This quarterly report from workforce solution provider Kelly Services delivers valuable insights about global labor market trends.

1. Global Talent Market Quarterly
THIRD QUARTER l 2013

2. Global Talent Market Quarterly
CONTENTS
3 Global Economic Situation
• Briefing
• Outlook
6 Global Labor Market Update
• Americas
• EMEA
• APAC
• Global Labor Market Spotlight
• Legislative Update
12 U.S. Labor Market Overview
• Current Employment Conditions
• Supply and Demand
• Labor Market Spotlight
16 Workforce Solutions Industry Insight
• Independent and International Contractors
• How effective are your talent management strategies?
• 2013 KGWI – Performance Based Pay
• Kelly Knowledge

3. Global Economic Situation
THIRD QUARTER l 2013

4. GLOBAL
ECONOMIC
BRIEFING
Global
economic
growth
remains
sluggish
in
2013,
constrained
by
ongoing
poli?cal
and
fiscal
issues
in
key
areas
including
the
U.S.,
Eurozone,
and
China.
A
soV
recovery
is
expected
to
take
hold
in
the
coming
months,
with
global
growth
set
to
accelerate
in
2014.
Source:
IHS
Global
Insight
(July
2013)
4
AMERICAS
Subdued
but
accelera:ng
growth
is
forecast
for
the
region
through
2015.
Brazil,
Mexico,
and
other
La:n
American
markets
are
expected
to
drive
regional
growth,
while
the
U.S.
and
Canada
will
see
more
moderate
expansion.
EMEA
Significant
challenges
to
growth
persist
in
the
region,
with
many
Eurozone
markets
ba]ling
recessionary
condi:ons,
and
poli:cal
and
social
turmoil
con:nuing
in
the
Middle
East.
Growth
outlooks
for
some
of
the
mature
economies,
including
Germany
and
the
U.K.,
are
more
favorable.
APAC
The
APAC
region
is
expected
to
con:nue
to
lead
global
growth,
driven
by
strong
domes:c
demand
in
Southeast
Asia.
China’s
economy
has
shown
signs
of
weakness
in
2013,
but
growth
will
s:ll
be
high
by
global
standards.
Moderate
growth
rates
are
projected
for
the
developed
APAC
economies
(Australia/NZ,
Japan).
2.5%
2.5%
3.5%
4.0%
4.7%
4.7%
5.4%
5.8%
-­‐0.5%
-­‐0.7%
0.6%
1.3%
2.7%
3.0%
3.8%
4.2%
2.2%
1.6%
2.7%
3.5%
-­‐2%
-­‐1%
0%
1%
2%
3%
4%
5%
6%
7%
2012
(e)
2013
(p)
2014
(p)
2015
(p)
REAL
GDP
GROWTH
BY
REGION,
2012-­‐2015
(p)
World
APAC
Eurozone
La?n
America
U.S.
Global Talent Market Quarterly
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TABLE OF CONTENTS

