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The Ongoing Impact of the Recession—Global Competition and Hiring Strategies
 

The Ongoing Impact of the Recession—Global Competition and Hiring Strategies

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View other SHRM Research results at www.shrm.org/surveys. ...

View other SHRM Research results at www.shrm.org/surveys.

Lack of relevant qualifications and competition for talent are the top reasons that two-thirds (66%) of organizations are having difficulty hiring qualified full-time employees, according to HR professionals. Strategies organizations are using to deal with these recruiting challenges include: expanding advertising efforts (47%), using social media to find passive job seekers (44%), collaborating with education institutions (37%) and expanding the search region (36%).

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    The Ongoing Impact of the Recession—Global Competition and Hiring Strategies The Ongoing Impact of the Recession—Global Competition and Hiring Strategies Presentation Transcript

    • SHRM Survey Findings: The Ongoing Impact of theRecession—Global Competition and Hiring Strategies March 12, 2013
    • Introduction• This is Part 3 a series of SHRM survey results about the ongoing impact of the U.S. and global recession, which began in 2007. Overall results will be reported separately in three different topic areas:  Overall financial health and hiring.  Recruiting and skill gaps.  Global competition and hiring strategies.• Overall results for 2012 will also be reported separately for California.• Industry-specific results will be reported separately for each of the eight industries that were included in the sample:  Construction, oil, mining and gas.  Federal government.  Finance.  Health.  High-tech.  Manufacturing.  Professional services.  State and local government. The Ongoing Impact of the Recession—Global Competition and Hiring Strategies ©SHRM 2013 2
    • Key Findings• Is recruiting for select jobs difficult in the current labor market? Two-thirds (66%) of organizations that are currently hiring full-time staff indicated that they are having a difficult time recruiting for specific job openings, an increase from 52% in 2011.• Why are organizations experiencing difficulty hiring qualified candidates? Lack of relevant qualifications and competition for talent are the top reasons it is difficult to hire qualified full-time employees, according to HR professionals.  Nearly one-half (48%) of organizations indicated that candidates do not have the right skills for the job and 40% said candidates do not have the right work experience.  About one-third (35%) reported that qualified candidates are not within their organization’s salary range or hourly range rate, and 35% cited competition from other employers as a reason for difficulty in hiring. The Ongoing Impact of the Recession—Global Competition and Hiring Strategies ©SHRM 2013 3
    • Key Findings• What strategies is your organization using to deal with recruiting challenges for full-time regular positions?  The most common strategies are related to recruiting new employees: expanding advertising efforts (47%), using social media to find passive job seekers (44%), collaborating with education institutions (37%) and expanding the search region (36%).  These are followed by strategies that focus on using current employees: training existing employees to take on the hard-to-fill positions (33%) and increasing retention efforts (32%).  Other strategies include providing additional compensation, benefits and training to attract new employees.• Are organizations facing global competition for applicants for hard-to-fill jobs? Thirteen percent of organizations believe they are facing global competition for qualified applicants for jobs they are having difficulty filling, a decrease from 23% reported in 2011.  Larger organizations (2,500 or more employees) are more likely to report global competition than smaller organizations (1-499 employees).  Organizations in the high-tech industry is more likely than those in the finance, health, manufacturing, professional services and state or local government industries to believe that they are facing global competition for hard-to-fill jobs. The Ongoing Impact of the Recession—Global Competition and Hiring Strategies ©SHRM 2013 4
