Yoh magazine december14

A 2014 QUIZ: THIS YEAR’S MOST IMPACTFUL MOMENTS AND WHAT THEY MEAN FOR 2015 3 GIFTS FROM RETAIL: WHAT HOLIDAY HIRING TEACHES THE REST OF US

RECOVERY IN 2015?

4 ECONOMIC BRIGHT SPOTS THAT COULD MEAN YES © 2014 Yoh Services LLC | A Day & Zimmermann Company

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WHAT’S INSIDE

03 Recovery in 2015? 4 Economic Bright Spots that Could Mean Yes

10 A 2014 Quiz: This Year’s Most

Impactful Moments and What They Mean for Hiring in 2015

18 3 Gifts from Retail: What

Holiday Hiring Teaches the Rest of Us

RECOVERY IN 2015?

4 ECONOMIC BRIGHT SPOTS THAT COULD MEAN YES The labor market snapped back in 2014, sinking the unemployment rate to its lowest level since 2008. In many ways unemployment was the most stubborn of the economic measures in the wake of the recession, slow to tick back to baseline. Yet an unemployment rate that has returned to normal has done little to shake off the uncertainty that has characterized so much of 2014.

Have we truly made the kind of progress that 5.8 percent unemployment suggests? Some say yes, some say no.

While unemployment dipped to its lowest rate since the recession, the labor force participation rate fell to 62.7 percent in September, the lowest since the 1970s. If unemployment is dipping because potential workers are quitting the labor market, can we call that headway?

And while the recent unemployment figure suggests the economy is back on solid ground, when you look behind the numbers, you discover that most new job creation is low wage, Š 2014 Yoh Services LLC | A Day & Zimmermann Company

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service-oriented work. At the same time, the number of workers holding two jobs was at a remarkably high 7.7 million as of October—11 percent more than a year ago. That suggests the job market still has several cracks to fill before anyone can truly declare that the economy is back to normal.

Of course, your perspective on the strength of job growth and economic recovery depend on where you stand. But there are several objective bright spots in the employment economy.

It’s undeniable that companies have record amounts of cash on hand. Apple, for instance, is now sitting on more than $155 billion in cash, cash equivalents, and marketable securities, more than triple that of the U.S. government. And Apple’s not alone. Microsoft, Google, Verizon, and Pfizer all have more cash on hand than the U.S. These companies will have to spend that cash sooner or later to fuel growth, and when they do, it could set off a hiring spree with reverberations across the economy.

At the same time, technology continues to transform © 2014 Yoh Services LLC | A Day & Zimmermann Company

the American workforce and a number of other prominent and under-the-radar sectors continue to show incredible promise. These bright spots of 2014 are shaping up as the markets to watch in the coming year.

Bright Spot #1: Gaming In March, we took a close look at the gaming industry and its insatiable appetite for technical talent, including everything from game developers to animators to testers. Bigger and more profitable than the movie industry, gaming continues to grow and shift, offering new opportunities for both seasoned talent and newcomers passionate about the industry.

But it’s not all fun and games. Gamification in the corporate sector represents a real opportunity as American corporations deploy gaming strategies to boost productivity, motivate sales teams, engage customers, and otherwise use the competitive spirit to lift performance.

© 2014 Yoh Services LLC | A Day & Zimmermann Company

Bright Spot #2: Oil and Gas At the same time, the real miracle in American employment—and perhaps the most surprising— is oil and gas. As recently as five years ago, the American oil and gas industry had been written off. It was theorized that America was long past its peak production.

But then came the shale gas revolution and American innovation, which fueled unconventional drilling techniques and opened massive new reserves to exploration. The result is a vast employment demand for everything from petroleum engineers to environmental attorneys to the more physically demanding jobs such as roustabouts.

