DCR TrendLine February 2015 - Non Employee Workforce Insight

PERCEPTION IS EVERYTHING| PAGE 25

It’s hard to believe that 2015 is already well underway. The staff at DCR TrendLine has been hard at work to provide you with key insights into the non-employee workforce
market. With thorough research and in-depth analysis of data, we aim to give you a pulse of the staffing market. As usual, our articles this month uncover trends in the
industry and provide you with hard, actionable information on non-employee workforce supply and demand.
The DCR National Temp Wage Index focuses on wage trends over the year, analyzing the use of non-employee workers and tracking related developments in the economy.
This month, we examine the employment figures from the end of 2014 and highlight temp worker demand for the upcoming year.
The topic of minimum wage was largely debated in 2014. At the beginning of this year, the minimum wage rose in 20 states and the District of Columbia. We take a look at
what minimum wage will be across the country in 2015 based on legislation that has recently passed.
Last month we looked at the employment prospects for 2015 college graduates. We follow-up on this subject this month by comparing the expectations and realities of the
working world for new graduates.
Our industry highlight for February focuses on the real estate sector. The DCR TrendLine Real Estate Employment Index provides an overview of employment trends in the
industry. We also discuss the job outlook and wages for real estate agents, a major occupational category within this market.
The Euro currency hit an 11-year low recently, which prompted us to check in on the labor market in Europe. Our analysis primarily focuses on Germany, France, Italy, and
Belgium, but takes a continent-wide look at youth unemployment.
Last year we launched a new quarterly topic –“What’s Trending in the Temp Market”– that consolidates our research into a short list of critical trends in key talent sectors of
the industry. This month, we present to you what’s trending in Q1 of 2015.
Our feature article this month hones in on a topic that is of significant concern to talent acquisition leaders – talent brand. Numerous studies show that the perception
candidates have of a company is what influences their attraction to join their workforce. As the war for talent intensifies, we provide suggestions on steps employers can
take to improve their talent brand.
Over the past couple of years, there has been much discussion on the growth of the non-employee workforce. Establishing and maintaining a strong relationship with these
workers gives rise to several important questions that executives must ask. We provide examples of some of these questions, and explain why they are important.
Ammu Warrier
Ammu Warrier, President
“
NOTE FROM THE EDITOR
INSIDE THIS ISSUE “2014 will be remembered as the year that the
US went back to work. The big question for 2015
is whether this job growth leads to a significant
increase in salaries.Will this year be remembered
as the time when Americans finally started to
feel like the recovery was having a meaningful
impact on their lives?”~Joseph Lake, U.S. Analyst
for The Economist Intelligence Unit
1
Note from the Editor...............................................................................................................................................page 1
DCR National Temp Wage Index.........................................................................................................................page 2
Minimum Wage in 2015........................................................................................................................................page 7
Expectations vs. Realities for New Grads........................................................................................................page 9
Industry Highlight: Real Estate Index...............................................................................................................page 12
Checking in on the European Labor Market,..................................................................................................page 17
What’s Trending in the Temp Market – Q1 of 2015.....................................................................................page 22
Perception is Everything......................................................................................................................................page 23
Questions That Arise From Non-Employee Workforce Growth..............................................................page 28
2015 College Grad Prospects............................................................................................................................page 26
Methodology........................................................................................................................................................... page 30
References................................................................................................................................................................page 31
About DCR.................................................................................................................................................................page 32

According to the latest numbers released by the U.S. Bureau of Labor Statistics (BLS), the number of temporary help services jobs rose by 14,700. In December 2014, the
United States added 252,000 nonfarm jobs, and the unemployment rate fell to 5.6 percent from the month before. The largest gains were in professional and business
services with 52,000 jobs added, construction with 48,000 jobs added, food services and drinking establishments with 44,000 jobs added, health care with 34,000 jobs
added, and manufacturing with 17,000 jobs added.
Over 2014, job growth averaged 246,000 per month, up from the average monthly gain of 194,000 in 2013.The professional and business services sector was responsible for
24.8 percent or 732,000 of total jobs created, outpacing the next highest sector – trade, transportation and utilities – by 225,000 jobs. Within the professional and business
services sector, the biggest increase was in temporary services, making up 29.5 percent of jobs created in the sector.
“
DCR NATIONAL TEMP WAGE INDEX
“The job market continues to power forward. Businesses across all industries and sizes are adding to payrolls. At the current pace of job
growth, the economy will be back to full employment by this time next year.”~Mark Zandi, Chief Economist at Moody’s Analytics
2

