DCR Trendline April 2015

Measure What Matters | Page 29

Can you believe it’s already the second quarter of the year? As 2015 continues to speed by, the staff at DCR TrendLine is hard at work to provide you with key insights into
the non-employee workforce market. Our up-to-date research and analysis of industry trends ensure that you have a clear reading of what’s happening in the world of
non-employee worker supply and demand.
The DCR National Temp Wage Index focuses on wage trends over the year and analyzes the use of temp workers and related developments in the economy and job
market.This month, we examine data which reveals that temp employment is expected to grow over the next five years and look at the increase in the locum tenens rates of
physicians.
Over the past few weeks, economists and investors have been heavily debating if the U.S. economy is at full employment. We provide a summary of what full employment
means, how monetary policy influences inflation and jobs, and throw light on the current situation of the economy and labor market.
Recent research indicates that talent management software has grown to be a multi-billion dollar market. Our research examines the changes in the talent management
software market, and how these systems help to simplify human resources management and to better engage workers.
Our industry highlight for April focuses on the technology sector. Employment in this industry has been growing phenomenally, with many of the top jobs in the country in
the technology area. We look at the job openings in the market and at employment and wage trends to give you a snapshot of technology employment in the U.S.
We’re also continuing our global series that focuses on the ASEAN region. This month, we focus on the Philippines and its potential for growth through the business process
outsourcing industry.
Continuing on global topics, our next article examines data from the Organization for Economic Cooperation and Development (OECD) to reveal which countries are the
most worker-friendly.
Our feature article this month discusses some current hot topics – talent analytics and big data.We discuss what talent analytics is, the questions it helps to answer, and delve
into some common myths about big data and metrics.
This edition’s final article looks into the happiest industries in the country. It might surprise you to discover which industry has the happiest workers.
Ammu Warrier
Ammu Warrier, President
“
note from the editor
inside this issue “Job growth is strong, but slowing from the
torrid pace of recent months. Job gains remain
broad-based, although the collapse in oil prices
has begun to weigh on energy-related
employment. At the current pace of growth,
the economy will return to full employment by
mid-2016.” ~Mark Zandi, Chief Economist at
Moody’s Analytics
1
Note from the Editor...............................................................................................................................................page 1
DCR National Temp Wage Index.........................................................................................................................page 2
Full Employment: Jobs vs. Inflation...................................................................................................................page 7
Best Practices in Recruiting for 2015...............................................................................................................page 8
Changes in the Talent Management Software Market...............................................................................page 12
Industry Highlight: Technology Index.............................................................................................................page 14
The Philippines – Poised For Growth Through BPO....................................................................................page 19
The World’s Most Worker-Friendly Countries..............................................................................................page 25
Measure What Matters.........................................................................................................................................page 29
The Happiest Industries.......................................................................................................................................page 32
Methodology........................................................................................................................................................... page 34
References................................................................................................................................................................page 35
About DCR.................................................................................................................................................................page 36

“
DCR National Temp Wage Index
“We’ve been thinking we should have seen [wage growth] by now. That is the one missing piece of the recovery.” ~Sam Bullard, Senior
Economist at Wells Fargo Securities
2
The most recent report from the U.S. Bureau of Labor Statistics (BLS) shows that the economy gained 295,000 jobs in February 2015, while the unemployment rate declined
0.2 points to 5.5 percent, the lowest in six and a half years.
The biggest employment gains were found in food services and drinking establishments with 59,000 jobs added, followed by professional and business services with
51,000 new jobs, and retail trade with 32,000 new jobs. Construction added 29,000 more jobs, healthcare added 24,000 jobs, transportation and warehousing added 19,000.
Employment in mining decreased by 9,000 jobs, and remained flat in financial activities, wholesale trade, information, and government.
Average hourly earnings grew 3 cents in February 2015. Overall, wages have increased by 2 percent over the past year. According to the Payscale Index, wages should
grow 1.7 percent in the first quarter of 2015. Some experts say that the flat wage growth is troubling, since the economy is adding both high-paying and low-paying jobs.
Pre-recession wage growth was upward of 3 percent per year.

3
According to the Glassdoor Recruiting Outlook Survey, shortage of talent is the top hiring challenge. Of the hiring decision-makers surveyed, 48
percent have difficulty finding qualified candidates for open positions. More than half say that passive recruiting has been less effective in attracting highly
qualified candiates over the past year.
Top Recruiting Challenges
Source: Glassdoor
Talent Shortage is Top Hiring Challenge

