SHRM Survey Findings: The Ongoing Impact of the
Recession—Finance Industry
September 25, 2013
• These are the Finance industry survey findings about the ongoing impact of the U.S. and global
recession, which began in...
The Ongoing Impact of the Recession—Finance Industry ©SHRM 2013 3
Skill Gaps
• What basic skills/knowledge gaps do job applicants typically have? The most common basic
skills/knowledge gaps are writi...
In general, what basic skills/knowledge gaps do job applicants have in
your industry?
Finance Industry
The Ongoing Impact ...
In general, what applied skill gaps do job applicants have in your
industry?
Finance Industry
The Ongoing Impact of the Re...
How easy or difficult has it been to fill the following job categories for
full-time regular positions?
Finance Industry
T...
The Ongoing Impact of the Recession—Finance Industry ©SHRM 2013 8
Recruiting Challenges
• Is it difficult to recruit for positions requiring new and different skill sets? More than one-half
(57%) of organizatio...
For the new full-time, regular positions being created by your
organization that require new and different skill sets, how...
In general, in the current labor market, is your organization having a
difficult time recruiting for specific jobs that ar...
In general, in the current labor market, are you having a difficult time
recruiting for certain types of full-time, regula...
What are the main reason(s) that your organization experiences
difficulty in hiring qualified candidates for full-time reg...
What are the main reason(s) that your organization experiences
difficulty in hiring qualified candidates for full-time, re...
Do you believe that your organization is facing global competition
(i.e., competition from other countries) for talent for...
Do you believe that your organization is facing global competition
(i.e., competition from other countries) for talent for...
The Ongoing Impact of the Recession—Finance Industry ©SHRM 2013 17
Recruiting Strategies
• What strategies is your organization using to deal with recruiting challenges for full-
time, regular positions? The mos...
What strategies is your organization using to deal with recruiting
challenges for full-time, regular positions?
Finance In...
What strategies is your organization using to deal with recruiting
challenges for full-time, regular positions? (continued...
Has your organization hired any workers from outside the United States
in an attempt to staff key jobs that have been diff...
Has your organization hired any workers from outside the United States in
an attempt to staff key jobs that have been diff...
Has your organization hired any U.S. veterans in an attempt to staff key
jobs that have been difficult to fill?
Finance In...
Has your organization hired any U.S. veterans in an attempt to staff key
jobs that have been difficult to fill?
The Ongoin...
The Ongoing Impact of the Recession—Finance Industry ©SHRM 2013 25
Demographics
Demographics: Organization Sector
Finance Industry
The Ongoing Impact of the Recession—Finance Industry ©SHRM 2013 26
Note...
Demographics: Organization Staff Size
Finance Industry
The Ongoing Impact of the Recession—Finance Industry ©SHRM 2013 27
...
n = 373
Other Demographics
Finance Industry
The Ongoing Impact of the Recession—Finance Industry ©SHRM 2013 28
U.S.-based ...
• Response rate = 13%
• 387 randomly selected HR professionals from the finance industry in SHRM’s membership
participated...
• For more survey/poll findings, visit www.shrm.org/surveys
• For more information about SHRM’s Customized Research Servic...
The Society for Human Resource Management (SHRM) is the world’s largest association devoted to
human resource management. ...
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SHRM Survey Findings: The Ongoing Impact of the Recession—Finance Industry

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Two-thirds (66%) of organizations in the finance industry that were hiring full-time staff reported difficulty recruiting for specific open jobs, an increase from 49% in 2011. The top three reasons given for recruiting difficulty were lack of the right skills among candidates (55%), lack of the right work experience (50%), and the candidates’ pay requirements not matching the hiring organization’s salary or hourly rates (38%). This report is one of eight industry-level SHRM survey findings that look at skill gaps, recruiting challenges and recruiting strategies for employers in the U.S.

