THE CAREERBUILDER RECRUITMENT GUIDEBOOK FEATURING THE 2014 MIDYEAR U.S. JOB FORECAST

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1 THE CAREERBUILDER RECRUITMENT GUIDEBOOK FEATURING THE 2014 MIDYEAR U.S. JOB FORECAST

2 FROM THE DESK OF ERIC GILPIN AS WE LOOK AHEAD TO Q3 OF 2014, it is exciting to look back at the leaps forward we ve made in the first half of the year. We are pleased to announce our acquisition of Broadbean, a leader in job distribution, candidate sourcing and big data analytics software. This acquisition was the next step in CareerBuilder s journey as a premier human capital software solution provider. Broadbean s capabilities enable us to bring staffing firms a faster, more cost-effective way to acquire, engage and place talent. As a result of this acquisition, you will see broader job distribution, while gaining the ability to manage multiple needs via one simple platform. Our rapid growth into a global Software as a Service provider is a testament to our commitment to solving the industry s greatest business challenges. Our success is tied to yours, which is why we strive to create products and solutions that make your job easier while growing your business. As always, thank you for your partnership and support. ERIC GILPIN President, Staffing & Recruiting Group, CareerBuilder INSIDE THIS ISSUE 02 From the Desk of Eric Gilpin 03 INSIGHTS & TRENDS 2014 Midyear U.S. Job Forecast 06 INSIGHTS & TRENDS Q Staffing & Recruiting Pulse Survey 07 INSIGHTS & TRENDS Key Economic Indicators 08 TALENT ACQUISITION Talent Acquisition: Four Metrics Every Staffing Firm Needs to Track 10 EVENTS Interview with Kelly Robinson, Founder and Chief Executive Officer, Broadbean 11 EVENTS Interview with Tom Landry, President, Allegiance Staffing 07 INSIGHTS & TRENDS Staffing Industry Statistics 02 FROM THE DESK OF ERIC GILPIN

3 INSIGHTS & TRENDS 2014 Midyear U.S. Job Forecast CareerBuilder s Midyear U.S. Job Forecast points to sustained job growth in the second half of Nearly half of U.S. employers plan to add full-time, permanent headcount over the next six months and one-third plan to hire temporary or contract workers both improvements over the same period in The results of this year s survey are indicative of a more assured employer population compared to 2013 when companies were, to some extent, irresolute when it came to adding permanent staff. Back then, employers anticipated a spike in temporary employment in the second half of the year while permanent employment was to remain flat. The 2014 midyear forecast shows employers are expecting forward movement in all categories of hiring. Jobs will also be added in a variety of areas, heavily favoring job seekers with expertise in technology, financial operations, communications and other specialized fields. MATT FERGUSON, CEO of CareerBuilder and co-author of The Talent Equation PERCENTAGE OF EMPLOYERS PLANNING TO ADD NEW EMPLOYEES IN THE SECOND HALF OF 2014 (JUL. 1ST TO DEC. 31ST) 47% 44% 25% 27% 31% 33% Full-time, permanent Part-time Temporary or contract The national survey, which was conducted online by Harris Poll on behalf of CareerBuilder from May 13 to June 6, 2014, included a representative sample of 2,188 hiring managers and human resource professionals across industries and company sizes. INSIGHTS & TRENDS 2014 MIDYEAR U.S. JOB FORECAST 03 Totals may not equal 100 percent due to rounding or the ability to choose more than one response.