4
“
“
“We’ve more or less solved the skills gap by recruiting and training and developing and engaging the right kind of people. It requires
attention. It requires investment, all those types of things. There’s a solution to the skills gap.” ~Jeff Owens, President of Advanced
Technology Services
“Temporary employment will continue
on an upward trajectory as companies
look for ways to quickly adapt to
market dynamics. Two in five US
employers expect to hire temporary
or contract workers this year, which
opens new doors for workers who want
to build relationships with different
organizations and explore career
options.” ~Eric Gilpin, President of
CareerBuilder’s Staffing and Recruiting
and Healthcare Divisions.
A study released recently by CareerBuilder reveals that temporary employment is expected to increase by 3 percent from 2014 to 2015. And from 2014
to 2019, it is expected to increase by 13 percent.
Data from the American Staffing Association shows that during the third quarter of 2014, staffing firms employed nearly 3.3 million temporary and
contract workers each week.
According to Tim Low, the Vice President of Marketing at PayScale, employers may need to raise wages to better attract talented labor. A Bullhorn
recruiting trends survey of recruiting agency professionals found that 75 percent of respondents said there was a skills shortage in the industries for
which they recruit. Jeff Owens, President of Advanced Technology Services, says that companies need to invest in employee development programs to
foster talent internally.
Temp Employment Expected to Grow Over Next 5 Years
Talent Shortage is Top Hiring Challenge

5
Temp Employment Expected to Grow Over Next 5 Years
A study based on data from Economic Modeling Specialists International shows that among occupations that pay less than $15 per hour, substitute
teachers and home health aides will add the most temp jobs from 2014 to 2019 at 33,099 and 20,420 jobs each. Among occupations that pay more than
$15 per hour, customer service representatives will add the most temp jobs at 100,642 jobs added.
In a separate report by The Jacobson Group and Ward Group, 10 percent of insurance companies plan to increase their use of temporary workers in 2015.
The survey found that 66 percent of insurance companies plan to increase staff over the year, with occupations in technology, claims, and underwriting
expected to have the greatest growth.
Occupations for Temporary Employment Expected to Grow
Source: CareerBuilder

A growing number of younger physicians are also practicing on a temporary basis according to a report by Staff Care. Approximately 6 to 7 percent of
doctors entering the workforce take jobs as locum tenens in hospitals and physician practices; this trend is anticipated to grow to 11 percent over the next
18 months.
Among the physicians polled who work as locum tenens, 21 percent said they began working in a temporary role right after completing their training.
Additionally, 91 percent of healthcare facilities surveyed respondend that they had used a locum tenens physician at least once in the past 12 months, and
42 percent said they are currently looking to hire one or more locum tenens physicians. According to the survey, primary care physicians are in the most
demand as locum tenens, followed by psychiatrists and other behavior health specialists and hospitalists.
A separate survey by The Physicians Foundation found that 46 percent of doctors will change their practice style within 3 years, and 9 percent plan to work
locum tenens. Experts attribute this shift to new and midcareer physicians choosing to pursue job opportunities that offer them flexibility and diversity of
work environment. Nationwide, about 44,000 physicians practice as locum tenens, up from 26,000 12 years ago.
6
Locum Tenens Physican Rates Increase
“New trained doctors are seeking alternatives to traditional private practice, and locum tenens offers them an avenue to explore these
alternatives. It’s a way to‘test drive’a practice before they buy.”~Sean Ebner, President of Staff Care
“

7
Full Employment: Jobs vs. Inflation
Over the past few weeks, there has been much discussion among economists, analysts, and labor experts if the U.S. economy is on its way to full
employment. But what exactly is full employment? Full employment does not mean that everyone has a job; rather it means that unemployment has fallen
to the lowest possible level without provoking inflation. If unemployment falls too much, inflation will rise because employers are competing to hire
workers and pushing wages up too quickly.
There is no magic number for what full employment is. According to many estimates, it’s a jobless rate of about 5 percent, not too much lower than the
February rate of 5.5 percent. But this figure is not etched in stone, and there is a lot of debate about how much more unemployment can fall without
causing inflation to rise.
Inflation occurs when the prices of goods and services increase over time. Rather than an increase in the cost of one product or service, inflation is the
general increase in the overall price level of goods and services in the economy. Changes in inflation are evaluated by monitoring several price indexes,
which measure changes in the price of a group of goods and services. Inflation is measured as an annual percentage increase. As inflation rises, every dollar
buys a smaller percentage of a good or service.
What is Inflation?

8
In the short run, monetary policy influences inflation and the economy-wide demand for goods and services. This in turn, impacts the demand for the
employees who produce these goods and services, primarily through its influence on financial conditions facing households and firms. The Federal
Reserve primarily influences financial conditions by adjusting the federal funds rate, which is the rate banks charge each other for short-term loans. These
short-term interest rates influence borrowing costs for firms and households, and also influence long-term rates such as corporate bond rates and
residential mortgage rates.
These changes in financial conditions affect economic activity. For example, when interest rates go down, it becomes cheaper to borrow, so households are
more willing to buy goods and services and firms are better able to purchase items to expand business. Firms respond to increased business by hiring more
workers and boosting production. As a result, household wealth increases, which prompts more spending.The linkage from monetary policy to production
and employment does not appear immediately and is influenced by a range of factors.
Monetary policy influences inflation in that when interest rates are reduced, the stronger demand for goods and services tends to push wages and other
costs higher, reflecting a greater demand for workers and materials that are needed for production.
Historically, the Fed raises rates as the economy strengthens in order to control growth and prevent inflation from going too high.
How Does Monetary Policy Influence Inflation and Jobs?
The Current Situation
Since recovery in the United States began in 2009, total employment rose
from 138 million to 147 million by the end of 2014. Meanwhile, the number of
unemployed people fell from 15 million to less than 9 million, and at the end
of last year, job growth began to increase rapidly. Over the past 12 months,
employers have consistently added more than 200,000 jobs every month.
As the labor market tightens, the Federal Reserve is debating when to start
raising interest rate. Since there is much confusion over how many people actually
want to be employed, it’s difficult to determine how low unemployment can be
while still keeping inflation at bay.
Staff at the Federal Reserve has been marking the natural rate of unemployment
down since 2013 from 5.6 percent to 5 percent late last year. Research at
several Fed banks puts the estimate as low as 4.7 percent, with reasons given such
as structural downshift in growth, an aging workforce that is less likely to switch
jobs, the sense that there are many people who want to rejoin the labor force, and
the rise in the number of workers who choose to work part-time.
Further complicating the decision to raise the interest rate is the surging U.S. dollar, which is helping to keep inflation very low. A rate increase could send
the dollar even higher.

