An Annual Workforce Trends Study commissioned by Yoh reveals a fundamental transformation in the way business leaders build and manage their workforce.

1. How the recession has changed today’s workforce Workforce Composition Transformation

2. Contents

3. Respondent Profile

4. Respondent Profile Annual Revenue: > $750M Disciplines:Business Leadership Procurement Human Resources Nonemployees: 5% to 20% Industries: High Tech Consumer Products Financial Services Health Care Life Sciences Product Manufacturing Telecom Professional Services Media / Entertainment Public Sector

5. 2011 Workforce Trends StudyWorkforce Composition and Management Transformation Greater Investment Post Recovery Poor Alignment Increased Contract Labor Dependency 80% 85% Increased Risk & Poor Collaboration Levels Remain or Increase Report Increased Use

6. Increased Dependency on Contract Labor

7. Dramatic Dependency on Non-Employees Since September of 2008 88.5%report the size of their non-employee workforce has either stayed the same or INCREASED 88.5%

8. Overall labor related expense decreases or remains consistent with increased use of ‘non-employees’ Benefits of Non-employee Workforce 88.5% DECREASED management COMPLEXITY and labor related EXPENSES create incentive to expand the ‘non-employee’ segment of the workforce 83.5% Utilization of ‘non-employees’ either decreases or introduces NO management complexity Increases Mgt. Complexity Decreases Mgt. Complexity No Change

9. Post Recovery Forecast & Investments

10. Recovery Yields Transformed Workforce 80% Increase > 5% Strong economic recovery will see continued use and INCREASES in the non-employee workforce Small increase Stays at current level

11. Increased Focus on ‘Non-employees’ 63% Significant INVESTMENTS are being made to improve the management and effectiveness of the ‘non-employee’ segment of the workforce. Include ‘Non-employees’ on All Teams Improved Employee Communication Vendor Consolidation Increased Employee Engagement

12. Contract Labor Decision Criteria

13. Consumer: Non-employee Decision Priorities

14. Organization: Non-employee Decision Priorities

15. Misalignment

16. MisalignmentOrganizational and Business Priorities Cost centric decision making minimizes quality, and the value, impact and integration of the non-employee segment of the workforce.

17. MisalignmentAccountability and Risk Exposure Cost is the overwhelming concern over contracted labor use Accountability and Risk currently not given top priority

18. MisalignmentPoorly integrated collaboration Influence over introducing contracted labor into the workforce rests with hiring managers and is shared with human resources

19. MisalignmentLoose Supply Chain Control STARTLINGindicator of continued lack of control over efficient acquisition of contracted labor.

20. MisalignmentWorkforce Plans vs. Operational Plans Workforce planning appears to be poorly aligned with operational planning Increase > 5% Small increase Stays at current level

21. MisalignmentIsolated process investments 63% Include ‘Non-employees’ on All Teams While investments are being made they appear to be isolated and outweighed by inaction Improved Employee Communication Vendor Consolidation Increased Employee Engagement

22. MisalignmentPoorly Identified Expectations Overall labor related expense decreases or remains consistent with increased use of ‘non-employees’ 88.5% The business does not have expectation of cost savings when using contacted labor – an opportunity for procurement to assist

23. Recommendations

24. Workforce Composition Analysis RecommendationsAligning Procurement, Human Resources, Business Leadership

25. RecommendationsAligning Procurement, Human Resources, Business Leadership Call Center PMO/Resource Management R&D Applications Support Evaluate Integration Workforce Composition Analysis

26. RecommendationsAligning Procurement, Human Resources, Business Leadership Call Center PMO/Resource Management R&D Applications Support Define Shared Accountability Evaluate Integration Workforce Composition Analysis

27. RecommendationsAligning Procurement, Human Resources, Business Leadership Call Center PMO/Resource Management R&D Applications Support Evaluate Supply Chain Define Shared Accountability Evaluate Integration Workforce Composition Analysis

28. RecommendationsAligning Procurement, Human Resources, Business Leadership Call Center PMO/Resource Management R&D Applications Support Evaluate Supply Chain Define Shared Accountability Map Out Processes Evaluate Integration Workforce Composition Analysis

29. RecommendationsAligning Procurement, Human Resources, Business Leadership Call Center PMO/Resource Management R&D Applications Support Evaluate Supply Chain Define Shared Accountability Map Out Processes Evaluate Integration Risk Mitigation Strategies Workforce Composition Analysis

30. RecommendationsAligning Procurement, Human Resources, Business Leadership Call Center PMO/Resource Management R&D Applications Support Evaluate Supply Chain Define Shared Accountability Map Out Processes Evaluate Integration Risk Mitigation Strategies Workforce Composition Analysis Educated and Enable

31. How the recession has changed today’s workforce Joel Capperella www.twitter.com/joelcapperella www.seamlessworkforce.com Workforce Composition Transformation