2010 Contingent Workforce Assessment

Brought to you by Monster IntelligenceOctober 2010

2010 WORKFORCE ASSESSMENTU.S. Market

CONTINGENT WORKFORCEPERIOD COVERED: SEPTEMBER 2009 – AUGUST 2010

Overview> About Contingent Workers> Pros and Cons> Contingent Worker Demand

Talent Demand> Online Demand> Professional Needs & Skills> Geography and “Hot Spots”

Talent Supply> Professional Needs & Skills> Geography and “Hot Spots”

Profile> Career Experience> Education Levels> Compensation Needs

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U.S. Workforce Assessment │ Contingent Workforce

OVERVIEW: CONTINGENT WORKFORCE

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A contingent or temporary worker is defined as one that holds a non-permanent job with a company or organization

The pool of contingent workers vary widely> Types of workers include traditional temporary labor placed by staffing agencies and

vendors, as well as self-employed, independent contractors, Statement-of-Work (SOW) labor, and project-based services

> The duration of a worker’s commitment is also a key factor in a contingent employer/worker relationships

Contingent workers are used more in firms that engage in a large number of projects, such as engineering firms, while industries focused on steady, repeatable tasks use them less; seasonal industries like retail use contingent work to help during peak times

55% of companies surveyed by Aberdeen viewed contingent labor as a high-value strategy and 43% said it provided moderate value

Contingent workers give companies the flexibility of quickly growing and constricting their workforce, a factor that is even more important after the recent downturn

The one major downside from a contingent worker’s perspective: no paid health insurance

Contingent Workforce │ Overview

Source: Aberdeen Group’s “Contingent Labor Management” June 2010; Workforce.com Speizer, Irwin. “Special Report on Contingent Staffing – The Future of Contingent Staffing Could Be Like Something Out of a Movie” 10/19/09

Contingent Workforce │ Pros and Cons

From a company or organization’s perspective, the chart below lists various pros and cons of using contingent workers

> Specific pros and cons depend on a company’s industry, type of work required, etc.

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Pro Con

Saves money and creates flexibility, as hiring companies do not need to provide benefits, severance, or continued compensation

Becomes expensive if there is high turnover in a role, requiring continued hiring and training costs

Aids financial performance; a 2001 study found that companies generated higher returns when they increased their contingent workforce to over 10%

Undermines motivation and dedication, as worker knows they are in a temporary position

Provides quick access to specific skill(s) Impacts company morale, if hirer uses a high number of transient workers

Allows for close worker review before making a permanent hire

Source: Subadhra Sriram. “The Price is Right”. Contingent Workforce Strategies Magazine. November/December 2008.

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Contingent workers traditionally were low-skilled individuals, but recent trends show an increase in higher-skilled levels, including executives, as companies seek short-term, specific professional skills

During the past few years, the volume of temporary help has swung widely; temporary help was the first to be cut during the recession and the first to be hired back post-recession

> Staffing Industry Analyst estimated the contingent workforce to be 13% of the U.S. workforce in 2008, up from 11% in 2007

> American Staffing Association says the number of people placed by a staffing firm fell by a third over a two year period, dropping from 3 million in 2007 to about 1.9 million in the second quarter of 2009

> A recent [June 2010] Aberdeen report claims 20% of the current workforce is temporary help and this workforce has expanded 20% over the past year

> Labor law firm Littler Midelson predicts contingent labor could rise to as much as 30-50% of the entire U.S. workforce

A growth enabler of contingent workers is social networking, which effectively links individuals with relevant projects

Contingent Workforce │ Talent Demand

Source: Aberdeen Group’s “Contingent Labor Management” June 2010; Workforce.com Speizer, Irwin. “Special Report on Contingent Staffing – The Future of Contingent Staffing Could Be Like Something Out of a Movie” 10/19/09

TALENT DEMAND:CONTINGENT WORKFORCE

Contingent Workforce │ Online Demand on Monster

Source: Monster Internal Data, Jan’08–Aug’10

The chart below shows the up and down of Contingent job postings on Monster for the past few years (January 2008 to August 2010)

> After trending negative from February 2008 through October 2009, job postings have reported positive growth for the past seven consecutive months

> Most recently, job postings were up nearly 100% in August 2010 compared to August 2009

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Contingent Workforce │ Permanent versus Contingent Jobs