5. ECONOMIC OUTLOOK
Key emerging markets, while still leading global economic growth, have shown some softness in recent months. Meanwhile, the outlook
in many of the large developed economies is brighter; these mature countries are expected to support global expansion in the short term.
-2% 0% 2% 4% 6% 8% 10%
Italy
France
Germany
U.K.
U.S.
Canada
Japan
Australia
Brazil
Russia
India
China
REAL GDP GROWTH RATES, SELECTED MARKETS
Ranked by 2013(p) growth
2013(p)
2014(p)
2015(p)
5
Global GDP Growth
2013(p): 2.5%
Sources: IHS Global Insight (July 2013); Reuters, 06.18.13
EMERGING MARKETS
 CHINA’s economy is facing challenges from falling exports and the need for structural
reforms. Growth is forecast at 7.5% in 2013—disappointing by China’s standards but
still among the highest in the world—with strengthening seen through 2015.
 Economic growth in INDIA is rebounding after a sharp deceleration in 2012. Boosting
investment, continuing structural reforms, and favorable monetary policy are critical
components of India’s return to historical growth rates.
 RUSSIA’s economic engine is slowing in 2013, amid weaker demand and lower prices
for exports, particularly natural resources. Acceleration is expected in 2014.
 In BRAZIL, the global economic climate continues to constrain exports and high
inflation is undermining consumer purchasing power, limiting GDP growth. Increased
investment and infrastructure spending are expected to help drive the economy.
DEVELOPED ECONOMIES
 AUSTRALIA’s growth prospects for 2013 have been subdued by the domestic mining
sector slowdown, weakness in China and ongoing European troubles. Economic
activity is expected to gradually accelerate over the next two years.
 Aggressive monetary stimulus and strong consumer spending has lifted JAPAN’s
economic momentum in 2013. Future growth will be limited by the ongoing
structural shift from manufacturing to services, as well as demographic challenges.
 Economic growth in North America is expected to be moderate but improving in the
short term, with domestic headwinds limiting growth in both the U.S. and CANADA.
 Weak but accelerating growth is forecast for the U.K. and GERMANY, and the
Eurozone economy has begun to stabilize. Still, recessionary conditions have
expanded to some northern markets including the NETHERLANDS, BELGIUM, and
FINLAND, and contractions in the southern periphery will extend through mid-2014.
Global Talent Market Quarterly
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6. Global Labor Market Update
THIRD QUARTER l 2013

7. GLOBAL
LABOR
MARKET
UPDATE:
AMERICAS
Although
some
headwinds
remain
in
2013,
the
outlook
is
largely
posi?ve
for
labor
markets
in
the
Americas,
as
an
improving
economic
forecast
supports
con?nued
hiring
ac?vity.
Unemployment
is
expected
to
con?nue
to
fall
in
most
key
markets.
Sources:
IHS
Global
Insight
(July
2013);
Reuters,
06.21.13;
Toronto
Star,
07.06.13
7
UNITED
STATES
Job
crea:on
was
rela:vely
strong
in
the
first
half
of
2013,
and
the
unemployment
rate
has
held
steady
despite
an
increased
labor
force.
The
labor
market
outlook
for
the
rest
of
2013
is
posi:ve,
but
the
extent
of
improvement
remains
highly
dependent
upon
macroeconomic
trends.
BRAZIL
Slower
economic
growth
has
diminished
the
pace
of
hiring
in
Brazil,
but
the
unemployment
rate
s:ll
remains
at
or
near
record
lows
as
businesses
con:nue
to
retain
workers
in
an:cipa:on
of
an
economic
rebound.
CANADA
Hiring
has
been
fairly
sluggish
in
2013
as
s:mulus
efforts
come
to
an
end
and
the
housing
market
has
slowed.
Employment
growth
is
expected
to
stay
muted
through
the
end
of
the
year
before
accelera:ng
in
the
near
term.
MEXICO
Moderate
economic
growth
and
labor
market
reforms
that
allow
for
more
hiring
and
firing
flexibility
will
con:nue
to
generate
demand
for
new
workers.
As
a
result,
formal
employment
growth
is
expected
to
accelerate.
8.1%
7.6%
7.2%
6.6%
5.5%
5.6%
5.5%
5.4%
7.3%
7.1%
7.0%
6.6%
5.0%
5.0%
4.4%
4.3%
3%
4%
5%
6%
7%
8%
9%
2012
2013
(e)
2014
(p)
2015
(p)
AVERAGE
ANNUAL
UNEMPLOYMENT
RATE
U.S.
Brazil
Canada
Mexico
Global Talent Market Quarterly
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TABLE OF CONTENTS