9
The government counts unemployed people as those who do not have a job, have actively looked for a job in the previous four weeks, and are
available for work. The Bureau of Labor Statistics reports that 2.3 million people were “marginally attached to the labor force” at the end of 2014,
meaning they wanted a job and had looked for one in the previous 12 months, but not in the past 4 weeks. This included 740,000 discouraged
workers who had stopped looking for a job. Additionally, at the end of 2014, 6.8 million of the economy’s 26.5 million part-time workers wanted a
full-time job.
Among the population who are marginally attached to the labor force, leading reasons for not looking for a job in the past 4 weeks include being
discouraged over job prospects, family responsibilities, and more.
Who is Really Unemployed?
Labor Force Review
Reasons for Being Marginally Attached
Source: BLS
Source: BLS

10
Since 2008, the Federal Reserve has kept interest rates near zero. The Federal Reserve has a mandate to both maintain price stability (by keeping
inflation at bay) and achieving full employment. Since inflation has consistently undershot the 2 percent target (the rate that the Federal Open
Market Committee judged as the most consistent over the longer run), the argument for raising rates is that the country has reached full
employment.
It is easy to sum up why this is a major area of concern for the economy by looking at both sides of the arguments to raise rates. Jim O’Sullivan of
High Frequency Economics is concerned that by waiting to raise interest rates, it may still take many months for the interest rate policy to get back
to normal, and then it will take another recession to bring inflation back in check. Meanwhile, Dean Baker of the Center for Economic and Policy
Research argues that a rate hike any time this year will serve to stunt job growth. He argues that with inflation low in the U.S. and around the world,
raising rates out of fear that inflation might rise is a bad policy when there are many Americans who are currently underpaid or underemployed.
“I just don’t see any price or wage pressure out there. June is not off the table but it’s unlikely. September is the most likely time
for the first rate hike. They might get one hike in this year, maybe two.” ~Craig Dismuke, Chief Economist at Vining Sparks
The Federal Reserve’s Dilemma
“

11
Since December 2014, the Fed has said it can be “patient” in beginning to raise the interest rate from its current record low of near zero. Many
analysts believe that dropping the word “patient” from its statement will signal that the Federal Reserve is moving towards a rate increase,
perhaps as soon as June 2015. During the latest Federal Open Market Committee Meeting in March 2015, economists and investors were waiting
to see if the word “patient” would be removed from its policy statement. It turns out that the reference to being “patient” was dropped, signaling to
some analysts that the Federal Reserve was opening doors to an interest rate increase at the end of the second quarter of 2015. The statement also
indicated that the change in wording does not mean that the Federal Reserve has made a decision as to the timing on when there would be a rate
hike. It further noted that rates will not increase until there is further improvement in the job market, and that it has confidence that inflation is
moving closer to the 2 percent level.
The Federal Reserve’s Dilemma
“Just because we removed the word ‘patient’ from the statements doesn’t mean we’re going to be impatient.” ~Janet Yellen, Chair
of Board of Governors of the Federal Reserve System
“

12
Changes in the Talent Management Software Market
Approximately ten years ago, a software market for integrated talent management platforms began to grow. Today, it has evolved to a multi-billion
dollar market for talent management software. Research by Deloitte indicates that HR spending grew by 4 percent in 2014 from 2013, mostly
attributed to investments in technology. And in 2015, almost 60 percent of companies plan to increase their HR spending. And according to a new
market research report published by MarketsandMarkets, the global talent management software market has a projected compound annual growth
rate (CAGR) of 16.6 percent from 2014 to 2019.
According to Forbes, the larger vendors make up over 60 percent of the market, while small niche vendors make up the rest. As the market expands,
there is evolution as large companies replace standalone systems and mid-size companies buy smaller systems at a rapid rate. In particular, the
demand for cloud-based talent management software is increasing due to its cost-effectiveness and easy deployment.
As the market was developing, it was primarily focused on integrated suites combining various aspects of talent management including applicant
tracking, learning management, and performance management. Today, buyers are no longer looking for just an integrated suite but rather an
integrated, simple, easy-to-use solution.
Research by Bersin by Deloitte shows that the top talent issues faced by companies include engagement, leadership, and worker productivity.
The challenges of these issues mean that HR managers are looking for talent management software that changes the way people work. Bersin by
Deloitte calls this a shift from “talent management” to “people management”. This means that when purchasing software, HR buyers are no longer
looking for process integration but rather systems of engagement that are easy to use, highly productive, and provide actionable data.
These work management systems can serve various functions such as simplifying the way workers set goals, or creating recruitment networks based
on referrals. As per Bersin by Deloitte, the three big issues that talent management software today needs to address include:
• Provide a highly engaging and well-aligned place to work
• Provide empowerment, learning, and tools to get work done
• Create an environment that is fun, productive, and simple