    • Key Findings• Have organizations been hiring workers from outside the U.S. for jobs that have been difficult to fill? About one-quarter (24%) of organizations have hired workers from outside the U.S., the same percentage as in 2011.  Larger organizations (500 or more employees) are more likely than smaller organizations (1-499 employees) to have hired workers from outside the U.S.  The high-tech industry is more likely than other industries to have hired workers from outside the U.S. in an attempt to recruit for hard-to-fill jobs.• Have organizations been hiring U.S. veterans for jobs that have been difficult to fill? Over one-half (58%) of organizations reported hiring U.S. veterans, an increase from 39% in 2011. Sixteen percent are either considering or have plans to hire veterans in the next 12 months.  Larger organizations (2,500 or more employees) are more likely than smaller organizations (1-2,499 employees) to have hired U.S. veterans in an attempt to recruit for hard-to-fill jobs.  The federal government is more likely than the finance, health, high-tech, manufacturing and professional services industries to have hired U.S. veterans in an attempt to recruit for hard-to-fill jobs. The Ongoing Impact of the Recession—Global Competition and Hiring Strategies ©SHRM 2013 5
    • What do these findings mean for the HR profession?• HR professionals must prepare for a more difficult recruiting environment as the economy improves. Two-thirds (66%) of organizations are already saying that they are having a difficult time recruiting for specific job openings. This difficulty is likely to increase as the economy continues to improve and as the Baby Boom generation begins to retire, leaving many more job openings to fill.• In the next several years, many organizations will focus on improving their recruiting processes as a way to deal with greater challenges in filling jobs. More dollars set aside for recruiting are likely to lead to even more investments in expanding advertising efforts while organizations also hone their use of social media to find passive job seekers.• In the longer term, many organizations may have to boost their training investments to build qualified talent from within. Lack of relevant qualifications and competition for talent are the top reasons HR professionals give for difficulty hiring qualified full-time employees; training existing employees can help more of them qualify for hard- to-fill jobs and also acts as a retention tool. More organizations will collaborate with educational institutions to create a more qualified local talent pool.• Global competition for skilled and educated employees is likely to increase in the years ahead. Though currently only 13% of organizations believe they are facing global competition for qualified applicants for jobs they are having difficulty filling—a decrease from 23% reported in 2011—as working-age populations around the world shrink, competition for qualified workers is likely to grow. Larger organizations in particular could increase their numbers of hires from outside the U.S. Businesses in the STEM (science, technology, engineering and math) fields are also likely to look outside U.S. borders for the needed workers, as is already occurring in the high-tech industry. The Ongoing Impact of the Recession—Global Competition and Hiring Strategies ©SHRM 2013 6
    • In general, in the current labor market, are you having a difficult time recruiting for certain types of full-time regular positions that are open in your organization? 2011 2012 No, 34% No, 48% Yes, 52% Yes, 66% n = 1,568 n = 2,562Note: Respondents who answered “don’t know” were excluded from this analysis. Only respondents whose organizationswere currently hiring full-time staff were asked this question. The Ongoing Impact of the Recession—Global Competition and Hiring Strategies ©SHRM 2013 7
    • In general, in the current labor market, are you having a difficult time recruiting for certain types of full-time regular positions that are open in your organization?Comparisons by industry• The high-tech and manufacturing industries are more likely than the federal government, finance, health and state orlocal government industries to be having difficulty recruiting for certain types of full-time regular positions.• The construction, mining, oil and gas, and professional services industries are more likely than the federal governmentand state or local government to be having difficulty recruiting for certain types of full-time regular positions.• The finance and health industries are more likely than the state or local government to be having difficulty recruiting forcertain types of full-time regular positions. Comparisons by industry Federal government (50%) High-tech(82%) Finance (66%) > Manufacturing(79%) Health (65%) State or local government (52%) Construction, mining, oil and gas (74%) Federal government (50%) > Professional services (70%) State or local government (52%) Finance (66%) > State or local government (52%) Health (65%)Note: Only statistically significant differences are shown. The Ongoing Impact of the Recession—Global Competition and Hiring Strategies ©SHRM 2013 8
