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©SHRM 2015©SHRM 2015
MATT FERGUSON
CEO, CAREERBUILDER
@CBFOREMPLOYERS
SHRM ANNUAL CONFERENCE & EXPOSITION
WHAT CEOs THINK
ABOUT 2015'S TOP
WORKFORCE
ISSUES June 30, 2015
2:15 – 3:30 p.m.
©SHRM 2015©SHRM 2015
OVERVIEW
Labor Market
©SHRM 2015
95
-298
-424
88
174 186 194
260
217
-500
-400
-300
-200
-100
0
100
200
300
2007 2008 2009 2010 2011 2012 2013 2014 YTD 2015
JobCreation(000s)
2 |
AVERAGE MONTHLY NON-FARM JOB CREATION
(Source: U.S. Bureau of Labor Statistics)
©SHRM 20153 |
CHURN RATE VS. TOTAL NON-FARM JOBS, 2003-2013
(Source: The Pulse of U.S. Hiring Activity, 2014 CareerBuilder & EMSI Report)
125,000,000
127,000,000
129,000,000
131,000,000
133,000,000
135,000,000
50.0%
55.0%
60.0%
65.0%
70.0%
75.0%
80.0%
85.0%
90.0%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Churn Rate Jobs
©SHRM 20154 |
Nationwide survey conducted by Harris Poll
on behalf of CareerBuilder
Participants: CEO or President of company, Chairman /
Board Member, Partner / Principal, Owner
Companies with revenue of at least $50 million
CEO
SURVEY
©SHRM 2015
©SHRM 2015
ON WORKFORCE & RECRUITMENT CHALLENGES
CEOs’ Views
©SHRM 2015
WHAT WORKFORCE CHALLENGES KEEP YOU UP AT NIGHT?
14%
7%
11%
14%
16%
17%
18%
23%
23%
25%
25%
32%
32%
33%
None of these
Other
Not enough diversity in the organization
Low morale
Potential layoffs due to automation, market conditions or other factors
The rate of voluntary turnover
Insufficient employee engagement
Pressure to raise wages
Being able to scale up globally
Change management
Development/training of teams and individuals needs to be more effective
Not enough good leaders within the organization
Managing costs associated with new legislation
The skills gap within our organization
6 |
©SHRM 2015
WAGE PRESSURE IN 2015:
RAISES AT BOTH ENDS?
7 | Source: 2015 CareerBuilder Annual Forecast (Harris Poll)
IT, Sales, Engineering and Customer Service
to see biggest increases for starting salaries.
©SHRM 2015
45%
of employers expect
to raise the minimum
wage within their
organizations
53% of this group will
raise it by $2 or more
on average
26%
of employers expect
starting salaries to
increase by 5% or more
over the previous year
That’s almost 4 times
higher than 2010 - 7%
©SHRM 20158 |
SKILLS GAP
CONTINUES TO BE
A MAJOR CONCERN
Nearly half of employers currently have open
positions for which they can’t find qualified
candidates
37% of employers have positions that stay open
12 weeks or longer; 1 in 6 companies loses
$25,000 or more per open position due
to extended vacancies
Source: CareerBuilder’s June 2014 and November 2013 nationwide studies of employers conducted by Harris Poll
©SHRM 2015
SKILLS GAP CONTINUES TO BE A MAJOR CONCERN
9 |
48,957
59,279
Software
Developers
Total employment in 2014 Growth in jobs 2010-2014
Annual job openings
2010-2014 Degree completion 2013
Percentage of the
workforce ages 55+
Machinist 410,219 59,269 Up 17% 23,861 6,184 25%
Average Monthly Unique Job Postings vs. Average Monthly Hires: 2013-2014
103,978
124,933
Registered
Nurses
postings per month
postings per month
hires per month
hires per month
Source: Economic Modeling Specialists International, 2014
©SHRM 2015
My company has not been able to reach its full potential because we can’t find enough qualified candidates.
MAJORITY OF CEOs THINK SKILLS GAP HOLDS THEIR COMPANIES BACK
10 | ©SHRM 2015
8% 52% 32% 8%
Strongly agree Agree Disagree Strongly disagree
Agree 60% Disagree 40%
©SHRM 2015
WHAT ARE YOUR TOP RECRUITMENT CHALLENGES?
10%
3%
11%
17%
19%
23%
25%
30%
49%
None of these
Other
We can't provide competitive compensation
Our employment brand is not known or not perceived positively
Our cost per hire is too high
We need a better strategy/process for recruiting in global markets
Our candidate experience is not as good as it could be
The recruitment process is not efficient - it takes too long to fill open positions
There aren't enough skilled candidates for the positions we need to fill
11 |
©SHRM 2015
HOW WOULD YOU RATE THE RECRUITMENT EFFICIENCY OF YOUR HR TEAM?