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SHRM Survey Findings: The Ongoing Impact of the Recession—Finance Industry

  1. 1. SHRM Survey Findings: The Ongoing Impact of the Recession—Finance Industry September 25, 2013
  2. 2. • These are the Finance industry survey findings about the ongoing impact of the U.S. and global recession, which began in 2007. This is the third year that SHRM has conducted this study, and data are reported for 2010 and 2011 where possible. The results are reported in the following sections: » Skill gaps. » Recruiting challenges. » Recruiting strategies. • Industry-specific results will be reported separately for each of the following industries: » Construction, mining, oil and gas. » Federal government. » Health. » High-tech. » Manufacturing. » Professional services. » State and local government. • Overall and California results can be found on our website at www.shrm.org/surveys. The Ongoing Impact of the Recession—Finance Industry ©SHRM 2013 2 Introduction
  3. 3. The Ongoing Impact of the Recession—Finance Industry ©SHRM 2013 3 Skill Gaps
  4. 4. • What basic skills/knowledge gaps do job applicants typically have? The most common basic skills/knowledge gaps are writing in English (60%), mathematics (55%), reading comprehension (28%), and English language (spoken) (23%). • What applied skill gaps do job applicants typically have? The top five applied skill gaps are professionalism/work ethic (55%), critical thinking/problem solving (49%), written communications (41%), leadership (38%), and oral communications (33%). • What types of jobs are the most difficult to fill? The top five most difficult positions to fill are high-skilled technical (e.g., technicians and programmers) (89%), managers and executives (85%), sales representatives (74%), accounting and finance professionals (73%), and HR professionals (53%). The Ongoing Impact of the Recession—Finance Industry ©SHRM 2013 4 Key Findings: Skill Gaps Finance Industry
  5. 5. In general, what basic skills/knowledge gaps do job applicants have in your industry? Finance Industry The Ongoing Impact of the Recession—Finance Industry ©SHRM 2013 5 Note: 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. 9% 6% 0% 0% 0% 2% 5% 36% 38% 47% 66% 13% 3% 3% 4% 4% 7% 16% 23% 28% 55% 60% Other Science History/geography Technical (computer, engineering, mechanical, etc.) Humanities/arts Foreign languages Government/economics English language (spoken) Reading comprehension (in English) Mathematics (computation) Writing in English (grammar, spelling, etc.) 2012 (n = 205) 2011 (n = 87)
  6. 6. In general, what applied skill gaps do job applicants have in your industry? Finance Industry The Ongoing Impact of the Recession—Finance Industry ©SHRM 2013 6 Note: 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. 3% 11% 18% 23% 22% 30% 36% 45% 40% 61% 59% 54% 5% 11% 16% 19% 21% 27% 30% 33% 38% 41% 49% 55% Other Diversity Ethics/social responsibility Lifelong learning/self-direction Creativity/innovation Information technology application Teamwork/collaboration Oral communications Leadership Written communications Critical thinking/problem solving Professionalism/work ethic 2012 (n = 237) 2011 (n = 100)
  7. 7. How easy or difficult has it been to fill the following job categories for full-time regular positions? Finance Industry The Ongoing Impact of the Recession—Finance Industry ©SHRM 2013 7 Note: This figure 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. Data are not provided where the sample size is less than 20. 41% 26% 53% 54% 73% 77% 83% 88% 29% 32% 44% 53% 73% 74% 85% 89% Administrative support staff (2012 n = 154, 2011 n = 92) Hourly laborers (2012 n = 37, 2011 n = 35) Customer service representatives (2012 n = 147, 2011 n = 84) HR professionals (2012 n = 86, 2011 n = 46) Accounting and finance professionals (2012 n = 146, 2011 n = 82) Sales representatives (2012 n = 107, 2011 n = 62) Managers and executives (2012 n = 143, 2011 n = 84) High-skilled technical (e.g., technicians, programmers) (2012 n = 102, 2011 n = 65) 2012 2011
  8. 8. The Ongoing Impact of the Recession—Finance Industry ©SHRM 2013 8 Recruiting Challenges
  9. 9. • Is it difficult to recruit for positions requiring new and different skill sets? More than one-half (57%) of organizations reported it was somewhat or very difficult to recruit for completely new positions or positions with new duties added that required new and different skill sets. This is consistent with findings in 2011 (56%) and is an increase from 35% in 2010. • Is recruiting for specific jobs difficult in the current labor market? Two-thirds (66%) of organizations currently hiring full-time staff indicated that they are having a difficult time recruiting for specific job openings, an increase from 49% in 2011. • Why are organizations experiencing difficulty hiring qualified candidates? About one-half of organizations indicated that candidates do not have the right skills (55%) or the right work experience (50%) for the job. Thirty-eight percent said that qualified candidates were not within their salary range or hourly range rate. One-third (34%) cited competition from other employers. • Are organizations facing global competition for applicants for hard-to-fill jobs? Only five percent of organizations believe they are facing global competition for qualified applicants for jobs they are having difficulty filling, similar to what was found in 2011 (8%). The Ongoing Impact of the Recession—Finance Industry ©SHRM 2013 9 Key Findings: Recruiting Challenges Finance Industry
  10. 10. For the new full-time, regular positions being created by your organization that require new and different skill sets, how easy or difficult do you think it will be or has been thus far to find qualified individuals for those positions? Finance Industry The Ongoing Impact of the Recession—Finance Industry ©SHRM 2013 10 Note: Only respondents whose organizations were hiring full-time staff for positions with “new duties added to jobs lost” or “completely new positions” that required either “a mixture of new skills and the same types of skills” or “completely new and different skills” were asked this question. 5% 30% 51% 14% 4% 52% 39% 5% 7% 50% 37% 6% Very difficult Somewhat difficult Somewhat easy Very easy 2012 (n = 103) 2011 (n = 77) 2010 (n = 112)
  11. 11. 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 Industry The Ongoing Impact of the Recession—Finance Industry ©SHRM 2013 11 Note: 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. Yes, 49%No, 51% 2011 Yes, 66% No, 34% 2012 n = 234 n = 293
  12. 12. 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? The Ongoing Impact of the Recession—Finance Industry ©SHRM 2013 12 Note: Only statistically significant differences are shown. Comparisons by industry High-tech (82%) Manufacturing (79%) > Federal government (50%) Finance (66%) Health (65%) State or local government (52%) Construction, mining, oil and gas (74%) Professional services (70%) > Federal government (50%) State or local government (52%) Finance (66%) Health (65%) > State or local government (52%) Comparisons by industry • Although there is recruiting difficulty across all industries, certain industries are experiencing more difficulty than others. • The high-tech and manufacturing industries are more likely than the federal government, finance, health and state or local 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 government and state or local governments 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 industries to be having difficulty recruiting for certain types of full-time, regular positions.
