology
is shifting from“systems of record”to“systems of engagement”.
Mobility: Today’s workforces are more able to work where they want, making career moves more seamless and more frequent.
Social: With people connecting, sharing information, and building communities online, there is a shift from the traditional organization to dynamic talent
networks. Organizations now use social media to not only build and promote their talent brand, but to connect with people who relate to the organization
in different ways.
Education: Rapidly growing pools of talented manufacturing, services, and knowledge workers continue to reshape global talent networks. Massive Open
Online Courses (MOOCs) through leading universities are making high-quality courses available to thousands of students around the world.
Analytics: Rather than looking at historical data to make decisions, employers are now using data analytics for predictive purposes. Those who can
effectively mine large pools of worker and business data for hidden insights and apply them are able to perform more successfully in the new talent
economy.
32
Recruiting Disrupted
What’s Causing the Shift?

34. 31
Recruiting Disrupted
Several companies are already embracing the future of recruiting. Glassdoor, a website that provides an inside look at organizations, is disrupting how
candidates find information about employers. Since employers do not control the view, potential hires can see real-life salary details and personal views
about the company from employees.
Meanwhile, companies such as GitHub and StackOverflow, which started off as places to share coding, have evolved into leading job platforms where users
can be invited to apply for jobs by companies like Apple and Google.
CodinGame, a website where programmers play and solve puzzles to improve their skills, has become a place for job searches and recruiting. While playing
games to practice their skills, programmers are able to demonstrate their abilities to potential employers, while employers are able to get an inside look at
candidate potential that goes beyond what a resume or portfolio might reveal.
DCR Workforce has built a productive and collaborative ecosystem, Smart Track xCHANGE, which redefines the traditional relationship between staffing
agencies, managed service providers, candidates, and client companies. Smart Track xCHANGE takes a client-centric approach to matching skilled talent
with top staffing professionals, leading to faster and more cost-efficient sourcing.
33
Companies Leading the Way

35. 34
methodology
The DCR NationalTempWage 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 data
Gross Domestic Product
Prime rate of interest
New and seasonal Job openings
Non Farm employment
Job Openings
All Export
All Import
Average Hourly Earnings of All Employees Total Private
Aggregate consultant data on job market parameters
source data