8. GLOBAL
LABOR
MARKET
UPDATE:
EMEA
The
employment
situa?on
in
many
EMEA
countries
is
expected
to
remain
challenging
in
the
short-­‐
to
medium-­‐term,
par?cularly
in
the
Eurozone
as
it
struggles
to
climb
out
of
recession.
Labor
market
bright
spots
include
the
U.K.
and
Germany.
Sources:
IHS
Global
Insight
(July
2013);
Reuters,
06.12.13,
06.26.13
8
GERMANY
The
German
labor
market
con:nues
to
outperform
most
others
in
the
region,
and
renewed
economic
growth
should
drive
down
unemployment
even
further
during
the
remainder
of
2013
and
beyond.
FRANCE
Unemployment
remains
at
a
record
high
level
in
France,
with
further
deteriora:on
predicted
through
2014,
as
ongoing
weak
business
and
consumer
ac:vity
is
expected
to
weigh
on
employment
crea:on.
UNITED
KINGDOM
A
more
favorable
economic
outlook
is
boos:ng
the
forecast
for
the
U.K.
labor
market.
Private
sector
job
growth
is
expected
to
be
slow
but
steadily
increasing,
nudging
the
unemployment
rate
down
in
the
coming
years.
RUSSIA
The
gradual
pace
of
declining
unemployment
is
expected
to
persist
in
the
coming
years,
as
the
private
sector
will
create
jobs
but
demographic
issues
and
public
sector
:ghtening
are
expected
to
limit
employment
growth.
6.8%
6.8%
6.6%
6.3%
10.2%
10.9%
11.2%
11.1%
7.9%
7.8%
7.6%
7.3%
5.5%
5.4%
5.2%
5.0%
3%
4%
5%
6%
7%
8%
9%
10%
11%
12%
2012
2013
(e)
2014
(p)
2015
(p)
AVERAGE
ANNUAL
UNEMPLOYMENT
RATE
Germany
France
U.K.
Russia
Global Talent Market Quarterly
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9. GLOBAL
LABOR
MARKET
UPDATE:
APAC
Employment
prospects
vary
across
APAC
countries,
as
labor
markets
con?nue
to
adjust
to
the
challenging
global
economic
climate
and
slowdowns
in
key
markets
including
China,
India,
and
Australia.
Sources:
IHS
Global
Insight
(July
2013)
;
Xinhua
Economic
News
Service,
07.16.13;
Times
of
India,
06.11.13;
India
Infoline,
06.21.13;
Nikkei
Weekly,
07.01.13;
Market
News
Interna:onal,
06.28.13
9
CHINA
China’s
labor
market
remained
rela:vely
stable
in
the
first
half
of
2013
despite
a
slowdown
in
the
economy.
Maintaining
a
steady
pace
of
job
crea:on
going
forward
will
be
cri:cal,
par:cularly
in
light
of
the
record-­‐high
of
nearly
7
million
college
students
entering
the
workforce
this
year.
JAPAN
The
jobless
rate
has
remained
steady
and
employment
demand
con:nues
to
improve,
par:cularly
in
professional
and
consumer-­‐related
sectors,
underscoring
the
view
that
the
Japanese
economy
is
steadily
recovering.
INDIA
Unemployment
remains
high
and
job
crea:on
has
stagnated,
as
employers
have
been
hesitant
to
hire
in
the
face
of
lower
domes:c
and
global
growth.
The
employment
outlook
is
brightest
for
the
trade
and
services
sectors.
AUSTRALIA
Vola:le
hiring
trends
and
a
climbing
unemployment
rate
suggest
that
the
Australian
labor
market
is
struggling
to
adjust
to
the
slowdown
in
the
mining
sector.
Demand
for
workers
will
improve
as
the
economic
picture
brightens.
4.1%
4.1%
4.0%
3.9%
4.3%
4.2%
4.2%
4.3%
8.8%
8.6%
8.3%
7.9%
5.2%
5.6%
5.5%
4.9%
3%
4%
5%
6%
7%
8%
9%
2012
2013
(e)
2014
(p)
2015
(p)
AVERAGE
ANNUAL
UNEMPLOYMENT
RATE
China
Japan
India
Australia
Global Talent Market Quarterly
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TABLE OF CONTENTS
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Global Talent Market Quarterly
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TABLE OF CONTENTS