13
Changes in the Talent Management Software Market
Deloitte found that companies are finding it important to simplify work environments, practices, and processes, with 71 percent of companies
rating work simplification as an “important” or “very important” issue, and 74 percent believing that their work environment is “complex” or
“very complex.” More than 50 percent of the companies have programs to simplify work, drive productivity, and relieve unnecessary pressure on
employees.
In a labor market, where corporate decisions are immediately exposed and organizational culture becomes increasingly visible, companies have
realized the importance of establishing and maintaining their corporate brand. This year, worker engagement has emerged as a central challenge,
with over 87 percent of organizations believing that the issue is “important” as per a Deloitte survey. Globally, according to a Gallup poll, only 13
percent of the global workforce is “highly engaged.”
In today’s workplace, employees tend to work more hours and are almost continuously connected to their jobs through mobile devices. They often
work on cross-functional teams on collaborative projects. As such, flexibility, empowerment, and mobility become important areas of focus for
worker engagement and technology solutions.
Bersin by Deloitte describes “Systems of Engagement” as technology systems that are used directly by employees, such as email, collaboration
systems, social networking sites, and learning systems. These systems are generally cloud-based, easy to use, mobile-available, and visually
appealing. While originally HR software was designed to help HR managers administer various people practices, now HR technology is designed to
help employees and managers manage themselves.
In terms of measuring worker engagement, new tools make it possible for organizations to monitor employee sentiment and obtain feedback with
the same level of speed and precision as customer satisfaction measurement.
With the trend for simplicity is growing, technology companies are shifting their business models to develop talent management technology that
supports HR in becoming more agile and forward thinking.
Simplification in HR
Worker Engagement
“We believe that this is just the beginning of a major movement to apply innovative approaches and techniques like ‘design
thinking’ to simplify and rationalize the workplace of the 21st century.” ~Deloitte
“

14
Industry Highlight: Technology Index
Glassdoor, a career-focused website, recently released its report on the best jobs in the country for 2015. On this list of 25 jobs, 10 were in the
technology sector. Through more than two decades, employment in technology has grown rapidly. The United States Bureau of Labor Services (BLS)
expects that employment in the industry will grow at a rate of 6.1 percent between 2010 and 2022, compared to 2.9 percent for all industries.
A recent report from The Conference Board revealed that in January 2015, there were more than 5 vacancies advertised online for every 1
unemployed person in a technology occupation. Over the past year, the number of online ads for these jobs have increased by 12 percent, indicating
increased demand.
According to Glassdoor, the top technology jobs in the country include software engineers, database administrators, product managers, and data
scientists. These jobs rate among the highest for earning potential, career opportunities, and number of job openings.
Job Openings in Technology
Source: BLS

15
Software Engineer
Database Administrator
Product Manager
Data Scientist
Solutions Architect
QA Engineer
Network Engineer
IT Project Manager
Mobile Developer
Sales Engineer
Job Openings
104,828
9,790
10,294
3,449
3,982
26,383
14,092
5,700
4,651
6,007
Average Base Salary
$98,074
$97,835
$113,363
$104,476
$121,657
$77,499
$87,518
$103,710
$79,810
$91,318
Top Technology Jobs
Source: Glassdoor
According to CompTIA, the technology services market experienced the largest increase in technology jobs in 2014, with employment
totaling 6.5 million. California led for most employment with 1,087,800 tech workers employed, nearly twice as many as second-ranked Texas
with 581,200 workers. New York ranked third with 346,500 workers, Florida fourth with 307,100 workers, followed by Massachusetts with 286,300
workers.
“The U.S. tech industry continues to make significant contributions to our economy. The tech industry accounts for 7.1
percent of the overall U.S. GDP and 11.4 percent of the total private sector payroll. With annual average wages that are
more than double that of the private sector [overall], we should be doing all we can to encourage the growth and vitality
of our nation’s tech industry.” ~Todd Thibodeaux, President and CEO of CompTIA
“

16
Technology Employment, by Occupational Area
Source: BLS
U.S. tech payroll totaled $654 billion in 2014, up by 0.6 percent from the year before. Within all tech sectors, the IT services sector had the largest
payroll with $210 billion in 2014. U.S. technology industry workers earned an average annual wage of $100,400 last year, which is more than
double the average annual private sector wage of $49,600. California offered the highest wages at an average of $139,500 annually.
“With a strengthening economy, more workers may press current or prospective employers for higher wages. Employers unable
or unwilling to pay higher wages may interpret it as a talent shortage, when in fact, it’s a disconnect between what they want to
pay and the going rate for the skills and expertise they seek.” ~Tim Herbert, Vice President of Research and Market Intelligence
at CompTIA
“

