1. © 2015 Crain Communications Inc. Tony Gregoire Director of Research, North America tgregoire@staffingindustry.com How will the staffing industry & job boards evolve? © 2015 Crain Communications Inc.

2. Staffing Industry Trends Job Board Market 2020 and beyond Agenda

3. © 2015 Crain Communications Inc. Staffing Industry Trends  Increasing use of job boards  Commercial vs. professional staffing  Role of cyclicality  Global market size  Contingent workforce and total talent management  Human cloud Job Board Market 2020 and beyond Agenda

4. © 2015 Crain Communications Inc. Workforce Solutions Ecosystem (from the view of the staffing industry) MSP RPO Payrolling PEO Job Boards Outplacement Consulting Services HR Consulting VMS Training IC Compliance Crowdsourcing Online Work Services ATS FMS Staffing Industry Other Workforce Solutions Temporary Staffing Place & Search Online Staffing Platforms BPO Source: Staffing Industry Analysts

5. © 2015 Crain Communications Inc. Source: Staffing Industry Analysts Staffing Industry Temporary Staffing Place & Search The Talent Solutions Ecosystem (from the view of the staffing industry)

6. © 2015 Crain Communications Inc. Source: Staffing Industry Analysts April 2015 US Staffing Industry Forecast US staffing market surpasses pre-recession peak in 2014…

7. © 2015 Crain Communications Inc. …in spite of being destroyed by job boards Job boards will destroy our industry! Source: Staffing Industry Analysts April 2015 US Staffing Industry Forecast

8. © 2015 Crain Communications Inc. Sources: Staffing Industry Analysts Staffing Company Survey – North America Job boards of increasing importance to staffing companies 20132008

9. © 2015 Crain Communications Inc. Sources: Staffing Industry Analysts Staffing Company Survey – North America Job boards of increasing importance to staffing companies 20132008

10. © 2015 Crain Communications Inc. Sources: Staffing Industry Analysts Staffing Company Survey – North America Job boards of increasing importance to staffing companies 20132008

11. © 2015 Crain Communications Inc. Sources: Staffing Industry Analysts Staffing Company Survey Number of times recommended as favorite vendor Number of times recommended as 2nd favorite vendor Sum Most common reason why firms recommended this vendor LinkedIn242751Good pool of candidates CareerBuilder301848Good, responsive service Bullhorn20929High product quality Monster14822Quality of candidates Indeed9615Good price Bond Software8614Good (responsive) service Dice6713Good source of IT candidates JobDiva9211Strong product/range of tools Salesforce7411Good customization/flexibility Seek5510Largest job board in Australia Avionte707Easy to use JobAdder527Produce is versatile and flexible Wells Fargo347Good, responsive service InsightSquared516Good analytics/reporting Quickbooks426Easy to use ADP235Consistent execution API Healthcare404Robust features Assurance044Good service Erecruit314Good ATS Maxhire134Simple to use Paychex134Easy to use Prove It134Good price Craigslist123Good results Essential Staffcare213Good service Haley Marketing213Good service Smart Search303Good price Sterling Background Checks033Ease of use, customer service, price Top Echelon303Good price Ziprecruiter303Posts to multiple job boards at once

12. © 2015 Crain Communications Inc. Source: Staffing Industry Analysts Office/clerical share of temp. continues to decline, majority of market is professional

13. © 2015 Crain Communications Inc. Sources: Staffing Industry Analysts, The Future of Employment: How Susceptible Are Jobs to Computerisation? Carl Frey and Michael Osborne Due to computerization, shift toward professional staffing should continue, though professional jobs will also be affected Industrial Photographic Process Workers and Processing Machine Operators Sewers, Hand Office/Clerical Cargo and Freight Agents Data Entry Keyers Telemarketers Professional Insurance Underwriters Tax Preparers Title Examiners, Abstractors, and Searchers Library Technicians Jobs with a 99% probability of computerization