4 HIRING BY INDUSTRY The following industries are expected to outperform the national average for permanent hiring in the months ahead with Information Technology, Financial Services and Hospitality poised to experience the highest year-over-year gains. INFORMATION TECHNOLOGY 59 percent plan to hire fulltime, permanent employees, up from 51 percent last year FINANCIAL SERVICES 57 percent plan to hire full-time, permanent employees, up from 52 percent last year HOSPITALITY 55 percent plan to hire full-time, permanent employees, up from 46 percent last year HEALTH CARE 54 percent plan to hire full-time, permanent employees, up from 51 percent last year MANUFACTURING 54 percent plan to hire full-time, permanent employees, up from 52 percent last year INDUSTRIES HIRING FULL-TIME, PERMANENT EMPLOYEES IN THE SECOND HALF OF % 59% 57% 52% 46% 55% 54% 51% 54% 52% SMALL BUSINESS HIRING While recruitment activity is notably stronger and increasing in enterprise organizations, small business hiring is holding steady and showing moderate improvement compared to last year. 50 OR FEWER EMPLOYEES 24 percent hiring full-time, permanent employees, the same as last year 250 OR FEWER EMPLOYEES 35 percent hiring full-time, permanent employees, up slightly from 34 percent in OR FEWER EMPLOYEES 39 percent hiring full-time, permanent employees, up from 37 percent in 2013 SMALL BUSINESSES HIRING FULL-TIME, PERMANENT EMPLOYEES IN THE SECOND HALF OF % 24% 34% 35% 37% 39% 50 or fewer employees 250 or fewer employees 500 or fewer employees Information Technology Financial Services Hospitality Health Care Manufacturing Among companies with more than 500 employees, three in five hiring managers (61 percent) plan to add full-time, permanent employees, up from 56 percent in HOT AREAS FOR HIRING When asked to identify the types of roles they would be creating within their organizations over the next six months, employers reported: Jobs tied to social media 11% Jobs tied to mobile technology 11% Jobs tied to cloud technology 10% Jobs tied to wellness 10% Jobs tied to content strategy for the Web 9% Jobs tied to managing and interpreting big data 9% Jobs tied to cyber security 8% Jobs tied to financial regulation 8% Jobs tied to search technology 8% Jobs tied to health informatics 8% INSIGHTS & TRENDS MIDYEAR U.S. JOB FORECAST Totals may not equal 100 percent due to rounding or the ability to choose more than one response.

5 HIRING BY REGION Comparing regions, the Northeast and South reported the biggest increases in the percentage of employers planning to add full-time, permanent headcount in the second half of the year. Hiring in the West and Midwest is expected to remain relatively unchanged, but still in line with the other regions. NORTHEAST 48 percent hiring full-time, permanent employees, up from 43 percent last year SOUTH 48 percent hiring full-time, permanent employees, up from 42 percent last year WEST 47 percent hiring full-time, permanent employees, down slightly from 48 percent last year HIRING IN Q Thirty-six percent of employers added full-time, permanent headcount in the second quarter, up from 34 percent last year. Ten percent decreased headcount, while 53 percent made no change to staff levels and 1 percent were unsure. THIS QUARTER (2ND QUARTER, APR. 1 - JUN. 30, 2014), IS YOUR COMPANY, AT YOUR LOCATION, INCREASING, DECREASING OR MAKING NO CHANGE TO ITS NUMBER OF FULL-TIME, PERMANENT EMPLOYEES? 53% 1% 36% HIRING IN Q Increase Decrease No change Undecided Looking ahead, 31 percent of employers plan to hire fulltime, permanent employees in the third quarter, up slightly from 30 percent last year. Nine percent expect to downsize staffs, while 56 percent anticipate no changes to headcount and 5 percent are undecided. IN THE THIRD QUARTER (JUL. 1 - SEP. 30, 2014) DOES YOUR COMPANY, AT YOUR LOCATION, PLAN TO INCREASE, DECREASE OR MAKE NO CHANGE TO ITS NUMBER OF FULL-TIME, PERMANENT EMPLOYEES? 5% 10% MIDWEST 46 percent hiring full-time, permanent employees, on par with last year 56% 31% 9% Increase Decrease No change Undecided INSIGHTS & TRENDS 2014 MIDYEAR U.S. JOB FORECAST 05 Totals may not equal 100 percent due to rounding or the ability to choose more than one response.