3
2014 Employment in Review
“Source: BLS
“The economy generated 252,000 new jobs in December, and the gains for November and October were revised up.These strong gains
are likely to continue to boost consumer spending in 2014. The continued drop in the unemployment rate, to 5.6 percent in December,
puts us within striking distance of the natural rate of 5.5 percent.”~The Conference Board

“
4
While the job figures reveal that the economy was trending upwards in 2014, wages actually declined in December 2014 compared to the previous
month. Average hourly earnings fell by 5 cents to $24.57 in December, after gaining 6 cents in November. Over the year, average hourly earnings rose by
1.7 percent.
CareerBuilder’s Annual Job Forecast for 2015 finds that 82 percent of employers surveyed plan to increase compensation for existing employees, while 64
percent plan to offer higher starting salaries for new employees.
“Eventually a healthier labor market should translate into decent wage growth. The question is, when will
workers start seeing the decent economic news reflected in their paychecks?” ~Elise Gould, Senior Economist at
The Economic Policy Institute
According to CareerBuilder’s job forecast for 2015, 46 percent of employers plan to hire temporary or contract workers in 2015, up from 42 percent
the year before. Additionally, 56 percent of employers hiring temporary workers expect to transition some of these workers into full-time, permanent
employees. The survey reveals that hiring for science, technology, engineering, and math occupations will be strong with 31 percent of hiring managers
planning to create jobs in this area in 2015.
Top Areas for Hiring
Health Care Industry On the Rise
EMPLOYMENT’S UP, BUT PAYCHECKS ARE NOT
MORE TEMP JOBS EXPECTED IN 2015

5
HEALTH CARE INDUSTRY ON THE RISE
CareerBuilder’s recently released Health Care Forecast reveals that 35 percent of health care hiring managers plan to add full-time, permanent health care
employees in 2015, and 80 percent plan to increase wages for current employees.
Nearly half of the health care employers surveyed (47 percent) plan to hire temporary or contract workers in 2015. Almost half of employers say they are
“likely”or“very likely”to rehire retirees in 2015.
Despite the plans to hire more workers, finding qualified candidates might be a challenge. Approximately 54 percent of health care employers believe that
there is a significant gap between the skills they need and the skills that candidates have, and 46 percent have open positions for which they cannot find
candidates. Nearly half of the employers (48 percent) have job vacancies that stay open for 12 weeks or longer. Approximately two-thirds of employers
plan to hire recent college graduates this year, and 47 percent plan to hire interns.
“
“With more people gaining access to medical benefits and an aging population who will need more medical
attention in the coming years, health care organizations are gearing up now to accommodate these populations
and provide the best quality care. In certain areas, however, demand for high quality candidates is higher than the
available supply, forcing health care employers to rethink how they retain top employees along with attracting new,
highly qualified workers.”~Eric Gilpin, President of CareerBuilder Healthcare.

The gap in employment rates between the country’s highest- and lowest-income families is at its widest level in ten years. Rates of unemployment for the
lowest-income families (earning less than $20,000) are at 21 percent. U.S. households with an income of over $150,000 annually have an unemployment
rate of 3.2 percent.
6
THE DISTANCE BETWEEN RICH AND POOR AT ITS WIDEST
“The people at the bottom are going to be continually squeezed, and I don’t see this ending anytime soon. If the
economy were growing enough or unions were stronger, it would be possible for the less educated to do better and
for the lower income to improve. But in our current world, where we are still adjusting to globalization, that is not
very likely to happen.”~Richard Freeman, Economist at Harvard University

7
MINIMUM WAGE IN 2015
On January 1st, 2015, the minimum wage rose in 20 states and the District of Columbia, as laws and automatic adjustments were made with the start of
the new year.
What Minimum Wage Will Look Like in 2015
Source: National Conference of State Legislatures
In nine states, the wage hike was an adjustment made to keep the minimum wage in line with rising inflation. However, in 11 states and D.C., the
increase is a result of legislative action or voter-approved referenda. Two more states – Delaware and Minnesota – will have wage hikes later in 2015,
and New York raised its minimum wage on December 31st, 2014. Currently, 29 states will have minimum wages above the federal minimum of $7.25.
According to the Economic Policy Institute, the minimum wage hikes are expected to have a direct impact for nearly 2.3 million workers.
The state with the highest minimum wage in 2015 – besides Washington D.C., with an 11 percent change to $10.50 – is Washington at $9.47.