1717
Wages in the Technology Industry
Source: BLS
Technical positions remain in high demand, with CompTIA’s “IT Industry Outlook 2015” report revealing that approximately 68 percent of
executives surveyed plan to face a challenging hiring environment this year for hiring technical staff members.
“Technology is no longer a backroom supporting function, but now a front and center strategic priority for many businesses.”
~Tim Herbert, Vice President of Research and Market Intelligence at CompTIA
“

18

19
The Philippines – Poised For Growth Through BPO
With a population of about 100 million
people, the Philippines is the seventh
most-populated country in Asia, and
the 12th most populated country in the
world. The Philippines is an archipelago
consisting of 7,107 islands, and is one
of the ten most biologically diverse
countries in the world.
The Philippine economy is the 39th
largest in the world, with an estimated
2014 gross domestic product (nominal)
of $298.686 billion. Primary exports
include semiconductors and electronic
products, transport equipment,
garments, copper products, petroleum
products, coconut oil, and fruits.
Employment by Major Occupation
Source: Philippine Statistics Authority

20
A Quick PESTLE Analysis of the Philippines
A PESTLE analysis is a framework used to quickly scan an external macro environment, covering the political, economic, social, technological,
legal, and environmental aspects of a country or region.
Politics: The Philippines is a constitutional republic with a presidential system. The inclination of the country is towards western values and
peaceful foreign policies. A large number of Filipinos living around the globe has resulted in mostly positive relations on the world political
arena. The Philippines is an active member of the United Nations, ASEAN, East Asia Summit, and the Asia-Pacific Economic Cooperation.
Economics: While the country is rich with natural resources, due to the infrastructure and geological conditions, the economy leans towards
services rather than industry. While agriculture only accounts for 11.2 percent of GDP, it employs 32 percent of the labor force (14 percent is
employed by industry and 53 percent by services). The fast growing population puts additional pressure on the Philippines economy since the
amount of workplaces generated is lower than the rate of increase in labor force.
Social: Wealth distribution is highly unequal in the Philippines. Approximately 45 percent of the population earns an income of less than $2 per
day (25.1 percent below the national poverty line.)
Technology: The ratio of fixed investment to GDP in the Philippines is approximately 15 percent. Many Asian economies have investment to GDP
ratios of 25 to 30 percent, while in China the ratio exceeds 40 percent. According to the Economic Intelligence Unit, compared to other Asian
economies, the Philippines is “technologically crippled.”
Legal: In the Philippines Economic Assessment Report by the United States Agency for International Development, the judicial system is named
as the weakest institution in the country in terms of legitimacy, representativeness, and professional competency.
Environmental: The population of the Philippines is committed to and behaves responsibly towards environmental issues. According to the
Environmental Performance Index by the Yale Center for Environmental Law and Policy, the Philippines ranks at 65.7 compared to the general
world ranking of 50.

21
In 2014, economic growth in the Philippines was strong, driven by strong foreign direct investment and expansion in the real estate, business process outsourcing (BPO) and
mining sectors. The World Bank estimates growth of 6.7 percent in 2015.
Manufacturing made the biggest contribution to GDP growth last year, and is expected to continue to lead growth in 2015.The construction industry has also been growing,
expanding by 11.9 percent in the third quarter of 2014. According to the Philippines Statistics Authority, the number of construction permits issued in the second quarter of
2014 rose 11 percent year-over-year to 32,729 due to a surge in residential projects.
Employment in the business process outsourcing (BPO) industry hit an all-time high in August 2014. The growing numbers of companies drives the growth in the sector,
where employment recently hit 1 million. The IT and Business Process Association of the Philippines (IBPAP) says the employment growth has been phenomenal, from
101,000 in 2004, and 930,000 in the first quarter of 2014.
The BPO sector is expanding at an average of 20 percent annually. Export revenues from BPO have grown from $1.3 billion in 2004 to $13.3 billion in 2013. IBPAP estimates
that the sector generated $15 billion in total revenues in 2013, and expects revenues of $18 billion in 2014, and $25 billion in 2016.
The Philippines government has been a key promoter of the industry for the past ten years. The Philippines Development Plan highlighted BPO as one of 10 high potential
and priority development areas. Government programs provide training for BPO applicants, and give investors numerous benefits including tax holidays, tax exemptions,
and simplified export and import procedures.
Size Distribution of Philippines IT-BPO Industry, by number of FTEs
Source: Everest Group and O2P
Economic Growth in the Philippines
The BPO Industry