6 INSIGHTS & TRENDS Q STAFFING & RECRUITING PULSE SURVEY In Q2 2014, CareerBuilder surveyed more than 250 staffing industry professionals from across the nation to assess the state of the industry. The results of this survey contain the insight necessary for you to determine where you stand among your competitors, make smarter business decisions and serve both clients and candidates better. The following pages provide key findings from the research conducted in May If you would like to participate in future research efforts, contact us at GROWTH/SPEED OF BUSINESS OPEN JOB ORDERS Q % Q % Looking back to the previous quarter (Jan. 1- March 31, 2014) Sixty- five percent percent of respondents indicated their average number of open job orders increased from Q to Q (up from 58 percent in the previous quarter). Q % Q % Of those who saw an increase, 49 percent of job orders increased by more than 15 percent (up from 44 percent in the previous quarter). 72% Q Q When asked how they anticipate their average number of open job orders to change from Q to Q3 2014, 72 percent of respondents anticipate an increase (down from 84 percent in the previous quarter). 32% 84% Of those, 32 percent anticipate the number of job orders to increase by 6-10 percent. INTERNAL HIRING BY JOB TYPE Companies planning to increase their number of full-time employees by job type. Q Q % 45% 55% 58% 14% 17% Internal Sales Recruiter Manager Internal Sales Forty-two percent aren t planning any changes. Recruiter Twenty-eight percent aren t planning any changes. Manager Seventy-one percent aren t planning any changes. We have seen a dramatic uptick in IT hiring. The forward-thinking companies who have shortened their interview and decision processes are beating out slower or more reactive companies. It s hard to find good tech talent these days. There are more open jobs than good candidates willing to change jobs. It s starting to feel like the late 1990s, when candidates had plenty of options. 06 Q STAFFING & RECRUITING PULSE SURVEY INSIGHTS & TRENDS

7 RECRUITMENT PROCESS OFFER ACCEPTANCE/DECLINE How often do candidates decline an offer? 73% Seventy-three percent of respondents indicated candidates decline job offers less than 10 percent of the time (down from 77 percent from the previous quarter). The following graph shows the most common reasons candidates declined an offer over the past two quarters this year. Received another offer 46% 43% SPOTLIGHT KEY ECONOMIC INDICATORS EMPLOYMENT SITUATION UPDATE FROM BUREAU OF LABOR STATISTICS Total Nonfarm Payroll Employment (Month-over-Month) May June K 32% 27% Compensation/benefits not in line with expectations 8% 11% Received a counter offer from their current company Q Q Source: U.S. Department of Labor p: preliminary Many indicators monitor both the pace of recovery and the health of the staffing industry. This page provides a snapshot of some of the indicators available to educate you and plan for the future. Companies are under the impression there are still a lot of people out there looking. This is not true, and they are taking too long to make the hire. As a result, the applicant ends up getting multiple offers or strong counter-offers. Recruitment and retention are going to be key components to our success this year. We need to utilize better resources for recruiting that are more cost-effective and automated. The speed of doing business has increased greatly, as have the expectations of our clients. FOR MORE INFORMATION on payroll employment and government data, visit the Bureau of Labor Statistics at STAFFING INDUSTRY STATISTICS COMPENSATION EXPECTATIONS Q Q Get more details on TechServe Alliance s IT Employment Index at 71% 69% 25% 28% Exceeds In alignment Sixty-nine percent of respondents say job candidates salary expectations exceed employers offers (down slightly from 71 percent in the previous quarter). Twenty-eight percent say salary expectations are in alignment (up from 25 in the previous quarter). Find the latest report from the American Staffing Association s weekly Staffing Index at *Due to the slight delay between when this report was written and when it was released, some industry statistics included in this section may not be the most current available. Please reference the actual source to verify. INSIGHTS & TRENDS Q STAFFING & RECRUITING PULSE SURVEY 07

