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1 DEMAND
2 DEMAND ABOUT TABLE OF CONTENTS Kforce, one of the nation s largest professional staffing and solutions firms, polled over 1,600 companies of all sizes from a broad spectrum of industries. Leaders shared insights into their organizations inclusive human capital strategies, including both permanent and flexible talent. Their responses provide insights into the impact of today s labor market and what managers are focusing on to remain competitive in the war for highly skilled talent resources. DEMAND 1 Variances in Team Size 2 Volume of Talent Resources Acquired 3 Experience Level of Talent Resources 4 Talent Resources Lost to Other Opportunities 5 Length of Talent Acquisition Process 6 Effectiveness of Talent Acquisition Process 7 Satisfaction Level of Talent Acquisition Timeline 8 Top Threats to Securing Talent 9 Importance of Talent Retention 10 Top Talent Retention Factors 11 Annual Merit Increases 12 Performance-based Bonuses
3 DEMAND Question: Did you increase the size of your team in the past year? 52% 52% say say YES YES TEAM AWESOME Many companies are on a talent acquisition spree. According to the Bureau of Labor Statistics (BLS), 2014 marked the highest employment levels in U.S. history at over 140 million employed, surpassing the previous peak of 138 million employed in January FULL TIME EMPLOYEE CONSULTANT CONSULTANT FULL TIME EMPLOYEE 1
4 DEMAND Question: How many talent resources has your department onboarded in the past 12 months? 73% have onboarded talent resources 53% report % report 6-11 Hiring continues at a steady pace. More than half of managers who acquired talent in 2014 reported one to five additional resources. This reflects steady U.S. job growth over 47 consecutive months of increased employment from October 2010 to September 2014, according to the BLS. 27% report zero 2
5 3 DEMAND Question: Of the talent acquired, what was the experience level? 1 EXPERIENCED CANDIDATES 4 SENIOR LEVEL INTERMEDIATE LEVEL 3 ADVANCED LEVEL ENTRY LEVEL 2 The talent acquisition boom isn t focused on just recent graduates. Among managers who are acquiring talent, the overwhelming majority say they re looking for more than just entry-level talent. Not only are senior-level workers more difficult to find, but they normally demand a higher level of compensation and better benefits to make a career change.
6 4 DEMAND Question: Have you lost talent resources to other opportunities in the past 12 months? More Money 58% Nearly 3 out of 5 managers lost talent to outside opportunities. Better Benefits More than half of managers say they lost talent to other opportunities last year. In an environment where skilled workers are in high demand, it is important to focus on retention. Even if talent resources aren t actively seeking a new job, the high demand for skilled workers can result in aggressive recruiting by competitors.
7 5 DEMAND Question: How quickly were you able to identify, qualify and acquire talent resources? 54% 54% OPPORTUNITY TO IMPROVE have a talent acquisition process exceeding 30 days 15% 31% 38% 10% 6% Most managers say it takes more than 30 days to acquire talent. Many top candidates will have several offers continuing throughout the talent acquisition process. Organizations with the most streamlined processes will have the best chance to lock down top candidates. < 15 days days days days > 90 days
8 DEMAND Question: During the acquisition process, have you lost talent resources to other opportunities? x x x x x x 56% lost applicants during the acquisition process In 2014, the BLS reported job openings at a 13-year high. Not only is the supply of qualified candidates low, but the demand is high, and the best candidates in the market are being hired quickly. Making quick decisions and having an agile talent acquisition process are vital to securing top talent. 6
9 7 DEMAND Question: Are you satisfied with the timeline of your talent acquisition process? 4 10 out of managers are concerned about acquisition timelines Most managers say they are satisfied with their talent acquisition process. However, the same group said they lost candidates due to the lengthy hiring process. A satisfactory process is one that moves and changes with the market. The best way to remain competitive is to closely monitor your talent acquisition process and seek opportunities to remove unnecessary steps.
10 8 DEMAND Question: How would you change your talent acquisition process? #1 Shorten Steps toward Position Approval #2 Improve Compensation #4 Abbreviate Management Approvals in the Process #6 Enhance Benefits Package #3 Utilize External Resources #5 Reduce Number of Interviews #7 Streamline Background Checks Two factors of the acquisition process that managers would change most include shortening steps toward position approval and improving compensation offerings. Many highly skilled positions are currently experiencing a near-zero unemployment rate, meaning candidates already have a new opportunity before they leave their current company. A combination of speed and competitive compensation can be key elements in the war for talent.
11 DEMAND Question: Is retention a concern? 6 out of 10 managers are concerned that talent might split! More than half of managers say employee retention is a concern for their firm. Over the past 10 years, the U.S. has seen some of the highest unemployment rates in the country s history. In that type of environment, organizations weren t concerned with retention. However, in the new labor market, the supply of qualified candidates is extremely low. As this trend continues, many organizations may find the best resources are the ones they already have. 9
12 DEMAND Question: What retention strategy works best for your organization? CULTURE COMP Culture takes the lead! BENEFITS PACKAGE EMPLOYEE PERKS A vast majority of managers say corporate culture is one of the best strategies to retain talent. The quality of life an organization offers can be as important as compensation. Forty percent of American workers describe their work environment as very or extremely stressful, which can lead to health problems and missed work. Building a corporate culture that adds to the overall quality of life can pay off in a productive and happy staff. 10
13 DEMAND Question: What were the average annual merit increases awarded in the past year? 2.0% - 3.9% 82% 0.0% - 1.9% 4.0% - 5.9% 10% 6% 6.0% 2% Most managers say their companies provide annual merit increases, but the vast majority of organizations only provide a 2-4 percent increase. Accourding to the BLS the Consumer Price Index increased 4 percent over the past three years combined. If an annual increase is only enough to compensate for the cost of living, valued employees will likely be able to find more competitive salaries elsewhere. 11
14 DEMAND Question: Did your organization provide bonuses based on performance? 73% gave bonuses based on performance Most organizations give some sort of annual increase based on revenue or cost of living, but what about the overachievers? Bonuses based on performance are an inexpensive way to recognize employees who exceed expectations, while reinforcing corporate culture and strengthening employee retention. 12
15 DEMAND How can you attract, secure and retain top talent in 2015? Leverage Kforce s 2015 Talent & Salary Guide to help gain a competitive edge! Topics include: Current talent landscape and the driving force behind increased demand for contingent resources Salary data customized by location and company size Consultant pay vs. permanent compensation TechSalaryGuide.com FinanceSalaryGuide.com ABOUT KFORCE Kforce is a professional staffing services firm. Our name stands for KnowledgeForce describing our highly skilled professionals, knowledge gained from over 50 years of experience, and the power of our team to provide the Right Match. We provide flexible and direct hire staffing professionals in Technology and Finance & Accounting, engaging over 23,000 highly skilled professionals annually with more than 4,000 customers. At Kforce, Great People = Great Results SM. Our national network of 60 offices, two national recruiting centers, and over 2,000 staffing specialists supports our ability to meet the needs of customers of all sizes, including 70% of the Fortune 100. Our vision is to be the firm most respected by those we serve. Our client centric Knowledge Staffing Model allows for on-demand identification and delivery of top talent through progressive recruiting strategies and advanced technologies
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