13%
65%
20%
2%
0%
Excellent, needs no improvement Good, but could use a little
improvement
It's OK, we're getting by Bad, needs improvement Horrible, needs a lot of
improvement
12 |
©SHRM 2015
My company has lost money due to an inefficient recruitment process.
INEFFICIENT RECRUITMENT HURTS BOTTOM LINE
13 | ©SHRM 2015
5.7% 42.0% 39.8% 12.5%
Strongly agree Agree Disagree Strongly disagree
Agree 48% Disagree 52%
©SHRM 2015
HOW WOULD YOU RATE YOUR CANDIDATE EXPERIENCE?
16%
65%
16%
3%
0%
Excellent, needs no improvement Good, but could use a little
improvement
It's OK, we're getting by Bad, needs improvement Horrible, needs a lot of
improvement
14 |
©SHRM 2015
4 in 10 recruiters and HR managers have never tried
to apply for one of their own positions.
6 in 10 job seekers say they’ve quit an online application
mid-process due to how long or complex it was.
15 | Source: “How Candidate Experience is Transforming HR Technology,” which was conducted by Harris Poll on behalf of CareerBuilder, 2014 ©SHRM 2015
©SHRM 2015
WHAT ARE YOUR TOP RECRUITMENT TECHNOLOGY CHALLENGES?
25%
3%
16%
17%
17%
18%
22%
23%
26%
30%
None of these
Other
We're limited in terms of where we can post jobs globally
We can't accurately track and report on our sources of hire, so we're wasting time and money
Our recruitment technology is not mobile-responsive
Our recruitment technology doesn't provide real-time data on the best locations to recruit the candidates we need
We use several different sources to recruit candidates and can't coordinate to search across them
Our recruitment technology is not efficient - it takes too long to find and engage candidates
We can't automatically re-engage candidates who have shown interest in jobs in the past
Our recruitment technology is outdated or limits what we can do
16 |
©SHRM 2015
MOBILE JOB SEARCH IS TAKING OVER . . .
TRAFFIC TO CAREERBUILDER.COM
17 | ©SHRM 2015
3-5%
2010
10%
2012
33%
2013
40%
2014
43% YTD
2015
©SHRM 201518 |
49%
Don’t revisit or re-engage
with past candidates,
leaving a pool of
interested talent
untapped.
20%
Don’t have a system that
enables them to
remarket to candidates.
37%
Don’t have the time to re-
engage past candidates.
©SHRM 2015
A SIGNIFICANT NUMBER OF EMPLOYERS NEVER RECONNECT WITH PAST CANDIDATES
Source: CareerBuilder/Harris Poll Q2 2015 Employer Survey
©SHRM 2015
Job
Boards
Talent
Network
ATS
Career
Site
Job
Aggregators
Internal
Surveys
RPO Referrals HRIS
Excel Spreadsheets
19 | ©SHRM 2015
©SHRM 2015
& ADVICE TO HR
CEOs’ EXPECTATIONS
©SHRM 2015
©SHRM 2015
WHAT DO YOU EXPECT FROM YOUR HR LEADERS?
21 |
65%
Foster culture
of excellence.
64%
Acquire talent in timely
manner, regardless
of role or skill set
needed.
61%
Keep CEO informed
of important human
capital issues within
the company
and strategies
to address them.
©SHRM 2015
©SHRM 2015
HOW IS HR EFFECTIVENESS MEASURED?
7%
1%
23%
27%
31%
35%
40%
43%
45%
47%
53%
56%
None of these
Other
Revenue performance (i.e., having the right people in place to grow at the rate we should be growing)
Effectiveness in succession planning
How we benchmark against the industry
Productivity (i.e., having the right people in place to reach desired productivity)
Rate of turnover (ability to hold on to top performers and intellectual capital)
Speed at which we fill positions
Ability to effectively manage compensation and benefits costs
Training and development programs (i.e., seeing improvements in employee performance)
Employee satisfaction
Quality of new hires based on performance and retention
22 |
©SHRM 2015
“Opinions expressed by HR carry a greater weight with senior management post-recession.”
GROWING INFLUENCE OF HR POST-RECESSION
23 | ©SHRM 2015
12.5% 52.3% 30.7% 4.5%
Strongly agree Agree Disagree Strongly disagree
Agree 65% Disagree 35%
©SHRM 2015
HOW CAN HR LEADERS DEVELOP BROADER INFLUENCE WITHIN THE ORGANIZATION?
