MILWAUKEE, July 12, 2016 /PRNewswire/ -- ManpowerGroup Solutions today released its fourth Contingent Workforce Index (CWI), which tracks the relative ease of sourcing, hiring and retaining contingent workforce in 75 countries. In the new report, New Zealand leads for the second consecutive year, demonstrating an optimal environment for use of contingent labor: Availability, Cost Efficiency, Regulation and Productivity. Singapore (2nd), the Philippines (3rd), Israel (4th) and India (5th) moved to the top of the leaderboard in 2016. The United States and Canada fell from the top five global markets, dropping to sixth and seventh from second and third, respectively.
"Over the past year, we saw a shift in priorities that resulted in a change in the 2016 weighting attributed to workforce size," said Kate Donovan, Senior Vice President of ManpowerGroup Solutions. "Employers are feeling the talent shortage. Availability of contingent workers, as well as skilled labor, is gaining prominence. As a result, we saw countries like China and India re-emerge into the top ten markets for availability of talent. ManpowerGroup Solutions uses this tool to advise clients of the best countries in which to expand their operations based on specific criteria related to the workforce. The volatility across global labor markets makes this tool more valuable than ever."
"Compared to last year, the 2016 CWI allows for a greater influence of skilled contingent workforce availability when it comes to determining locations for growing business," said Raleen Gagnon, Director of Market Intelligence for ManpowerGroup Solutions. "Weighting of specific metrics is adjusted annually to highlight the most influential factors when considering new markets for contingent labor opportunities. The increased focus on Availability has resulted in concessions on lower wage markets, as employers are considering non-wage based labor costs such as benefits and taxes, due to their increasing impact on the total cost of labor."
APAC: The greatest shift in the APAC region is the movement of Singapore, the Philippines and India back into the top five in 2016. New Zealand ranks highest of all countries for Regulation of contingent workforce engagement practices, including geopolitical factors, holding its top ranked position in both the region and globally for the second year in a row. Hong Kong also appears in the top five.
AMERICAS:The United States and Canada hold the top two positions in the Americas region for the third consecutive year. The United States has a very slight lead over Canada due to a fall in Canada's Availability ranking based on the higher weighting in 2016. Columbia, Mexico and Puerto Rico also join the top five for the region.
EMEA:Israel maintains its top ranking in the EMEA region in 2016, moving up from fourth in 2014. Despite the change in Availability rankings, Israel remains in the lead overall ahead of Ireland, the United Kingdom and South Africa. Both South Africa and Turkey advance to the top five nations for 2016, with high marks in Productivity.
About the Contingent Workforce Index Countries included in the CWI are assessed on more than 50 unique market conditions and statistics that influence contingent workforce conditions. Using a proprietary formula, countries are ranked on their overall environment for contingent workforce engagement across four categories: Availability, Cost Efficiency, Regulation and Productivity. Each category can be weighted differently depending upon the strategic priorities of an organization.
The 2016 CWI was refined and enhanced to ensure the analysis and results reflect the constantly evolving world of work trends. The weighting of specific metrics within each category is adjusted annually to highlight factors that will be most influential when considering new markets for contingent labor opportunities. The emphasis on the size of a country's contingent workforce remains consistent year-over-year, as do the weightings of English proficiency and tertiary education in the workforce. However, based on input from industry-leading clients around the globe, weighting of the volume of skilled workers within a market has increased significantly from 2015 to 2016. The definition of Availability was also modified to meet current industry standards.
These adjustments resulted in higher rankings for countries with large populations but with poor English proficiency and low volumes of skilled labor, such as China and India, compared to 2015 rankings in the same category. It also meant slightly lower rankings for markets such as Israel and Ireland, which have stronger language skills and advanced educations among their emerging workforce by smaller labor forces. Additional weightings were strengthened for factors identified as consistently important to client companies during workforce planning initiatives. In particular, weightings were increased on factors such as severance and notice periods, which have a higher impact on both cost and workforce flexibility.
The report provides unparalleled insights into contingent workforce planning, which helps organizations develop short- and long-term business and workforce strategies, from expanding MSP programs internationally, to capacity planning, site selection and global sourcing.
About ManpowerGroup Solutions ManpowerGroup Solutions provides clients with outsourcing services related to human resources functions, primarily in the areas of large-scale recruiting and workforce-intensive initiatives that are outcome-based, thereby sharing in the risk and reward with our clients. Our solutions offerings include TAPFIN-Managed Service Provider, Strategic Workforce Consulting, Borderless Talent Solutions, Talent Based Outsourcing and Recruitment Process Outsourcing, where we are one of the largest providers of permanent and contingent recruitment in the world. ManpowerGroup Solutions is part of the ManpowerGroup family of companies, which also includes Manpower, Experis, and Right Management. More information at www.manpowergroupsolutions.com.
About ManpowerGroup ManpowerGroup® (NYSE: MAN) is the world's workforce expert, creating innovative workforce solutions for nearly 70 years. As workforce experts, we connect more than 600,000 people to meaningful work across a wide range of skills and industries every day. Through our ManpowerGroup family of brands – Manpower®, Experis®, Right Management® and ManpowerGroup® Solutions – we help more than 400,000 clients in 80 countries and territories address their critical talent needs, providing comprehensive solutions to resource, manage and develop talent. In 2016, ManpowerGroup was named one of the World's Most Ethical Companies for the sixth consecutive year and one of Fortune's Most Admired Companies, confirming our position as the most trusted and admired brand in the industry. See how ManpowerGroup makes powering the world of work humanly possible: www.manpowergroup.com.