MINNEAPOLIS, April 12 /PRNewswire-FirstCall/ -- Piper Jaffray & Co. Senior
Analyst Brett Manderfeld and a team of analysts recently released the findings
of a proprietary survey of human resource professionals. The national survey,
which was conducted by Harris Interactive(R) (HPOL, Market Perform, $4.70)
included more than 320 human resource professionals designed to provide
institutional investors deeper insight into key trends and spending plans
across the U.S.-based human resources community.
The survey took a close look at the human resources market and covered
topics ranging from hiring plans for this year by functional area and
recruitment channel to overall trends and budgeting plans for human resource
technologies, outsourcing and offshoring initiatives and company-provided
Findings of the survey suggest 2005 to be a solid year for headcount
growth with overall hiring of full-time employees forecast up five percent
more than 2004. Roughly four times the number of respondents indicated plans
to increase headcount in 2005, versus those planning declines (44 percent,
versus 11 percent) while 45 percent expected to maintain current levels,
versus last year.
"In online recruitment, we expect Monster (MNST, Outperform, $28.08) to
maintain its dominant market share position relative to CareerBuilder in 2005,
while the rate of online recruitment spending will dramatically outpace that
of newspapers, recruiters and job fairs this year," said Manderfeld. "Based on
our interpretation of the data, we expect spending growth in the online
employment market to increase 12 percent in 2005 with Monster's market share
advantage expected consistent with 2004 spending levels at roughly two times
CareerBuilder and five times HotJobs."
The survey also suggest that the overall market for pre-employment
background screening is also expected to grow 12 percent in 2005 and
ChoicePoint (CPS, Outperform, $38.98) is by far the most recognized and used
vendor of any company in this very fragmented space. Additionally, although
respondent familiarity with particular temporary staffing firms is generally
low, most likely because of the fragmented nature of this market. Among the
four firms mentioned in the survey, Adecco, Kelly Services, ManPower and
Robert Half, (RHI, Outperform, $25.44), respondents who were familiar with the
firms rated Robert Half highest in terms of job candidate quality.
The 2005 Human Resources Outlook Survey also includes information in
enterprise software, technology BPO, infrastructure software and learning
services. The survey points out that Oracle's (ORCL, Outperform, $12.40)
acquisition of PeopleSoft has had little effect on the likelihood of
purchasing PeopleSoft applications, with 93 percent of total respondents
saying their likelihood of doing so remains unchanged. In fact, 97 percent of
PeopleSoft customers surveyed expect spending on PeopleSoft applications to
either remain the same or increase in 2005, with nine percent of PeopleSoft
customers seeing an increase in spending on PeopleSoft applications even
though they will be buying them from Oracle.
The survey points to expected growth in new outsourcing initiatives
focused around companies of all sizes. Additionally, the survey suggests that
network management will see the highest percent headcount growth within the IT
group in 2005. Lastly in learning services, about 80 percent of the companies
surveyed are maintaining 2004 tuition reimbursement allotments in 2005 and 12
percent have increased these allotments.
Harris Interactive conducted the online survey on behalf of Piper Jaffray
& Co. between February 21 and 28, 2005 among 324 U.S. adults aged 18 and over
who are employed as human resource professionals and are at least aware of
their company's hiring decision process. Data were weighted where necessary
using targets for companies with 99 or fewer employees up to companies with
10,000 and more employees provided by Dun & Bradstreet to align them with
their proportions in the population.
Though online surveys are not probability surveys, in theory, with samples
of this size, Harris Interactive estimates with 95 percent certainty, that the
results for the overall sample have a sampling error of plus or minus six
percentage points. Sampling error for subsamples is higher and varies.
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About Harris Interactive(R)
Harris Interactive Inc. ( http://www.harrisinteractive.com ), the 15th
largest and fastest-growing market research firm in the world, is a Rochester,
N.Y.-based global research company that blends premier strategic consulting
with innovative and efficient methods of investigation, analysis and
application. Known for The Harris Poll(R) and for pioneering Internet-based
research methods, Harris Interactive conducts proprietary and public research
to help its clients achieve clear, material and enduring results.
Harris Interactive combines its intellectual capital, databases and
technology to advance market leadership through U.S. offices and wholly owned
subsidiaries: London-based HI Europe ( http://www.hieurope.com ), Paris-based
Novatris ( http://www.novatris.com ), Tokyo-based Harris Interactive Japan,
through newly acquired WirthlinWorldwide, a Reston, Virginia-based research
and consultancy firm ranked 25th largest in the world, and through an
independent global network of affiliate market research companies. EOE M/F/D/V
Piper Jaffray was making a market in the securities of Harris Interactive
Inc. at the time this research report was published. Piper Jaffray will buy
and sell Harris Interactive Inc. securities on a principal basis. Piper
Jaffray has received compensation for non-investment banking securities-
related services from Harris Interactive Inc. within the past 12 months.
Piper Jaffray was making a market in the securities of Monster Worldwide,
Inc. at the time this research report was published. Piper Jaffray will buy
and sell Monster Worldwide, Inc. securities on a principal basis.
Piper Jaffray was making a market in the securities of ChoicePoint Inc. at
the time this research report was published. Piper Jaffray will buy and sell
ChoicePoint Inc. securities on a principal basis.
Piper Jaffray was making a market in the securities of Oracle Corporation
at the time this research report was published. Piper Jaffray will buy and
sell Oracle Corporation securities on a principal basis. Piper Jaffray has
received compensation for non-investment banking securities-related services
from Oracle Corporation within the past 12 months.
Piper Jaffray was making a market in the securities of Robert Half
International Inc. at the time this research report was published. Piper
Jaffray will buy and sell Robert Half International Inc. securities on a
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part, on the firm's overall revenues, which include investment banking
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