8%
1%
15%
34%
51%
52%
57%
57%
I do not believe that HR leaders can have broader influence within the organization
Other
Obtain an MBA
Ask to be involved in more business decisions
Proactively work with other leaders to help solve business problems
Know what the company does, but also know how everything works
Show ways to increase efficiencies or cut costs by better using the organization's human capital
Provide me with actionable human capital data and other research to help devise strategies to meet larger business goals
24 |
HR
leaders
can have
broader
influence:
92%
©SHRM 2015
HOW IMPORTANT IS IT FOR HR LEADERS TO . . .?
25 | ©SHRM 2015
35% 55% 9%
1%
Essential/Important 90% Unimportant 10%
33% 55% 9% 3%
Absolutely essential Important Not very important Not at all important
Essential/Important 88% Unimportant 12%
Be proficient in
workforce analytics
Be knowledgeable
about new recruitment
and HR strategies
©SHRM 2015
of hiring managers and recruiters
rate their proficiency with
workforce analytics as poor/fair.52%
of HR departments
regularly use Big Data
in recruitment strategies.14%
never
do.50%
©SHRM 201526 | Source: Q2 2015 CareerBuilder/Harris Poll Employer Survey (2,200 HR/Hiring managers)
©SHRM 2015
WHY USE
DATA?
#1 Learn the Market
#2 Educate Internal Stakeholders
#3 Determine What Tactics Work/Don’t Work
27 | ©SHRM 2015
©SHRM 2015
WHY USE
DATA?
#4 It Pays Dividends
65% of employers who use big data in recruitment said
it lowered their cost per hire; 30% said by $500 or more.
66% of employers who use big data in recruitment said
it reduced their time to hire; 38% said by two weeks
or more. (Source: Q2 2015 CareerBuilder/Harris Poll Employer Survey)
Firms adopting data-driven decision making increase
productivity 5-6%. (Source: The Talent Equation)
28 | ©SHRM 2015
©SHRM 2015
@CBforEmployers
www.careerbuilder.com
www.thetalentequationbook.com
Learn more at:

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99careerbuilder guide for success-99careerbuilder.com

  • 1. ©SHRM 2015©SHRM 2015 MATT FERGUSON CEO, CAREERBUILDER @CBFOREMPLOYERS SHRM ANNUAL CONFERENCE & EXPOSITION WHAT CEOs THINK ABOUT 2015'S TOP WORKFORCE ISSUES June 30, 2015 2:15 – 3:30 p.m.
  • 3. ©SHRM 2015 95 -298 -424 88 174 186 194 260 217 -500 -400 -300 -200 -100 0 100 200 300 2007 2008 2009 2010 2011 2012 2013 2014 YTD 2015 JobCreation(000s) 2 | AVERAGE MONTHLY NON-FARM JOB CREATION (Source: U.S. Bureau of Labor Statistics)
  • 4. ©SHRM 20153 | CHURN RATE VS. TOTAL NON-FARM JOBS, 2003-2013 (Source: The Pulse of U.S. Hiring Activity, 2014 CareerBuilder & EMSI Report) 125,000,000 127,000,000 129,000,000 131,000,000 133,000,000 135,000,000 50.0% 55.0% 60.0% 65.0% 70.0% 75.0% 80.0% 85.0% 90.0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Churn Rate Jobs
  • 5. ©SHRM 20154 | Nationwide survey conducted by Harris Poll on behalf of CareerBuilder Participants: CEO or President of company, Chairman / Board Member, Partner / Principal, Owner Companies with revenue of at least $50 million CEO SURVEY ©SHRM 2015
  • 6. ©SHRM 2015 ON WORKFORCE & RECRUITMENT CHALLENGES CEOs’ Views
  • 7. ©SHRM 2015 WHAT WORKFORCE CHALLENGES KEEP YOU UP AT NIGHT? 14% 7% 11% 14% 16% 17% 18% 23% 23% 25% 25% 32% 32% 33% None of these Other Not enough diversity in the organization Low morale Potential layoffs due to automation, market conditions or other factors The rate of voluntary turnover Insufficient employee engagement Pressure to raise wages Being able to scale up globally Change management Development/training of teams and individuals needs to be more effective Not enough good leaders within the organization Managing costs associated with new legislation The skills gap within our organization 6 |
  • 8. ©SHRM 2015 WAGE PRESSURE IN 2015: RAISES AT BOTH ENDS? 7 | Source: 2015 CareerBuilder Annual Forecast (Harris Poll) IT, Sales, Engineering and Customer Service to see biggest increases for starting salaries. ©SHRM 2015 45% of employers expect to raise the minimum wage within their organizations 53% of this group will raise it by $2 or more on average 26% of employers expect starting salaries to increase by 5% or more over the previous year That’s almost 4 times higher than 2010 - 7%