8 TALENT ACQUISITION TALENT ACQUISITION: FOUR METRICS EVERY STAFFING FIRM NEEDS TO TRACK OF THE MANY REASONS PEOPLE GO INTO THE STAFFING AND RECRUITING INDUSTRY, TRACKING METRICS IS RARELY ONE OF THEM. DESPITE KNOWING THE IMPORTANCE OF TRACKING METRICS, HOWEVER, THE VAST MAJORITY OF STAFFING FIRMS DO NOT PUT THIS BELIEF INTO PRACTICE. For example, according to CareerBuilder s most recent Pulse Survey, a compilation of thoughts and opinions from more than 250 staffing industry professionals, a mere 14 percent of staffing firms track source of candidates and candidates hired. Less than 10 percent track mobile traffic, percentage of candidates redeployed, and candidate and client satisfaction (or Net Promoter Score ). It s not a mystery as to why staffing firms tend not to prioritize tracking metrics: it s time-consuming, it involves in-depth analysis, and let s be honest it s not the most exciting task in the world. While it s easy to ignore metrics and tell yourself they don t matter, the fact remains: They are essential to measuring the success of your efforts. Tracking metrics is the most effective way to save time and money, helping you figure out which areas need improvement and where to allocate your resources for the best results. Net Promoter, NPS, and Net Promoter Score are trademarks of Satmetrix systems, Inc., Bain & Company, and Fred Reichheld. TOP METRICS TO TRACK 1 2 SOURCE OF CANDIDATES/HIRED. Do you keep track of where the candidates you place who are hired come from? This information provides insight into the effectiveness of the tools and software you are using and the productivity levels of your recruiters. You also gain a better understanding of where your candidates are coming from, which means you can stop wasting time on low-performing outlets and allocate your resources where they will be most effective. MOBILE TRAFFIC TO YOUR STAFFING FIRM S WEBSITE. Do you know how much traffic your website generates from mobile phones and tablet devices? It may be higher than you realize: According to the 2014 Opportunities in Staffing study conducted jointed by CareerBuilder and Inavero (available next quarter), 71 percent of candidates have searched for a job using their mobile phones and 89 percent have done the same from their tablets. If even 10 percent of your traffic is coming from a mobile device, you should make sure your site is mobile-optimized. If, when viewed on a smart phone or tablet, your website is difficult to read, slow to load, or contains broken links and images, your website is not mobile-optimized. As a result, candidates are likely to leave your site and go to a competitor s. 08 TALENT ACQUISITION: FOUR METRICS EVERY STAFFING FIRM NEEDS TO TRACK TALENT ACQUISITION

9 3 4 PERCENTAGE OF CANDIDATES REDEPLOYED. Do you know how many candidates you are reassigning after the first placement? Knowing this information along with the sources of these hires (see No. 1, on the previous page) can help you identify the need to increase follow-up during a placement, as well as at the end of an assignment. CANDIDATE/CLIENT SATISFACTION OR NET PROMOTER SCORE (NPS). Do you know your own firm s client satisfaction score? Are you aware of the satisfaction levels of placed candidates? These metrics are influential in helping prospective clients judge the quality of the staffing firm with which they are considering working. These scores can also help you identify opportunities to improve the quality of your service you provide both clients and candidates. In May 2014, we asked staffing industry professionals the following question based on their current methods: WHICH OF THE FOLLOWING METRICS ARE YOU TRACKING TODAY? (SELECT ALL THAT APPLY) 16.78% Number of open requisitions 16.63% Candidates submitted to requisitions 15.77% Candidates interviewed for open requisitions 17.17% Candidates placed on assignment 14.60% Source of candidates/hire 4.68% Mobile traffic to your staffing firm s website 5.54% Percentage of candidates redeployed 7.88% Candidate/Client satisfaction or Net Promoter Score 0.94% None of the above GET MORE FROM YOUR CAREERBUILDER PRODUCTS WITH COMPLIMENTARY HIRE COMPARISON REPORTS Hire Comparison reporting is a free service for CareerBuilder clients that helps them gauge the effectiveness of our products. These reports show which products your firm used, and provide a comprehensive view of the return those products yielded. The information in these reports can help you place more candidates faster, evaluate better ways to source candidates and allocate your resources more strategically. For more information on the CareerBuilder s Hire Comparison Reports, your sales representative or For more information on the Opportunities in Staffing published by CareerBuilder and Inavero, visit Full 2014 results will be available next quarter. TALENT ACQUISITION TALENT ACQUISITION: FOUR METRICS EVERY STAFFING FIRM NEEDS TO TRACK 09