MINIMUM WAGE IN 2015
8
U.S. States with a Minimum Wage Increase in 2015
Source: Quartz

EXPECTATIONS VS. REALITIES FOR NEW GRADS
9
The recently released 2014 College Graduate Employment Survey by Accenture compares the expectations and perceptions of 2014’s college
graduates with the realities of the workplace experienced by both 2012 and 2013 graduates.
Recent graduates report that they are underemployed and working in jobs that do not require the degree that they hold. However, for 2015,
employers expect to hire 8.3 percent more new college graduates than they did from the Class of 2014, according to a report from the National
Association of Colleges and Employers.
Expectations vs. Realities for Grads
Source: Accenture

10
Approximately 80 percent of 2014 grads expect that their employer will provide a formal training program, but the percentage of graduates actually
receiving training is low. Only 48 percent of new college graduates in the workforce received formal training in their first job.
Nearly half (46 percent) of recent college graduates working today report that they are significantly underemployed (meaning that their jobs do not
depend on their college degree). While 84 percent of 2014 graduates believe that they will find employment in their chosen field, only 46 percent of
2012/2013 grads report holding a full-time job, and 13 percent have been unemployed since graduating. According to the Economic Policy Institute,
underemployment is at 16.8 percent for workers younger than 25 as of May 2014.
Furthermore, more than half of recent college graduates have already left their first jobs or expect to leave within one or two years.
According to the 2013 Accenture survey, 43 percent of respondents expect to earn more than $40,000 per year in their first job. However, only 21
percent of the 2012 and 2013 graduates are actually earning at that level. Over a quarter (26 percent) of these graduates report earning less than
$19,000 annually.
Meanwhile, 28 percent of recent graduates will owe more than $30,000 in debt. More than one-third (42 percent) of 2012 and 2013 graduates live at
home after graduation.
Graduates and recent hires are doing research while still in college, and trying to make themselves more market relevant. Approximately
three-quarters of those graduating in 2014 took into account the availability of jobs in their field before deciding on their major.
A Job Outlook 2015 report by the National Association of Colleges and Employers found that at the bachelor’s degree level, graduates in the business,
engineering, and computer/information science fields are most sought after by employers.
Similarly, universities are helping graduates by adapting their curricula to provide the education that graduates will need for their chosen career.
Universities are also providing job search and recruiting assistance to graduates and alumni as well. Approximately 63 percent of 2014’s graduating
students believe that their university was effective in helping them to find employment opportunities.
Recent graduates are willing to be flexible, with 74 percent saying that they would be willing to relocate to another state to find work.
Recent research by the Harvard Business Review indicates that while demand is growing for middle-skill (those that require more education and
training than a high school diploma, but less than a four-year college degree) workers, the U.S. educational system is producing fewer graduates at
this level.
ON-THE-JOB TRAINING
UNDEREMPLOYMENT
WAGES
ADAPTING TO THE MARKET

