What is the business of managing contingent or contract labor called?

Workforce Vision * Post: Bill Inman * Human Capital * Contingent Workforce * Globalization * Trends * Outsourcing

NASA's Human Capital Strategy

With the highly complex, expensive, and risky missions of NASA surely their Human Capital Management strategy must be of critical importance to their success. This strategy is available to view here and outlines the following subjects:

• Overview
• Introduction
• Drivers
• Architecture & Improvement Initiatives
• Pillar 1 - Strategic Alignment
• Pillar 2 - Strategic Competencies
• Pillar 3 - Learning
• Pillar 4 - Performance Culture
• Pillar 5 - Leadership
• Implementation
• Measurement
• Accountability for Results
• App-A: Roles and Responsibilities
• App-B: NASA's Human Capital Challenge
• HCM Plan (Printable Version
• Implementation Plan (Printable Version)
• Implementation Plan
• Human Capital Accomplishment Report (PDF)
• Integrated Human Capital Management Tools
• Human Capital Legislation (HCL)

Workforce Vision * Post: Bill Inman * Human Capital * Contingent Workforce * Globalization * Trends * Outsourcing

The Future of Staffing is Crowdsourcing

In my humble opinion the future of staffing lies in Crowdsourcing. Individual recruiters in local markets, with local connections and local talent pools will be able to recruit for open positions much faster and less expensive than the branch staffing and internal HR department models of today.

To better understand crowdsourcing and how it may impact talent acquisition I recommend watching this video of Don Tapscott, best selling author of Wikinomics: How Mass Collaboration Changes Everything, as he speaks at a recent tech conference. Also view the website of Cambrian House, the Canadian Crowdsourcing company that hosts the video. If you don't have time to watch the whole video I recommend moving ahead to the 36th minute where the evolution of Crowdsourcing is explained:

00:36:17

Economic Revolution. Crowdsourcing as natural extension of decreasing transaction costs which have been steadily dropping ever since industrial age. Industrial Age. Extended Enterprise. Business Webs. Mass Collaboration.

WATCH THE VIDEO HERE

Workforce Vision * Post: Bill Inman * Human Capital * Contingent Workforce * Globalization * Trends * Outsourcing

Bill Gates: Skilled foreign minds needed in U.S. or competitive advantage might be lost

Before a U.S. Sentate panel on March 7th Bill Gates competitive advantage is being threatened by U.S. immigration laws. Gates wants to lift the U.S. restriction of temporary H-1B visas, which allows foreign workers with at least a bachelor's degree to work in the U.S. from 65,000 a year.

'We are failing to live up to our obligation to make the investments needed to make sure that the U.S. remains competitive in the future,' Gates told the Senate Health, Education, Labor and Pension Committee. 'Our economic future is in peril.'

Gates said the United States should strengthen math, technology and science education so the nation can double the number of graduates in those areas by 2015.

See the whole story at the financial times here.

Workforce Vision * Post: Bill Inman * Human Capital * Contingent Workforce * Globalization * Trends * Outsourcing

How Companies Find Candidates to Hire - CareerXroads 2006 Study

A recent CareerXroads study, conducted by Jerry Crispin and Mark Mehler, was conducted to reveal how companies found new candidates in 2006. Here are the results:

Click on Image to Zoom In

Data was gathered by:
* CareerXroads asked 200 major companies to participate; 54 firms responded within 30 days, and of that number, 40 submitted fully qualifying information.
* The 40 companies participating in the survey employ 1,281,429 people.
* 1,880 recruiters filled 207,702 full-time U.S. openings in 2006.
* Approximately 60% of all the hires reported were for exempt-level employees (58% of internal fills and 64% of external fills.)
* Contract, part-time, and contingent workers are a growing percentage of the workforce; only 10% of the respondents have no contract workers.

Workforce Vision * Post: Bill Inman * Human Capital * Contingent Workforce * Globalization * Trends * Outsourcing

Boom expected in hiring security-cleared workers

In 2007 will see a surge in the hiring of workers with security clearances as a result of the many multimillion-dollar Department of Defense contracts that were awarded in December 2006.

Security Cleared Workforce Data:

• 18 Months - The average time to thoroughly vet a prospective worker with no security clearance. (Office of Personnel Management reports that clearances can be reduced to six months or less)
• More than three-fourths of government contractors agreed that the need for cleared employees to work on federal contracts had increased, in the past five years:
• “greatly” (51 percent)
• “somewhat” (26 percent)
  
  
• 50% of the respondents of a 2006 Federal Computer Week survey believed the security clearance process, run by the Defense Security Service and OPM, had:
• worsened (31 percent)
• not improved at all (24 percent) in the past year.
  
  
• There are some 79,500 contract employees working on federal information technology projects.
• Of the top 10 locations seeking cleared candidates, seven are in the national capital area.

1. Chantilly, Va.
2. Washington D.C., metropolitan area
3. McLean-Arlington, Va.
4. El Segundo, Calif.
5. Fairfax-Reston, Va.

