Recession Poll Finance 2011

SHRM Poll: The Ongoing Impact of the
Recession—Finance Industry

June 4, 2012

The Ongoing Impact of the Recession:
Finance

Introduction
Key Findings
Organizations’ Financial Health
Hiring
Recruiting Challenges
Demographics
Methodology

SHRM Poll: The Ongoing Impact of the Recession—Finance Industry ©SHRM 2012
2

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 finance 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.
 Health.
 Services—professional.
 High-tech.

3

Key Findings: Organizations’ Financial Health
Finance

 What percentage of staff have organizations laid off since the U.S. and global
recession began in December 2007? Nearly one-half (45%) of respondents from the
finance industry indicated their organization had not laid off any staff in 2011.
Thirty-eight percent had lost between 1% and 10% of their staff. These 2011 figures
are similar to 2010, where 73% of finance industry respondents reported losing less
than 10% of employees.

 How does organizations’ financial health compare to 12 months ago? The finance
industry’s organizational financial health is similar to what it was a year ago. In
2011, 57% of organizations from the finance industry were in a significant or mild
decline, whereas in 2010 this number was 56%. The finance industry is more likely
to be in a mild recovery compared with the federal government, state and local
government, health, and high-tech industries.

4

Key Findings: Hiring
Finance

 Are organizations currently hiring? About three-quarters (74%) of respondents
from the finance industry were hiring in 2011, an increase from 68% in 2010. The
majority (77%) of those who were hiring were recruiting nonmanagement hourly
employees, and two-thirds (67%) were hiring nonmanagement salaried employees.
Just over one-half (55%) were hiring other management-level staff, and 19% were
hiring executive or upper-management employees.

 Are organizations creating new positions or replacing jobs lost? Three out of five
(60%) respondents in the finance industry indicated they were mainly hiring direct
replacements of jobs lost, an increase from 37% in 2010. Fewer respondents in the
finance industry indicated they were mainly hiring for completely new positions in
2011 (29%) than in 2010 (48%), while the remaining 10% in 2011 and 15% in 2010
were hiring for positions with new duties added to jobs lost since the recession
began.

5

Key Findings: Recruiting Challenges
Finance

 Is recruiting for specific jobs difficult in the current labor market? Among the
finance organizations that are currently hiring full-time staff, about one-half (49%)
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 finance industry are high-skilled technical (e.g., technicians and
programmers) (88%), managers and executives (83%), sales representatives
(77%), accounting and finance professionals (73%), and HR professionals (54%).

6

Finance

Organizations’ Financial Health

7

Thus far, what percentage of full-time jobs have been lost at your
organization since the U.S. and global recession began in December
2007? Finance

Not applicable—did not lay off any 45% 2011 (n = 327)
staff 2010 (n = 311)
21% 83%
1% to 5% of staff

17%
6% to 10% of staff

10% or less (2011 data) 83%
*Less than 10% (2010 data) 73%

11% to 20% of staff (2011 data) 10%
* 10% to 20% (2010 data) 21%

7%
21% to 50% of staff
5%

0%
More than 50% of staff
1%

Note: An asterisk (*) indicates 2010 data had different categories than 2011 data: “Less than 10% of staff” and “10% to 20% of staff.”

8

Thus far, what percentage of full-time jobs have been lost at your
organization since the U.S. and global recession began in December
2007? Finance

Comparisons by industry

The federal government and the finance industry are more likely to have had no layoffs compared with the construction, mining, oil
and 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 federal
government; finance; manufacturing; professional services; and high-tech industries.

…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.

9

In relation to the U.S. and global recession, would you say your
organization's overall financial health is declining or recovering
compared with 12 months ago?
Finance

11% 2011 (n = 328)
In a significant recovery
11% 2010 (n = 309)

46%
In a mild recovery
45%

25%
No change compared with 12 months ago
22%

16%
In a mild decline
19%

3%
In a significant decline
4%

Note: Percentages do not total 100% due to rounding.

10

In relation to the U.S. and global recession, would you say your
organization's overall financial health is declining or recovering
compared with 12 months ago?
Finance
The finance industry is more likely to be in a significant recovery compared with the federal government.

…is more likely to
Finance (11%) be in a significant recovery Federal government (2%)
than...

The finance industry is more likely to be in a mild recovery compared with the federal government, health, state and local
government, and high-tech industries.

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 the
finance, 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%)

11

Finance

Hiring

12

Is your organization currently hiring full-time staff?
Finance

74%
Yes
68%

2011 (n = 329)
2010 (n = 305)

26%
No
32%

13

At what level(s) is your organization hiring?
Finance

Nonmanagement hourly employees 77%

Nonmanagement salaried employees 67%

Other management (e.g., directors, managers) 55%

Executive/upper management (e.g., CEO, CFO) 19%

Note: n = 244. Percentages do not total 100% due to multiple response options. Only respondents whose organizations were currently hiring full-time staff
were asked this question.
14

At what level(s) is your organization hiring?
Finance


The federal government and health industries are more likely to be hiring executive/upper management employees compared with
the construction, mining, oil and gas; finance; manufacturing; professional services; and high-tech industries.

