EMERGING TRENDS IN HR AND RECRUITMENT SERVICES Martin Nicholls

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1 EMERGING TRENDS IN HR AND RECRUITMENT SERVICES Martin Nicholls

2 WHO IS KELLY? Since 1946, Kelly has grown to be a global leader in delivering workforce solutions. Revenue exceeds US$5.6 b EMEA AMERICAS APAC Over 33 years in Asia-Pacific region (APAC) Comprehensive workforce management solutions global scope, local focus Global Fortune 500 company Kelly provides employment to 750,000 employees annually around the globe COMMERCIAL PROFESSIONAL TECHNICAL OUTSOURCING AND CONSULTING Fortune 500 is a registered trademark of the Fortune magazinedivision of Time Inc. An Equal Opportunity Employer Kelly Services, Inc.

3 FULL-SERVICE SOLUTIONS Every company is unique, so our solution offers the services of tactical temporary staffing to complex strategic workforce solutions. RECRUITMENT SERVICES OUTSOURCING AND CONSULTING Temporary and Permanent Staffing Professional and Technical Recruitment and Contracting Executive Search HR Consulting Outsourcing Career Transition

4 OUR PRESENCE IN ASIA-PACIFIC Australia (AU) Established since Offices China (CN) Established since Offices Hong Kong (HK) Established since Office India (IN) Established since Offices Indonesia (ID) Established since Offices Japan (JP) ** Established since offices (OCG + Partners) Malaysia (MY) Established since Offices New Zealand (NY) Established since Offices Philippines (PH) ** Established since Offices Singapore (SG) Established since Offices Taiwan (TW) ** Established since Offices South Korea (KR) Established since Office Thailand (TH) Established since Offices Vietnam (VT) ** Established since Offices ** Business Alliances

5 WHAT S HAPPENING OUT THERE?

6 ECONOMIC OUTLOOK AMERICAS EMEA APAC 2012 (p) 2013 (p) 2014 (p)

7 GLOBA LABOR MARKET UPDATE: APAC AVERAGE ANNUAL UNEMPLOYMENT 4.7% 4.1% 9.3% 5.3% 5.0% 4.1% 9.4% 5.4% 4.9% 4.0% 9.1% 5.2% Japan China India Australia 2012 (p) 2013 (p) 2014 (p)

8 90% 80% 70% 60% Employers in a better financial position than 81% 80% 67% EMPLOYERS REPORTING IMPROVED FINANCIAL POSITION 63% 62% last year 50% 50% 45% 40% 38% 30% 25% 20% 10% 0% India Brazil China Russia USA UK Ger France Italy

9 90% 2013 INCREASE OR DECREASE IN FULL-TIME EMPLOYEES? Increase or decrease full-time employees? 27% 80% 70% 60% 52% 50% 40% 30% Decrease Increase 20% 10% 0%

10 THE AUTONOMOUS AND EMPOWERED WORKFORCE 31% say that a career for life is still relevant 70% agree that work experience with multiple employers is an asset 50% 80% 45% 40% 49% 49% of workers actively look for better job opportunities even when they are happy in a job 35% 74% Countries with the most active job seekers Countries with the least active job seekers 30% 25% 20% 31% 21% 29% 70% 70% Indonesia Norway Portugal China 74% 64% 62% 61% Thailand US Canada Russia 35% 36% 36% 37% 15% 66% 10% 5% 0% All Countries Americas EMEA APAC 60% All Workers Non Professional/ Technical Professional/ Technical

11 MARKET ENVIRONMENT: SUPPLY VS. DEMAND IMBALANCES Gap between growth in demand and growth in supply of talent, 2011 to 2021 (Red indicates a trend deficit, green a trend surplus, yellow a broad balance. Numbers show trend growth as annual percentages.)