  13. 13. What are the main reason(s) that your organization experiences difficulty in hiring qualified candidates for full-time regular positions? Finance Industry The Ongoing Impact of the Recession—Finance Industry ©SHRM 2013 13 Note: n = 187. 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 certain types of jobs were asked this question. 55% 50% 38% 34% 16% 13% 12% Candidates do not have the right skills for the job Candidates do not have the right work experience Qualified candidates are not within our salary range or hourly range rate Competition from other employers Low number of applicants Candidates do not have the needed credentials/certifications Candidates are overqualified
  14. 14. What are the main reason(s) that your organization experiences difficulty in hiring qualified candidates for full-time, regular positions? (continued) Finance Industry The Ongoing Impact of the Recession—Finance Industry ©SHRM 2013 14 Note: n = 187. 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 certain types of jobs were asked this question. 10% 7% 6% 5% 4% 3% 5% Qualified candidates are not interested in moving to our local area Candidates do not have high enough levels of education/training Lack of interest in type of job Local education/training system does not produce enough work-ready/qualified job candidates Qualified candidates are not able to move to our local area (due to mortgage or other issues) Our organization does not provide relocation funds Other
  15. 15. Do you believe that your organization is facing global competition (i.e., competition from other countries) for talent for hard-to-fill jobs? Finance Industry The Ongoing Impact of the Recession—Finance Industry ©SHRM 2013 15 Note: 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. Yes, 8% No, 92% 2011 Yes, 5% No, 95% 2012 n = 100 n = 174
  16. 16. Do you believe that your organization is facing global competition (i.e., competition from other countries) for talent for hard-to-fill jobs? The Ongoing Impact of the Recession—Finance Industry ©SHRM 2013 16 Note: Only statistically significant differences are shown. Comparisons by industry High-tech (33%) > Finance (5%) Health (6%) Manufacturing (15%) Professional services (14%) State or local government (4%) Construction, mining, oil and gas (22%) Federal government (22%) > Finance (5%) Health (6%) State or local government (4%) Manufacturing (15%) > Finance (5%) State or local government (4%) Professional services (14%) > State or local government (4%) Comparisons by industry • Organizations in the high-tech industry are 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 talent for hard-to-fill jobs. • Organizations in the construction, mining, oil, and gas and federal government industries are more likely than those in the finance, 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 industries to 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 state or local governments to believe that they are facing global competition for talent for hard-to-fill jobs.