22
As a result of its expansion strategy, the Philippines has become a major rival to India, the global BPO leader. In 2013, the Associated Chambers of Commerce and Industry of
India (Assocham) stated that India had lost over 50 percent of its BPO industry to foreign competitors, with the job migration costing the country approximately $25 billion.
The majority of lost business relocated to the Philippines, where 30 percent of graduates are employable in the industry, compared to just 10 percent in India, due to fluency
in English and Western accents. Many of the world’s largest providers of BPO services have call centers in the Philippines, including Accenture and Convergys.
“It is estimated that in the ongoing decade, India might lose $30bn in terms of foreign exchange earnings to the Philippines, which has
become the top destination for Indian investors.”~D.S. Rawat, Secretary General of Assocham
Source: BPAP & Everest
The BPO Industry
“

23
According to the Business Processing Association Philippines (BPAP), to reach the targeted growth for the BPO industry, 1.3 million workers would be needed by 2016. For
this industry, the country has approximately 450,000 graduated annually and is among the top three IT-BPO and global in-house center (GIC) locations in the world. 1
Southeast Asia, in general, has the third youngest number of professionals in the world (just behind China and India), and is in the running to overtake the aging
populations of Japan and South Korea. The literacy rate in the Philippines is above 92 percent, and the labor force is expected to have double-digit growth through 2020.
On freelance marketplaces such as oDesk and Elance, Philippines is the third largest country represented. According to Forbes, there are approximately 2.3 million Americans
registered on these sites, 1.9 million Indians, and 1.3 million Filipinos.
For Filipinos, writing and translation work constitutes about 7 percent of total freelance earnings, surprising due to the high rate of English fluency in the country plus
knowledge of the Associated Press style of writing. Most earnings stem from the administrative support category (35 percent), followed by customer service (15 percent),
sales and marketing (14 percent), web and mobile development (11 percent), and design and creative (9 percent) work.
“In Asia, the categories we’re seeing the most work in based on freelance earnings are: Web & Mobile Development (47% of total
freelance earnings), Design & Creative (16%) and Admin Support (13%).”~Fabio Rosati, CEO of Elance-oDesk
Freelancers on Elance-oDesk (East Asia)
Source: Forbes
The Philippines Talent Market
“

Economists believe that this year the Philippines and its neighbors – Brunei Darussalam, Laos, Vietnam, Cambodia, Singapore, Indonesia,Thailand, and Myanmar – will edge
closer to a regional milestone by preparing for integration under the ASEAN Economic Community (AEC).
The AEC is expected to operate as a single market and production base geared to develop into a competitive economic region, similar to the European Union (EU), East
African Community (EAC), and Gulf Cooperation Council (GCC). It will offer benefits such as free movement of goods, services, investment, skilled labor, and a freer flow of
capital.
Currently, a deadline has been set for December 2015, but a report by the U.S. Chamber of Commerce finds that many are skeptical if the targeted launch date will be met,
with most expecting the AEC to be fully running closer to 2020. Many stakeholders have doubts about ASEAN integration, believing that cheap imports may harm local
industries such as agriculture.
24
The ASEAN Economic Community

25
The World’s Most Worker-Friendly Countries
There have been countless research studies on which countries offer the best working conditions for their workforces, ranging in focus from unemployment rates, vacation
policies, minimum wage, and more.To make the comparison easier, we rank 34 relatively rich and developed countries from the Organization for Economic Cooperation and
Development (OECD) for each individual working condition.
National unemployment rate is a good indicator of a country’s worker-friendliness since low unemployment means a higher chance of finding a job faster.
Unemployment
Unemployment Rate by Country (July 2014)
Source: Quartz

26
In some countries, such as Finland and France, the government guarantees at least 30 days of paid vacation every year. At the other end of the spectrum, the U.S. does not
guarantee any paid vacation days.
Vacation and Weekends
Average Hours Worked per Person Annually
Source: OECD

27
In the United States, where the workweek has historically been five days, many companies are starting to offer four-day workweeks. In many countries,
however, companies are not required by the government to provide a 2 or 3 day weekend. Only Greece, Estonia, and Hungary are legally entitled to a full
two-day weekend. In the U.S., only a one-day weekend is government protected.
Vacation and Weekends
How Long is the Government-Protected Weekend?
Source: World Bank Group

28
Simply comparing minimum wage from country to country is not enough to understand how friendly a country is in terms of wages. A better method is
to determine how minimum wage compares to average salaries in the country. For example, in Turkey earning minimum wage means a paycheck that is
about two-thirds the size of the average earner’s. In the United States, meanwhile, minimum wage is earning just over a third of the average salary.
Minimum Wage
How Does MinimumWage Compare to Average Salaries
Source: Quartz

29
Talent analytics and big data are hot topics right now. At DCRTrendLine, we’ve been talking about different aspects of HR analytics, big data, and workforce
intelligence since 2013. Research conducted by Bersin by Deloitte in 2014 found that the HR analytics software market grew by 17 percent in 2013 and is
over $5 billion in size. With countless conferences, books, articles, and software focused on HR analytics, it’s easy to forget what’s really important in this
arena.
Measure What Matters

30
Talent analytics is the application of a defined methodology and integrated process for improving the quality of talent decisions with the end goal of
improving organizational performance. It involved both descriptive components and predictive components. Descriptive components include headcount,
time to hire, workforce demographics, and turnover, which is typically put into context by using external benchmarking data. Predictive analytics, on the
other hand, seek to pinpoit the unique aspects of an organization’s environment that drive business outcomes.
Talent analytics helps answer important questions about an organization’s workforce including:
• Reasons for turnover in particular areas
• How to improve productivity
• Skills gaps in the organization and how to fill them
• The effectiveness of worker orientation and onboarding programs
• Predicting the right people to hire for specific roles
• Predicting and managing attrition rates
• The accuracy of performance rating systems
• How to attract a more diverse workforce
What is Talent Analytics?