Bright Spot #3: Financial Services An equal level of employment froth has bubbled up in the financial services industry. With baby boomers retiring at record numbers, the demand for novel financial consulting and benefits and retirement planning is expected to stay high for the next decade. p. 5

These jobs are taking many shapes. The biggest buzz in 2015 will be roboadvisors. These are automated, self-service financial planning platforms that, through the power of technology, allow consumers to manage their own financial future at a huge discount over hiring financial planners.

These companies rely on technology and programmers to create easy-to-use, cloud-based solutions that can manage millions of users and secure environments. As such, the highly automated movement of money drums up unprecedented demand for technical professionals who understand mobile, security, and cloud-based technology.

Bright Spot #4: Media and Entertainment And the 2014 employment story wasn’t solely a serious one. In September, we identified emerging employment opportunities in media and entertainment. While America might have lost some of its manufacturing might, it’s still the world leader in innovation and creativity.

Nowhere is that seen more than entertainment and media. Last year, American entertainment and media Š 2014 Yoh Services LLC | A Day & Zimmermann Company

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companies—including music, movies, and gaming—produced more than $573 billion in value through products that were exported to every corner of the world. From “12 Years a Slave,” which won an Oscar for Best Picture, to Taylor Swift’s “1989,” which saw the biggest week of sales for an album in more than a decade, the movies, music, television, and other media produced in the U.S. remains some of the most influential and lucrative.

Our analysis of the entertainment industry brought some interesting conclusions. For instance, job demand isn’t just for creatives and performers.

Behind those intoxicating stars stands an entire army of accountants, engineers, social media experts, editors, cosmetologists—the highly influential roles often spied only in the tiny print of the credits.

Talent Strategies for Lean Times All in all, 2014 proved itself to be a year of hot spots and opportunity, albeit lumpy and isolated to specific industries and verticals. If our coverage throughout the year proves one point, however, it’s © 2014 Yoh Services LLC | A Day & Zimmermann Company

that even in an inconsistent recovery, progressive organizations are universally adopting new means of managing the staffing challenge.

As we reported in July, MSP and RPO are blending together due to increasing acceptance of both staffing solutions. The walls defining one from the other have crumbled in an era when companies are less concerned about acronyms and more with the ability to efficiently, quickly, and nimbly fill bulk or high-skill positions at a time when few companies want to add the fixed overhead of in-house recruiters. Instead, MSP and RPO offer a smart strategy for maintaining the cost savings that a prolonged recession forced upon the marketplace.

Last year, American entertainment and media companies—including music, movies, and gaming—produced more than $573 billion in value through products that were exported to every corner of the world.

Even as employment improves, corporate America is not returning to pre-recession exuberance levels, when staffing departments were fat and happy and willing to shoulder many of the responsibilities. Corporate staffing will remain lean and mean, demanding even greater partnership between vendors and suppliers as the new balancing act becomes an issue of finding on-demand talent in order to capitalize p. 7

on awakening markets.

The Path Forward Globally, macroeconomically, the U.S. has much to gain.

As European markets struggle, Asian markets return to more realistic levels, and a newly elected majority in the U.S. Senate bodes well for the might and right of American business.

Within that framework, the interest of the world will return to the U.S. economy, propelling our growth. Talent will take on new meaning as companies search for those skill sets that can capitalize on an improved American economic outlook while controlling costs, gaining better transparency, and reducing time to hire in what could be the strongest year for the American economy since 2008.

Š 2014 Yoh Services LLC | A Day & Zimmermann Company

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SMARTY PANTS

Š 2014 Yoh Services LLC | A Day & Zimmermann Company

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A 2014 QUIZ:

THIS YEAR’S MOST IMPACTFUL MOMENTS AND WHAT THEY MEAN FOR HIRING IN 2015 2014 was a wild year. Economic volatility defined the markets, hacking exploits heightened the focus on data security, and the effects of Obamacare and a falling unemployment rate were the subject of much debate among experts across industries. Businesses of all stripes will continue to feel the impact of many of these headlining events on their recruiting and hiring in 2015. And if you look closely enough, you might even learn a few lessons for where to take your hiring plans in the new year.

