DCR Trendline October 2014 - Non Employee Workforce Insight

MULTIPLE PRIORITIES, SINGLE GOAL | PAGE 19

Can you believe it’s already the last quarter of the year? As we enter the fourth quarter of 2014, the staff at DCR TrendLine has been hard at work to provide you with
key insights into the temporary staffing industry. Our up-to-date research and analysis of the market ensure that you have a clear reading of what’s happening in
the world of non-employee supply and demand.
The DCR National Temp Wage Index focuses on wage trends over the year and analyzes the usage of temporary workers and related developments in the
economy and job market. This month we also discuss how hourly wages are continuing their upward trend and the U.S. Department of Veteran’s Affairs plans to hire
thousands of workers.
Temporary employment is at an all-time high, with approximately 2.8 millions working in temp help jobs. We examine the year-over-year growth of temporary
worker engagement, and the reasons more job seekers are choosing to become independent contractors. Keep an eye out for our highlight on how Dallas, Texas
is becoming a major temp city in the country.
The “employee” from a decade ago is not the same as the employee we’re seeing in companies today. The definition and image of employees is changing
dramatically. Our article identifies the drivers of this progression and examines how employees, workplaces, and even the nature of work have evolved.
There’s no denying that social media is a key business trend of the last few years, especially in talent management and sourcing. We look at why it’s important for
recruiters and job seekers to understand this growing area of recruiting.
According to many sports fans, October is the most exciting month for sports since baseball playoffs are in full swing, the NHL and NBA officially start, college
basketball begins, and college football rivalry matches are being held. It’s only fitting that in the biggest month for sports, we focus on sports-related employment.
Our first article on this topic focuses on industry-wide employment with the DCR TrendLine Sports-Related Employment Index. Look for our highlight on sports
occupations within the self-employment category, the top cities with job growth in sports-related jobs, and our job title focus on athletes and sports competitors.
The next article lists the top 9 sports-related jobs that are experiencing high growth.
Our feature article this month is particularly applicable to companies with contingent workforce programs. We look at how vendor management systems can help
companies fulfill the priorities and requirements of multiple stakeholders, while meeting the shared singular goal of eliminating complexity to increase operational
effectiveness.
The final article for October discusses the value of talent supply chain management in meeting organizational talent needs. We offer tips on how companies can
get started on building a talent supply chain.
Ammu Warrier
Ammu Warrier, President “
NOTE FROM THE EDITOR
INSIDE THIS ISSUE “Steady as she goes in the job market.
Businesses continue to hire at a solid pace. Job
gains are broad based across industries and
company sizes. At the current pace of job growth
the economy will return to full employment by
the end of 2016.” ~Mark Zandi, Chief Economist
at Moody’s Analytics
1
Note from the Editor...............................................................................................................................................page 1
DCR National Temp Wage Index..........................................................................................................................page 2
Temp Employment at an All-Time High............................................................................................................page 5
The Progression of the “Employee”..................................................................................................................page 8
Social Media’s Use in Recruiting.........................................................................................................................page 11
Industry Highlight: Sports-Related Employment Index...............................................................................page 12
9 Sports Related Jobs with High Growth..........................................................................................................page 17
Multiple Priorities, Single Goal............................................................................................................................page 19
Getting Started with Talent Supply Chain Management.............................................................................page 22
Methodology.............................................................................................................................................page 26
References.................................................................................................................................................page 27
About DCR..................................................................................................................................................page 28

DCR NATIONAL TEMP WAGE INDEX
Far from economist forecasts of 220,000 to 230,000, the latest Bureau of Labor Statistics (BLS) job numbers show that 142,000 new jobs were created
in August 2014. This was the lowest job gain for 2014, following six straight months with employment gains of over 200,000 jobs each. Nationwide
unemployment decreased slightly to 6.1 percent from 6.2 percent, but the change is attributed to fewer working-age Americans participating in the
labor force.
2
Source: The Wall
Street Journal
Long-Term Unemployed