31
Talent analytics have become the go-to approach when leaders need accurate statistics or data-driven predictions in order to better business decisions.
All areas of the HR function have use for talent analytics, including recruiting, onboarding, training, succession planning, retention, engagement,
development, and compensation. Talent anlytics projects can be used to understand and link measures from the workforce to key business indicators.
With talent analytics trending in a wide range of arenas, many companies are starting to invest in big data analysis to sift through their volumes of data
from various sources including financial data, mobile data, transactional data, behavioral data, social media data, and more. However, the popularity of the
topic also leads to managers blindly trusting some commonly heard myths about big data and metrics.
Big Data is Big: It’s a common myth that big data is huge, but“big”is misleading; big data is actually diverse. Big data is a large volume of data points that
are updated at high-frequency in real-time from various sources. It is very granular and composed of lots of very small data.
You Need to Apply It Now: Countless articles on talent anlytics would have one believe that to truly gain value from metrics, companies need to act right
now. However, the analysis of big data is difficult and better approached with small steps, starting with very specific objectives.
All Data is Good Data: Many companies assume that all the data they have is useable. But there is a distinction between lots of data and lots of good data.
Poor quality data has a vast number of errors, and is often missing key details. To make sense of data, analysts sometimes have to throw some of it away. To
truly analyze data, it is important to figure out which data is really the good data.
Metrics Give Concrete Answers: Analytics experts know that ambiguity is the dominant characteristic of big data. The more data that there is, the more
likelythereistobecontradictionsandambiguitiesthatrequireresolution.Bigdatarequireshumanjudgmenttointerveneandresolveseeminglyconflicting
evidence. The true value of analytics is about combining, weighing, and judging multiple sources of information and different analyses.
Anlytics Can Answer Any Question: It is possible for analytics to answers a huge variety of questions about an organization, however, the questions have to
be phrased the right way. Applying analytics with a lack of precision or detailed hypothesies can lead to inaccurate answers.
Using Talent Analytics
Common Metrics and Big Data Myths

32
The Happiest Industries“
“
Does the industry you work in have any impact on the happiness of its workforce? Research
conducted by TINYpulse in its 2015 Best Industry Ranking Report provides some interesting
insights into the happiest industries in the United States.
The report found that there are two major factors that drive workplace happiness. The first is
satisfaction with peers and colleagues; and the second is satisfaction with the nature of one’s
individual projects.
The industry with the happiest workers include construction and facilities services, followed
by consumer products and services, and technology and software. The reasons attributed to
those working in the construction industry being the happiest included working with great
people, excitement about work and projects, a positive work environment, and professional
growth. Following the Great Recession, the construction industry has been growing, with
the U.S. Bureau of Labor Statistics (BLS) projecting 1.6 million new construction jobs by 2022.
“These findings are remarkable because they show me that any
leader – no matter the industry that they’re in – has the power to
make workplace changes to materially impact job satisfaction”
~David Niu, Founder and CEO of TINYpulse
“This is an industry that has many walks of life with people working in an office to people out on site. One thing that unites
everybody at the end of the day is kicking back a little with a few beers and talking stuff out –the good and the bad. If people
have an issue, they will come see a manager during office hours, but sometimes the best environment is when people can relax
a bit and just have a drink alongside a manager.”~Jay Walter, General Manager of JWH Group

31
The Happiest Industries
Meanwhile, the biggest driver of dissatisfaction was having unsupportive managers. Nearly half, or 49 percent of employees, said a negative relationship
with their supervisor factored in their overal dissatisfaction. Another 26 percent of employees say they are frustrated by the lack of tools they could use to
do their jobs better, and 66 percent of employeees feel that they do not have strong opportunities for professional growth. In contrast, in the construction
industry, many organizations offer coaching and career mentorship to students, and also provide new workers with apprenticeships.
Ranking
#1
#2
#3
#4
#5
#6
#7
#8
#9
#10
#11
#12
Industry
Construction & Facilities Services
Consumer Products & Services
Technolgy & Software
Telecom, Energy & Utilities
Healthcare, Pharmaceuticals & Biotech
Hospitality
Media & Entertainment
Finance & Insurance
Education
Business Services & Consulting
Government & Nonprofit
Manufacturing
Happiest Industry Rankings
Source: TINYpulse
33