How much do you recall about the ups and downs of 2014, and what might you need to pay closer attention to in 2015? Test your IQ with the following 10 questions and see how current events can shape talent management next year. Š 2014 Yoh Services LLC | A Day & Zimmermann Company

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a) Alaska

2. Which tech giant released a mobile payment system that’s expected to fundamentally transform checkout counters?

b) North Dakota

a) Google

c) New Mexico

b) HP

d) Texas

c) Apple

1. The Bakken formation, now one of the largest oil fields in the United States, is in which state?

d) Facebook

b) North Dakota

There are more than 8,000 wells pumping oil from the Bakken Shale today, compared to less than 900 at the start of 2009, and with huge deposits of oil remaining, the demand for petroleum engineers and drillers, among other positions, will remain steady. u2015 TAKEAWAY: Have a plan in place to easily ramp up hiring when demand accelerates as fast as it has in the oil and gas sector. A hiring partner can bring in skilled, hard-to-find talent, and build a pipeline of top-flight candidates to help meet your needs.

Š 2014 Yoh Services LLC | A Day & Zimmermann Company

ANSWER:

c) Apple

ANSWER:

As Apple Pay and other mobile payment solutions gain ground in payment terminals, demand for developers, security experts, and other specialized talent will rise. u2015 TAKEAWAY: Tech is always a competitive space, and growing fields will only exacerbate the issue. If you depend on this kind of talent, maintain a hiring pool with the help of a managed service provider (MSP) or recruitment process outsourcing (RPO) and be ready to hire as trends change and the marketplace shifts.

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3. This retail giant announced more than 56 million credit card records were stolen in a cyber attack. a) Wal-Mart b) Bed Bath & Beyond c) Home Depot d) Macy’s

c) Home Depot

ANSWER:

After Target’s data breach in 2013 and Home Depot’s breach this year, every company should focus on locking down its customers’ personal information. u2015 TAKEAWAY: Staying ahead of security with a solid talent base of cryptographers, programmers, security architects and analysts, and more will keep your customers’ email addresses and credit card numbers safe.

4. The unemployment rate dropped more than a full point in 2014. How many jobs did the U.S. add? a) 4.3 million b) 1.2 million c) 5.8 million d) 2.5 million © 2014 Yoh Services LLC | A Day & Zimmermann Company

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d) 2.5 million

ANSWER:

As more people find work, there’s the potential for wage growth and a shortage of qualified workers, so plan accordingly. Calling on an RPO provider can free up internal HR experts to focus on planning and executing your longterm business goals. u 2015 TAKEAWAY: As more people find work, there’s the potential for wage growth and a shortage of qualified workers, so plan accordingly.

Calling on an RPO provider can free up internal HR experts to focus on planning and executing your long-term business goals.

weekend. u2015 TAKEAWAY: Box office success depends on make-up artists, animators, costume designers, and even social media experts just as much as on directors and actors. Source the best candidates for even the behind-the-scenes roles in your organization in order to achieve the greatest chance at success.

6. These two funnymen are the new hosts of two prominent late-night talk shows – can you name them? a) Louis CK and Seth Meyers

a) Guardians of the Galaxy b) X-Men: Days of Future Past c) Dawn of the Planet of the Apes d) Transformers: Age of Extinction

d) Transformers: Age of Extinction

ANSWER:

Big blockbusters still bring people to the theaters—Transformers: Age of Extinction brought in more than $100 million on opening © 2014 Yoh Services LLC | A Day & Zimmermann Company

b) Jimmy Fallon and Stephen Colbert c) Andy Samberg and John Oliver d) Steve Coogan and Seth MacFarlane

ANSWER:

b) Jimmy Fallon / Stephen Colbert

5. Which 2014 movie had the biggest opening weekend at the box office?

Fallon replaced Jay Leno this year, and Colbert will replace David Letterman in 2015—that’s no laughing matter. u2015 TAKEAWAY: Grooming talent, as NBC did in Fallon, and being able to attract top candidates,