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 the finance industry.

be hiring nonmanagement salaried
High-tech (72%) Finance (67%)
employees
than...


15

At what level(s) is your organization hiring? (Continued)
Finance


The finance, health, manufacturing, and state and local government industries are more likely to be hiring nonmanagement hourly
employees compared with the federal government, professional services and high-tech industries.

Finance (77%) …are more likely to
Health (89%) be hiring nonmanagement hourly
Manufacturing (84%) employees
High-tech (51%)
State and local government (80%) than...


16

Which of the following best describes the nature of full-time positions
your organization is currently hiring?
Finance

29%
Completely new positions
48%

10%
New duties added to jobs lost (e.g., due to 2011 (n = 240)
layoffs, attrition) since the recession began 2010 (n = 198)
15%

60%
Direct replacements of jobs lost (e.g., due to
layoffs, attrition) since the recession began
37%

Note: Percentages may not total 100% due to rounding. Only respondents whose organizations were currently hiring full-time staff were asked this question.

17

Which of the following best describes the nature of full-time positions
your organization is currently hiring?
Finance


The finance industry is more likely to be hiring direct replacements of jobs lost since the recession began compared with the high-
tech industry.

be hiring direct replacements of jobs
Finance (60%) High-tech (39%)
lost since the recession began
than...

The finance industry is more likely to be hiring for completely new positions compared with state and local governments.

be hiring for completely new
Finance (29%) State and local government (12%)
positions
than...


18

Compared with the skills required for jobs lost since the recession
began, do these completely new positions require any of the following
skills?
Finance

A mixture of new skills and the same
60%
types of skills

Approximately the same types of
27%
skills

Completely new and different skills 13%

Note: n = 70. Only respondents whose organizations were hiring full-time staff for “completely new positions” were asked this question.

19

Finance

Recruiting Challenges

20

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?
Finance

5%
Very easy 2011 (n = 77)
14%
2010 (n = 112)

39%
Somewhat easy
51%

52%
Somewhat difficult
30%

4%
Very difficult
5%

Note: Only respondents whose organizations were hiring full-time staff for positions with “new duties added to jobs lost” or “completely new positions” (see
slide 17) that required either “a mixture of new skills and the same types of skills” or “completely new and different skills” (see slide 19) were asked this
question.
21

In general, in the current labor market, is your organization having a
difficult time recruiting for specific jobs that are open in your
organization?
Finance

Yes, 49%

No, 51%

Note: n = 234. 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.
22

In general, in the current labor market, is your organization having a
difficult time recruiting for specific jobs that are open in your
organization?
Finance

The construction, mining, oil and gas; finance; manufacturing; professional services; and high-tech industries are more likely to be
having difficulty recruiting for specific jobs compared with the state and local governments.

Construction, mining, oil and gas (51%) …are more likely to
Finance (49%) be having difficulty recruiting for
Manufacturing (68%) specific jobs that are open in their State and local government (34%)
Services—professional (57%) organization
High-tech (71%) than...

The manufacturing and high-tech industries are more likely to be having difficulty recruiting for specific jobs compared with the
construction, mining, oil and gas; federal government; finance; and state and local government industries.

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...


23

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?
Finance

Yes, 8%

No, 92%

Note: n = 100. Respondents who answered “Don’t know” were excluded from this analysis. Only respondents whose organizations were having a difficult
time recruiting for certain types of jobs were asked this question.
24

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?
Finance


The construction, mining, oil and gas; manufacturing; and high-tech industries are more likely to believe that their organization is
facing global competition compared with the finance industry.

believe that their organization is
Manufacturing (27%) Finance (8%)
facing global competition
High-tech (42%)
than...


25

Has your organization hired any workers from outside the U.S. in an
attempt to fill key jobs that have been difficult to fill?
Finance

No 92%

Yes 5%

No, but we are
3%
considering it

No, but we have
plans to do so in
1%
the next 12
months

Note: n = 107. Percentages do not total 100% due to rounding. Respondents who answered “Don’t know” were excluded from this analysis. Only respondents
whose organizations were having a difficult time recruiting for certain types of jobs were asked this question.

26

Has your organization hired any workers from outside the U.S. in an
attempt to fill key jobs that have been difficult to fill?
Finance


The construction, mining, oil and gas; manufacturing; professional services; and high-tech industries are more likely to have hired
workers from outside the U.S. in an attempt to recruit for hard-to-fill jobs compared with the finance industry.