  • 9. ©SHRM 20158 | SKILLS GAP CONTINUES TO BE A MAJOR CONCERN Nearly half of employers currently have open positions for which they can’t find qualified candidates 37% of employers have positions that stay open 12 weeks or longer; 1 in 6 companies loses $25,000 or more per open position due to extended vacancies Source: CareerBuilder’s June 2014 and November 2013 nationwide studies of employers conducted by Harris Poll
  • 10. ©SHRM 2015 SKILLS GAP CONTINUES TO BE A MAJOR CONCERN 9 | 48,957 59,279 Software Developers Total employment in 2014 Growth in jobs 2010-2014 Annual job openings 2010-2014 Degree completion 2013 Percentage of the workforce ages 55+ Machinist 410,219 59,269 Up 17% 23,861 6,184 25% Average Monthly Unique Job Postings vs. Average Monthly Hires: 2013-2014 103,978 124,933 Registered Nurses postings per month postings per month hires per month hires per month Source: Economic Modeling Specialists International, 2014
  • 11. ©SHRM 2015 My company has not been able to reach its full potential because we can’t find enough qualified candidates. MAJORITY OF CEOs THINK SKILLS GAP HOLDS THEIR COMPANIES BACK 10 | ©SHRM 2015 8% 52% 32% 8% Strongly agree Agree Disagree Strongly disagree Agree 60% Disagree 40%
  • 12. ©SHRM 2015 WHAT ARE YOUR TOP RECRUITMENT CHALLENGES? 10% 3% 11% 17% 19% 23% 25% 30% 49% None of these Other We can't provide competitive compensation Our employment brand is not known or not perceived positively Our cost per hire is too high We need a better strategy/process for recruiting in global markets Our candidate experience is not as good as it could be The recruitment process is not efficient - it takes too long to fill open positions There aren't enough skilled candidates for the positions we need to fill 11 |
  • 13. ©SHRM 2015 HOW WOULD YOU RATE THE RECRUITMENT EFFICIENCY OF YOUR HR TEAM? 13% 65% 20% 2% 0% Excellent, needs no improvement Good, but could use a little improvement It's OK, we're getting by Bad, needs improvement Horrible, needs a lot of improvement 12 |
  • 14. ©SHRM 2015 My company has lost money due to an inefficient recruitment process. INEFFICIENT RECRUITMENT HURTS BOTTOM LINE 13 | ©SHRM 2015 5.7% 42.0% 39.8% 12.5% Strongly agree Agree Disagree Strongly disagree Agree 48% Disagree 52%
  • 15. ©SHRM 2015 HOW WOULD YOU RATE YOUR CANDIDATE EXPERIENCE? 16% 65% 16% 3% 0% Excellent, needs no improvement Good, but could use a little improvement It's OK, we're getting by Bad, needs improvement Horrible, needs a lot of improvement 14 |
  • 16. ©SHRM 2015 4 in 10 recruiters and HR managers have never tried to apply for one of their own positions. 6 in 10 job seekers say they’ve quit an online application mid-process due to how long or complex it was. 15 | Source: “How Candidate Experience is Transforming HR Technology,” which was conducted by Harris Poll on behalf of CareerBuilder, 2014 ©SHRM 2015
  • 17. ©SHRM 2015 WHAT ARE YOUR TOP RECRUITMENT TECHNOLOGY CHALLENGES? 25% 3% 16% 17% 17% 18% 22% 23% 26% 30% None of these Other We're limited in terms of where we can post jobs globally We can't accurately track and report on our sources of hire, so we're wasting time and money Our recruitment technology is not mobile-responsive Our recruitment technology doesn't provide real-time data on the best locations to recruit the candidates we need We use several different sources to recruit candidates and can't coordinate to search across them Our recruitment technology is not efficient - it takes too long to find and engage candidates We can't automatically re-engage candidates who have shown interest in jobs in the past Our recruitment technology is outdated or limits what we can do 16 |
  • 18. ©SHRM 2015 MOBILE JOB SEARCH IS TAKING OVER . . . TRAFFIC TO CAREERBUILDER.COM 17 | ©SHRM 2015 3-5% 2010 10% 2012 33% 2013 40% 2014 43% YTD 2015