3
Most industry sectors had low gains or actually lost jobs in August, with healthcare, construction, hospitality, and temporary jobs topping the list as the
biggest gainers. The healthcare industry added 34,000 jobs, with 22,800 of those in the ambulatory services sector. Restaurants and bars added 21,500
jobs, but cuts in other sectors of the leisure and hospitality industry created a net gain of 15,000. Construction had strong growth, adding 20,000 jobs, with
specialty contractors accounting for 11,500 jobs. The temporary and staffing sector added 15,400 jobs, with temp jobs accounting for 13,000.
According to the ADP national employment report, U.S. private sector employment rose by 204,000 jobs in August 2014, down from a 212,000 increase
in the month before. Small businesses accounted for 78,000 jobs. In addition, Challenger Gray & Christmas reported that companies announced 40,010
layoffs in August, which is 21 percent below the number of job cuts in the year before.
The Conference Board’s recent report on online job ads stated that U.S. online job postings rose by 164,600 in August to a total of 5.2 million. The largest
gains were seen in professional occupations, such as business and finance, computer and math, and healthcare.
MANUFACTURING HIRING
EXPECTED TO RISE
WAGES STILL INCREASING
Monthly Changes in Payroll Employment (in thousands)
A national employment report by the Society for
Human Resource Management (SHRM) shows that
hiring in the U.S. manufacturing sector is expected to
increase. The report’s survey found that 50.5 percent
of manufacturing companies have plans to hire in
September 2014. A net of nine percent of
manufacturing companies reported increasing
new-hire compensation in August 2014.
While the August job numbers fell below economists’
expectations, they still are an addition to payrolls.
Nonfarm payrolls in August were up 1.8 percent
compared to August 2013.
Hourly wages for nonsupervisory workers increased
0.3 percent in August 2014, and are up 2.5 percent
from a year ago. Average hourly earnings in August
were $24.53, up 6 cents from the previous month and
50 cents from the year before. Over the past 12 months,
average hourly earnings have risen by 2.1 percent.
Source: BLS
Source: The Wall Street Journal
Wages Climbing

4
The U.S. Department of Veterans Affairs (VA) just recently announced plans to launch a major recruitment campaign to source doctors, nurses, and other
health care professions. Additionally, the agency is planning to add jobs for support staff with a variety of roles such as clerks, chaplains, electricians,
librarians, and plumbers. While the exact number of vacancies has not been released, the VA said that they had over 36,000 unfilled healthcare positions
earlier in the summer of 2014.
A recent report from the Social Science Research Council reveals that one in seven young people, or about 5 million 16-24 year olds are not working and
are not in school. These “disconnected youth” cost taxpayers $83.7 billion in government support and lost tax revenue. However, the unemployment rate
of this generation is improving. As per the BLS, the July 2014 unemployment rate for this group was the lowest since the recession started, at 13.6 percent.
According to the Social Security Administration, more than 70 million Baby Boomers will retire by 2030 at an average rate of 10,000 Baby Boomers retiring
every day. Georgetown University says that their absence in the workforce will help create over 30 million job openings by 2020.
According to industry experts, recruiting healthcare professionals is not going to be an easy task for the VA. In a highly competitive industry, the VA has
had recent salary freezes and bans on bonuses, and job locations are in less desirable areas. Matt Stevenson, the executive leading workforce planner at
Mercer, says that the VA needs to build a strong employee value proposition to attract job candidates. This could include appealing to patriotic duty, or
highlighting unusual benefits that the department offers workers.
Healthcare industry experts say that the general recruiting cycle for a doctor is upwards of six months, meaning that the VA may turn to temporary staffing
agencies to fill gaps in the short-term.
THE VA’S UPCOMING HIRING SPREE
DISCONNECTED YOUTH AND BABY BOOMERS
“ “We need tens of thousands of new doctors, new nurses, new clinicians.” ~Robert McDonald, Veterans Affairs Secretary

5
TEMP EMPLOYMENT AT AN ALL-TIME HIGH
According to the National Employment Law Project (NELP), an all-time high of 2.8 million Americans are working in temporary help jobs. The report states
that temporary jobs make up 2 percent of total employment in the United States. Additionally, 75 percent of Fortune 500 companies are using temporary
workers, especially in their warehouses.
Additionally, the American Staffing Association (ASA) shows figures stating that more than 12 million people, or 10 percent of the labor force, worked for a
temporary employment agency at some point in 2013.
Some experts believe that employers are turning to temporary workers to fill their workforce needs in order to combat the costs associated with the
Affordable Care Act (ACA), since employers are not required to offer healthcare coverage for these workers. Others point to employers’ concerns about
economic uncertainty as a reason prompting them to seek out flexible workforces.
The latest figures from the U.S. Bureau of Labor Statistics show that the American economy added 13,000 new temporary help services jobs in August 2014.
The surge in temporary worker engagement is expected to continue. A study from MBO Partners forecasts that more than 24 million people will work as
independent workers by 2018. And according to CareerBuilder, 42 percent of employers have plans to hire temporary or contract workers in 2014. Experts
expect that the staffing industry will grow by 7 percent in 2015.
In Q2 of 2014, staffing companies employed an average of 3.15 million temporary and contract workers per week, according to the American Staffing
Association. Staffing firm employment increased by 6.2 percent from the first quarter to the second quarter of the year, adding more than 182,600 workers.
Source: BLS
Year-over-Year Growth in Temp Employment

