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The Ongoing Impact of the Recession - High-Tech Industry

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  • 1. SHRM Poll: The Ongoing Impact of theRecession—High-Tech Industry July 31, 2012
  • 2. The Ongoing Impact of the Recession:High-Tech Introduction Key Findings Organizations’ Financial Health Hiring Recruiting Challenges Demographics Methodology SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 2
  • 3. Introduction Overall results have been released in three different topic areas:  Recruiting and skill gaps (released November 7, 2011).  Overall financial health and hiring (released November 22, 2011).  Global competition and hiring strategies (released December 14, 2011). Industry-specific results are reported separately for each of the eight industries included in the sample. These findings cover the results for the high-tech industry. The following industries were also included in the sample:  Construction, mining, oil and gas (released March 9, 2012).  Manufacturing (released April 4, 2012).  Federal government (released June 4, 2012).  State and local government (released June 4, 2012).  Finance (released June 4, 2012).  Professional services (released July 31, 2012).  Health. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 3
  • 4. Key Findings: Organizations’ Financial HealthHigh-Tech What percentage of staff have organizations laid off since the U.S. and global recession began in December 2007? In 2011, 29% of organizations from the high- tech industry indicated they had not laid off any staff since the recession began. Forty-six percent had lost between 1% and 10% of their staff. In total for 2011, three-quarters (75%) of organizations in the high-tech industry laid off 0% to 10% of staff, an improvement compared with 2010 when fewer organizations (59%) reported losing less than 10% of employees since the recession began in December 2007. How does the financial health of organizations compare to 12 months ago? The high-tech industry’s organizational financial health has declined compared with a year ago. In 2011, 30% of organizations from the high-tech industry were in a significant or mild decline, an increase from 18% in 2010. At the same time there has been a 20-point decrease for organizations reporting a mild recovery from 49% in 2010 to 29% in 2011. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 4
  • 5. Key Findings: HiringHigh-Tech Are organizations currently hiring? Eighty percent of organizations in the high-tech industry were hiring full-time staff in 2011, similar to 2010 (75%). They are more likely to be hiring compared with the construction, mining, oil and gas industry. Of those who were hiring in the high-tech industry, the majority (91%) hired nonmanagement salaried employees. About one-half (51% and 47% respectively) hired nonmanagment hourly employees and other management-level staff. Sixteen percent reported they were hiring executive or upper-management employees. Are organizations creating new positions or replacing jobs lost? Fewer organizations in the high-tech industry indicated they mainly hired for completely new positions in 2011 (46%) than in 2010 (60%), whereas there has been an increase in hiring direct replacements of jobs lost from 25% in 2010 to 39% in 2011. The remaining 15% for both 2011 and 2010 hired for positions with new duties added to jobs lost since the recession began. The high-tech industry is more likely to be hiring for completely new positions compared with the federal government, state and local government, finance and health industries. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 5
  • 6. Key Findings: Recruiting ChallengesHigh-Tech Is it difficult to find qualified individuals for new jobs that require new and different skill sets? Nearly three-quarters (73%) of organizations in the high-tech industry found it somewhat or very difficult to recruit qualified candidates for these positions, an increase from 47% in 2010. Is recruiting for specific jobs difficult in the current labor market? Among the high- tech industry organizations that are currently hiring full-time staff, 71% reported having difficulty recruiting for specific open jobs. What types of jobs are the most difficult to fill? The top five most difficult positions to fill for the high-tech industry are engineers (95%), high-skilled technical (e.g., technicians and programmers) (88%), sales representatives (79%), managers and executives (78%), and customer service representatives (47%). SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 6
  • 7. The Ongoing Impact of the Recession:High-Tech Organizations’ Financial Health SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 7
  • 8. Thus far, what percentage of full-time jobs have been lost at yourorganization since the U.S. and global recession began in December2007? High-Tech Not applicable—did not lay off any 29% 2011 (n = 233) staff 2010 (n = 259) 26% 75% 1% to 5% of staff 20% 6% to 10% of staff 10% or less (2011 data) 75% Less than 10% (2010 data)* 59% 11% to 20% of staff (2011 data) 12% 10% to 20% (2010 data)* 26% 9% 21% to 50% of staff 11% 3% More than 50% of staff 4%Note: Percentages may not total 100% due to rounding. An asterisk (*) indicates 2010 data had different categories than 2011 data: “Less than 10% of staff”and “10% to 20% of staff.” SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 8