Source: Monster Internal Data, Sept’09-Sep’10

The chart below shows permanent versus contingent job postings on Monster for the past year (September 2009 to September 2010)> The percentage of permanent jobs fell from 78% in September 2009 to 73%

in September 2010, as temp/contract roles increased from 21% to 27%

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Office & Admin

Support23%

Architect & Engineering

5%

Sales & Related

7%

Business & Financial

Ops14%

Management8%

A majority (84%) of Contingent job postings represent the seven occupations listed below

Contingent Workforce│ Job Postings by Occupation

Healthcare Practitioner & Technical

4%

Computer & Math (IT)

23%

Source: Monster Internal Data, Sept’09-Aug’10

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Contingent Workforce │ Most Common Job Posting Job Titles

1. Sales Representative 2. Customer Service Representative 3. Software Engineer 4. Administrative Assistant5. Staff Accountant6. Accounts Payable Clerk 7. Gift Wrapper 8. Business Systems Analyst9. Project Manager 10. Java Developer11. Financial Analyst12. Software Quality Assurance Engineer 13. Programmer Analyst 14. Medical Billing Clerk 15. Sr. Software Engineer 16. Accounting Clerk 17. Local/Delivery Driver 18. Accounts Receivable Clerk 19. Sr. Accountant 20. Data Entry Clerk

21. Clinical Research Associate 22. Bookkeeper23. Visual Basic Programmer 24. Web User Interface Designer25. Credit Card Collections Specialist 26. Accountant27. PC Technician28. Data Warehouse Developer29. Cost Accountant 30. Recruiter 31. Mortgage Loan Processor 32. Medical Records Clerk33. Accounts Receivable/Payable Clerk 34. Bill Collector 35. Software Quality Assurance Analyst36. Payroll Manager 37. Machine Operator38. Office Manager 39. Database Architect40. Payroll Clerk


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Top 10 States

• California 15%• Texas

8%• New York 6%• Florida 5%• New Jersey

5%• Pennsylvania

4%• Illinois

4%• North Carolina 4%• Ohio

4%• North Carolina 3%

Top 10 Regions

• New York 7%• San Francisco

6%• Los Angeles

6%• Philadelphia

5%• Boston 3%• Seattle 3%• Washington D.C. 3%• Dallas

3%• Chicago 3%• Phoenix 2%

Listed below are the top 10 states and top 10 regions with Contingent job postings> The top ten states account for 58% of the Contingent talent pool while the top ten regions

consist of 41% of the supply> California has a much higher share of Contingent job seekers compared to the other

states across the nation primarily based on the state’s share of the population


Contingent Workforce │ Top 10 Job Posting Locations

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Contingent Workforce │ Monster Demand By State


The following locations reported the highest share of Contingent job postings as a percentage of total job postings by state or “hot spots” for demand:

1. Delaware (38%)2. Oregon (35%)3. Washington (32%)4. Kansas (29%)5. North Carolina (29%)

Looking nationally, Contingent job postings account for about 20% of all U.S. job postings

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Contingent Workforce% of Total Job Postings

High

Midpoint

Low

TALENT SUPPLY:CONTINGENT WORKFORCE

Office & Admin

Support21%

Architect & Engineering

6%

Sales and Related Workers

4%

Business & Financial Ops

9%

Management16%

A majority (79%) of Contingent job seekers represent the seven occupations listed below

Contingent Workforce │ Job Seekers by Occupation

Arts, Design,

Entertain, Sports, &

Media5%

Computer & Math (IT)

18%


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Contingent Workforce │ Most Common Job Seeker Job Titles

1. Administrative Assistant 2. Customer Service Representative 3. Project Manager 4. Software Engineer 5. Office and Administrative Support Workers, Other 6. Manager 7. Business Systems Analyst 8. Executive Administrative Assistant 9. Sales Representative 10. Clerk/Typist 11. Assistant Manager 12. Customer Service 13. Sr. Software Engineer 14. Financial Analyst 15. Graphic Designer 16. PC Technician 17. Accountant 18. Mechanical Engineer 19. Office Assistant 20. Programmer - Entry Level

21. Office Manager 22. Consultant 23. Software Quality Assurance Engineer24. Receptionist 25. Staff Accountant 26. Software Quality Assurance Analyst 27. Information Technology Manager 28. Call Center Representative - Financial Services 29. Medical Assistant30. Registered Nurse (RN)31. Retail Salesperson 32. Records Management Analyst 33. Data Entry Clerk 34. Research Assistant 35. Programmer Analyst 36. Java Developer 37. Group Leader 38. Laborer 39. Systems Administrator 40. Consulting Manager