    • What are the main reasons that your organization experiences difficulty in hiring qualified candidates for full-time regular positions? Candidates do not have the right skills for 48% the job Candidates do not have the right work 40% experience Qualified candidates are not within our 35% salary range or hourly range rate Competition from other employers 35% Low number of applicants 24% Candidates do not have the needed 21% credentials/certifications Qualified candidates are not interested in 14% moving to our local areaNote: n = 1,647. Percentages do not total 100% due to multiple response options. Respondents who answered “don’t know”were excluded from this analysis. Only respondents whose organizations were having a difficult time recruiting for certaintypes of jobs were asked this question. The Ongoing Impact of the Recession—Global Competition and Hiring Strategies ©SHRM 2013 9
    • What are the main reasons that your organization experiences difficulty in hiring qualified candidates for full-time regular positions? (Continued) Candidates do not have high enough levels of 11% education/training Candidates are overqualified 6% Lack of interest in type of job 6% Qualified candidates are not able to move to 6% our local area (due to mortgage or other issues) Our local education/training system does not produce enough work-ready/qualified job 6% candidates Our organization does not provide relocation 4% funds Other 7%Note: n = 1,647. Percentages do not total 100% due to multiple response options. Respondents who answered “don’t know”were excluded from this analysis. Only respondents whose organizations were having a difficult time recruiting for certaintypes of jobs were asked this question. The Ongoing Impact of the Recession—Global Competition and Hiring Strategies ©SHRM 2013 10
    • What strategies is your organization using to deal with recruiting challenges for full-time regular positions? Expanding advertising efforts 47% Using social media to find passive job seekers 44% Collaborating with educational institutions 37% Expanding search region 36% Training existing employees to take on the 33% hard-to-fill positions Increasing retention efforts 32%Note: n = 1,635. Percentages do not total 100% due to multiple response options. Only respondents whose organizations werehaving a difficult time recruiting for certain types of jobs were asked this question. The Ongoing Impact of the Recession—Global Competition and Hiring Strategies ©SHRM 2013 11
    • What strategies is your organization using to deal with recruiting challenges for full-time regular positions? (Continued) Providing monetary incentives to candidates 24% (e.g., signing bonus) Improving compensation/benefits package 24% Offering more flexible work arrangements 22% Expanding training programs to help improve 21% skills of new hires Offering new job perks 5% Other 5% None; we have not changed our recruiting 8% strategyNote: n = 1,635. Percentages do not total 100% due to multiple response options. Only respondents whose organizations werehaving a difficult time recruiting for certain types of jobs were asked this question. The Ongoing Impact of the Recession—Global Competition and Hiring Strategies ©SHRM 2013 12
    • Do you believe that your organization is facing global competition (i.e., competition from other countries) for talent for hard-to-fill jobs? 2011 2012 Yes, 13% Yes, 23% No, 77% No, 87% n = 720 n = 1,492Note: Respondents who answered “don’t know” were excluded from this analysis. Only respondents whose organizationswere having a difficult time recruiting for certain types of full-time jobs were asked this question. The Ongoing Impact of the Recession—Global Competition and Hiring Strategies ©SHRM 2013 13
    • Do you believe that your organization is facing global competition (i.e., competition from other countries) for talent for hard-to-fill jobs? Comparisons by industry• Organizations in the high-tech industry are more likely than those in the finance, health, manufacturing, professional servicesand state or local government industries to believe that they are facing global competition for talent for hard-to-fill jobs.• Organizations in the construction, mining, oil and gas, and federal government industries are more likely than those in thefinance, health and state or local government industries to believe that they are facing global competition for talent for hard-to-fill jobs.• Organizations in the manufacturing industry are more likely than those in the finance and state or local government industriesto believe that they are facing global competition for talent for hard-to-fill jobs.• Organizations in the professional services industry are more likely than those in the state or local government to believe thatthey are s facing global competition for talent for hard-to-fill jobs. Comparisons by industry Finance (5%) Health (6%) High-tech(33%) > Manufacturing(15%) Professional services (14%) State or local government (4%) Finance (5%) Construction, mining, oil and gas (22%) > Health (6%) Federal government (22%) State or local government (4%) Finance (5%) Manufacturing(15%) > State or local government (4%) Professional services (14%) > State or local government (4%) Note: Only statistically significant differences are shown. The Ongoing Impact of the Recession—Global Competition and Hiring Strategies ©SHRM 2013 14