TEMP EMPLOYMENT AT AN ALL-TIME HIGH“ Once considered a gateway to permanent employment, temporary work is now the new normal. Many workers prefer the flexibility and access to a wide
variety of work assignments that temporary positions offer. Technology and new talent platforms have made it easier for independent workers to find jobs.
Approximately 65 percent of workers with temp jobs say that the Internet has made it easier to find work.
“Many people build successful careers as temporary workers and don’t pursue permanent placement. They like the flexibility, and they like having a variety
of worker experiences. Some workers prefer assignments within their wheelhouse. Others like to try out new functions. Either way, you get exposure to
different learning opportunities.” ~Eric Gilpin, President of CareerBuilder’s Staffing & Recruiting Group
According to recent research by the Freelancers Union, 43
percent of freelancers expect their income to increase, and
77 percent say that they earn the same or more wages than
they did before taking on independent work. According
to government reports, freelancers contribute an estimated
$716 million annually in earnings to the economy.
Millennials, especially, are freelancing more than any
other age group. According to the report, 38 percent of 18
to 34 year olds work as temporary workers.
6
Top Reasons for Working at Temp Jobs
Source: Freelancer’s Union
TEMP WORK IS NO LONGER A STEPPING STONE
Source: Harvard Business Review
Temp Work Segments

7
TEMP EMPLOYMENT AT AN ALL-TIME HIGH
The Dallas-Fort Worth area has created almost 24,000 temp jobs in the temp sector in the year ending in July 2014. That is a growth rate of 23 percent
year-over-year, which is three times the level of the segment nationwide and the highest among large metros.
Staffing experts cite
increases in business
relocation and demand for
technology workers, along
with oil and gas companies’
labor demands as reasons
for the large growth in
temp employment.
In the Dallas area, temp
spending totaled $3.4
billion last year. Almost
half of this spend was on
temp positions in light
industrial, construction,
and office positions. The
rest was for high-paid
workers in technology,
engineering, healthcare,
and finance and
accounting.
CITY HIGHLIGHT: DALLAS – TEMP CAPITAL OF THE U.S.?“ “There’s not much mystery here. Employment is growing much faster in Dallas, so it makes sense that staffing would be outpacing
everywhere, too.” ~ Richard Wahlquist, CEO of the American Staffing Association
One-Year Growth in Employment Services, July 2014
Source: Dallas News

THE PROGRESSION OF THE “EMPLOYEE”
8
DRIVERS OF CHANGE
Over the past decade, the definition and image of employees has changed. With the influence of social media, mobile apps, and constant
connectivity, technology is seamlessly woven into workers’ everyday reality, blurring the distinction between traditional hours of work, school, and
personal life. And employers have shifted their view of workforces as well - workers were once considered disposable cogs and now have become the
most important asset that a company has. Both companies and workers are focused on the 3 Cs: connectivity, communication, and collaboration.
The global economy has an impact on the evolution of workers and how we work. Rapidly advancing technology, constantly shifting
competitive pressures, and destabilizing events around the world occur so frequently that employers have difficulty predicting what will
happen in the short-term and long-term future. This uncertainty is causing more organizations to seek out flexibility.
Technology has been a tremendous driver in the changing nature of work. Technologies such as mobile devices, cloud computing, and web
conferencing have impacted connectivity across the globe. Workers can now work from anywhere and still be able to collaborate and share
information 24/7 with their peers.

9
WHO ARE “EMPLOYEES” TODAY?
THE CHANGING WORKPLACE
In the past, workers were full- time employees of a company who worked fixed hours in the corporate office, whereas today work has become
truly flexible. Companies are relying more and more on temporary work arrangements to bring in the talent they need for specific projects. And
there is no longer a need for most of these workers to work from an office or to work from 9 to 5. Leading companies, such as Unilever, Aetna,
and American Express, are rolling out flexible work arrangements for their workers across the globe.
Many years ago, employees would stay employed with companies from the time they began their career to retirement. Even ten years ago,
employment advisors would tell people to expect to have approximately seven or eight jobs over a 30-year career. Now the tenure of
employment positions is shorter than it has ever been before. According to experts, the average tenure of a Fortune 500 CEO is now down to
less than four years. And most people will likely go through 15 or 20 job changes over a 50-year career.
While contingent, subcontracted employment has always existed, the share of jobs that are temporary is increasing, especially in positions that
were historically full-time and salary-based. For example, in the world of academia, where full-time professors are on track for tenure, many
college campuses now are hiring adjunct faculty who are part-time and contingent. Since 1975, the percentage of faculty that was adjunct has
risen from 30 percent to over 50 percent.
There’s been much talk in the news and media recently about the design of the workplace. Organizations are trying to optimize costs by
reducing unneeded office space, especially when workers can effectively work from anywhere, and prefer to do so. The “office” in many
companies is becoming a collaboration hub, where workers can meet face-to-face and spend time connecting with each other. Individual
work, however, is increasingly occurring outside the office altogether.
In the past, workers often carried two devices – their work device and their personal device. With many companies implementing
Bring-Your-Own-Device (BYOD) policies, company provisioned phones and computers are being phased out.