11. GLOBAL
LEGISLATIVE
UPDATE
As
tradi?onal
and
rigid
views
on
employment
are
replaced
by
a
growing
acceptance
of
more
agile
workstyles,
countries
con?nue
to
implement
legisla?on
making
labor
markets
more
flexible
and
manda?ng
equal
treatment
for
all
workers.
Other
significant
recent
legisla?ve
ac?on
addresses
issues
related
to
health
benefits,
immigra?on,
and
employee
training.
Sources:
SIA
Daily
News,
05.15.13,
06.21.13,
07.02.13;
SIA
ROW
Legs
&
Regs
Advisor,
May
2013;
SIA
WE
Legs
&
Regs
Advisor,
April
2013;
SHRM,
04.15.13;
Lexology,
07.02.13
11
VIETNAM
A
new
regula:on
recognizes
and
provides
rules
for
the
prac:ce
of
temporary
labor
provision.
Temporary
staffing
will
only
be
permi]ed
in
17
fields,
and
only
for
a
maximum
period
of
12
months.
The
law
also
introduces
a
pay
equality
requirement
for
temporary
workers.
PHILIPPINES
Two
new
labor
laws
give
workers
more
say
in
how
they
are
treated.
The
first
mandates
that
employers,
employees
and
the
government
be
involved
in
sesng
na:onal
labor
policies.
The
second
law
requires
concilia:on,
or
media:on
and
arbitra:on
sessions,
in
all
labor
disputes.
SOUTH
AFRICA
Parliament
voted
to
require
employers
to
treat
all
temporary,
fixed-­‐contract
and
part-­‐:me
workers
on
an
equal
basis
aier
three
months.
In
protest
to
the
ruling,
the
Congress
of
South
African
Trade
Unions
has
called
for
a
ban
on
temporary
labor.
BRAZIL
New
resolu:ons
will
streamline
work-­‐visa
applica:on
procedures
and
create
new
work
visas
for
graduate
students.
The
new
laws
are
intended
to
a]ract
high-­‐skilled
foreign
workers
to
help
ease
talent
shortages
in
key
areas.
FRANCE
Parliament
passed
a
significant
labor
reform
which
includes
measures
to
make
it
easier
for
workers
to
change
jobs
and
for
companies
to
dismiss
employees.
The
reform
allows
companies
to
temporarily
cut
workers'
salaries
or
hours
during
:mes
of
economic
difficulty.
GERMANY
Three
collec:ve
agreements
will
gradually
raise
pay
for
temporary
agency
workers
in
the
following
sectors:
tex:le/clothing,
railway/
transport,
and
wood/plas:cs.
The
agreements
came
into
force
in
April
2013
and
will
be
valid
un:l
December
2017.
U.S.
Penal:es
for
employers
who
do
not
provide
health
insurance
for
their
workers
as
mandated
by
the
Affordable
Care
Act
will
now
take
effect
in
2015,
rather
than
in
2014.
MEXICO
Under
an
addi:onal
amendment
to
the
federal
labor
law,
Mexico
employers
must
implement
training
programs
for
employees
or
face
fines.
Employers
have
un:l
September
15,
2013,
to
come
into
full
compliance.
The
new
federal
labor
law,
which
came
into
effect
in
late
2012,
makes
hiring
and
firing
easier
in
an
effort
to
encourage
labor
market
flexibility.
Global Talent Market Quarterly
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TABLE OF CONTENTS

