2011 shrm poll_wsj_temp_workers_ks

May 9, 2011

SHRM Poll: Staff Levels and the Use of Contingent and Part-time Workers

Staff Levels and the Use of Contingent and Part-time Workers ©SHRM 2011 2

Key Findings

The future use of temporary workers will remain relatively stable. More than one-half (51%) of poll respondents predict that over the next three years, their organizations’ reliance on temporary workers will remain about the same. A little over one-tenth (13%) predict having to rely more on temporary workers, while approximately the same number of organizations (14%) expect to rely less on temporary workers. Almost a quarter (22%) of organizations don’t currently use nor do they plan to use temporary workers.

More than one-third of organizations currently do not use contract employees. Of those that do, over the next three years, 41% expect the use of contract employees to be about the same as it is now. Few organizations reported changes in the use of contract workers over the next three years (12% will rely more on these workers and 11% will rely less).

Forecasted outlook for organizations’ reliance on full-time employees and contingent workers is expected to remain the same. Nearly two-thirds (62%) of organizations expect to have about the same reliance on full-time employees and contingent workers over the next three years. More than a quarter (29%) expect to rely more on full-time employees and less on contingent workers.

The top reasons organizations use contingent staff are to complete specific projects (27%) and to use as an additional resource during certain business or seasonal cycles (25%).

Most organizations do not convert temporary workers to full-time permanent positions. Just a little more than one-tenth (12%) of organizations reported that they almost always or frequently hire a temporary worker as a full-time employee. A quarter (25%) said this sometimes happens, and almost two-thirds (64%) stated that this never or rarely happens.


Over the Next Three Years, How Do You Expect the Use of the Following Staffing Options to Change for Your Organization?

Greater Reliance

About the Same Reliance

Less Reliance

Don’t Currently Use nor

Plan to Use

Contract employees 12% 41% 11% 36%

Temporary employees 13% 51% 14% 22%

Outsourced work 14% 32% 9% 45%

Regular part-time employees

19% 56% 10% 15%

n = 320

Staff Levels and the Use of Contingent and Part-time Workers ©SHRM 2011

Over the Next Three Years, How Do You Expect the Use Regular Part-time Employees to Change in Your Organization?

Regular part-time employees: Larger organizations (those with 2,500 to 24,999

employees) were more likely than small organizations (1 to 99 employees) to report that they

plan to use regular part-time employees over the next three years.

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Comparison by Organization Staff Size

Small Organizations Large OrganizationsDifferences Based on

Organization Staff Size

• 1 to 99 employees (9%) • 2,500 to 24,999 employees (31%) Larger organizations > smaller organizations


Over the Next Three Years, How Do You Expect the Use of the Following Staffing Options to Change for Your Organization?

Greater Reliance

About the Same Reliance

Less Reliance

Contract employees 19% 64% 17%

Temporary employees 17% 65% 18%

Outsourced work 25% 59% 17%

Regular part-time employees

22% 66% 12%

Note: n = 272. Totals do not equal 100% due to rounding. Organizations that don’t currently use nor plan to use part-time and contingent workers were excluded from this analysis.

(Analysis excludes organizations that currently DO NOT use nor plan to use contingent and part-time workers)


Over the Next Three Years, How Do You Expect the Use of Full-time Employees to Change for Your Organization?

Less reliance on full-time employees and greater reliance on contingent workers

About the same reliance on full-time employees and contingent workers

Greater reliance on full-time employees and less reliance on contingent workers (e.g., contract employees, temporary workers, outsourced work,

etc.)

9%

62%

29%

n = 317


Which of the Following Is the Primary Reason Your Organization Relies on Contingent Workforce Strategies (e.g., Contract Employees, Temporary Employees, Outsourced Work, etc.)?

My organization uses contingent staff to complete specific projects. 27%

My organization uses contingent staff as additional resources during certain business cycles (busy times) or seasonal cycles.

25%

My organization primarily uses contingent staff as a gap filler until we can hire full-time employees.

17%

My organization primarily uses contingent staff as a way to try out workers for possible hiring as full-time employees (i.e., temp-to-permanent).

13%

My organization uses contingent staff to reduce benefits and other labor costs. 9%

My organization primarily uses contingent staff because we have difficulty filling key skill jobs.

4%

Other 6%

Note: n = 299. Total does include ‘not applicable” or “not sure” responses. Total does not equal 100% due to rounding.


Generally, for What Types of Positions Does Your Organization Use Contract or Temporary Workers?

Executive level (e.g., CEO, CFO) 0%

Middle management (e.g., director, management, supervisor) 2%

Professional nonmanagement (e.g., analyst, nurse, engineer) 23%

Nonexempt (hourly) nonmanagement (e.g., assistant, coordinator, specialist) 75%

n = 304


Approximately How Often Does Your Organization Hire Contract or Temporary Workers Who Are Converted to Permanent Full-time Positions (i.e., Temp-to-perm Conversion)?

Never (0% of the time)

Rarely (1% to 25% of the time)

Sometimes (26% to 50% of the time)

Most of the time (51% to 75% of the time)

Almost always (76% to 100% of the time)

12%

52%

25%

9%

3%

Note : n = 319. Total does not equal 100% due to rounding.


Demographics: Organization Industry

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Manufacturing 15%

Professional, scientific and technical services 13%

Health care and social assistance 10%

Finance and insurance 9%

Public administration 7%

Educational services 6%

Accommodation and food services 3%

Arts, entertainment and recreation 3%

Information 3%

Retail trade 3%

Utilities 3%

Wholesale trade 3%

n = 308


Demographics: Organization Industry (continued)

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Administrative and support and waste management and remediation services 2%

Agriculture, forestry, fishing and hunting 2% Construction of buildings; heavy and civil engineering construction; specialty trade contractors 2%

Religious, grant-making, civic, professional and similar organizations 2%

Transportation and warehousing 2%

Management of companies and enterprises 1%

Mining 1%

Real estate and rental and leasing 1%

Repair and maintenance 1%

Personal and laundry services 0%

Private households 0%

Other 8%

n = 308


Demographics: Organization Sector

Other

Government sector

Nonprofit organization

Publicly owned for-profit organization

Privately owned for-profit organization

5%

10%

20%

48%

18%

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Note: n = 307. Total does not equal 100% due to rounding.


Demographics: Organization Staff Size

1 to 99 employees 100 to 499 employees

500 to 2499 employees

2500 to 24999 employees

25000 or more employees

24%

33%

22%

16%

6%

13

Note: n = 312. Total does not equal 100% due to rounding.


Demographics: Other

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U.S.-based operations 77%

Multinational operations 23%

Single-unit company: A company in which the location and the company are one and the same.

32%

Multi-unit company: A company that has more than one location.

69%

Multi-unit headquarters determines HR policies and practices

50%

Each work location determines HR policies and practices

3%

A combination of both the work location and the multi-unit headquarters determine HR policies and practices

47%

Is your organization a single-unit company or a multi-unit company?

Are HR policies and practices determined by the multi-unit corporate headquarters, by each work location or both?

Does your organization have U.S.-based operations (business units) only or does it operate multinationally?

n = 307 Note: n = 317. Total does not equal 100% due to rounding.

n = 220


SHRM Poll: Staff Levels and the Use of Contingent and Part-time Workers

Response rate = 11%

Sample composed of 320 randomly selected HR professionals from SHRM’s membership.

Margin of error is +/- 5%.

Survey fielded March 14-22, 2011

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Methodology

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Technology

2011 shrm poll_wsj_temp_workers_ks