10
THE NATURE OF WORK IS DIFFERENT
Ten years ago, most positions had a career path. Generally, when starting a career, a worker entered a new company at the bottom of the
corporate ladder and then steadily climbed his or her way up to a higher position. For example, in the world of sales, one began as a sales
coordinator, then a sales manager, senior sales manager, sales director, to a vice-president of sales, and so on. However, due to the growing
freelance economy, collaboration platforms, and new management approaches, workers are starting to shape their own career ladders. Some
forward-thinking companies now offer programs where workers can change work preferences twice a year. And other companies even allow
workers to have complete autonomy in which projects they want to work on and who they want to work with.
Collaboration technologies have also played a role in giving workers at any level throughout the organization the opportunity to share ideas,
thoughts, and concepts. Leadership does not come simply by job title alone anymore, but rather by the content and knowledge that is shared,
and the following that is gathered from it.

SOCIAL MEDIA’S USE IN RECRUITING
11
Recent research by CareerBuilder found that 43 percent of employers currently use social networking sites to research job candidates, and an additional 12 percent
plan to start soon.
A report by PwC surveying 10,000 workers worldwide and 500 HR professionals predicts that online monitoring of social media profiles by employers will rise over
the next ten years.
With the entry of recruiters, human resources professionals, and hiring managers on social media, it is important for job seekers to understand this growing arena
of recruiting.
While most social media networks had roots in personal use and have only recently expanded to include business applications, professional networking sites like
LinkedIn allow candidates to brand and market themselves to the job positions and employers they are interested in.
Bullhorn’s recently published annual “Social Recruiting Activity Report” finds that 97 percent of U.S. recruiters use LinkedIn, a slight decrease from the year before.
One of the growing areas of LinkedIn usage is groups. LinkedIn groups give job seekers the opportunity to join communities that are relevant to their profession or
industry or HR and recruiting groups. By joining groups, job hunters can connect with group members and expand their first-degree network or communicate via
direct messages. Having access to recruiters and hiring mangers is often invaluable to those looking for job positions.
Twitter is used by employment experts for real-time communication on topics such as job search advice, on-the-job performance, and work-life balance. Often,
employers use their Twitter accounts to point to job opportunities, even before they are posted on job boards.
Many leading companies actively communicate with their talent communities, giving job seekers the opportunity to follow and engage with them. Recruiters are
increasingly using live Twitter chats to engage with potential talent and keep them aware of upcoming job openings.
Recent research by Bullhorn shows that there are approximately 271 million active Twitter accounts, but the percent using the network has dropped by five percent
from the previous year to 21 percent.
The percentage of recruiters in the U.S. using Facebook rose to 19.3 percent in 2014 from 19.0 percent in the previous year. While LinkedIn is still the predominantly
used network for recruiters, Facebook is the only social network that has had an increase in job search activities this year. Also, while Linkedin job postings receive
twice as many applications as Facebook or Twitter postings, Facebook is the only network through which job applications increased in 2014.
Research shows that often the biggest and best job leads come from a friend, family member, or other acquaintances on Facebook. Companies are increasing their
recruiting presence on Facebook, making it an instrumental resource for job hunting.
LINKEDIN
TWITTER
FACEBOOK

INDUSTRY HIGHLIGHT: SPORTS-RELATED EMPLOYMENT INDEX
12
It’s football season! Actually, October and the fall season is generally considered the time for a wide variety of sports in the United States,
including football, basketball, hockey, baseball and more. According to Bleacher Report, October is the most exciting month for sports fans
since the baseball playoffs are in full swing, the NHL and NBA officially start, college basketball begins, and college football rivalry matches are
being played. Other sports also feature major events in October, such as the Head of the Charles Regatta, one of the world’s preeminent rowing
competitions, that which is celebrating its 50th race this year.
It’s only fitting that in the biggest month for sports we take a peek at
sports-related employment. The increasing popularity of sports and the number
of tournaments played in the U.S. and around the world has caused a surge of
employment in sports-related occupations. The commercialization of sports has
created a large awareness and demand for spectatorship and viewership, leading
to growth in supporting industries such as media, journalism, facilities and
maintenance, marketing and event planning, security, and leisure and hospitality.
The sports industry was projected to grow by $145.3 billion between 2010 and
2015, and is currently full of opportunities in areas such as sports marketing and
sponsorship, sports media, and sports facilities. Over the past 30 years, there has been
large growth in sports management education programs as well, with undergraduate
and master’s level courses and MBAs that have a sports management concentration.
From 1980 to 2010, the number of undergraduate sports management programs in
the United States grew from just three to over 300.
DCR TrendLine Sports-Related Employment Index

13
With the huge growth of the industry, there is ample volume for temporary work positions both within the
core sector and the surrounding industries. Each of the numerous agencies, organizations, and institutions
in the U.S. sports industry employs a number of interns as well.
Among the broad self-employment categories, most sports professionals fall under that of “arts, design, entertainment, sports, and media
occupations.” Approximately 30 percent of those working in this category are self-employed. From 2003 to 2013, among all workers in arts and
media occupations, employment grew by 13 percent and self-employment grew by 17 percent.
“For anyone trying to break into the sports industry at the entry level,
internship experience is critical” ~Carolyne Savini, Senior Vice President of
Recruiting at Turnkey Sports and Entertainment
Temporary Sports Employment Trend
TEMPORARY EMPLOYMENT WITHIN SPOR TS-RELATED OCCUPATIONS “