12. U.S. Labor Market Overview
THIRD QUARTER l 2013

13. SOLID
EMPLOYMENT
GAINS
IN
H1
2013
The
U.S
labor
market
con:nued
to
create
jobs
at
a
healthy
pace
in
June,
with
employers
adding
195,000
workers
to
their
payrolls,
similar
to
the
revised
employment
growth
figures
posted
in
the
previous
two
months.
Over
the
first
half
of
2013,
the
country
has
added
more
than
1.2
million
jobs.
The
unemployment
rate,
which
was
7.6%
in
June,
has
remained
largely
unchanged
over
the
past
few
months.
However,
the
U.S.
labor
force
grew
by
more
than
800,000
people
in
the
second
quarter
of
2013,
sugges:ng
that
the
economy
finally
may
be
genera:ng
enough
jobs
to
absorb
addi:onal
workers.
Consumer-­‐driven
sectors
including
retail
trade
and
leisure/hospitality
helped
drive
job
gains
in
the
first
half.
Professional
and
business
services
employment
also
grew
strongly,
accoun:ng
for
nearly
a
third
of
jobs
added
since
January.
The
sequester
has
kept
federal
government
employment
on
a
nega:ve
trend,
with
a
loss
of
46,000
jobs
so
far
in
2013.
U.S.
EMPLOYMENT
CONDITIONS
EMPLOYMENT
OVERVIEW
13
Source:
U.S
Bureau
of
Labor
Sta:s:cs;
IHS
Global
Insight
U.S.
MONTHLY
EMPLOYMENT
CHANGE
AND
UNEMPLOYMENT
RATE
6.0
7.0
8.0
9.0
10.0
0
100
200
300
400
Jun
11
Jul
11
Aug
11
Sep
11
Oct
11
Nov
11
Dec
11
Jan
12
Feb
12
Mar
12
Apr
12
May
12
Jun
12
Jul
12
Aug
12
Sep-­‐12
Oct-­‐12
Nov-­‐12
Dec-­‐12
Jan
13
Feb
13
Mar
13
Apr
13
May
13
Jun
13
Unemployment
Rate
(%)
Employment
(000s)
Total
non-­‐farm
employment
growth
Unemployment
rate
WILL
THE
POSITIVE
TRENDS
CONTINUE?
In
the
first
half
of
2013,
unemployment
con:nued
to
edge
down
and
job
crea:on
finally
reached
the
benchmark
level
of
200,000
per
month,
a
rather
resilient
performance
considering
the
substan:al
economic
headwinds
both
in
the
U.S.
and
globally.
A
cri:cal
ques:on
is
whether
the
country’s
employers
will
be
able
to
sustain
the
pace
of
hiring
in
the
second
half
of
the
year.
IHS
Global
Insight
predicts
that
the
U.S.
economy
will
add
2.1
million
jobs
overall
in
2013,
sugges:ng
somewhat
slower
gains
in
the
second
half,
but
employment
growth
is
forecast
to
gain
trac:on
in
2014
and
2015
as
the
economy
picks
up
speed.
JAN
FEB
MAR
APR
MAY
JUN
Total
non-­‐farm
employment
growth
148K
332K
142K
199K
195K
195K
Private
sector
employment
growth
164K
319K
188K
157K
207K
202K
Unemployment
rate
7.9%
7.7%
7.6%
7.5%
7.6%
7.6%
Global Talent Market Quarterly
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TABLE OF CONTENTS

14. U.S.
LABOR
MARKET:
SUPPLY
AND
DEMAND
“Labor
demand
in
the
first
half
of
this
year
has
been
disappoin:ng.”
—
June
Shelp,
Vice
President,
The
Conference
Board,
July
3,
2013
14
U.S.
MARKET
-­‐
MONTHLY
LABOR
DEMAND
VS.
LABOR
SUPPLY
Sources:
Conference
Board
Help
Wanted
OnLine,
Bureau
of
Labor
Sta:s:cs
Unemployed
Workers
(in
thousands)
Online
Job
Ads
(in
thousands)
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
Jan
09
Apr
09
Jul
09
Oct
09
Jan
10
Apr
10
Jul
10
Oct
10
Jan
11
Apr
11
Jul
11
Oct
11
Jan
12
Apr
12
Jul
12
Oct
12
Jan
13
Apr
13
#
of
Unemployed
Workers
#
of
Online
Job
Ads
JOB
DEMAND
UNEVEN
IN
H1
2013
Demand
for
workers
has
been
somewhat
vola:le
in
the
first
half
of
2013,
with
gains
in
June,
April,
and
January
offset
by
declines
in
job
ads
in
the
other
months.
Overall,
online
job
ad
growth
has
averaged
just
over
800
per
month
thus
far
in
2013.
The
supply/demand
ra:o
stands
at
2.4,
meaning
that
there
are
more
than
two
unemployed
workers
in
the
U.S.
for
each
online
vacancy.
S:ll,
labor
demand
is
near
5
million
ads,
close
to
an
all-­‐:me
high
and
above
the
pre-­‐
recession
peak
of
4.3
million.
PROFESSIONAL
DEMAND
HIGH
BUT
SLOWING
Online
demand
has
declined
slightly
this
year
for
many
high-­‐wage
professional
occupa:ons,
including
healthcare,
architecture,
business
and
finance,
and
computer
workers.
S:ll,
the
talent
balance
is
very
:ght
for
professional
jobs,
as
most
of
these
occupa:ons
have
supply/demand
ra:os
of
less
than
one.
Construc:on,
educa:on,
legal,
food
service,
and
transporta:on
jobs
have
been
among
the
leaders
in
demand
growth
in
the
first
half
of
2013.
Global Talent Market Quarterly
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TABLE OF CONTENTS