    • Do you believe that your organization is facing global competition (i.e., competition from other countries) for talent for hard-to-fill jobs?Comparisons by organization staff size• Organizations with 2,500 to 24,999 employees are more likely than organizations with 1 to 2,499 employees to believethat they are facing global competition for talent for hard-to-fill jobs.• Organizations with 25,000 or more employees are more likely than organizations with 1 to 499 employees to believe thatthey are facing global competition for talent for hard-to-fill jobs. Comparisons by organization staff size 1 to 99 employees (8%) 2,500 to 24,999 employees (22%) > 100 to 499 employees (9%) 500 to 2,499 employees (13%) 1 to 99 employees (8%) 25,000 or more employees (25%) > 100 to 499 employees (9%)Note: Only statistically significant differences are shown. The Ongoing Impact of the Recession—Global Competition and Hiring Strategies ©SHRM 2013 15
    • Has your organization hired any workers from outside the United States in an attempt to staff key jobs that have been difficult to fill? 2012 (n = 1,566) 2011 (n = 755) 72% 72% 24% 24% 4% 3% 0% 1% Yes No No, but we are No, but we have plans considering it to do so in the next 12 monthsNote: Respondents who answered “don’t know” were excluded from this analysis. Only respondents whose organizationswere having a difficult time recruiting for certain types of full-time jobs were asked this question. The Ongoing Impact of the Recession—Global Competition and Hiring Strategies ©SHRM 2013 16
    • Has your organization hired any workers from outside the United States in an attempt to staff key jobs that have been difficult to fill?Comparisons by industry• The high-tech industry is more likely than the construction, mining, oil and gas; federal government; finance; health;manufacturing; professional services; and state or local government industries to have hired workers from outside the U.S.in an attempt to recruit for hard-to-fill jobs.• The construction, mining, oil and gas; health; manufacturing; and professional services industries are more likely than thestate or local government to have hired workers from outside the U.S. in an attempt to recruit for hard-to-fill jobs. Comparisons by industry Construction, mining, oil and gas (26%) Federal government (16%) Finance (16%) High-tech(50%) > Health (29%) Manufacturing(24%) Professional services (24%) State or local government (11%) Construction, mining, oil and gas (26%) Health (29%) > State or local government (11%) Manufacturing(24%) Professional services (24%)Note: Only statistically significant differences are shown. The Ongoing Impact of the Recession—Global Competition and Hiring Strategies ©SHRM 2013 17
    • Has your organization hired any workers from outside the United States in an attempt to staff key jobs that have been difficult to fill?Comparisons by organization staff size• Organizations with 500 or more employees are more likely than organizations with 1 to 499 employees to have hiredworkers from outside the U.S. in an attempt to recruit for hard-to-fill jobs. Comparisons by organization staff size 500 to 2,499 employees (31%) 1 to 99 employees (16%) 2,500 to 24,999 employees (34%) > 100 to 499 employees (16%) 25,000 or more employees (42%)Note: Only statistically significant differences are shown. The Ongoing Impact of the Recession—Global Competition and Hiring Strategies ©SHRM 2013 18
    • Has your organization hired any U.S. veterans in an attempt to staff key jobs that have been difficult to fill? 2012 (n = 1,415) 2011 (n = 651) 58% 46% 39% 26% 12% 12% 4% 3% Yes No No, but we are No, but we have considering it plans to do so in the next 12 monthsNote: Respondents who answered “don’t know” were excluded from this analysis. Only respondents whose organizationswere having a difficult time recruiting for certain types of full-time jobs were asked this question. The Ongoing Impact of the Recession—Global Competition and Hiring Strategies ©SHRM 2013 19
    • Has your organization hired any U.S. veterans in an attempt to staff key jobs that have been difficult to fill?Comparisons by industry• The federal government is more likely than the finance, health, high-tech, manufacturing and professional servicesindustries to have hired U.S. veterans in an attempt to recruit for hard-to-fill jobs.• The construction, mining, oil and gas, and state or local government industries are more likely than the finance, high-tech and professional services industries to have hired U.S. veterans in an attempt to recruit for hard-to-fill jobs.• The manufacturing industry is more likely than the finance and professional services industries to have hired U.S. veteransin an attempt to recruit for hard-to-fill jobs. Comparisons by industry Finance (40%) Health (57%) Federal government (87%) > High-tech(47%) Manufacturing(60%) Professional services (43%) Finance (40%) Construction, mining, oil and gas (70%) > High-tech(47%) State or local government (71%) Professional services (43%) Finance (40%) Manufacturing(60%) > Professional services (43%)Note: Only statistically significant differences are shown. The Ongoing Impact of the Recession—Global Competition and Hiring Strategies ©SHRM 2013 20