11
ADAPTING TO THE MARKET
Projected Job Openings vs. Degrees & Certificates Granted
Source: HBR

“
STATE OF THE 2015 REAL ESTATE MARKET
Experts say that in 2015, real estate markets across the country will return to a state of balance. Stan Humphries, chief economist for Zillow.com,
expects that home value growth will slow to around 3 percent per year, and negotiating power will move back to buyers and away from sellers. CoreLogic
predicts that home sales will increase by 9 percent in 2015. Home prices are expected to grow by 4.5 percent nationwide.
Foreign investors will still find high-end American real estate appealing due to the economic turbulence in their home countries. Buyers from outside
the U.S. may use their properties as a rental, a secondary residence used for travel, or a residence for children studying at American universities.
For years, many millennials postponed homeownership in favor of renting, but that might change in 2015 as a growing number of Gen Y-ers start
families and seek more stability. Baby boomers are also more likely to move in 2015, downsizing their homes as they retire or moving closer to children
and grandchildren.
As the housing sector recovers, prices in many markets across the country have risen. RealityTrac reported that the median sales price of U.S.
single-family homes and condos in October 2014 had reached its highest level since September 2008.
“The growth expected in 2015 is widespread, but as we put together our forecast, ten
local markets stood out as especially primed and ready for significant accelerations
across housing metrics in 2015. The markets on this list range from big cities with
older housing stock, big and mid-size cities with substantial levels of new
construction, and up and coming markets appealing to young professionals for their
job growth and high affordability. Los Angeles and Washington D.C., were selected
for their anticipated increases in home sales and household formation. While Des
Moines, Iowa may seem like an odd addition, it’s incredibly high affordability and
high levels of home ownership among millennials set the stage for strong housing
performance next year.”~Jonathan Smoke, Chief Economist at Realtor.com
INDUSTRY HIGHLIGHT: REAL ESTATE INDEX
12

STATE OF THE 2015 REAL ESTATE MARKET
13
Top 10 Housing Markets for Growth in 2015
Source: Realtor.com
- 11% growth in home sales
- 5% growth in home prices
- 9% growth in home sales - 5% growth in home sales
- 9% growth in home sales- 6% growth in home sales

EMPLOYMENT IN THE REAL ESTATE INDUSTRY
DCR TrendLine Real Estate Employment Index
14
Real estate agents buy, sell or rent properties
on behalf of their clients. They require a deep
knowledge of the market and of the
communities in their area, so they can advise
their clients on matters ranging from how to
accurately price their home to when is the right
moment to invest in a new one.
The terms ‘real estate agent’ and ‘real estate
broker’ are often used interchangeably. The main
difference between the two is that brokers are
licensed to manage their own businesses, while
agents are not. Agents may work under brokers,
but their jobs are similar.
The Bureau of Labor Statistics (BLS) projects
11.1 percent job growth for real estate agents
between 2012 and 2022, with an addition of
38,000 jobs. This, combined with a relatively
low unemployment rate and upward turn of the
housing market, provides a solid and positive
outlook for the occupation.
““It’s so much more than sales. As opposed to
selling stocks or insurance, there’s an emotional
side to real estate that can be very rewarding.”
~Jason Townsend, Managing Broker of Capital
Community Properties

EMPLOYMENT IN THE REAL ESTATE INDUSTRY
15
Source: PwC
Multifamily developers
Insurance company
real estate lenders
Homebuilders / residential
land developers
Architects / desginers
Real estate consultants
Commercial bank real estate
lenders
CMBS lenders / issuers
Abysmal Poor Fair Good Excellent Abysmal Poor Fair Good Excellent
Real estate brokers
Private local
real estate owners
Real estate
investment managers
Commercial developers
REITs
Real Estate Business Prospects

SALARIES
16
According to BLS, real estate agents earned a median salary of $39,800 in 2013. The highest salaries were around $98,090, while the lowest-paid earned
approximately $21,240. The highest earners worked in the metropolitan areas of Lake County, Illinois; New York City; and Ocean City, New Jersey.
Annual Mean Wage of Real Estate Agents by State, May 2013
Source: BLS