15. U.S. LABOR MARKET SPOTLIGHT: STEM TALENT SHORTAGES
15 Sources: EMSI, May 28, 2013; New York Times, May 22, 2013; American Society for Engineering Education; How to Find (and Keep) STEM Talent, Kelly Services
41%
ENOUGH STEM WORKERS?
Is there a shortage of STEM (science, technology, engineering and math) workers
in the United States? A recent report by the Economic Policy Institute ignited
discussion when it concluded that the country has a “more than sufficient supply”
of people with STEM skills who are available to work. But other experts claim that
the US has a serious deficiency of workers with the technical background and
skills necessary to drive innovation and economic growth.
In any case, demand for STEM-qualified workers is expected to continue to
accelerate, increasing the tight labor market conditions for these critical skill sets.
In the U.S., demand for STEM professionals is expected to increase 17% from 2010
to 2020—adding nearly 1.3 million new STEM jobs to the workforce.
FOREIGN-BORN STEM WORKERS
Central to the skills shortage debate is the role of foreign students and workers in
STEM fields. A significant percentage of STEM graduates from U.S. universities are
foreign-born—particularly at advanced degree levels. More than 40% of all STEM
doctorates in the U.S., and more than half of all engineering PhDs, are awarded to
foreign students, according to research from labor market forecasting specialist
EMSI. But only around a third of foreign students end up staying in the country on
temporary work visas.
This issue is expected to continue to gain attention as Congress considers
proposed immigration reform. The current proposal would increase the number
of temporary H1-B visas for skilled workers, along with other provisions intended
to attract more immigrants with STEM and other high-level skills. Proponents of
the bill say that foreign workers are helping to fill the talent gaps in STEM
positions; opponents claim that letting in more foreign workers depresses wages
and discourages US students and workers from STEM fields.
43%
37%
11%
54%
44%
19%
PhD Master's All Degrees
PERCENT OF DEGREES AWARDED TO
FOREIGN-BORN STUDENTS
All STEM fields Engineering
22% 10% 15% 17%
Technology
(IT/Computer)
Architecture &
Engineering
Science Mathematics
STEM PROJECTED EMPLOYMENT GROWTH,
2010-2020
STEM Jobs Average 17%
Global Talent Market Quarterly
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TABLE OF CONTENTS