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7. How many Americans enrolled for health insurance through exchanges established by the Affordable Care Act (commonly known as Obamacare)? a) 7.3 million b) 6.1 million c) 8.8 million d) 10.2 million

a) 7.3 milliion

ANSWER:

More Americans can now access doctors and other preventative health measures. And the rise of wellness programs, occupational health initiatives, and other preventative services will increase the number of health care workers needed on the front lines. u 2015 TAKEAWAY: The Affordable Care Act is creating new opportunities for nurse practitioners and primary care physicians as the patient base

Š 2014 Yoh Services LLC | A Day & Zimmermann Company

grows. Think about how wellness programs could improve employee engagement and how your occupational health stacks up.

8. Which two space travel companies were awarded contracts by NASA to bring astronauts to the International Space Station? a) PlanetSpace and Scaled Composites b) Virgin Galactic and Starchaser Industries c) Boeing and SpaceX d) Blue Origin and Lockheed Martin

ANSWER:

c) Boeing and SpaceX

as CBS did with Colbert, allowed these late night franchises to seamlessly pass the torch and engage audiences nationwide. Think about not just where you are today, but where you want to be in the coming year.

Boeing and SpaceX will ferry astronauts and supplies to the International Space Station starting in 2017. u2015 TAKEAWAY: The growth of new industries, like commercial space flight, creates new avenues for specialized talent (like aerospace engineers).

RPO and MSP partners can extend your reach to these increasingly hard-to-find candidates. could improve employee engagement and how your occupational health stacks up.

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9. What weather pattern caused prolonged cold weather in the eastern and central U.S. in early 2014? a) Icy Front b) Polar Vortex c) Artic Blast d) Cold-Weather Surge

b) Polar Vortex

ANSWER:

The Polar Vortex froze up the first few months of 2014, and iced over consumer spending and hiring. u 2015 TAKEAWAY: Extreme shifts can create slowdowns for your business, so plan for any staffing adjustments that might be dictated by events outside your control, and how you’ll ramp up hiring again when normalcy returns.

10. This World Cup-winning country defeated Brazil in the semifinals by a score of 7-1—the most lopsided World Cup semifinal ever. a) Portugal b) Germany c) Italy d) The United States © 2014 Yoh Services LLC | A Day & Zimmermann Company

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b) Germany

ANSWER:

Germany’s national plan to build a network of talent has paid off: Germany’s 2014 World Cup victory was its first since 1990, and its fourth overall.

2015 TAKEAWAY: Advanced planning and dedication to your talent pipeline will pay off big when you want results.

QUIZ SCORES: 8-10: Genius. You’re like a human Flipboard— you’ve been tuned into the news all year long and understand the changes, challenges, and opportunities that come with a recovering economy. Keep on keeping on.

rather than having to play catch up with your workforce.

2-4: Out of the loop. Let’s toast to your new New Year’s resolution: Keeping track of the big stories that impact your hiring plans and bringing them to management early on. Not only will you better meet your own goals, but help your company achieve its objectives, too.

Cheers to the New Year!

0-1: Living in a bubble. We get it, sometimes you need to tune out the news, especially when celebrities are out there breaking the Internet.

But make sure your team has a handle on what’s going on in your industry so you’re prepared to manage the ups and downs of recruiting and hiring.

5-7: Sittin’ pretty. But don’t get too comfortable.

Like Google Alerts, you may have missed a story here or there, but you know your current events better than most. Try to keep an eye on what’s trending rather than wait until something becomes headline news so you can work with your staffing partner in advance of changes,

© 2014 Yoh Services LLC | A Day & Zimmermann Company

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A HOLIDAY PEAK Š 2014 Yoh Services LLC | A Day & Zimmermann Company

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3 GIFTS FROM RETAIL:

WHAT HOLIDAY HIRING TEACHES THE REST OF US It’s the most wonderful time of the year for retailers. Hoping to finish 2014 on a high note with a fruitful holiday shopping season, retailers ramped up hiring ahead of the most important month of consumer spending in the U.S. Some had been staffing up for months as they planned for Black Friday sales and beyond. Others scrambled to find qualified candidates just a few weeks before Thanksgiving.