14
Over the past four years, jobs in all sports-related industries have grown by 12.6 percent, which is more than double the growth of the national job market of 5.5
percent. Wages have also risen, with average wages in sports-related occupations surpassing the national average of $47,947 at $78,455.
On the national level, much of the growth in sports-related jobs has been on the business end, with the category of “Promoters of Performing Arts, Sports, and Similar
Events” growing by 30 percent between 2010 and 2014.
Arts and Media Occupations with an Increase in Concentration of Self-Employment, 2003 to 2013
Source:
Department for
Professional
Employees
TEMPORARY EMPLOYMENT WITHIN SPOR TS-RELATED OCCUPATIONS
SPORTS-RELATED JOBS BY INDUSTRY
Sports Employment by Industry Source: CareerBuilder

Sports Employment Growth by City
Source: CareerBuilder
LOCAL SPORTS-RELATED EMPLOYMENT GROWTH “
15
A report by CareerBuilder and Economic
Model Specialists Intl (EMSI) focused on cities with
national football teams to demonstrate the
multiplier effect and how sports-related jobs
have impacted local economies.
Jobs That Would Be
Added in Non-Sports
Related Industries as a
Result of 100 New Jobs
Being Created in Sports
Teams & Clubs
422
444
187
552
504
539
561
552
434
343
Job Growth in All
Industries (since 2010)
2%
8%
8%
2%
6%
4%
10%
9%
10%
2%
Sports Job
Growth (since
2010)
56%
38%
29%
26%
22%
22%
22%
21%
19%
18%
2014 Sports Jobs
5,660
2,872
7,363
2,079
7,183
3,196
4,033
13,863
10,956
7,622
Pittsburgh, PA
Jacksonville, FL
Atlanta, Georgia
Buffalo, NY
Boston, MA
Cincinnati, OH
Denver, CO
Miami, FL
Dallas, TX
Philadelphia, PA

16
The Bureau of Labor Statistics (BLS) defines this job title as those who participate in organized,
officiated sporting events to entertain spectators. While the news and media is full of stories of
the huge salaries of top athletes, the mean annual wage for athletes and sports competitors was
$71,850 in May 2013. The employment estimate of this occupation is 13,880 with the majority (9,730)
employed in the spectator sports industry. The state with the highest employment for this
occupation is Florida with an annual mean wage of $39,500, followed by Pennsylvania with an annual
mean wage of $116,510.
Top Paying States for Athletes and Sports Competitors
Source: BLS
JOB TITLE FOCUS – ATHLETES AND SPORTS COMPETITORS

17
“Sports is a major part of our culture and a key economic driver in cities nationwide. The growth in sports-related jobs since
2010 is notably higher than that of the national average for all jobs, indicating a greater investment in one of America’s favorite
pastimes.” ~Matt Ferguson, CEO of CareerBuilder “ SPORTS-RELATED JOBS WITH HIGH GR OWTH
9 SPORTS RELATED JOBS WITH HIGH GROWTH
When discussing sports-related employment, the focus is often on the quarterbacks and coaches or even the sideline commentators; however,
sports-related jobs span a wide range of occupations, and some of them are growing rapidly.
Since 2010, jobs across all sports-related industries are up 12.6 percent, more than double the growth in the national job market. Average wages in these
occupations also surpasses the national average of $57,947 at $78,455.
Sports-related employment is particularly important as it often has a strong multiplier effect by creating job growth in other areas beyond athletics.
According to a report by CareerBuilder and Economic Model Specialists Intl (EMSI), 100 new sports-related jobs in Pittsburgh, Pennsylvania have the
potential of creating $46.2 million in earnings for the city along with 422 new jobs in healthcare, sales, food preparation and service, and construction.
Certain sports-related industries have seen strong growth in employment over the past four years. For example, agents and managers have seen a
growth of 16.8%; promoters of performing arts, sports, and similar events with facilities of 30.4%; and sports teams and clubs of 8.6%
Athletes and coaches are far
from the only occupations
that are supported by the
sports industry. Actually,
these professions have seen
the least growth compared
to other sports-related
employment, with coaches
and scouts gaining 7% more
jobs, and athletes and sports
competitors growing by 3%.
Several occupations have
experienced substantial
employment gains since
2010 due to sports-related
industries.
Sports Employment by Occupation