10 EVENTS INTERVIEW Kelly Robinson FOUNDER AND CHIEF EXECUTIVE OF BROADBEAN Nearly 15 years ago, Kelly Robinson set out to find a way to make recruiters lives easier through technology and give them back the gift of time. The result was Broadbean, now a leader in job distribution, candidate sourcing and big data analytics software. Earlier this year, CareerBuilder and Broadbean joined forces to bring recruiters and HR managers an even faster, more convenient and more cost-effective way to acquire talent. In the following Q&A, Robinson, founder and chief executive of Broadbean, discusses what this new partnership means for staffing professionals, candidates, clients and the industry as a whole. How do you see Broadbean complementing CareerBuilder? Broadbean and CareerBuilder seem to share similar values. Anybody who knows our company knows there is quite a strong culture here at Broadbean, and I think that s true of CareerBuilder as well. We have also both been named as great places for people to work, and we have similar philosophies in terms of customer service. From a product standpoint, we complement each other quite nicely, because CareerBuilder already has a certain amount of SaaS products, and I think our products fit quite nicely in that respect. What specific capabilities does Broadbean bring to CareerBuilder? We bring a suite of a sourcing technology. We have a history of working with staffing companies to improve workflow and take friction out of the recruitment process. Back in 2000, I was running a staffing business, and we were making the transition from press-based advertisements [to online advertisements], and we found it to be a really inefficient process. So what we decided to do was use technology to bring efficiency to that process. That s how the Multi-Posting Project now Broadbean started. We have always looked at and worked with clients to discover where we can improve the workflow for recruiters, and give them back the gift of time. That s really where I think CareerBuilder and Broadbean will win with our joint customer base. How does the Broadbean/CareerBuilder partnership benefit staffing firms in particular? Staffing is in our DNA. We ve grown up in the industry. The vast majority of our clients are staffing businesses. They re one of our strongest areas from where we learn. Most of the features we ve built have come out of requests from staffing companies to drive technology forward. As we engage with more clients, we re going to hear more things are required, and we re going to drive more efficient products back out to them. What makes Broadbean stand out in the market? We listen to people, and we make great products. We ve always worked at providing brilliant customer service because we grew up in the staffing industry. Where do you see the biggest opportunities to help your customers moving forward? The opportunity to reach a wider customer base. Prior to joining CareerBuilder, we only had six sales people on staff in the U.S. as we worked to expand our successful UK operation. So there were only so many people to whom we could talk, only so many conversations we could have and only so many places we could be at once. We now have the voice of a bigger sales force, which provides us the resources to engage in more conversations and serve more customers. The bigger sales force is great for us from a product development standpoint as well, because we re able to listen to what this industry wants, how things are changing and what the challenges are. Staffing companies are very good at voicing areas of frustration. We re good at listening to those problems and solving them through the application of technology. NUMBERS AT A GLANCE 2 MILLION JOBS POSTED A MONTH 9 MILLION APPLICATIONS A MONTH 1.5 MILLION CANDIDATE SEARCHES A MONTH 2,046 CLIENTS SERVED 60,000 USERS GLOBALLY 183 COUNTRIES COVERED API PARTNERS 6,003 JOBS BOARD INTEGRATIONS 10 INTERVIEW WITH KELLY ROBINSON, FOUNDER AND CHIEF EXECUTIVE OF BROADBEAN EVENTS