1717
CHECKING IN ON THE EUROPEAN LABOR MARKET
In 1997, the European Union (EU) held its first summit on growth and jobs, and EU unemployment was 11 percent. Since then, not much has
changed – unemployment in the Eurozone was 11.5 percent in November 2014, up from a low of 6.8 percent in the first quarter of 2008. Eurostat, the EU
statistics agency, estimates that 184 million people were out of work in the euro currency area, which then consisted of 18 member states. In the wider
28-country European Union, the unemployment rate dropped to 10 percent in November 2014, or 24.4 million unemployed people. The highest rates
were recorded in Greece and Spain, while the lowest were in Austria and Germany.
Of particular concern is youth unemployment. In the EU as a whole, youth unemployment stood at 21.9 percent in November. According to one study,
this costs the EU approximately 150 billion euros per year in lost wages and spending. Sweden, which has one of the EU’s highest employment rates, has
a youth unemployment rate of 23 percent. And in Spain and Greece, youth unemployment is above 50 percent.
“
“In November 2014, 5.101 million young persons (under 25) were unemployed in the EU28 of whom 3.409
million were in the euro area. Compared with November 2013, youth unemployment decreased by 354,000 in
the EU28 and 58,00 in the euro area. In November 2014, the youth unemployment rate was 21.9% in the EU28
and 23.7% in the euro area.”~Eurostat
The Euro has also recently dropped
tobelow$1.1789,thepriceatwhich
it started when the currency was
introduced in 1999. Policymakers at
the EU’s central bank are debating
plans for 500 billion euro in
possible government bond
purchases, which many believe is
necessary to break Europe out of its
ongoing economic stagnation.
Youth Unemployment in Europe, May 2014
Source: Statista

18
In Germany, unemployment
fell to a record low in 6.4
percent in December from
6.5 percent in November.
Economists say this signals
that growth in Europe’s
largest economy will accelerate
in 2015. According to the
Federal Labor Agency in
Nuremberg, the number of
people out of work fell 27,000
in December to 2.841 million.
GERMANY
““Germany’sbuoyantlabor
market continues to be a
reliable driver of growth.
The tightness of the labor
market backs household
confidence and supports
wage growth and thus
private consumption.”
Germany: Permanent and Temporary Employment
German Employment

19
According to the latest figures from Prism’Emploi, the French Association of Employment Agencies, temporary employment across France
decreased by 2.7 percent in November 2014, compared to a year ago.
This decrease is attributed to a drop in the number of skilled blue-collar workers in the country. In contrast, there has been an increase in the
number of white-collar workers by 3.2 percent, unskilled blue-collar workers by 5.6 percent, and managers and executives by 6.9 percent.
Employment in France
FRANCE

Italy’s unemployment recently rose to a record high of 13.4 percent. Meanwhile youth unemployment jumped to 43.9 percent in November 2014 from
43.3 percent in the month before.
At the end of December, the Italian cabinet approved parts of a labor bill that is intended to revolutionize the country’s labor market and encourage
foreign investors. The legislation, known as the Jobs Act, is expected to ease restrictions that make it difficult to dismiss employees, extend the duration
of jobless benefits, and introduce a new type of contract that would offer compensation when a worker is dismissed. The Jobs Act is also intended to give
rising levels of labor protection to people hired on open-ended permanent contracts. The Italian Prime Minister Matteo Renzi says that the labor law will
encourage firms to hire new staff and help combat unemployment.
Employment in Italy
20
ITALY

21
According to the Hays Global Skills Index, the lack of flexibility in the Belgian labor market and education system indicates that the country’s economy is
in danger of stagnation. The report states that Belgium has a serious problem in maintaining high-skilled jobs and talent in the country, which leads to a
brain drain.
According to Wilfrid de Brouwer, the Managing Director of Hays Belgium, the Belgian government took preventative cost measures to protect the Belgian
GDP and labor market during the recession, which has left the country’s revival weaker compared to other European countries.
“These preventive decisions made the unemployment rate much lower compared to the European average but resulted in a smaller
candidate pool, which is only partially covered by the hiring of young foreign potentials.” ~Wilfrid de Brouwer, Managing Director
of Hays Belgium
Employment in Belgium
BELGIUM
“