Construction, mining, oil and gas (31%) …are more likely to
Manufacturing (20%) have hired workers from
Finance (5%)
Services—professional (25%) outside the U.S.
High-tech (50%) than...


27

Has your organization hired any U.S. veterans in an attempt to fill key
jobs that have been difficult to fill?
Finance

No 66%

No, but we are
19%
considering it

Yes 13%

No, but we have
plans to do so in the 2%
next 12 months

Note: n = 91. Respondents who answered “Don’t know” were excluded from this analysis. Only respondents whose organizations were having a difficult time
recruiting for certain types of jobs were asked this question.

28

Has your organization hired any U.S. veterans in an attempt to fill key
jobs that have been difficult to fill?
Finance


The 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 with
those from the finance industry.

Health (42%) …are more likely to
Manufacturing (44%) have hired U.S. veterans Finance (13%)
State and local government (37%) than...
High tech (34%)


29

In general, what basic skills/knowledge gaps do job applicants have in
your industry?
Finance

Writing in English (grammar, spelling, etc.) 66%

Mathematics (computation) 47%

Reading comprehension (in English) 38%

English language (spoken) 36%

Science 6%

Government/economics 5%

Foreign languages 2%

History/geography 0%

Humanities/arts 0%

Technical (computer, engineering, mechanical, etc.) 0%

Other 9%

Note: n = 87. Percentages do not total 100% due to multiple response options. Only respondents whose organizations were having a difficult time recruiting
for certain types of jobs were asked this question.
30

In general, what applied skill gaps do job applicants have in your
industry?
Finance

Written communications 61%
Critical thinking/problem solving 59%
Professionalism/work ethic 54%
Oral communications 45%
Leadership 40%
Teamwork/collaboration 36%
Information technology application 30%
Lifelong learning/self-direction 23%
Creativity/innovation 22%
Ethics/social responsibility 18%
Diversity 11%
Other 3%

Note: n = 100. Percentages do not total 100% due to multiple response options. Only respondents whose organizations were having a difficult time recruiting
for certain types of jobs were asked this question.
31

Specific Job Categories Organizations Have Difficulty Recruiting
Finance

High-skilled technical (e.g., technicians, programmers) (n = 65) 88%

Managers and executives (n = 84) 83%

Sales representatives (n = 62) 77%

Accounting and finance professionals (n = 82) 73%

HR professionals (n = 46) 54%

Customer service representatives (n = 84) 53%

Administrative support staff (n = 92) 41%

Hourly laborers (n = 35) 26%

Note: Chart represents “somewhat difficult” and “very difficult” responses. “Not applicable” responses were excluded from this analysis. Only respondents
whose organizations were having a difficult time recruiting for certain types of jobs were asked this question. No statistics are provided where the n is less than
20; therefore, the job categories of “production operators” (n = 6), “drivers” (n = 3), “skilled trades” (n = 6), “high-skilled medical” (n = 3), “engineers” (n = 13)
and “scientists” (n = 5) were excluded from this analysis.
32

Finance

Demographics

33

Demographics: Organization Sector
Finance

Privately owned for-profit 49%

Nonprofit 25%

Publicly owned for-profit 24%

Other 2%

Government 0%

n = 317

34

Demographics: Organization Staff Size
Finance

1 to 99 employees 32%

100 to 499 employees 39%

500 to 2,499 employees 16%

2,500 to 24,999 employees 9%

25,000 or more employees 4%

n = 314

35

Demographics: Other
Finance

Does your organization have U.S.- Is your organization a single-unit organization
based 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 28%
U.S.-based operations only 84% one and the same

Multinational operations 16% Multi-unit organization: An organization
72%
that has more than one location
n = 317
n = 323

For multi-unit organizations, are HR policies and
What is the HR department/function practices determined by the multi-unit
for which you responded throughout headquarters, by each work location or both?
this survey?
Multi-unit headquarters determines HR
72%
policies and practices
Corporate (companywide) 88%
Each work location determines HR policies
Business unit/division 10% 0%
and practices

Facility/location 2% A combination of both the work location
and the multi-unit headquarters determine 28%
n = 235
HR policies and practices

n = 234

36

SHRM Poll: The Ongoing Impact of the Recession:
Finance

Methodology
 Response rate = 12%
 Sample composed of 329 randomly selected HR professionals from the finance
industry in SHRM’s membership
 Margin of error +/-5%

 Survey fielded August 18-September 2, 2011

For more poll findings, visit www.shrm.org/surveys
Follow us on Twitter: http://twitter.com/SHRM_Research

Project leader:
Tanya A. Mulvey, survey research analyst, SHRM Research

Project contributors:
Mark Schmit, Ph.D., SPHR, vice president, SHRM Research
Evren Esen, manager, SHRM Research

Copy editor:
Katya Scanlan, SHRM Knowledge Center
37

Recession Poll Finance 2011

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