14. © 2015 Crain Communications Inc. 2001 Recession US staffing market: still a cyclical industry Source: Staffing Industry Analysts April 2015 US Staffing Industry Forecast

15. © 2015 Crain Communications Inc. Sources: Staffing Industry Analysts, US Department of Commerce US staffing market: still a cyclical industry

16. © 2015 Crain Communications Inc. Sources: Staffing Industry Analysts, US Department of Commerce, Survey of Professional Forecasters Continued growth projected for US staffing market through 2016, with economic recovery

17. © 2015 Crain Communications Inc. And now for some trivia According to the National Bureau of Economic Research, the longest economic expansion since the US government began tracking in 1854 is…???

18. © 2015 Crain Communications Inc. According to the National Bureau of Economic Research, the longest economic expansion since the US government began tracking in 1854 is… 10 years (March 1991 – March 2001) And now for some trivia

19. © 2015 Crain Communications Inc. Sooner or later, next recession will temporarily derail industry trends According to the National Bureau of Economic Research, the longest economic expansion since the US government began tracking in 1854 is… 10 years (March 1991 – March 2001) We have been in expansion since June 2009. Therefore, unless we are currently in the longest expansion period in recorded US history, the next recession will begin within the next four years.

20. © 2015 Crain Communications Inc. Source: Staffing Industry Analysts International - not just a hobby (8 of 10 largest US staffing firms have >10% of business outside US)

21. © 2015 Crain Communications Inc. South America Africa & Middle East Europe Asia Pacific North America Countries and regions are to scale Global temp. staffing market revenue of $354bn in 2013 Source: Staffing Industry Analysts

22. © 2015 Crain Communications Inc. US CA BR SA JP AU NL IN CH CN UK FR IT DE BE Countries and regions are to scale Global temp. staffing market revenue of $354bn in 2013 Source: Staffing Industry Analysts

23. © 2015 Crain Communications Inc. Source: Staffing Industry Analysts The temp. staffing market is but one piece of the $3.2 trillion global contingent workforce Global Contingent Workforce Market: $3.2 Trillion (2013) Temporary Staffing $354 Billion “Perm” Staffing $45 Billion Independent Contractors Temporary Employees Not Assigned Through Agencies (i.e. fixed contract, also includes payrolling) SOW Consultants Staffing Industry

24. © 2015 Crain Communications Inc. Decentralized Preferred Suppliers Master Vendor Managed Service Provider (MSP) Several suppliers Procurement done on an ad-hoc basis Management done internally Selective set of suppliers selected Contracts in place Service level agreements (SLA’s) in place One supplier (possibly managing second and third tier suppliers) One point of contact Direct cost savings on bill rate and usage Customized SLA’s and process Contingent workforce spend under management One point of contact Direct cost savings on bill rate and usage Customized SLA’s and process Non-compliant spend elimination Total cost of ownership savings More Value Evolving contingent workforce models More Complexity ? Source: Staffing Industry Analysts

25. © 2015 Crain Communications Inc. Decentralized Preferred Suppliers Master Vendor Managed Service Provider (MSP) Total Talent Management Several suppliers Procurement done on an ad-hoc basis Management done internally Selective set of suppliers selected Contracts in place Service level agreements (SLA’s) in place One supplier (possibly managing second and third tier suppliers) One point of contact Direct cost savings on bill rate and usage Customized SLA’s and process Contingent workforce spend under management One point of contact Direct cost savings on bill rate and usage Customized SLA’s and process Non-compliant spend elimination Total cost of ownership savings Total workforce spend under management Complete workforce visibility Direct cost savings on bill rate and usage Customized SLA’s and process Non-compliant spend elimination Increased total cost of ownership savings Additional productivity and process savings High degree of value added services More Value Evolving contingent workforce models More Complexity Source: Staffing Industry Analysts