34
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
source data

35
references
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http://www.entrepreneur.com/article/242382
http://www.forbes.com/sites/joshbersin/2014/12/29/how-and-why-the-talent-management-market-is-changing/2/
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http://www.cnbc.com/id/102473844#.
http://www.forbes.com/sites/joshbersin/2012/08/16/the-move-from-systems-of-record-to-systems-of-engagement/3/
http://www.forbes.com/sites/joshbersin/2014/12/29/how-and-why-the-talent-management-market-is-changing/2/
http://www.prnewswire.com/news-releases/temporary-jobs-to-grow-13-percent-over-the-next-five-years-according-to-new-research-from-careerbuilder-300045800.html
https://jacobsononline.com/press/#281
http://www.healthleadersmedia.com/page-2/PHY-313808/Physician-Locum-Tenens-Rates-Near-Double-Digits
http://www.usnews.com/news/articles/2015/02/18/payscale-study-suggests-employer-concern-over-skills-gap?page=2
http://www.glassdoor.com/press/talent-shortage-hiring-managers-biggest-challenge-glassdoor-recruiting-survey-reveals
http://www.payscale.com/career-news/2015/03/bls-jobs-report-295-000-jobs-added-unemployment-falls-to-5.5-percent
http://www.washingtonpost.com/blogs/wonkblog/wp/2015/03/06/u-s-economy-added-295000-jobs-in-february/
http://www.forbes.com/sites/samanthasharf/2015/03/06/jobs-report-u-s-economy-added-295000-jobs-in-february-unemployment-down-to-5-5/
http://thehiringsite.careerbuilder.com/2015/03/09/temporary-jobs-growth-5-years/?linkId=12805695
http://www.citylab.com/work/2015/01/the-worlds-most-worker-friendly-countries-in-seven-charts/384154/
http://www.economist.com/news/briefing/21637355-freelance-workers-available-moments-notice-will-reshape-nature-companies-and?frsc=dg%7Ca&fsrc=scn/tw_app_ipad
http://www.economist.com/news/briefing/21637355-freelance-workers-available-moments-notice-will-reshape-nature-companies-and?frsc=dg%7Ca&fsrc=scn/tw_app_ipad
http://www.glassdoor.com/press/talent-shortage-hiring-managers-biggest-challenge-glassdoor-recruiting-survey-reveals
http://www.usnews.com/news/articles/2015/02/18/payscale-study-suggests-employer-concern-over-skills-gap?page=2
http://www.pewresearch.org/fact-tank/2015/03/11/jobs-situation-looks-brighter-as-employers-seek-to-fill-more-positions/
http://www.cbsnews.com/news/temporary-jobs-are-a-growth-industry/
https://www.td.org/Publications/Blogs/Learning-Executive-Blog/2015/03/A-Quick-Overview-of-HR-Analytics?mktcois=c.eval-learning-impact~c.measuring-and-evaluating~c.managing-learning-programs&mkt-
cops=c.sr-leader
http://knowledge.insead.edu/blog/insead-blog/the-eight-most-common-big-data-myths-3878
http://country.eiu.com/article.aspx?articleid=662823250&Country=Philippines&topic=Summary&subtopic=Fact+sheet
https://egateg.usaid.gov/sites/default/files/Philippines_Economic_Performance_Assessment.pdf
http://ciesin.columbia.edu/repository/epi/data/2010EPI_summary.pdf
http://www.oxfordbusinessgroup.com/news/philippines-year-review-2014
http://www.oxfordbusinessgroup.com/news/philippines-challenges-indias-call-centre-dominance
http://country.eiu.com/philippines
http://icto.dost.gov.ph/wp-content/uploads/2014/06/091312_philippines-it-bpo-investor-primer.pdf
http://www.forbes.com/sites/susancunningham/2015/03/13/filipinos-indonesians-top-elance-odesk-freelancers-in-east-asia/
http://www.philstar.com/business/2015/03/12/1432487/philippines-seen-growing-6.2-year
http://www.worldbank.org/content/dam/Worldbank/document/EAP/Philippines/Philippine%20Economic%20Update%20March%202014.pdf
http://e27.co/world-closely-watching-southeast-asias-talents-20150127/
http://venturebeat.com/2015/01/27/glassdoor-of-the-top-25-u-s-jobs-for-2015-10-are-in-the-tech-industry/
http://talkincloud.com/cloud-computing-research/02172015/tech-industry-employment-wages-2014
http://www.businessnewsdaily.com/7799-us-tech-job-growth.html
http://fortune.com/2015/03/05/jobs-report-full-employment/
http://www.bloombergview.com/quicktake/full-employment
http://www.reuters.com/article/2015/02/11/us-usa-fed-employment-insight-idUSKBN0LF0AB20150211
http://www.federalreserve.gov/faqs/money_12856.htm
http://www.federalreserve.gov/faqs/economy_14419.htm
http://www.investopedia.com/university/inflation/inflation1.asp
http://www.reuters.com/article/2015/03/18/us-usa-fed-idUSKBN0ME0D520150318
http://abcnews.go.com/Business/wireStory/anticipation-high-fed-stays-patient-rates-29715065
http://www.cnbc.com/id/102513133
http://www.forbes.com/sites/stuartanderson/2015/03/16/tech-job-market-is-strong/
http://www.bluemaumau.org/14393/february_franchise_jobs_29000_us

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
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