Baby boomers are approaching
retirement, and many of them hold key
positions at their companies. These
companies are starting to actively
look into succession planningto fill these
roles with talent within their organization,
either from their full-time permanent
employeebaseorfromtheirnon-employee
workforce. Companies are also concerned
with knowledge management and are
investing in development programs for
junior workers to ensure that knowledge
is passed on and kept within the company.
The rise of the non-employee work-
force is creating a thick layer of staffing
providers and managed service providers
between workers and companies. The
use of non-employees offers employers
greater efficiency and flexibility, but labor
analysts say that it sometimes leads to
lower wages and fewer benefits for work-
ers. This results in the affected temporary
workers’ being drawn to organized
unionization efforts. For example, at
Lionbridge, a provider of business services
to Microsoft Corp., approximately 40
workers have organized a union,
authorized by the National Labor Relations
Board, and are bargaining with Lionbridge
for benefits.
Withthetalentwarintensifying,companies
are having difficulty finding the right talent
with the needed skills to fill job openings.
Many companies are now making the
decision to remove one more obstacle in
the search for talent by broadening their
recruiting efforts geographically. With the
advances in collaboration software, more
employers are willing to engage remote
talent. The amount of companies that
allow their workers to contribute remotely
has been growing steadily, and this
allowscompaniestoexpandtheirrecruiting
radius substantially and to find talent that
is otherwise unavailable to them.
22
“Succession planning is the No. 1 issue. It’s on everyone’s front-burner.”~Leslie Scott, Executive Director of The National Association
of State Personnel Executives
WHAT’S TRENDING IN THE TEMP MARKET – Q1 OF 2015
At DCR TrendLine, we’re always honing in on what’s trending in anything to do with non-employee worker supply and demand. This month, we’re
presenting our quarterly view of pivotal trends in key talent sectors of the staffing industry and human resource management.
#SUCCESSIONPLANNING #UNIONS #REMOTETALENT
“

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PERCEPTION IS EVERYTHING
As the economy continues to strengthen, recruiting leaders cite competition as a key obstacle to hiring talent. According to LinkedIn’s 2015 US Recruiting Trends report, 53
percent of leaders say that competition for talent is a significant concern. Sourcing highly skilled talent is the highest priority for US and global talent acquisition leaders,
followed by improving quality of hire.

24
Over the past four years, the biggest shift in recruiting has been the growth of social networks as a top source of quality hires. Almost half of U.S.
companies cite social professional networks as one of the most important sources of quality hires, followed closely by employee referral programs, and
company career sites.
Source: LinkedIn
Competition as a Top Obstacle to Hiring

25
Source: LinkedIn

26
The intensifying war for talent and the growing importance of social networks and referrals lead to a need for companies to carefully consider and examine the perception
potential candidates have of them. American companies this year are planning to prioritize and proactively manage their talent brand. Experts say that a strong talent brand
can reduce cost per hire by up to 50 percent and lower turnover rates by 28 percent. And seven of ten job seekers say that the job and the company are equally important
in deciding whether to accept a position. Finally, 75 percent of talent acquisition leaders say talent brand significantly impacts their ability to hire great talent.
Research by RolePoint finds that companies with a defined talent brand dominate 60 percent of the labor market, and 17 percent of companies with a defined talent
brand saw an increase in their quality of hires. A strategic talent brand sets the tone for recruitment and retention, and a talent brand that involves employee referrals takes
advantage of the employers’key asset – the employee.
Employee referrals have been cited as the number one source for both hiring volume and for new hire quality. Employers also say that it is less expensive to recruit
candidates referred by employees, even after accounting for referral bonuses.
While talent acquisition leaders recognize the importance of managing the perception of their company and their talent brand, many are unable to measure the health
of their brand in a quantitative way. According to LinkedIn, there is an approximately 20 percent gap between the impact and prioritization of talent brand versus the
measurement and funding of it.
Why Do Companies Invest in Talent Brand?
Source: LinkedIn
THE IMPORTANCE OF EMPLOYEE REFERRALS
WHAT EMPLOYERS CAN DO TO IMPROVE THEIR TALENT BRAND

27
Companies can close this gap by benchmarking their talent brand budgets against other talent and HR investments to ensure that talent branding is
funded in line with their priorities. Also, leveraging current employees and workers as talent brand ambassadors can be a powerful instrument. Many
companies are creating social and content programs to make candidates aware of the merits they offer as a place to work. In the United States, social
professional networks are the fastest growing channel for promoting talent brand, growing 34 percent year-over-year.
To build successful employee referral programs that improve the perception of the company, employers should reach out to current employees to ask them
for referrals. A study by RolePoint finds that six out of 10 employees would recommend jobs at their company to close friends or family members. Many
companies are electing to include cash and incentive-based rewards in their referral programs.
Source: LinkedIn
Growth of Channels for Promoting Talent Brand

