IQNavigator releases IQNdex for first quarter 2012, highlights latest trends in U.S. temporary labor bill rates by job sector and region
DENVER, April 18, 2012 – IQNavigator Inc., the leading provider of services e-procurement solutions to Global 2000 companies, today released the findings from its First Quarter 2012 U.S. IQNdex report. IQNdex provides data, insights and analysis of the temporary labor market that is not available from any other source and measures the rapidly shifting relationship between demand and supply of the U.S. temporary workforce.
Among the notable trends in Q1, the report uncovered:
- The Professional-Managerial job sector remains under the greatest upward rate pressure.
- While temporary labor hiring has been strong since mid-2011, temporary worker bill rates have remained fairly stable since then.
- The Northeast region continues to see increases in bill rates while the West region declined in Q1 2012.
Salaries vs. Bill Rates
In the First Quarter 2012 IQNdex report, analysis of employee salary trends compared against temporary worker bill rates reveals that while employee salaries appear to inexorably rise, temporary worker bill rates fall and rise with market supply and demand. In fact, the Bureau of Labor Statistics shows employee salaries have continued to rise throughout the recession and subsequent period of high unemployment, while temporary worker bill rates clearly responded to decreased buyer demand and surplus labor supply.
While the gap between employee salary trends and temporary worker bill rate trends narrowed in 2011, a difference has persisted over several years (see Graph 1). With unemployment still over 8 percent and a low level of participation in the workforce, for now there remains a reserve of untapped talent to meet increased demand.
Graph 1: Employer Cost Per Hour vs. Master IQNdex
“IQNdex provides actionable information that employers can use to optimize their contingent labor strategy and make adjustments resulting in more value for their labor spend,” said John F. Martin, chief technology officer and CEO of Emerging Markets for IQNavigator. “Companies that understand the gap between demand and supply for non-permanent workers illustrated in this quarter’s IQNdex can be proactive in renegotiating rates as temporary worker assignments come up for renewal.”
IQNdex Provides Source of Custom Benchmarking for Global 2000
More detailed analysis often yields a deeper story, and the First Quarter 2012 IQNdex report provides insight into specific job sectors and geographic regions, and how other economic trends are impacting employers and workers. Further explanation and evidence on these findings is provided in the First Quarter 2012 IQNdex report, available for download at http://www.iqntelligence.com. Clients of IQNavigator can also request custom market rate analyses (MarketIQ) and detailed benchmark rate reports (RateIQ) via their IQNavigator account manager.
IQNavigator is the proven leader in services procurement solutions, helping global enterprises better manage all types of procured services and their non-employee workforces around the world. IQNavigator’s cloud-based VMS software processes tens of billions of dollars in yearly services spend, enabling clients to intelligently manage and optimize the cost-effectiveness, compliance, visibility and efficiency of complex services procurement and contingent workforce programs. For more than a decade, IQNavigator has been the leader in providing innovative technology solutions for managing companies’ contingent labor and other services, including statement of work and project-based consultants, contractors and other temporary workers. Clients use IQNavigator’s VMS software across all types of labor categories including contingent, heavy industrial, light industrial, IT, professional, field services and many more , resulting in dramatically lower costs, mitigation of legal and financial risks and more strategic use of non-employee labor to achieve key business objectives. For more information about IQNavigator and how its industry-leading offerings such as IQNtelligence are helping many of the world’s most respected companies, visit www.IQNavigator.com.
Note to Editors: A detailed graph is being released along with this announcement: Employee Cost Per Hour vs. Master IQNdex. Additional graphs and a full white paper are available upon request.
Vice President, Marketing