  • 19. ©SHRM 201518 | 49% Don’t revisit or re-engage with past candidates, leaving a pool of interested talent untapped. 20% Don’t have a system that enables them to remarket to candidates. 37% Don’t have the time to re- engage past candidates. ©SHRM 2015 A SIGNIFICANT NUMBER OF EMPLOYERS NEVER RECONNECT WITH PAST CANDIDATES Source: CareerBuilder/Harris Poll Q2 2015 Employer Survey
  • 21. ©SHRM 2015 & ADVICE TO HR CEOs’ EXPECTATIONS ©SHRM 2015
  • 22. ©SHRM 2015 WHAT DO YOU EXPECT FROM YOUR HR LEADERS? 21 | 65% Foster culture of excellence. 64% Acquire talent in timely manner, regardless of role or skill set needed. 61% Keep CEO informed of important human capital issues within the company and strategies to address them. ©SHRM 2015
  • 23. ©SHRM 2015 HOW IS HR EFFECTIVENESS MEASURED? 7% 1% 23% 27% 31% 35% 40% 43% 45% 47% 53% 56% None of these Other Revenue performance (i.e., having the right people in place to grow at the rate we should be growing) Effectiveness in succession planning How we benchmark against the industry Productivity (i.e., having the right people in place to reach desired productivity) Rate of turnover (ability to hold on to top performers and intellectual capital) Speed at which we fill positions Ability to effectively manage compensation and benefits costs Training and development programs (i.e., seeing improvements in employee performance) Employee satisfaction Quality of new hires based on performance and retention 22 |
  • 24. ©SHRM 2015 “Opinions expressed by HR carry a greater weight with senior management post-recession.” GROWING INFLUENCE OF HR POST-RECESSION 23 | ©SHRM 2015 12.5% 52.3% 30.7% 4.5% Strongly agree Agree Disagree Strongly disagree Agree 65% Disagree 35%
  • 25. ©SHRM 2015 HOW CAN HR LEADERS DEVELOP BROADER INFLUENCE WITHIN THE ORGANIZATION? 8% 1% 15% 34% 51% 52% 57% 57% I do not believe that HR leaders can have broader influence within the organization Other Obtain an MBA Ask to be involved in more business decisions Proactively work with other leaders to help solve business problems Know what the company does, but also know how everything works Show ways to increase efficiencies or cut costs by better using the organization's human capital Provide me with actionable human capital data and other research to help devise strategies to meet larger business goals 24 | HR leaders can have broader influence: 92%
  • 26. ©SHRM 2015 HOW IMPORTANT IS IT FOR HR LEADERS TO . . .? 25 | ©SHRM 2015 35% 55% 9% 1% Essential/Important 90% Unimportant 10% 33% 55% 9% 3% Absolutely essential Important Not very important Not at all important Essential/Important 88% Unimportant 12% Be proficient in workforce analytics Be knowledgeable about new recruitment and HR strategies
  • 27. ©SHRM 2015 of hiring managers and recruiters rate their proficiency with workforce analytics as poor/fair.52% of HR departments regularly use Big Data in recruitment strategies.14% never do.50% ©SHRM 201526 | Source: Q2 2015 CareerBuilder/Harris Poll Employer Survey (2,200 HR/Hiring managers)
  • 28. ©SHRM 2015 WHY USE DATA? #1 Learn the Market #2 Educate Internal Stakeholders #3 Determine What Tactics Work/Don’t Work 27 | ©SHRM 2015
  • 29. ©SHRM 2015 WHY USE DATA? #4 It Pays Dividends 65% of employers who use big data in recruitment said it lowered their cost per hire; 30% said by $500 or more. 66% of employers who use big data in recruitment said it reduced their time to hire; 38% said by two weeks or more. (Source: Q2 2015 CareerBuilder/Harris Poll Employer Survey) Firms adopting data-driven decision making increase productivity 5-6%. (Source: The Talent Equation) 28 | ©SHRM 2015

Editor's Notes

  1. AON Hewitt on the evolution of HR: “It’s no longer enough to be a compensation expert or just to be a rewards expert,” said Paul Rubenstein, a leader in the talent practice at consulting firm Aon Hewitt. “You have to be able to really articulate the value proposition of working at your company.” [Wash Post: http://www.washingtonpost.com/business/capitalbusiness/at-marriott-and-other-firms-hr-becomes-increasingly-strategic/2013/08/23/63f0856c-05c0-11e3-9259-e2aafe5a5f84_story.html]