This same hiring rush is often repeated even in organizations that aren’t tethered to the holiday season. Events, seasonal shifts, and projects often require more flexible and fluid hiring to meet fluctuating demand.

How do you manage recruiting, contingent labor, and other hiring needs when you have to act fast? Here are three strategies retailers turn to for the holidays and how your business can draw on them in 2015.

© 2014 Yoh Services LLC | A Day & Zimmermann Company

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1. Step out of the hiring process: Retailers could hire up to 800,000 workers to help for the holidays in 2014. Toys ‘R’ Us alone plans to double its workforce. Falling behind in that hiring is something they can’t afford—having an under-staffed store on Black Friday isn’t an option. Often the quickest and most efficient way to accelerate hiring is to hand off the process to someone else who specializes in meeting demand on schedule.

Managed service providers (MSPs) relieve organizations from sourcing, vetting, hiring, and onboarding temporary workers for a project or a yearly event. An MSP solution ensures you have the talent you need when you need it with a quicker time to hire, freeing you to think big picture, and ensuring a smoother hiring and onboarding process.

2. Construct a steady channel of capable workers: On Black Friday, all large retailers have a few things in common: big sales, shelves stocked with © 2014 Yoh Services LLC | A Day & Zimmermann Company

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the hottest gifts, and sidewalk-winding lines. The difference in how those early morning (or late night) store openings play out is the quality of the staff, many of whom are temporary workers. The stores that thrive on Black Friday have pipelines in place to acquire the right talent in large numbers before the big day.

By building a channel of available and able talent, you can quickly ramp up hiring so you’re fully staffed at the right time, whether you need to staff up a call center before busy season, add a team of developers to accelerate a new video game, or even assemble a social media team to promote an event. Using MSP or recruitment process outsourcing (RPO) allows your organization to tap into broad networks of candidates. Even if you need highly specialized workers, employing MSP or RPO creates an avenue of qualified professionals who can be on-boarded quickly and efficiently when they’re needed.

3. Consider the importance of scale: It’s a fact that Black Friday is the most important day of shopping in the U.S. But retailers don’t © 2014 Yoh Services LLC | A Day & Zimmermann Company

need all of that help weeks after the holiday rush is over, so they scale back hiring as temporary workers are no longer needed.

This happens for many other organizations as well—the business cycle will dictate your hiring.

An MSP program can scale up the hiring when your business is on the brink of a major event, but can also downsize when that event has passed.

Likewise, RPO can add or subtract recruiters working on your behalf to match hiring efforts to customer demand. Scaling up or down permits you to optimize your suppliers and hiring for a more efficient process as a whole. By using a partner, you’ll gain the power to cut back on excessive dollars spent on staffing in-house recruiters who may be overworked leading up to a busy season, and underutilized after the fact.

Black Friday is the Super Bowl of retail, and the lessons (and missteps) learned from holiday shopping’s winners and losers can apply to businesses of all sizes, in any industry.

Customer demand must be matched by hiring, and that can be studied and replicated for any business with a major event, project work, or seasonal fluctuations. By employing RPO and p. 20

and MSP solutions, business leaders will be better equipped to staff up for big projects and tasks to better ensure their success.

Š 2014 Yoh Services LLC | A Day & Zimmermann Company

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YOU NEED IT. WE HAVE IT.

Yoh is here. Yoh is there. Yoh is virtually everywhere. All in and busy going all out, doing everything it takes to takeyouwhereyouwant to go – forward. How? By foregoing the talent pool in favor of our own sea of talent, helping you find just the right person for the job or just the career you’ve been searching for.