26. © 2015 Crain Communications Inc. Talent strategy and business alignment Metrics and Analytics Workforce Planning Learning and Development Career and performance management Compensation/Benefits TTM integrates traditional talent employment and non-employee labor Traditional employees Talent Acquisition Modes Recruiters, Direct Hire, RPO Managed By: HR Outsourced services Contingent Temps, IC, SOW & Internal stretch Agencies, MSP/VMS, Direct IC Consulting & Outsourcing Firms Managed By: HR and ProcurementManaged By: Procurement Source: Staffing Industry Analysts

27. © 2015 Crain Communications Inc. The Human Cloud

28. © 2015 Crain Communications Inc. The human cloud landscape How the Work is Organized Specific Worker(s) “A Crowd” What the Client Gets Labor Relationship Service Output Crowdsourcing Online Staffing Online Services freelancer.com Upwork Task Rabbit FieldNation Work Market CrowdFlower LionBridge Innocentive 99Design LiveOps Rev OnForce Peopleperhour Gigwalk Amazon Turk Chaordix WikiStrat Source: Staffing Industry Analysts

29. © 2015 Crain Communications Inc. Evolution of human cloud to FMS (freelancer management systems) Source: Staffing Industry Analysts

30. © 2015 Crain Communications Inc. How FMS can fit into a CW program Source: Staffing Industry Analysts Enterprise Temporary agency staff Independent workers SOW consultants

31. © 2015 Crain Communications Inc. How FMS can fit into a CW program Source: Staffing Industry Analysts Enterprise Temporary agency staff Independent workers SOW consultants

32. © 2015 Crain Communications Inc. Staffing Industry Trends Job Board Market  Global market size and largest providers  Employment trends/skill misalignment  Job board innovations  A more integrated ecosystem 2020 and beyond Agenda

33. © 2015 Crain Communications Inc. And now for some trivia What company generated the most revenue from its job board(s) across the globe in 2014?

34. © 2015 Crain Communications Inc. And now for some trivia What company generated the most revenue from its job board(s) across the globe in 2014, by Staffing Industry Analysts estimates? It’s not LinkedIn (which came in second)

35. © 2015 Crain Communications Inc. Largest job boards by estimated revenue Source: Staffing Industry Analysts 2015 Largest Job Boards Globally Rank Company HQ Country 2014 Revenue (USD million) 1 RecruitIndeed, Rijunabi, Hatalike, Work in Japan, JobDirect, Minna- no-Kyujinban, Travaille, From A Navi, Yumex Japan $2,400 2 LinkedIn US $856 3 MonsterMonster, CareerOne, Jobpilot, Workania, jobs.cz, profesia US $808 4 GannettCareerBuilder, which also operates JobsCentral, JobScout24, Broadbean, Sologig, Headhunter, CareerRookie, MiracleWorkers, WorkinRetail, JobsinMotion US $670 5 SEEK Australia $500 6 Axel SpringerStepStone, (includes IrishJobs, Pnet, jobsite), YOURCAREERGROUP (HOTEL CAREER, TOURIST CAREER, GASTRONOMIE CAREER), Totaljobs Group (totaljobs, RetailChoice, CWJobs, CareerStructure, Caterer, CatererGlobal) Germany $350 7 Craigslist US $278 8 DHI GroupDice, BioSpace, ClearanceJobs, eFinancialCareers, Hcareers, HEALTHeCAREERS, Rigzone, Slashdot, SourceForge, WorkDigital US $213 9 51Job China $81 10 HeadHunter Russia $80

36. © 2015 Crain Communications Inc. Global job board market Estimated 2014 revenue: $10B - $20B Source: Staffing Industry Analysts $10 billion$20 billion

37. © 2015 Crain Communications Inc. Source: US Bureau of Labor Statistics Job market becomes more fluid

38. © 2015 Crain Communications Inc. Fluidity, and demand for new positions, drive surge in job openings Source: US Bureau of Labor Statistics

39. © 2015 Crain Communications Inc. Healthy increase in hires, but not proportional to rise in openings Source: US Bureau of Labor Statistics

40. © 2015 Crain Communications Inc. Beveridge curve shifts to right…why does this matter?