16. Workforce Solutions
Industry Insight
THIRD QUARTER l 2013

17. INDEPENDENT—AND
INTERNATIONAL—CONTRACTORS
Independent
contractors
(ICs)
have
become
an
integral
part
of
many
organiza?ons’
con?ngent
workforces,
as
companies
and
workers
alike
con?nue
to
embrace
more
flexible
and
non-­‐tradi?onal
workstyles.
One
benefit
of
using
this
type
of
free
agent
talent:
work
is
no
longer
?ed
to
a
specific
loca?on.
As
such,
more
companies
are
using
IC
talent
from
around
the
globe
to
meet
their
needs.
17
Sources:
State
of
the
Freelance
Market,
Elance,
09.2012;
Global
Business
Survey
2012,
Elance;
Online
Staffing
on
the
Global
Stage,
Staffing
Industry
Analysts,
01.30.13
23%
FREELANCE
WORK
IS
A
GLOBAL
PHENOMENON
While
the
US
and
other
developed
economies
s:ll
lead
the
list
in
terms
of
client
spend
on
ICs,
emerging
economies
are
also
increasingly
turning
to
independent
contractors.
According
to
the
online
IC
service
oDesk,
the
fastest
growing
countries
in
terms
of
client
spend
are
Ukraine,
Russia,
India,
Malaysia,
and
China.
Nearly
40%
of
oDesk’s
client
spend
now
comes
from
outside
the
U.S.,
up
from
22%
in
2007.
Much
of
the
freelance
talent
on
online
IC
services
also
comes
from
advanced
economies
such
as
the
US
and
UK,
but
other
countries
such
as
India,
Pakistan,
and
Ukraine
are
also
key
sources
of
ICs.
This
talent
is
primarily
young
(nearly
half
of
the
independent
contractors
on
the
online
marketplace
Elance
are
Millenials)
and
well-­‐educated
(around
three-­‐quarters
possess
a
bachelor’s
degree
or
higher).
And
most
of
them
don’t
care
where
their
next
job
is
coming
from:
78%
of
Elance
contractors
say
they
have
no
preference
as
to
the
country
in
which
their
clients
are
located.
TOP
COUNTRIES:
Freelance
Client
Spend
FASTEST
GROWING
COUNTRIES:
Freelance
Client
Spend
TOP
COUNTRIES:
Freelance
Workers
• US
• Australia
• UK
• Canada
• UAE
• Ukraine
• Russia
• India
• Malaysia
• China
• India
• US
• Pakistan
• Ukraine
• Philippines
• UK
Top
countries
based
on
combined
data
from
Elance
and
oDesk,
2012/13;
fastest-­‐
growing
countries
based
on
oDesk
spend
data
only,
2010-­‐2012
CAGR
78%
12%
10%
FREELANCER
PREFERENCE:
CLIENT
LOCATION
No
Preference
Same
Country
As
Me
Different
Country
From
Me
47%
38%
14%
<1%
FREELANCERS
BY
GENERATION
Millenial
(1981-­‐
present)
Genera:on
X
(1965-­‐1980)
Baby
Boomer
(1940-­‐1964)
Silent
Genera:on
(pre-­‐1940)
9%
24%
42%
5%
12%
8%
FREELANCERS
BY
EDUCATION
Doctorate/
Professional
Degree
Master's
Degree
Bachelor's
Degree
Associate's
Degree
Some
College
High
School/
Trade
School
Global Talent Market Quarterly
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TABLE OF CONTENTS