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QUESTIONS THAT ARISE FROM NON-EMPLOYEE WORKFORCE GROWTH
There’s been much talk recently about the rise of the non-employee worker and on strategizing to win the talent war. Companies have been actively
seeking new ways to find the right talent, and one strategic approach is the growing reliance on contingent labor.
Historically, employers relied on temp labor to fill skill gaps during economic downswings, but when the economy improved, they tended to focus on
building a strong internal workforce of full-time permanent employees. Today, however, even as the economy is improving, companies are increasing their
dependence on contingent labor. Workforce 2020, a study conducted by Oxford Economics, finds that 83 percent of executive managers plan to increase
using non-employee workers on an ongoing basis.
A study by Accenture recently estimated that non-employee workers make up between 20 percent to 33 percent of the workforce in the United States.
These workers are found in all classes of work - from the executive suite to factory line workers - in every industry.
Managing and building this new workforce of non-employee workers requires changing the way companies approach compensation, technology, and
engagement. According to Workforce 2020, approximately one-third of respondents said that increasing their reliance on non-employee labor required
additional investment in training, changes in HR policies, and support for new technology.
Impact of Changing Nature of Workforce
Source: Workforce 2020 & Oxford Economics

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QUESTIONS THAT ARISE FROM NON-EMPLOYEE WORKFORCE GROWTH
The changes that result from the growth of the non-employee workforce raises many questions. Traditionally, the procurement department was
involved in the contingent labor spend, and they focused on minimizing costs. While labor cost matters to all business leaders, the HR team is important in
incorporating non-employee labor into the overall strategy of the entire workforce. So it becomes vital for both functions to work together and analyze the
data to determine some of the common questions that arise on establishing and managing a strong relationship with non-employee workers.
These questions can include:
Thinking differently about the workforce is only part of the puzzle. Managers must think about considering non-employees for talent pools and other
workforce solutions, while still ensuring regulatory compliance and safeguarding against the leading areas of temporary workforce risk.
• How do we engage this extended pool of talent?
• How do we ensure that we have the right talent working on the right thing at the right time in the right place?
• How do we put a border between full-time employees and non-employees, but still manage and engage both as part of our overall workforce?
• Can we include non-employee workers in performance management?
• How do we include non-employees in our talent pool?
• Can we include non-employee workers in succession planning?
• Does our talent brand include and mean something to non-employee workers?

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
30
SOURCE DATA

REFERENCES
http://www.forexlive.com/blog/2015/01/09/digging-down-into-the-2014-us-job-picture/
http://www.payscale.com/career-news/2015/01/bls-jobs-report-252-000-jobs-added-but-wages-remain-soft
http://careerbuildercommunications.com/pdf/careerbuilder-q1-2015-forecast.pdf
http://www.careerbuilder.com/share/aboutus/pressreleasesdetail.aspx?sd=1%2f7%2f2015&siteid=cbpr&sc_cmp1=cb_pr861_&id=pr861&ed=12%2f31%2f2015
http://qz.com/320665/five-charts-about-us-minimum-wage-increases-in-2015/
http://www.accenture.com/sitecollectiondocuments/pdf/accenture-2014-college-graduates-survey.pdf
http://www.accenture.com/us-en/Pages/insight-what-awaits-2014-grads-working-world-infographic.aspx
http://www.pressofatlanticcity.com/business/recent-college-graduates-struggle-to-find-work-in-chosen-fields/article_22a08744-98f7-11e4-a9d4-67ca787023f1.html
https://hbr.org/2015/01/free-community-college-would-help-fix-the-skills-gap
http://bigstory.ap.org/article/employment-gap-between-rich-poor-widest-record
http://www.bloomberg.com/news/2015-01-07/german-unemployment-falls-to-record-low-as-recovery-strengthens.html
http://fortune.com/2015/01/09/fresh-jobs-data-and-europes-boost-5-things-to-know-today/
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http://en.europeonline-magazine.eu/extraeurozone-unemployment-holds-steady-at-115-per-cent_370475.html
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http://www.hbs.edu/competitiveness/research/Pages/middle-skills.aspx
31

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