11 INTERVIEW Tom Landry PRESIDENT OF ALLEGIANCE STAFFING It s been said that data is only as good as what you do with it. Tom Landry learned that lesson firsthand a few years ago, when he saw hard proof that he was missing out on potential candidates by the thousands. By studying the data of who was visiting his career site and from where, Landry was able to see exactly where he was losing candidates and fix the problem. In the following Q&A, Landry, president of Allegiance Staffing, discusses how CareerBuilder s Talent Network helped him understand the power of tracking candidate data and how it has changed both his business and his perspective. How did the relationship between Allegiance and CareerBuilder come about? When we started Allegiance [12 years ago], we ran into CareerBuilder at the American Staffing Association s Staffing World conference, which I attend every year. I started talking to one of the reps, and we ended up negotiating a deal for Job Postings. Even then, you were a leader and innovator. You re always pushing for something new and different something better which makes me think about how to push my own business forward and make it better. Our relationship with CareerBuilder has been very valuable not only for the growth of our business, but also for strengthening relationships with our customers. Can you give an example of how CareerBuilder challenges you to push your business forward? The most recent example is when we were presented with Talent Network [an always-on recruiting engine that helps companies build and sustain a talent pipeline]. Previously, the decision to invest in something like Talent Network would have been one of those decisions we might fret over and try to evaluate 57 different ways. When I was presented with the statistics, however, and saw what the return would be, [the decision to sign on] was a no-brainer. What sort of statistics did you see that convinced you to invest in Talent Network? Our CareerBuilder rep showed us the amount of hits we got on the career site you manage: In 2013, we had a 169,000 people who went to our career site, yet only about 2,500 translated into actual employees. By looking at the analytics, we realized that almost 90 percent of our visitors were accessing our site on a smart phone; however, once they got to our site, it took them to a three-page application, and no one is going to fill out a three-page application on their smart phone. That explained the drop off. Until you showed us the numbers, however, not only did we not realize how many people were visiting our site via smart phone, we also had no way of getting back in touch with them. Once we started using Talent Network, the change we saw was phenomenal. As of April, we have over 30,000 people on our Talent Network, and now we have a way to get back in touch with them. As the talent shortage continues, we are just looking at Talent Network as an invaluable tool we have to have in order to gain access to the pool. Before using Talent Network, had you been doing any sort of talent pipelining? No. We had an applicant tracking system, but those were only the people who actually started the process. We had no idea how many people were coming to the site, but didn t apply. And if visitors didn t leave us with their basic contact information, we had no way of reaching back out to them. A lot of times you re also stuck with a situation where the quality of your information is subject to the quality of the individual branch manager. I like that Talent Network is centrally controlled. The data goes out to every individual market, depending on where the person is, but we have access to all the numbers at our corporate office, so we re able to follow up. For example, I can call my branch in Nashville and say, You had 150 people last week hit your Talent Network. How many have you reached out to? How many people have been through the application process? We didn t have that ability before Talent Network. What is the biggest change you ve seen since using Talent Network? For me, it s made me more open to trying new ideas and opportunities that make sense [for our business]. Where before I might have immediately said no to certain ideas before, my attitude now is, You know what? That can happen really easily. Let s take a look at it. EVENTS INTERVIEW WITH TOM LANDRY, PRESIDENT OF ALLEGIANCE STAFFING 11

12 WHERE WE LL BE IN THE SECOND HALF OF 2014: Staffing Industry Analysts (SIA) Healthcare Staffing Summit National Association of Personnel Services (NAPS) Annual Conference SURVEY METHODOLOGY This survey was conducted online within the U.S. by Harris Poll on behalf of CareerBuilder among 2,188 hiring managers and human resource professionals ages 18 and over (employed full-time, not self-employed, non-government) between May 13 and June 6, 2014 (percentages for some questions are based on a subset, based on their responses to certain questions). With a pure probability sample of 2,188, one could say with a 95 percent probability that the overall results have a sampling error of +/ percentage points. Sampling error for data from sub-samples is higher and varies. New Jersey Staffing Association (NJSA) Golf Outing Northern New England Association of Personnel Services (NNEAPS) Owners/Managers Retreat American Staffing Association (ASA) Staffing World California Staffing Professionals (CSP) Owners Only Retreat New Jersey Staffing Association (NJSA) Annual Conference & Expo Texas Association of Staffing (TAS) Annual Golf Tournament Staffing Industry Analysts (SIA) Executive Forum London TechServe Annual Conference ABOUT CAREERBUILDER.CA CareerBuilder is the global leader in human capital solutions, helping companies target and attract great talent. Its online career site, CareerBuilder.com, is the largest in the United States with more than 24 million unique visitors and 1 million jobs. CareerBuilder works with the world s top employers, providing everything from labor market intelligence to talent management software and other recruitment solutions. Owned by Gannett Co., Inc. (NYSE:GCI), Tribune Company and The McClatchy Company (NYSE:MNI), CareerBuilder and its subsidiaries operate in the United States, Europe, South America, Canada and Asia. For more information, visit STAY CONNECTED AND JOIN THE DISCUSSSION Facebook.com/CareerBuilderForStaffing Twitter.com/CareerBuilder Linkedin.com/company/careerbuilder-for-employers Blog: Missouri and Kansas Search and Staffing Association (MKSSA) Owners Retreat New England Association of Personnel Service Annual Conference (NEAPS) - Annual Meeting/BODs

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