9 SPORTS RELATED JOBS WITH HIGH GROWTH
18

MULTIPLE PRIORITIES, SINGLE GOAL
19
More and more, companies are continuing to leverage a non-employee workforce. Employing this area of labor offers many benefits including
increased flexibility and scalability, along with costs savings. However, the risks and complexities of sourcing and managing non-employee
workers can be daunting.
When managing a contingent workforce program, companies have to deal with and accommodate the priorities and needs of various
parties. Hiring managers want to find workers with the right skillsets and bring them onboard as quickly as possible. Procurement officials are
concerned with lowering cost and managing spend. HR professionals want to ensure worker quality and compliance. IT personnel need to ensure
that any technology selected can be supported, will work with other applications, and will not threaten the security of the company. Executive
management is focused with a total talent management strategy that aligns with business goals.
While many human resource software providers offer basic tools to track contingent workforce populations, and to meet payment and
hourly compliance requirements, they lack detailed and sophisticated management options. Because non-employee workers are paid
differently and operate under different employment rules, it’s important to track them using a different talent management tool. Vendor
Management Systems (VMS) offer a flexible approach to manage contingent workforces. Most VMS software automate the end-to-end life cycle
of managing an organization’s contingent workforce and the suppliers who provide them. Most are cloud-based and offer tools to track time
and deliverables, as well as analytics and forecasting features so companies can manage contingent labor costs and better align workers with
projects.
Often VMS is associated simply with the management of agency-supplied contractors, rather than independent contractors or
Statement of Work project teams. However, advanced VMS technologies are able to support an effective management program that handles
the complexities and requirements of all non-employee labor. The primary mission of VMS goes beyond simply managing spend, and real
value is achieved through improving efficiencies in operations in all areas.
A good VMS technology that will result in a successful contingent workforce program takes into account the multiple priorities of all the
stakeholders, and delivers a solution that meets the single shared goal of eliminating complexity to increase operational effectiveness.

Beyond an organization’s internal stakeholders, the concerns and requirements of external stakeholders also need to be considered. Companies often have
staffing suppliers and contingent workers already in place, with whom they want to maintain successful relationships. Sometimes, organizations already
have a third-party company in place as the Managed Services Provider (MSP).
When compiling requirements to be incorporated into a VMS, companies and VMS providers should also consider the perspective of other parties, such as
their MSP. Often it is the MSP who serves as the primary user of the system and this major stakeholder should be involved in the technology selection and
implementation process.
In order to combat staffing agency resistance, companies can select a VMS that is vendor-neutral, and has features that will be beneficial to suppliers, such
as automated billing and other processes that will reduce supplier costs and efforts. And during implementation, organizations should ensure that there is
a well-defined plan for supplier training, clarify payment terms, and clearly communicate the requirements distribution system.
Understanding that a good VMS solution will fulfill the organizational goal of operational effectiveness while also addressing the priorities of the various
stakeholders makes selecting a VMS that meets business needs less challenging. All good VMS provide the same level of basic features:
Looking beyond these standard features, some industry leading technology providers offer innovative solutions that assist in workforce composition, peer
benchmarking, big data workforce intelligence, social sourcing, and online talent exchanges that include alumni, retirees, and interns.
Strong Vendor Management Systems provide companies with all-in-one capabilities, with flexible administration, intuitive user experiences, business
intelligence, decision support, and anytime access.
A cloud-based, SaaS delivery model that is device independent
Readily available and comprehensive training and support
An automated, fully transparent process
A requirement distribution system that can configured by job type or location
An evaluation of each supplier before they join the program, and over time.
Help in onboarding candidates and verifying compliance requirements
Automating the process of work scheduling, time reporting and approval, and invoicing
Tracking and reporting on contingent workers and program metrics
Integration with enterprise data management systems
Managing a variety of non-employee workers, including temporary staff, independent contractors and freelancers, and SOW workers.
20
BEYOND HR & PROCUREMENT
SELECTING THE RIGHT TECHNOLOGY

21
Social recruiting has been gaining traction in various industries. Recent research studies show that 73 percent of companies have used social media to make hires. Social
recruiting offers many advantages including higher quality candidates and lower time to hire. Companies today are increasingly using social media platforms to find the
talent that suits their needs. Staffing companies are embracing social search capabilities to gain visibility with a large number of job seekers.
Results from a DCR Workforce
survey reveal that the largest
issues holding companies back
from using social recruiting
technology is candidate screening,
the risk of misclassification, and
quality of candidate pool. To
overcome these challenges,
companies should look for a
VMS that assures a unified talent
management system with a
pre-vetted pool of talent, and
includes screening and
classification compliance within
its benefits.
SOCIALLY RECRUITING NON-EMPLOYEE WORKERS
The Typical VMS Platform
DCR Survey: What’s Holding You Back from Using Social Recruiting Technology?