41. © 2015 Crain Communications Inc. Moving people to the demand Source: Burning Glass, McKinsey Global Institute, US Bureau of Labor Statistics

42. © 2015 Crain Communications Inc. Traditional education not likely to align workforce skills with demand anytime soon

43. © 2015 Crain Communications Inc. Compete for attention of candidates (both passive and active) by building cradle-to-grave online communities, with content, social, online training…and, of course, jobs Not only are job boards doing this. Their clients are, too! So, in the meantime, job boards innovate to hunt for talent

44. © 2015 Crain Communications Inc. Zappos Insider: Building community hub over internal job board 2001 Recession

45. © 2015 Crain Communications Inc. New ways to scour the internet for information on candidates (Monster’s TalentBin and DHI’s Open Web) Increasingly sophisticated algorithms for recruiting, screening and assessment Sourcing management services (Concierge powered by Monster, Dice Sourcing Concierge) Workforce analytics Pay for performance Additional job board innovations

46. © 2015 Crain Communications Inc. Workforce Solutions Ecosystem (from the view of the staffing industry) MSP RPO Payrolling PEO Job Boards Outplacement Consulting Services HR Consulting VMS Training IC Compliance Crowdsourcing Online Work Services ATS FMS Staffing Industry Other Workforce Solutions Temporary Staffing Place & Search Online Staffing Platforms BPO Source: Staffing Industry Analysts

47. © 2015 Crain Communications Inc. Payrolling/ Compliance Solutions Temporary Staffing Programs Recruitment Technology Platforms The Human Cloud Workforce Process Outsouring MSP RPO Payrolling Job Boards VMS IC Compliance Crowdsourcing Online Work Services ATS FMS Temporary Staffing Place & Search Online Staffing Platforms BPO Direct Hire Programs Source: Staffing Industry Analysts Workforce Solutions Ecosystem (from the view of the staffing industry)

48. © 2015 Crain Communications Inc. Elements of ecosystem less clearly defined

49. © 2015 Crain Communications Inc. Staffing Industry Trends Job Board Market 2020 and beyond Agenda

50. © 2015 Crain Communications Inc. Sources: *Ericsson Mobility Report, June 2015 **Chris DeRose, “How Google uses data to build a better worker,” The Atlantic, October 7, 2013 Looking to 2020, and beyond Mobile first (projected 6.1 billion smartphone users globally).* Job boards/online talent platforms will increase market efficiency, driving even greater pay disparity among workers based on skill and talent (Google analytic team demonstrated that exceptional technologists can have a performance differential of up to 300x an average employee).** As job boards evolve into online communities, brands will need to serve specific occupations. Increasingly scalable technology will drive job board companies to become larger, but with many separate brands for each occupation, region. Opportunity to use data from online talent platforms to drive educational changes to better align workforce skills with demand.

51. © 2015 Crain Communications Inc. Sources: *Ericsson Mobility Report, June 2015 **Chris DeRose, “How Google uses data to build a better worker,” The Atlantic, October 7, 2013 Looking to 2020, and beyond Mobile first (projected 6.1 billion smartphone users globally).* Job boards/online talent platforms will increase market efficiency, driving even greater pay disparity among workers based on skill and talent (Google analytic team demonstrated that exceptional technologists can have a performance differential of up to 300x an average employee).** As job boards evolve into online communities, brands will need to serve specific occupations. Increasingly scalable technology will drive job board companies to become larger, but with many separate brands for each occupation, region. Opportunity to use data from online talent platforms to drive educational changes to better align workforce skills with demand. Though economic recessions, whenever and wherever they occur, can temporarily derail trends.