36. 35
references
http://www.nytimes.com/2015/04/09/upshot/09up-marijuana.html?_r=0&abt=0002&abg=1
http://www.thecannabist.co/2015/04/10/pot-sales-taxes-february/32971/
http://in.reuters.com/article/2015/03/26/us-usa-healthcare-wellness-idINKBN0MM0BB20150326
http://www.forbes.com/sites/ashleaebeling/2015/03/27/employees-forgo-wellness-cash-incentives-worth-millions/
http://money.cnn.com/2015/04/03/news/economy/march-jobs-126000-us-economy/
http://www.forbes.com/sites/samanthasharf/2015/04/03/jobs-report-u-s-economy-added-126000-jobs-in-march-unemployment-steady-at-5-5/
http://blogs.wsj.com/economics/2015/04/03/the-march-jobs-report-in-11-charts/
http://thehiringsite.careerbuilder.com/2015/03/23/10-metros-temp-workforce-45-150-larger-us-average/?linkId=13063716
http://staffingtalk.com/37-percent-of-US-employers-plan-to-hire-temps-this-quarter
http://www.inc.com/laura-montini/recruiters-say-the-talent-shortage-is-real.html
http://www.innovationexcellence.com/blog/2015/04/02/innovation-as-a-core-business-function/
http://soapboxhq.com/blog/clear-goals-strategy-want-achieve-innovation-program
http://www.slideshare.net/alanmcsweeney/the-i-word-moving-innovation-from-research-and-development-rd-to-ideation-and-realisation-ir
http://www.slideshare.net/alanmcsweeney/the-i-word-moving-innovation-from-research-and-development-rd-to-ideation-and-realisation-ir
http://www2.deloitte.com/content/dam/Deloitte/global/Documents/HumanCapital/dttl-hc-english-opentalenteconomy.pdf
http://www.businessadministrationinformation.com/news/more-than-120000-jobs-were-added-in-march
http://www.ft.com/cms/s/0/8ceb5f68-d7ac-11e4-849b-00144feab7de.html#axzz3XOMAiV35
http://www.forbes.com/sites/donaldfrazier/2015/03/26/malaysias-workforce-losing-ground-as-regional-rivals-catch-up/
http://www.malaysiandigest.com/features/541277-migrant-workers-malaysia-s-invisible-workforce.html
http://www.themalaysianinsider.com/business/article/malaysias-economy-to-slow-down-to-4.7-this-year
http://www.thestar.com.my/Business/Business-News/2015/04/13/World-Bank-expects-Malaysia-to-grow-about-5-pct-this-year/?style=biz
http://www.statistics.gov.my/index.php?r=column/cthemeByCat&cat=295&bul_id=bHN1QkhMOHFSTnhUT0lESkhsZkMzQT09&menu_id=WjJGK0Z5bTk1ZElVT09yUW1tRG41Zz09
http://www.tradingeconomics.com/malaysia/minimum-wages
http://www.nst.com.my/node/80339
http://money.cnn.com/2015/04/13/technology/h1b-cap-visa/
http://techstory.in/h1b-735611/
http://www.wsj.com/articles/u-s-car-making-boom-not-for-workers-1427154627
http://www.lansingstatejournal.com/story/money/business/2015/03/24/chrysler-lowest-per-worker-labor-costs/70366228/
http://www.theheraldbusinessjournal.com/apps/pbcs.dll/article?aid=/20150324/BIZ02/150329480/1172/Biggest-U.S.-automakers-said-to-study-lower-pay-tier-for-UAW&template=bizmobileart
http://www.bloomberg.com/news/articles/2015-03-23/biggest-u-s-automakers-said-to-study-new-lower-pay-tier-for-uaw
http://www.bloomberg.com/news/articles/2015-03-13/surprise-u-s-economic-data-most-disappointing-in-the-world
http://www.bloomberg.com/news/articles/2015-03-17/disappointing-economic-data-probably-won-t-phase-the-fed
http://www.benzinga.com/analyst-ratings/analyst-color/15/03/5350031/the-biggest-achievement-and-disappointment-of-the-u-s-ec
http://dollarcollapse.com/the-economy/were-very-disappointed-in-you/
http://www.rttnews.com/2483175/stocks-may-see-early-weakness-on-disappointing-economic-data-u-s-commentary.aspx
http://mic.com/articles/114486/disappointing-jobs-report-shows-the-economic-recovery-is-still-fragile
http://www.bloomberg.com/news/articles/2015-04-15/factory-production-in-the-u-s-barely-rises-on-rebound-in-autos
http://www.wsj.com/articles/u-s-industrial-production-falls-in-march-1429103780
http://dupress.com/articles/wage-growth-by-sector-state/
https://hbr.org/2015/02/what-millennials-want-from-work-charted-across-the-world
https://medium.com/@TeemWurk/hr-role-goes-tech-enabled-see-what-s-trending-now-cdda7cdd2f9e
http://www.fastcompany.com/3044478/the-future-of-work/why-millennials-understand-the-future-of-work-more-than-anyone-else
http://universumglobal.com/insights/10-must-knows-millennials/

37. 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
7795 NW Beacon Square Blvd. #201 Boca Raton, FL 33487
sales@dcrworkforce.com | trendline@dcrworkforce.com
about dcr
© 2015 DCR Workforce, Inc. All Rights Reserved. DCR Workforce and Smart Track are Registered Trademarks. CCO — 082912
36
facebook.com/DCRtrendline
twitter.com/DCRtrendline
linkedin.com/company/dcr-workforce
plus.google.com/+DCRWorkforce
www.trendline.dcrworkforce.com | www.dcrworkforce.com