    • Has your organization hired any U.S. veterans in an attempt to staff key jobs that have been difficult to fill?Comparisons by organization staff size• Organizations with 2,500 or more employees are more likely than organizations with 1 to 2,499 employees to have hiredU.S. veterans in an attempt to recruit for hard-to-fill jobs.• Organizations with 500 to 2,499 employees are more likely than organizations with 1 to 499 employees to have hired U.S.veterans in an attempt to recruit for hard-to-fill jobs.• Organizations with 100 to 499 employees are more likely than organizations with 1 to 99 employees to have hired U.S.veterans in an attempt to recruit for hard-to-fill jobs. Comparisons by organization staff size 1 to 99 employees (30%) 2,500 to 24,999 employees (84%) > 100 to 499 employees (48%) 25,000 or more employees (87%) 500 to 2,499 employees (68%) 1 to 99 employees (30%) 500 to 2,499 employees (68%) > 100 to 499 employees (48%) 100 to 499 employees (48%) > 1 to 99 employees (30%)Note: Only statistically significant differences are shown. The Ongoing Impact of the Recession—Global Competition and Hiring Strategies ©SHRM 2013 21
    • DemographicsThe Ongoing Impact of the Recession—Global Competition and Hiring Strategies ©SHRM 2013 22
    • Demographics: Organization Industry State or local government 20% Manufacturing 14% Professional services 13% Health 13% Finance 11% Construction, mining, oil and gas 10% High-tech 7% Federal government 7% Other 6%Note: n = 3,481. Percentages do not total 100% due to rounding. The Ongoing Impact of the Recession—Global Competition and Hiring Strategies ©SHRM 2013 23
    • Demographics: Organization Sector Privately owned for-profit 43% Government 25% Publicly owned for-profit 17% Nonprofit 12% Other 3%n = 3,294 The Ongoing Impact of the Recession—Global Competition and Hiring Strategies ©SHRM 2013 24
    • Demographics: Organization Staff Size 1 to 99 employees 26% 100 to 499 employees 33% 500 to 2,499 employees 19% 2,500 to 24,999 employees 16% 25,000 or more employees 6%n = 3,208 The Ongoing Impact of the Recession—Global Competition and Hiring Strategies ©SHRM 2013 25
    • Demographics: OtherDoes your organization have U.S.- Is your organization a single-unit organization orbased operations (business units) only, a multi-unit organization?or does it operate multinationally? Single-unit organization: An organization U.S.-based operations only 76% in which the location and the 36% organization are one and the same. Multinational operations 24% Multi-unit organization: An organization 64% that has more than one location. n = 3,311 n = 3,325 For multi-unit organizations, are HR policies andWhat is the HR department/function for practices determined by the multi-unit headquarters,which you responded throughout this by each work location or by both?survey? Multi-unit headquarters determines HR Corporate (companywide) 68% 50% policies and practices Business unit/division 19% Each work location determines HR 3% policies and practices Facility/location 13% A combination of both the work location n = 2,206 and the multi-unit headquarters 47% determines HR policies and practices n = 2,204 The Ongoing Impact of the Recession—Global Competition and Hiring Strategies ©SHRM 2013 26
    • SHRM Survey Findings: The Ongoing Impact of the Recession—Overall Financial Health and HiringSurvey Methodology• Response rate = 15%• 3,481 HR professionals from a randomly selected sample of SHRM’s membership participated in this survey• Margin of error +/-2%• Survey fielded August 28–September 14, 2012 The Ongoing Impact of the Recession—Global Competition and Hiring Strategies ©SHRM 2013 27
    • About SHRM Research• For more survey/poll findings, visit www.shrm.org/surveys• For more information about SHRM’s Customized Research Services, visit www.shrm.org/customizedresearch• Follow us on Twitter @SHRM_ResearchProject leader: Tanya Mulvey, survey research analyst, SHRM ResearchProject contributors: Alexander Alonso, Ph.D., SPHR, vice president, SHRM Research Evren Esen, manager, Survey Research Center, SHRM Research Jennifer Schramm, GPHR, manager, Workplace Trends and Forecasting, SHRM ResearchCopy editor: Katya Scanlan, SHRM Knowledge Center The Ongoing Impact of the Recession—Global Competition and Hiring Strategies ©SHRM 2013 28