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Top 10 States

• California 16%• Texas

10%• New York 7%• Florida 6%• New Jersey

5%• Illinois

5%• Georgia 4%• Massachusetts 4%• Pennsylvania

4%• Virginia 3%

Top 10 Regions

• New York 12%• Los Angeles

8%• San Francisco

5%• Dallas

4%• Boston 4%• Washington D.C. 4%• Chicago 4%• Atlanta 3%• Philadelphia

3%• Houston 3%

Listed below are the top 10 states and top 10 regions with Contingent job seekers> The top ten states and regions for job seekers are much more concentrated than for job

postings> The top ten states account for 64% of the Contingent talent pool while the top ten regions

consist of 50% of the supply


Contingent Workforce │ Top 10 Job Seeker Locations

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Contingent Workforce │ Monster Supply By State


The following locations or “hot spots” reported the highest share of Contingent job seekers as a percentage of total job seekers by state:

1. District of Columbia (13%)2. Washington (11%)3. Oregon (10%)4. California (10%)5. Virginia (9%)

Looking nationally, Contingent job seekers account for 8% of all U.S. job seekers

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Contingent Workforce% of Job Seekers by State

High

Midpoint

Low

Contingent Workforce │ Compensation

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Contingent workers expect to receive higher compensation than Permanent talent, which is typical as Contingent workers must pay taxes and other benefits out-of-pocket, as well as have a temporary role

As seen on the bottom chart, the compensation expectation gap between Permanent and Contingent workers gets greater as the salary rises

> 30% of Contingent job seekers expect to receive at least $100,000 versus only 9% of Permanent job seekers

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PROFILE:CONTINGENT WORKFORCE

Contingent Workforce │ Career Levels

Source: Monster Internal Data, Sept ‘09-Aug‘10

A vast majority (87%) of Contingent opportunities are for Experienced (non-manager) candidates compared to the less than half (49%) of professionals seeking these types of roles

> The percent of job postings seeking experienced candidates increased compared to the prior year, showing recruiters shifting their focus from Entry Level to Experienced roles

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Contingent Workforce │ Education Levels

Contingent job postings seek primarily candidates with at most a Bachelor’s degree (45%) followed by individuals with at most a High School degree (25%)

Job seekers are concentrated in those with at most a Bachelor’s degree (35%) and Associate/Some College experience (30%)


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Contingent Workforce │ Years of Experience

Contingent job seekers are more experienced than available job postings; 55% of seekers have over 7 years of experience compared to 12% of relevant job postings

> Both seekers and recruiters could be frustrated at the lack of relevant opportunities and candidates, respectively


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Contingent Workforce │ SummaryThe Contingent workforce represents approximately 20% of the U.S. employed

> This percentage dipped during the recession, but has recently risen as companies have begun to cautiously hire temporary help

> Job postings for Contingent job opportunities have risen continuously since February 2010Job postings and job seekers are concentrated in the same occupations: Office & Admin. (23% and 21%, respectively) and Computer & Mathematical (IT) (21% and 18%, respectively)

> Top Contingent job titles for both postings and seekers include Customer Service Representative, Software Engineer, and Administrative Assistant

“Hot Spots” for contingent worker demand compared to total job opportunities can be found in Delaware, Oregon, and Washington.“Hot Spots” for contingent job seekers compared to total job seekers can be found in the District of Columbia, Washington, Oregon, and CaliforniaAs seen in most segments, the job seeker pool is more skilled than the minimum requirements

> Less than 4% of job opportunities require a Manager of above (compared to 26% of available seekers)

> 10% of job postings require candidates with advanced degrees (compared to 18% of relevant seekers)

Contingent workers desire a higher compensation compared to Permanent workers; 30% of Contingent job seekers expect to receive at least $100,000 versus only 9% of Permanent job seekers

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View additional reports and articles at the Monster Resource Center:http://hiring.monster.com/hr/hr-best-practices.aspx

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http://hiring.monster.com/hr/hr-best-practices.aspx

5 Clock Tower Place /// Suite 500MAYNARD, MA 01754Visit Monster or call your local Monster representative.1-800-MONSTER /// 666-7837www.monster.com

2010 Contingent Workforce Assessment

Business

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