In terms of salary:

• Cleared workers sent to Iraq can earn on average $98,400
• Cleared workers earned on average $78,400 in Maryland
• Cleared workers earned on average $76,500 in Virginia
• Arizona ranked tenth in the nation at an average earning of $64,400.
• Candidates with higher clearances can earn on average $10,000 more a year than workers with only a secret or confidential clearance.

Boom expected in hiring security-cleared workers. [Clearancejobs.com, Federal Computer Week]

Workforce Vision * Post: Bill Inman * Human Capital * Contingent Workforce * Globalization * Trends * Outsourcing

U.S. Contingent Workforce Statistics

Jobs

Staffing companies match millions of people to millions of jobs.

• 2.9 million people per day are employed by staffing companies.
  
• 12 million temporary and contract employees are hired by U.S. staffing firms over the course of a year.
  
• 79% of staffing employees work full time, virtually the same as the rest of the work force.

Flexibility

The staffing industry offers flexibility to both employees and companies. People can choose when, where, and how they want to work. Companies can get the skills they need to keep fully staffed during busy times.

• 66% of staffing employees say flexible work time is important to them.
  
• 64% of staffing employees report that their work gives them the scheduling flexibility and the time for family that they desire.
  
• 90% of client businesses say staffing companies give them flexibility to keep fully staffed during busy times.

Bridge

Temporary and contract work provides a bridge to permanent employment. People can try out a prospective employer and showcase their skills for a permanent job.

• 88% of staffing employees say that temporary or contract work made them more employable.
  
• 77% of staffing employees say it’s a good way to obtain a permanent job.
  
• 80% of staffing clients say staffing firms offer a good way to find people who can become permanent employees.

Choice

Many people choose temporary and contract work as an employment option. They can select their work schedules and choose among a variety of diverse and challenging assignments.

• 67% of staffing employees say choice of assignments was an important factor in their job decision.
  
• 23% of staffing employees have little or no interest in a permanent job—they prefer the alternative arrangement over traditional employment.
  
• 33% of staffing employees say they work for a staffing company because they like the diversity and challenge of different jobs.

Training

The staffing industry provides free training for millions of temporary and contract employees to help meet today's demand for skilled workers.

• 90% of staffing companies provide free training to their temporary employees.
  
• 65% of staffing employees say they developed new or improved work skills through their assignments.
  
• 40% of staffing employees say they choose temporary or contract work as a way to obtain employment experience or job training.

Staffing Statistics - Staffing Facts. [American Staffing Association]

Workforce Vision * Post: Bill Inman * Human Capital * Contingent Workforce * Globalization * Trends * Outsourcing

Top Business Trends for 2007

Top Small-Business Trends for 2007 as stated by Vistage, the world's largest CEO membership organization:

1. Increased Globalization


2. Heightened M&A Activity


3. Increasing divide between Baby Boomer and Generation Y workers

The above trends revolve around cost cutting, increasing profitable growth, and human capital.

“The global economy is increasingly being fueled by small businesses,” said Rafael Pastor, Vistage CEO and Chairman of the Board. “In 2007, more small businesses will not only experiment with global opportunities, but significant percentages of their growth and ability to compete will depend upon it.”

Vistage sees many of its members in the $50 - $100 million range either recently having gone through a merger or acquisition, or are anticipating one. In fact, a recent poll of Vistage members revealed that more than 50 percent are considering a merger, acquisition or both in 2007 as a way to help their businesses grow.

With staffing the No. 1 concern of small and medium-sized businesses executives, a new challenge will impact their ability to hire and retain skilled employees in 2007: a clash between work styles and expectations of Boomers vs. Gen Y. In many cases, Boomer executives are not creating work environments that fit the Gen Y mindset. Other Boomers are actively seeking out and catering to younger, less experienced employees because of their creativity, knowledge of new technologies and different viewpoints on business.

These trends are based on feedback and issues raised by Vistage members. Vistage International has more than 13,000 members worldwide who meet regularly to discuss their most pressing business issues and opportunities.

Vistage Reveals Top Business Trends for 2007. [Press Release]

Workforce Vision * Post: Bill Inman * Human Capital * Contingent Workforce * Globalization * Trends * Outsourcing

Demand-Driven Workforce Management

Kronos', a leader in technology for workforce time tracking, descrbes "Demand-Driven" Workforce Management on their website. This exemplifies a major advantage to utilizing a contingent workforce which is the reduction of labor costs when a workforce can be easily augmented or cut back in conjuction with company and customer needs.


When the workforce is not aligned with demand (as in the above chart), your organization risks being overstaffed against customer volume, production workloads, or the patient census, all of which increase your payroll costs. Worse, it can also lead to understaffing and the inability to meet your customer service and quality standards. Rectifying the situation may require excessive use of overtime and premium labor.
Demand-Driven Workforce Management helps you to perfectly align the workforce with demand. As a result, you can reduce labor costs by minimizing overstaffing and improve quality by avoiding understaffing. Most important, your frontline managers can take a more proactive role in improving business performance. They are better able to manage responsibilities associated with staffing budgets, labor law and policy compliance, and employee satisfaction.