  • 9. Thus far, what percentage of full-time jobs have been lost at yourorganization since the U.S. and global recession began in December2007? High-TechComparisons by IndustryThe federal government and the finance industry are more likely to have had no layoffs compared with the construction, mining, oiland gas; manufacturing; state and local government; professional services; and high-tech industries. Construction, mining, oil and gas (20%) . . . are more likely to Manufacturing (21%) Federal government (50%) have had NO layoffs State and local government (30%) Finance (45%) than . . . Services—professional (30%) High-tech (29%)The construction, mining, oil and gas industry is more likely to have lost more than 50% of staff compared with the federalgovernment; finance; manufacturing; professional services; and high-tech industries. Federal government (2%) . . . is more likely to Finance (0%) Construction, mining, oil and gas (10%) have lost more than 50% of staff Manufacturing (2%) than . . . Services—professional (2%) High-tech (3%)Note: Only statistically significant differences are shown. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 9
  • 10. In relation to the U.S. and global recession, would you say yourorganizations overall financial health is declining or recoveringcompared with 12 months ago?High-Tech 14% 2011 (n = 234) In a significant recovery 14% 2010 (n = 258) 29% In a mild recovery 49% 27% No change compared with 12 months ago 19% 26% In a mild decline 13% 4% In a significant decline 5% SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 10
  • 11. In relation to the U.S. and global recession, would you say yourorganizations overall financial health is declining or recoveringcompared with 12 months ago?High-TechComparisons by IndustryThe high-tech industry is more likely to be in a significant recovery compared with the federal government and state and localgovernments. . . . is more likely to Federal government (2%) High-tech (14%) be in a significant recovery State and local government (1%) than . . .The finance industry is more likely to be in a mild recovery compared with the federal government, health, state and localgovernment, and high-tech industries. Federal government (5%) . . . is more likely to Health (23%) Finance (46%) be in a mild recovery State and local government (25%) than . . . High-tech (29%)The federal government and state and local governments are more likely to be in a significant decline compared with thefinance, manufacturing, professional services, and high-tech industries. Finance (3%) . . . are more likely to Federal government (29%) Manufacturing (4%) be in a significant decline State and local government (13%) Services—professional (5%) than . . . High-tech (4%)Note: Only statistically significant differences are shown. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 11
  • 12. The Ongoing Impact of the Recession:High-Tech Hiring SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 12
  • 13. Is your organization currently hiring full-time staff?High-Tech 80% Yes 75% 2011 (n = 235) 2010 (n = 253) 20% No 25% SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 13
  • 14. Is your organization currently hiring full-time staff?High-TechComparisons by IndustryThe high-tech industry is more likely to be currently hiring full-time staff compared with the construction, mining, oil and gasindustry. . . . is more likely to High-tech (80%) be currently hiring full-time staff Construction, mining, oil and gas (66%) than . . .Note: Only statistically significant differences are shown. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 14
  • 15. At what level(s) is your organization hiring?High-Tech Nonmanagement salaried employees 91% Nonmanagement hourly employees 51% Other management (e.g., directors, managers) 47% Executive/upper management (e.g., CEO, CFO) 16%Note: n = 186. Percentages do not total 100% due to multiple response options. Only respondents whose organizations were currently hiring full-time staffwere asked this question. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 15
  • 16. At what level(s) is your organization hiring?High-TechComparisons by IndustryThe federal government and health industries are more likely to be hiring executive/upper-management employees comparedwith the construction, mining, oil and gas; finance; manufacturing; professional services; and high-tech industries. Construction, mining, oil and gas (15%) . . . are more likely to Finance (19%) Federal government (39%) be hiring executive/upper- Manufacturing (20%) Health (39%) management employees Services—professional (18%) than . . . High-tech (16%)The high-tech industry is more likely to be hiring nonmanagement salaried employees compared with theconstruction, mining, oil and gas; finance; health; manufacturing; state and local government; and professional services industries. Construction, mining, oil and gas (70%) . . . is more likely to Finance (67%) be hiring nonmanagement salaried Health (60%) High-tech (91%) employees Manufacturing (64%) than . . . State and local government (66%) Services—professional (78%)Note: Only statistically significant differences are shown. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 16
