1. May 9, 2011 SHRM Poll: Staff Levels and the Use of Contingent and Part-time Workers

2. Staff Levels and the Use of Contingent and Part-time Workers ©SHRM 2011 Key Findings 2  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.

3. Staff Levels and the Use of Contingent and Part-time Workers ©SHRM 2011 Over the Next Three Years, How Do You Expect the Use of the Following Staffing Options to Change for Your Organization? 3 n = 320

4. 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. 4 Comparison by Organization Staff Size Small OrganizationsLarge Organizations Differences Based on Organization Staff Size 1 to 99 employees (9%)2,500 to 24,999 employees (31%) Larger organizations > smaller organizations

5. Staff Levels and the Use of Contingent and Part-time Workers ©SHRM 2011 Over the Next Three Years, How Do You Expect the Use of the Following Staffing Options to Change for Your Organization? 5 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)

6. Staff Levels and the Use of Contingent and Part-time Workers ©SHRM 2011 Over the Next Three Years, How Do You Expect the Use of Full- time Employees to Change for Your Organization? 6 n = 317

7. Staff Levels and the Use of Contingent and Part-time Workers ©SHRM 2011 Which of the Following Is the Primary Reason Your Organization Relies on Contingent Workforce Strategies (e.g., Contract Employees, Temporary Employees, Outsourced Work, etc.)? 7 Note: n = 299. Total does include ‘not applicable” or “not sure” responses. Total does not equal 100% due to rounding.

8. Staff Levels and the Use of Contingent and Part-time Workers ©SHRM 2011 Generally, for What Types of Positions Does Your Organization Use Contract or Temporary Workers? 8 n = 304

9. Staff Levels and the Use of Contingent and Part-time Workers ©SHRM 2011 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)? 9 Note : n = 319. Total does not equal 100% due to rounding.

10. Staff Levels and the Use of Contingent and Part-time Workers ©SHRM 2011 Demographics: Organization Industry 10 Manufacturing15% Professional, scientific and technical services13% Health care and social assistance10% Finance and insurance9% Public administration7% Educational services6% Accommodation and food services3% Arts, entertainment and recreation3% Information3% Retail trade3% Utilities3% Wholesale trade3% n = 308

11. Staff Levels and the Use of Contingent and Part-time Workers ©SHRM 2011 Demographics: Organization Industry (continued) 11 Administrative and support and waste management and remediation services 2% Agriculture, forestry, fishing and hunting2% Construction of buildings; heavy and civil engineering construction; specialty trade contractors 2% Religious, grant-making, civic, professional and similar organizations 2% Transportation and warehousing2% Management of companies and enterprises1% Mining1% Real estate and rental and leasing1% Repair and maintenance1% Personal and laundry services0% Private households0% Other8% n = 308

12. Staff Levels and the Use of Contingent and Part-time Workers ©SHRM 2011 Demographics: Organization Sector 12 Note: n = 307. Total does not equal 100% due to rounding.

13. Staff Levels and the Use of Contingent and Part-time Workers ©SHRM 2011 Demographics: Organization Staff Size 13 Note: n = 312. Total does not equal 100% due to rounding.

14. Staff Levels and the Use of Contingent and Part-time Workers ©SHRM 2011 Demographics: Other 14 U.S.-based operations77% Multinational operations23% 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 = 307Note: n = 317. Total does not equal 100% due to rounding. n = 220

15. Staff Levels and the Use of Contingent and Part-time Workers ©SHRM 2011 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 15 Methodology For more poll findings, visit www.shrm.org/surveyswww.shrm.org/surveys Follow us on Twitter: http://twitter.com/SHRM_Researchhttp://twitter.com/SHRM_Research