22
Failing to manage your company’s talent is the equivalent of failing to manage your supply chain” ~Peter Cappelli, Professor of Management
at The Wharton School
“Managing supply chains is about managing uncertainty and variability. This same uncertainty exists inside companies with regard to talent
development. Companies rarely know what they will be building five years out and what skills they will need to make that happen; they also
don’t know if the people they have in their pipelines are going to be around.” ~Peter Capelli, Professor of Management at The Wharton School,
Countless studies and surveys show that there’s no doubt that talent management is at the top of the HR agenda. This is because it’s also at the top of CEO and executives
lists of concerns. A survey by McKinsey & Co. of CEOs and business leaders around the world revealed that approximately 50 percent worry that their talent management
practices are not aligned with business outcomes. And more than half felt that within their organizations there was insufficient commitment to developing talent and
insufficient time spent on talent management in general.
A recent survey reported that approximately two-thirds of U.S. employers do not do any kind of planning for their talent needs. These companies basically wait for a need
to develop or a vacancy to arise and then try to find suitable talent to fill the position.
As companies realize the importance of anticipating labor shortages and planning for their talent needs, the principles of supply chain management become more
relevant to talent management. Talent supply chain management (TSCM) is a proactive approach to securing and optimizing talent supply and services through a
supplier network to meet the talent needs of companies. TSCM combines the disciplines of workforce analytics, strategic workforce planning, talent sourcing, and
managing supplier networks
Studies show that a large percentage of talent buyers face shortages for key skill sets. These organizations often turn to temporary labor to fill critical shortages and key
high-demand roles within the organization. In a recent survey 59 percent of companies reported that attracting and retaining high-caliber temporary talent is a core
strategy within the organization. As such, when planning a talent supply chain management strategy, companies need to consider and make strategic decisions regarding
both their employee and non-employee workforce.
GETTING STARTED WITH TALENT SUPPLY CHAIN MANAGEMENT
“ “

To develop an effective Talent Chain Supply Management (TCSM) strategy, an organization should analyze three main elements:
After this base analysis, companies should engage in workforce modeling, which involves asking the following questions:
Following this analysis HR department, with support from hiring managers and operations, can begin developing their talent supply chain.
1) Talent Supply Change Assessment - What does our workforce look like currently, and is it optimized for supporting today’s business needs and the
needs of the future?
2) Environmental Factors – What external trends, issues, and potential risks will have an impact on the business in the near-term and the long-term?
3) Historical Data – how have these types of environmental factors impacted the company in the past, and what was the reaction?
• What is the current composition of the workforce by worker type?
• What percentage consists of independent contractors, temp workers, or SOW workers?
GETTING STARTED WITH TCSM
BUILDING A TALENT SUPPLY CHAIN
Overview of the Talent Supply Chain

24
The talent supply chain consists of three main phases: attraction, engagement, and retention. Each phase is then broken down in two major activities.
1. Brand Establishment
According to CareerBuilder, 49 percent of workers say that an employer’s reputation or employment brand has a significant influence on their decision to work with
that organization. Building an employment brand aids companies in attracting qualified candidates and creating a community of talent which is eager to work for the
organization.
To create an employer brand, the first step is determining the characteristics that define the brand and the organizational culture, and then understanding what ideal
workers look for in a company. With this information, employers can create a message that accurately reflects the ideal brand of the company.
2. Candidate Attraction
The candidate attraction stage is where companies broadcast their employment message to target candidates, and engage them to take interest in opportunities.
Understanding how job seekers apply to certain jobs is essential to determine channels on which to disseminate the employment messaging. Overall, analyzing the
reach a company has with their target candidate pool provides a benchmark for building and implementing a candidate attraction plan.
Attraction
Talent Supply Chain Process

25
1. Candidate Experience
Once a candidate is aware of an opportunity and motivated to apply, that candidate is engaged with the organization. It is important for organizations to have a
well-defined process to continuously engage with potential workers throughout the application process, so that the candidate’s experience with the company is
positive. Even if the candidate does not actually fill the position, they should leave with a good impression of the company, motivating them to apply again in the future.
2. Onboarding
Experts say that the majority of turnover in companies occurs in the first 90 days of the job. As such, onboarding has become a focus for human resources and training
departments. New hire orientation, training and mentoring programs are tools for keeping new employees engaged within the first 90 days. The onboarding process
should provide new hires with the knowledge, tools, and contacts that they need to succeed in their new positions.
Research shows that an effective onboarding program reduces new hire turnover and, consequently recruitment costs. It also tends to increase the average tenure of
the workforce. Finally, it helps to reinforce the employment branding messages as it encourages current workers to become the strongest brand advocates.
Throughout the process, organizations should evaluate their activities across the entire talent supply chain, and look beyond the common measurement of evaluating
the effectiveness of the process by how efficient they are at bringing people into the organization. Talent supply chain analytics should not stop at the point where a
candidate becomes a worker, but consider the continuous flow of talent through the business, including how long they stay and at how effectively suppliers perform
in delivering talent.
Research by The Conference Board recommends that HR leaders should think like economists and maintain a 360-degree view of their key performance indicators,
which includes also looking at external factors such as regulatory changes, economic outlook, and labor supply trends.
1. Worker Engagement
Human resource experts say that long-term employee retention is the product of the culture of the organization and the company’s commitment to its employment
brand.
Improving retention includes engaging workers through recognition programs, job rotations, and career paths.
2. Succession Planning
A clear goal of talent supply chain management is to anticipate talent needs. Part of this forecasting of needs is tied to succession planning. Ensuring leadership
continuity and building talent from within is important for organizations to maintain a competitive edge.
Succession management is a crucial part of managing the company’s pipeline of talent. Current high-performing workers should be top-line candidates for anticipated
open positioning. To develop an internal talent development plan, companies should track internal candidate talent, and constantly monitor for openings for which
they might be a fit. The goal is to lead to the development of a strong candidate management system and an internal referral program.
Engagement
Retention
TALENT SUPPLY CHAIN ANALYTICS