  • 17. At what level(s) is your organization hiring? (continued)High-TechComparisons by IndustryThe construction, mining, oil and gas; finance; health; manufacturing; and state and local government industries are more likely tobe hiring nonmanagement hourly employees compared with the federal government and high-tech industry. Construction, mining, oil and gas (72%) . . . are more likely to Finance (77%) be hiring nonmanagement hourly Federal government (53%) Health (89%) employees High-tech (51%) Manufacturing (84%) than . . . State and local government (80%) Note: Only statistically significant differences are shown. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 17
  • 18. Which of the following best describes the nature of full-time positionsyour organization is currently hiring?High-Tech 46% Completely new positions 60% 15% New duties added to jobs lost (e.g., due to 2011 (n = 184) layoffs, attrition) since the recession began 2010 (n = 187) 15% 39% Direct replacements of jobs lost (e.g., due to layoffs, attrition) since the recession began 25%Note: Only respondents whose organizations were currently hiring full-time staff were asked this question. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 18
  • 19. Which of the following best describes the nature of full-time positionsyour organization is currently hiring?High-TechComparisons by IndustryThe federal government, finance, health, manufacturing, and state and local government industries are more likely to be hiringdirect replacements of jobs lost since the recession began compared with the high-tech industry. Federal government (69%) . . . are more likely to Finance (60%) be hiring direct replacements of jobs Health (66%) High-tech (39%) lost since the recession began Manufacturing (54%) than . . . State and local government (80%)The high-tech industry is more likely to be hiring for completely new positions compared with the federalgovernment, finance, health, and state and local government industries. . . . is more likely to Federal government (21%) be hiring for completely new Finance (29%) High-tech (46%) positions Health (21%) than . . . State and local government (12%)Note: Only statistically significant differences are shown. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 19
  • 20. Compared with the skills required for jobs lost since the recession began, do these completely new positions require any of the following skills? High-Tech A mixture of new skills and the same 64% types of skills Approximately the same types of 23% skills Completely new and different skills 13%Note: n = 83. Only respondents whose organizations were hiring full-time staff for “completely new positions” were asked this question. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 20
  • 21. The Ongoing Impact of the Recession:High-Tech Recruiting Challenges SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 21
  • 22. If the new jobs being created by your organization require new and different skill sets, how easy do you think it will be—or has been thus far—to find qualified individuals for those positions? High-Tech 5% Very easy 2011 (n = 91) 10% 2010 (n = 126) 21% Somewhat easy 43% 60% Somewhat difficult 43% 13% Very difficult 4%Note: Percentages may not total 100% due to rounding. Only respondents whose organizations were hiring full-time staff for positions with “new dutiesadded to jobs lost” or “completely new positions” (see slide 18) that required either “a mixture of new skills and the same types of skills” or “completely newand different skills” (see slide 20) were asked this question. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 22
  • 23. If the new jobs being created by your organization require new anddifferent skill sets, how easy do you think it will be—or has been thusfar—to find qualified individuals for those positions?High-TechComparisons by IndustryThe high-tech industry is more likely to find it very difficult to find qualified individuals for new jobs with new and different skillsets compared with the construction, mining, oil and gas industry. . . . is more likely to find it very difficult to find qualified High-tech (13%) individuals for new jobs with new Construction, mining, oil and gas (1%) and different skill sets than . . . Note: Only statistically significant differences are shown. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 23
  • 24. In general, in the current labor market, is your organization having a difficult time recruiting for specific jobs that are open in your organization? High-Tech No, 29% Yes, 71%Note: n = 178. Respondents who answered “Don’t know” were excluded from this analysis. Only respondents whose organizations were currently hiring full-time staff were asked this question. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 24