The Demand-Driven Workforce. [Kronos]

Workforce Vision * Post: Bill Inman * Human Capital * Contingent Workforce * Globalism * Trends * Outsourcing

The Talent Management Continuum as Segmented by Taleo

Click on the above image for a larger view

Source: Taleo

Workforce Vision * Post: Bill Inman * Human Capital * Contingent Workforce * Globalism * Trends * Outsourcing

Managing Your Contingent Workforce

Contingent Workforce Strategies has published group of articles on managing external contractor and temporary worker labor forces entitled "Managing Your Contingent Workforce." The articles provide a solid knowledge base for professionals who seek to gain cost, administrative, and risk control over their contingent workers.

Managing Your Contingent Workforce. [Contingent Workforce Strategies] {PDF hosted by ContingentWorkforce.org}

Workforce Vision * Post: Bill Inman * Human Capital * Contingent Workforce * Globalism * Trends * Outsourcing

Blue Collar Temporary Workforce To Continue Growing In 2007 Despite Moderating Economic Growth

Staffing Industry Analysts forecasts Temporary Staffing for Industrial Workers To Expand A Solid 5% Next Year After 7% Growth In 2006

The forecast states "the growth of temporary industrial jobs will be approximately the same as the overall growth rate of U.S. temporary workers. Temporary industrial jobs, which have been growing rapidly to keep pace with demand from largely cyclical industries, comprise 4% of the total industrial workforce. In 1980, less than 1% of workers in industrial occupations were employed on a temporary basis."

Staffing Industry Analysts CEO Ron Mester said, "Temporary industrial job growth is slowing somewhat as the economy moderates, but it will continue to grow solidly in 2006 and 2007. For job seekers, the opportunities are with every kind of employer – from small business to the Fortune 50. For employers, temporary workers will play an increasingly important role in remaining competitive in a global marketplace where employment needs change quickly."

Facts from the Forecast:

* The South and the Midwest are the geographic regions with the highest proportion of production and transportation jobs.
* The Sunbelt States have the highest proportion of employment in construction.
* Building and grounds-keeping employment is relatively strong in vacation and retirement metropolitan areas.
* Installation and repair employment is highest in the South. * Overall, industrial temporary staffing is expected to grow $2 billion to $28 billion in 2006.
* Industrial temporary staffing is the largest segment of the temporary staffing industry, employing roughly half of all temporary workers.

Blue Collar Temporary Workforce to Continue Growing in 2007 Despite Moderating Economic Growth. [Staffing Industry Analysts]

Workforce Vision * Post: Bill Inman * Human Capital * Contingent Workforce * Globalism * Trends * Outsourcing

Professional Employer Organizations (PEOs) will grow 8% in 2007

An industry that seemed to have problems because of State regulations and co-employment litigation has continued to persevere and gain momentum on the backs of the industries largest players.

ADP grew revenue nearly 27% between 2004 and 2005, the fastest rate in the industry. Large PEOs are gaining competitive advantage because of:

• Economies of Scale


• Well diversified employee skills pools which diffuses workers' compensation risk


• Technology advances leading to increased efficiency and automation


• Up-selling payroll service only clients
  
  The top 5 PEOs (by revenue) are:
  


• ADP TotalSource of Miami, FL. $6.97 billion. The company had 5,700 clients and 139,000 worksite employees. Gross PEO revenue grew 26.9% from 2004 to 2005.


• Administaff Inc. of Kingwood, TX. $6.63 billion. The company has 5,000 clients and 94,000 worksite employees. Gross PEO revenue grew 23.4% from 2004 to 2005.


• Gevity HR Inc. of Bradenton, FL. $4.77 billion. The company had 8,200 clients and 136,600 worksite employees. Gross PEO revenue grew 10.8% from 2004 to 2005.


• Paychex Business Solutions of Rochester, N.Y. $2.48 billion. The company had 3,300 clients and 59,000 worksite employees. Gross PEO revenue grew 8.6% from 2004 to 2005.


• TriNet Group Inc. of San Leandro, CA. $1.67 billion. The company had 1,100 clients and 16,600 worksite employees. Gross PEO revenue grew 20.6% from 2004 to 2005.
  Source Information:
  
  Staffing Industry Analysts Ranks Top 25 PEOs. [Staffing Industry Analysts]
  

Workforce Vision * Post: Bill Inman * Human Capital * Contingent Workforce * Globalism * Trends * Outsourcing

2006 Workforce Trends

The Herman Group, workforce futurists based in North Carolina, published their 2006 workforce trends list. These trends include:

1. Intensifying competition for qualified workers.
2. Gradually increasing attention to employee retention.
3. Increasing investment in older workers.
4. Shift in retirement plans to lifetime lifestyle funding.
5. Continued off-shoring of some work, coupled with return of other work.
6. Larger investment in corporate training.
7. Growth in telecommuting.
8. Expansion of staffing industry.
9. Heightened flexibility in work arrangements.
10. Employer dissatisfaction with product of schools.

Read details at:

2006 Workforce Trends by the Herman Group. [The Herman Group - Anita Cambell]

Workforce Vision * Post: Bill Inman * Human Capital * Contingent Workforce * Globalism * Trends * Outsourcing