2009 Workforce Trends Study Overview
Summary of Findings
Companies are challenged managing a diversified workforce in today’s changing global economy. A recent study commissioned by Yoh Talent Solutions uncovered an alarming lack of workforce control. The survey, completed by more than 150 business leaders from leading companies nationwide in Q1 2009, examined organizations’ approach to managing a responsive and productive workforce, inclusive of the flexible workforce. Results show that workforces are fragmented, lacking centralized management, and are not optimized to withstand economic turmoil or support organizational excellence. Roughly 70 percent of business leaders surveyed reported their company has a strategic workforce plan in place, but on average, only 25 percent have the ability to calculate
spend and ROI outside their full‐time employee base.
Overall Workforce Reduction in All Segments
Due to the ongoing economic downturn, firms are decreasing all segments of their workforce. The categories with the least amount of impact also are those with the fewest controls in place and typically include workers with the highest compensation.
Staffing Industry Experts Agree
“As margins shrink and business volatility increases, organizations are becoming increasingly creative with the composition of their workforce. While the value of incorporating nonemployees into the workforce is well understood, we agree the optimal level of their use is less known. Complicating matters further are differing labor laws and work cultures around the globe, each presenting a
unique set of challenges and opportunities for leveraging the flexible workforce.”
Dana Shaw
Executive Director of Strategic Solutions
Staffing Industry Analysts
Current Perception of Workforce Control
Responding firms believe they are adequately monitoring overall talent planning and exercising cost control: Nearly 89% report at least some measure of control and 63% of firms report that an established strategic workforce plan is currently in use.
Lack of Control Over Workforce
Decentralized Ownership of Workforce
Disparate business units and thousands of hiring managers with individual agendas own up to 82% of responsibility for workforce hiring and expenditures – not HR or any other centralized group.
Actual State of Workforce Control
Significant Lack of Segmentation by Workforce Categories
More than 49% report limited or no workforce categorization or no segmentation at all. This prohibits comprehensive workforce strategies even at the most remedial level.
Although responding firms believe they are in control, over 60% of respondents report limited or absolutely no control over workforce expenditures outside of the full‐time employee segment. In the study, “control” for a workforce segment was defined as an ability to calculate spend and ROI, monitor talent quality, mitigate risk and track hiring metrics.
“Organizational efficiencies and savings can be effectively achieved through a re‐evaluation of the entire workforce. Companies rarely evaluate the cost savings that can be achieved by placing control mechanisms in key workforce areas—professional temporary workers, independent contractors, consultants and individuals contributing through statements of work. But by evaluating the entire workforce, companies are placing themselves in a position to succeed, especially in today’s changing economy.”
Bill Yoh
Chairman
Yoh