  • 25. In general, in the current labor market, is your organization having adifficult time recruiting for specific jobs that are open in yourorganization?High-TechComparisons by IndustryThe manufacturing and high-tech industries are more likely to be having difficulty recruiting for specific jobs compared with theconstruction, mining, oil and gas; federal government; finance; and state and local government industries. . . . are more likely to Construction, mining, oil and gas (51%) be having difficulty recruiting for Manufacturing (68%) Federal government (35%) specific jobs that are open in their High-tech (71%) Finance (49%) organization State and local government (34%) than . . . Note: Only statistically significant differences are shown. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 25
  • 26. Do you believe that your organization is facing global competition (i.e., competition from other countries) for jobs that your organization is having difficulty filling? High-Tech Yes, 42% No, 58%Note: n = 106. Respondents who answered “Don’t know” were excluded from this analysis. Only respondents whose organizations were having a difficulttime recruiting for specific jobs were asked this question. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 26
  • 27. Do you believe that your organization is facing global competition(i.e., competition from other countries) for jobs that your organizationis having difficulty filling?High-TechComparisons by IndustryThe high-tech industry is more likely to believe that their organization is facing global competition compared with the finance, stateand local government, and professional services industries. . . . is more likely to Finance (8%) believe that their organization is High-tech (42%) State and local government (4%) facing global competition Services—professional (21%) than . . . Note: Only statistically significant differences are shown. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 27
  • 28. Has your organization hired any workers from outside the U.S. in anattempt to fill key jobs that have been difficult to fill?High-Tech Yes 50% No 44% No, but we are 6% considering it No, but we have plans to do so in 1% the next 12 monthsNote: n = 119. Percentages do not total 100% due to rounding. Respondents who answered “Don’t know” were excluded from this analysis. Only respondentswhose organizations were having a difficult time recruiting for specific jobs were asked this question. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 28
  • 29. Has your organization hired any workers from outside the U.S. in anattempt to fill key jobs that have been difficult to fill?High-TechComparisons by IndustryThe high-tech industry is more likely to have hired workers from outside the U.S. in an attempt to recruit for hard-to-fill jobscompared with the finance, manufacturing, state and local government, and professional services industries. . . . is more likely to Finance (5%) have hired workers from Manufacturing (20%) High-tech (50%) outside the U.S. State and local government (11%) than . . . Services—professional (25%) Note: Only statistically significant differences are shown. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 29
  • 30. Has your organization hired any U.S. veterans in an attempt to fill keyjobs that have been difficult to fill?High-Tech No 51% Yes 34% No, but we are 11% considering it No, but we have plans to do so in the 4% next 12 monthsNote: n = 102. Respondents who answered “Don’t know” were excluded from this analysis. Only respondents whose organizations were having a difficulttime recruiting for specific jobs were asked this question. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 30
  • 31. Has your organization hired any U.S. veterans in an attempt to fill keyjobs that have been difficult to fill?High-TechComparisons by IndustryThe construction, mining, oil and gas; federal government; health; manufacturing; state and local government; professional services;and high-tech industries are more likely to have hired U.S. veterans in an attempt to recruit for hard-to-fill jobs compared withthose from the finance industry. Construction, mining, oil and gas (50%) Federal government (96%) Health (42%) . . . are more likely to Manufacturing (44%) have hired U.S. veterans Finance (13%) State and local government (37%) than . . . Services—professional (38%) High-tech (34%) Note: Only statistically significant differences are shown. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 31
  • 32. Has your organization hired any U.S. veterans in an attempt to fill keyjobs that have been difficult to fill? (continued)High-TechComparisons by IndustryThe federal government is more likely to have hired U.S. veterans in an attempt to recruit for hard-to-fill jobs compared withthe construction, mining, oil and gas; finance; health; manufacturing; state and local government; professional services; andhigh-tech industries. Construction, mining, oil and gas (50%) Finance (13%) . . . is more likely to Health (42%) Federal government (96%) have hired U.S. veterans Manufacturing (44%) than . . . State and local government (37%) Services—professional (38%) High-tech (34%) Note: Only statistically significant differences are shown. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 32