18. HOW
EFFECTIVE
ARE
YOUR
TALENT
MANAGEMENT
STRATEGIES?
In
a
recent
survey,
corporate
directors
iden?fied
talent
management
as
the
single
greatest
strategic
challenge
facing
their
organiza?ons
today.
But
despite
the
perceived
importance,
the
vast
majority
of
board
members
say
that
their
companies
are
not
highly
effec?ve
at
any
aspect
of
talent
management.
18
Source:
Talent
Management:
Boards
Give
Their
Companies
an
“F”,
hbr.org,
05.28.13
23%
A
recent
survey
asked
over
1000
board
members
across
the
globe
to
rate
their
companies’
performance
across
nine
dimensions
of
talent
management.
The
findings
show
that
most
companies
are
falling
well
short
in
all
areas
of
talent
management,
with
the
worst
performances
in
the
areas
of
dismissing
employees
and
leveraging
diversity.
Regional
differences
in
talent
management
effec:veness
are
also
apparent.
Board
members
in
Australia/New
Zealand
and
North
America
give
their
companies
the
highest
marks
on
talent
management
prac:ces,
while
in
Eastern
Europe
and
Russia,
no
respondents
rated
their
companies
as
very
effec:ve
in
four
of
the
nine
talent
categories.
While
board
members’
increased
awareness
of
the
impact
of
talent
management
is
a
hopeful
sign,
there
remains
much
room
for
improvement
in
talent
strategy
execu:on.
Boards
must
next
consider
how
they
can
help
their
organiza:ons
build
and
implement
be]er
talent
management
processes
and
prac:ces.
0%
5%
10%
15%
20%
25%
30%
35%
Aurac?ng
top
talent
Hiring
top
talent
Assessing
talent
Developing
talent
Rewarding
talent
Retaining
talent
Firing
Leveraging
diversity
Aligning
talent
strategy
w/
business
strategy
PERCENT
OF
BOARD
MEMBERS
WHO
STRONGLY
AGREE
THEIR
ORGANIZATION
IS
EFFECTIVE
AT…
North
America
Western
Europe
Eastern
Europe/
Russia
Asia
Australia/NZ
TALENT
MANAGEMENT
CHALLENGES
Global Talent Market Quarterly
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19. 2013
KGWI:
PERFORMANCE-­‐BASED
PAY
Performance-­‐based
compensa?on
is
gathering
momentum
across
the
globe,
according
to
the
2013
Kelly
Global
Workforce
Index
(KGWI).
Par?cularly
in
fast-­‐growing
emerging
markets,
many
employees
say
they
are
willing
to
accept
some
element
of
risk
or
uncertainty
in
their
salaries
in
return
for
the
opportunity
to
meet
benchmarks
that
will
trigger
performance
bonuses.
19
Source:
Kelly
Global
Workforce
Index
2013.
Performance-­‐based
pay
includes
any
arrangement
where
an
element
of
the
total
remunera:on
package
is
:ed
to
mee:ng
performance
targets
and
may
include,
profit
sharing,
performance
bonuses
and
sales
commissions.
23%
MORE
THAN
FOUR
IN
TEN
GLOBAL
WORKERS
RECEIVE
SOME
FORM
OF
VARIABLE
PAY
Performance-­‐based
compensa:on
is
most
common
in
the
robust
economies
of
the
APAC
region,
where
nearly
60%
of
respondents
receive
some
kind
of
incen:ve
pay.
The
highest
incidence
of
performance-­‐based
pay
is
in
China,
Indonesia,
Thailand,
and
Malaysia,
where
around
three-­‐quarters
of
workers
say
that
their
compensa:on
is
variable.
Conversely,
less
than
40%
of
workers
in
both
the
Americas
and
EMEA
regions
have
variable
pay
structures;
the
prac:ce
is
least
common
in
the
US,
UK,
Ireland,
Australia,
and
the
Nordic
countries.
59%
39%
36%
APAC
EMEA
Americas
Global
Average:
44%
KEY
MARKETS
China
(75%)
Indonesia
(75%)
Malaysia
(72%)
India
(67%)
Australia
(29%)
Russia
(70%)
Poland
(55%)
Germany
(43%)
France
(36%)
UK
(30%)
Brazil
(48%)
Puerto
Rico
(47%)
Mexico
(47%)
Canada
(40%)
US
(32%)
56%
44%
41%
APAC
Americas
EMEA
WOULD
YOU
PERFORM
BETTER
IF
YOUR
PAY
WAS
TIED
TO
YOUR
PERFORMANCE?
(%
YES)
Global
Average:
46%
IS
ANY
OF
YOUR
PAY
DEPENDENT
ON
INDIVIDUAL
PERFORMANCE
TARGETS?
VARIABLE
PAY
SCALES
WOULD
ELEVATE
PERFORMANCE
Among
those
respondents
not
receiving
performance-­‐based
pay,
there
is
a
strong
view
that
they
would
perform
at
a
higher
level
if
they
were
to
switch
to
such
an
arrangement.
Nearly
half
of
workers
globally
say
they
would
perform
at
a
higher
level
with
performance
pay;
the
greatest
interest
is
again
in
the
APAC
region
(56%),
followed
by
the
Americas
(44%)
and
EMEA
(41%).
Global Talent Market Quarterly
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20. Kelly
offers
a
complete
content
library
that
advances
the
discussion
and
thinking
around
current
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To
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more
informa:on,
visit
www.kellyocg.com
Download
The
Talent
Project,
a
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Kelly
Services.
TITLE
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4
Reasons
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Employee
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Anthony
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Thomas
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Ins:tute
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20
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KNOWLEDGE
Global Talent Market Quarterly
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21. About Kelly Services®
Kelly Services, Inc. (NASDAQ: KELYA, KELYB) is a leader in providing workforce solutions.
Kelly®
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