METHODOLOGY
The DCR National Temp Wage 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 Form employment
Job Opening
All Export
All Import
Average Hourly Earnings of All Employees Total Private
Aggregate consultant data on job market parameters
26
SOURCE DATA

REFERENCES
http://www.ere.net/2014/09/05/augusts-142000-jobs-is-weakest-growth-this-year/?utm_medium=twitter&utm_source=Jacco+Valkenburg
http://online.wsj.com/articles/private-businesses-create-204-000-in-august-adp-says-1409833982
http://www.shrm.org/about/pressroom/pressreleases/pages/2014-september-line-report.aspx
http://blogs.wsj.com/briefly/2014/09/05/5-takeaways-from-the-august-employment-report/
http://blogs.wsj.com/briefly/2014/09/04/5-things-to-watch-in-fridays-jobs-report-2/
http://blogs.wsj.com/briefly/2014/09/05/august-jobs-report-the-numbers/
http://www.wsws.org/en/articles/2014/09/02/temp-s02.html
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http://wotv4women.com/2014/09/03/how-you-can-thrive-in-todays-changing-workforce/
http://jobs.aol.com/articles/2014/09/04/freelance-increasingly-its-how-america-works/
http://blogs.hbr.org/2014/09/breaking-down-the-freelance-economy/
http://money.cnn.com/2014/09/10/news/companies/veterans-affairs-hiring-blitz/
http://www.4029tv.com/money/5-big-trends-shaking-up-the-job-market/27887400
http://www.measureofamerica.org/one-in-seven/
http://www.careerbuildergovernmentsolutions.com/wp-content/uploads/2009/07/Talent-Supply-Chain.pdf
http://www.kellyocg.com/uploadedFiles/7-KellyOCG/2-Knowledge/Talent_Supply_Chain/Talent_Supply_Chain_Management_Readiness.pdf
http://knowledge.wharton.upenn.edu/article/talent-on-demand-applying-supply-chain-management-to-people/
http://www.kellyocg.com/uploadedFiles/7-KellyOCG/2-Knowledge/Talent_Supply_Chain/Does%20Your%20Talent%20Supply%20Chain%20Measure%20Up.pdf
http://www.theguardian.com/money/2014/aug/18/social-media-monitoring-employers-rise-pwc
http://www.theworkbuzz.com/find-the-job/networking/employment-related-social-media-you-should-be-using/
http://www.bizjournals.com/kansascity/news/2014/09/12/facebook-twitter-linkedin-job-hunt-tools.html?page=all
http://pages.bullhorn.com/rs/bullhorninc/images/2014%20Social%20Recruiting%20Activity%20Report.pdf
http://bleacherreport.com/articles/1094743-ranking-the-best-months-of-the-year-for-sports-fans/page/13
http://www.forbes.com/sites/jasonbelzer/2014/02/05/sports-industry-101-breaking-into-the-business-of-sports/
http://business.itbusinessnet.com/article/Sports-Related-Employment-Is-on-the-Rise-and-Creating-Jobs-in-Other-Industries-According-to-New-Research-from-Career-
Builder-and-Economic-Modeling-Specialists-3466363
http://www.bls.gov/oes/current/oes272021.htm
http://www.talentmgt.com/blogs/2-beyond-x-y/post/your-future-employee-in-2030-are-you-ready
http://www.higheredjobs.com/Articles/articleDisplay.cfm?ID=291
http://www.organisationsolutions.com/Resources/Strategy-Execution/Workplace-Transformation-and-the-Changing-Nature-of-Work
http://www.forbes.com/sites/joshfreedman/2014/04/25/the-decline-of-employment-how-work-has-changed-in-the-modern-university/
http://www.forbes.com/sites/jacobmorgan/2014/09/02/the-evolution-of-the-employee/
http://www.dallasnews.com/business/columnists/mitchell-schnurman/20140913-schnurman-just-in-time-hiring-takes-off-in-dallas.ece
http://www.workforce.com/articles/companies-turning-to-tools-to-manage-contingent-labor
http://dpeaflcio.org/programs-publications/issue-fact-sheets/professionals-in-the-contingent-workforce/
27

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
7815 NW Beacon Square Blvd. #224 Boca Raton, FL 33487
sales@dcrworkforce.com | trendline@dcrworkforce.com
ABOUT DCR
© 2014 DCR Workforce, Inc. All Rights Reserved. DCR Workforce and Smart Track are Registered Trademarks. CCO — 082912
28
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