12 A HR EVOLUTION

13 THE EVOLUTION OF HR HR 1.0 HR 2.0 Employment Law Compliance Payroll Processing Employee Record Keeping Performance Reviews Employee Relations Training Recruiting Technology Would Free HR to Perform More Strategic Tasks

14 Impact of Talent on Business Objectives HR 3.0 Develop a broader business understanding in all areas of the company Anticipating Talent Shortages Be the transformational leaders Guide Business on Talent Supply and Demand We Must Know the Business Knowing HR is Required, But No Longer Sufficient

15 The Talent Paradigm Shift The Old Reality People need companies The New Reality Companies need people Machines, capital and geography are the competitive advantage Better talent makes some difference Jobs are scarce Employers are loyal, and jobs are secure Recruiting is like purchasing Talented people are the competitive advantage Better talent makes a huge difference Talented people are scarce People are mobile, and their commitment is short-term Recruiting is like marketing

16 THE FACE OF TALENT Temporary Permanent Independent Contractor Consultant Service Provider Alumni/ Retiree

17 TALENT SUPPLY CHAIN MANAGEMENT C L I E N T S T R A T E G Y Operations HR Procurement Workforce Analytics Temporary Staffing Strategic Workforce Planning Full Time Employees Independent Contractors/ Freelancers Talent Supply Chain Management Alumni, Retirees and Interns Alliances & Partners Global Supplier Network Service Providers (SOW)

18 CURRENT REALITIES Can a single staffing company fulfill all the talent needs of our organization directly? Niche job categories (e.g., engineering, science, IT, etc.) are becoming higher in demand Talent acquisition is becoming more proactive, more personalized, and less face-to-face Companies are using flex staffing models more than ever before in their workforce planning strategies (and workers want to be free agents more than ever before) Outsourcing talent acquisition (both perm and contingent) is becoming more commonplace Organizations that respond to these realities and utilize new business models will win the war for talent

19 WHAT IS RPO? DEFINITION: is where an employer transfers all or part of its recruitment functions to an external Provider

20 RPO adoption is growing, and is predicted to continue. Opportunities exist in providing broader services over a wider range of geographies. BUYER ADOPTION OF RPO, (P) GEOGRAPHIC SCOPE OF RPO DEALS 45% 40% 40% Global 10% 35% 30% 25% 20% 15% 14% 21% 17% 22% 30% Regional 16% Single Country 74% 10% 5% 8% 4% Source: Everest, 117 RPO deals signed in % (P) Based on findings of SIA s Contingent Buyer Survey.

21 RPO ADOPTION Organizations are looking for more robust and strategic partnerships with their providers. RPO Buyer Adoption Trend by Region 16% 11% 22% 62% 51% 38% APAC Europe Americas RPO only Blended RPO/MSP Sources: High Value Hiring, HRO Today, December 2011 The Total Workforce, HRO Today, November 2011 RPO 2011: Rethink Recruitment, Aberdeen Group The Rise of Blended RPO, Everest Group, October 2011

22 RECRUITMENT PROCESS OUTSOURCING Elements Currently Outsourced Job advertising 64% Phone screens Social Networking Interviewing Offer extension Building talent communities 61% 39% 36% 35% 34%

23 HOW RPO IS BEING USED IN GLOBAL MARKETS Current Global Use of RPO Solutions 70% 60% 60% 50% 40% 30% 20% 10% 17% 11% 11% 0% End to End: Full recruiting function Selective: Only some elements of RPO process Project-Based: For recruiting needs in a defined period of time Job-Role Based: Only for particular jobs/roles

24 RPO VALUE PROPOSITION Eliminate Fixed cost for recruiting Unnecessary agency spend Limited sourcing channels Ineffective & inefficient processes HR transactional focus Decrease Unnecessary Costs Reduce Cost to Hire Time to hire cycle time Dependency on reactive sourcing Unfilled positions Raise Employer brand reputation Quality of hire Cost savings opportunity Ability to respond to market conditions Increase Buyer Value Create Access to talent in the market HR operating transformation Variable & flexible cost structure Speed to market Resourcing best practice

25 SOCIAL MEDIA

26

27

28 BAIDU VIRAL SOCIAL MEDIA CASE Du Niang -This photo went viral on Weibo

29 BUT WELL LEVERAGED Baidu made use of the exposure Du Niang got and integrated it in their employer branding campaign

30 DU NIANG IN BAIDU VIRTUAL TOUR

31 DU NIANG AT CAMPUS TALKS

32 CAMPUS TALK BOOKLET

33 INSANITY: DOING THE SAME THING OVER AND OVER AND EXPECTING DIFFERENT RESULTS Albert Einstein Martin Nicholls VP, Asia Pacific, KellyOCG

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