  • 33. In general, what basic skills/knowledge gaps do job applicants have inyour industry?High-Tech Writing in English (grammar, spelling, etc.) 40% English language (spoken) 37% Mathematics (computation) 28% Science 27% Reading comprehension (in English) 16% Technical (computer, engineering, mechanical, etc.) 16% Foreign languages 7% Government/economics 6% Humanities/arts 1% History/geography 0% Other 7%Note: n = 82. Percentages do not total 100% due to multiple response options. Only respondents whose organizations were having a difficult time recruitingfor specific jobs were asked this question. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 33
  • 34. In general, what applied skill gaps do job applicants have in yourindustry?High-Tech Critical thinking/problem solving 48% Information technology application 47% Leadership 36% Teamwork/collaboration 35% Professionalism/work ethic 34% Oral communications 32% Written communications 32% Creativity/innovation 27% Diversity 22% Lifelong learning/self-direction 18% Ethics/social responsibility 14% Other 6%Note: n = 111. Percentages do not total 100% due to multiple response options. Only respondents whose organizations were having a difficult time recruitingfor specific jobs were asked this question. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 34
  • 35. Specific Job Categories in Which Organizations Have Difficulty Recruiting High-Tech Engineers (n = 87) 95% High-skilled technical (e.g., technicians, programmers) (n = 117) 88% Sales representatives (n = 75) 79% Managers and executives (n = 87) 78% Customer service representatives (n = 60) 47% Accounting and finance professionals (n = 78) 44% HR professionals (n = 49) 39% Production operators (n = 21) 24% Hourly laborers (n = 36) 17% Administrative support staff (n = 81) 13%Note: Chart represents “somewhat difficult” and “very difficult” responses. “Not applicable” responses were excluded from this analysis. Only respondentswhose organizations were having a difficult time recruiting for specific jobs were asked this question. No statistics are provided where the n is less than 20;therefore, the job categories of “drivers” (n = 5), “skilled trades” (n = 15), “high-skilled medical” (n = 7) and “scientists” (n = 16) were excluded from this analysis. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 35
  • 36. The Ongoing Impact of the Recession:High-Tech Demographics SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 36
  • 37. Demographics: Organization SectorHigh-Tech Privately owned for-profit 59% Publicly owned for-profit 38% Nonprofit 2% Government 0% Other 2% Note: n = 226. Percentages do not total 100% due to rounding. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 37
  • 38. Demographics: Organization Staff SizeHigh-Tech 1 to 99 employees 33% 100 to 499 employees 27% 500 to 2,499 employees 18% 2,500 to 24,999 employees 15% 25,000 or more employees 7% n = 221 SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 38
  • 39. Demographics: OtherHigh-TechDoes your organization have U.S.- Is your organization a single-unit organizationbased operations (business units) only, or a multi-unit organization?or does it operate multinationally? Single-unit organization: An organization in which the location and the organization are 36% U.S.-based operations only 47% one and the same. Multinational operations 53% Multi-unit organization: An organization 64% that has more than one location.n = 225 n = 226 For multi-unit organizations, are HR policies andWhat is the HR department/function practices determined by the multi-unitfor which you responded throughout headquarters, by each work location or by both?this survey? Multi-unit headquarters determines HR 44% policies and practices. Corporate (companywide) 67% Each work location determines HR policies Business unit/division 23% 6% and practices. Facility/location 9% A combination of both the work location and the multi-unit headquarters 50% Note: n = 166. Percentages do not total 100% due to rounding. determines HR policies and practices. n = 165 SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 39
  • 40. SHRM Poll: The Ongoing Impact of the Recession: High-Tech Methodology  Response rate = 8%.  Sample composed of 235 randomly selected HR professionals from the professional service industry in SHRM’s membership.  With small sample sizes, the response of one participant can affect the overall results considerably; this should be noted when making interpretations of the data, particularly when interpreting small percentage differences.  Survey fielded August 18 to September 2, 2011. For more poll findings, visit www.shrm.org/surveys Follow us on Twitter: http://twitter.com/SHRM_ResearchProject leader:Tanya A. Mulvey, survey research analyst, SHRM ResearchProject contributors:Mark Schmit, Ph.D., SPHR, vice president, SHRM ResearchEvren Esen, manager, Survey Research Center, SHRM ResearchCopy editor:Katya Scanlan, SHRM Knowledge Center SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 40