  17. 17. The Ongoing Impact of the Recession—Finance Industry ©SHRM 2013 17 Recruiting Strategies
  18. 18. • What strategies is your organization using to deal with recruiting challenges for full- time, regular positions? The most common strategies reported by organizations are expanding advertising efforts (46%), using social media to find passive job seekers (44%), improving compensation/benefits packages (32%), increasing retention efforts (32%), and training existing employees to take on the hard-to-fill positions (31%). • Have organizations been hiring workers from outside the U.S. for jobs that have been difficult to fill? Sixteen percent of organizations have hired workers from outside the U.S., an increase from 5% in 2011. Another 2% are considering hiring workers from outside the U.S. • Have organizations been hiring U.S. veterans for jobs that have been difficult to fill? Two out of five (40%) organizations reported hiring U.S. veterans, an increase from 13% in 2011. About one- fifth (21%) are either considering or have plans to hire veterans in the next 12 months. The Ongoing Impact of the Recession—Finance Industry ©SHRM 2013 18 Key Findings: Recruiting Strategies Finance Industry
  19. 19. What strategies is your organization using to deal with recruiting challenges for full-time, regular positions? Finance Industry The Ongoing Impact of the Recession—Finance Industry ©SHRM 2013 19 Note: n = 186. 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. 46% 44% 32% 32% 31% 28% 26% 24% Expanding advertising efforts Using social media to find passive job seekers Improving compensation/benefits package Increasing retention efforts Training existing employees to take on the hard-to- fill positions Collaborating with educational institutions Expanding search region Expanding training programs to help improve skills of new hires
  20. 20. What strategies is your organization using to deal with recruiting challenges for full-time, regular positions? (continued) Finance Industry The Ongoing Impact of the Recession—Finance Industry ©SHRM 2013 20 Note: n = 186. 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. 23% 20% 4% 7% 6% Providing monetary incentives to candidates (e.g., signing bonus) Offering more flexible work arrangements Offering new job perks Other None; we have not changed our recruiting strategy
  21. 21. Has your organization hired any workers from outside the United States in an attempt to staff key jobs that have been difficult to fill? Finance Industry The Ongoing Impact of the Recession—Finance Industry ©SHRM 2013 21 Note: Percentages may not equal 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. 16% 82% 2% 0% 5% 92% 3% 1% Yes No No, but we are considering it No, but we have plans to do so in the next 12 months 2012 (n = 178) 2011 (n = 107)
  22. 22. Has your organization hired any workers from outside the United States in an attempt to staff key jobs that have been difficult to fill? The Ongoing Impact of the Recession—Finance Industry ©SHRM 2013 22 Note: Only statistically significant differences are shown. Comparisons by industry High-tech (50%) > Construction, mining, oil and gas (26%) Federal government (16%) Finance (16%) Health (29%) Manufacturing (24%) Professional services (24%) State or local government (11%) Construction, mining, oil and gas (26%) Health (29%) Manufacturing (24%) Professional services (24%) > State or local government (11%) 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 state or local governments to have hired workers from outside the U.S. in an attempt to recruit for hard-to-fill jobs.
  23. 23. Has your organization hired any U.S. veterans in an attempt to staff key jobs that have been difficult to fill? Finance Industry The Ongoing Impact of the Recession—Finance Industry ©SHRM 2013 23 Note: Percentages may 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. 40% 39% 17% 5% 13% 66% 19% 2% Yes No No, but we are considering it No, but we have plans to do so in the next 12 months 2012 (n = 154) 2011 (n = 91)
  24. 24. Has your organization hired any U.S. veterans in an attempt to staff key jobs that have been difficult to fill? The Ongoing Impact of the Recession—Finance Industry ©SHRM 2013 24 Note: Only statistically significant differences are shown. Comparisons by industry Federal government (87%) > Finance (40%) Health (57%) High-tech (47%) Manufacturing (60%) Professional services (43%) Construction, mining, oil and gas (70%) State or local government (71%) > Finance (40%) High-tech(47%) Professional services (43%) Manufacturing (60%) > Finance (40%) Professional services (43%) Comparisons by industry • 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 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. veterans in an attempt to recruit for hard-to-fill jobs.
  25. 25. The Ongoing Impact of the Recession—Finance Industry ©SHRM 2013 25 Demographics
  26. 26. Demographics: Organization Sector Finance Industry The Ongoing Impact of the Recession—Finance Industry ©SHRM 2013 26 Note: n = 371. Percentages do not total 100% due to rounding. 40% 35% 21% 0% 3% Privately owned for-profit Publicly owned for-profit Nonprofit Government Other
  27. 27. Demographics: Organization Staff Size Finance Industry The Ongoing Impact of the Recession—Finance Industry ©SHRM 2013 27 Note: n = 362. Percentages do not total 100% due to rounding. 31% 34% 17% 13% 4% 1 to 99 employees 100 to 499 employees 500 to 2,499 employees 2,500 to 24,999 employees 25,000 or more employees
  28. 28. n = 373 Other Demographics Finance Industry The Ongoing Impact of the Recession—Finance Industry ©SHRM 2013 28 U.S.-based operations only 82% Multinational operations 18% Single-unit organization: An organization in which the location and the organization are one and the same 22% Multi-unit organization: An organization that has more than one location 78% Multi-unit headquarters determines HR policies and practices 68% Each work location determines HR policies and practices 1% A combination of both the work location and the multi-unit headquarters determines HR policies and practices 31% Is your organization a single-unit organization or a multi-unit organization? For multi-unit organizations, are HR policies and practices determined by the multi-unit headquarters, by each work location or by both? Does your organization have U.S.- based operations (business units) only, or does it operate multinationally? n = 373 n = 294 Corporate (companywide) 85% Business unit/division 13% Facility/location 2% n = 293 What is the HR department/function for which you responded throughout this survey?
  29. 29. • Response rate = 13% • 387 randomly selected HR professionals from the finance industry in SHRM’s membership participated in this survey. • 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 28-September 14, 2012 The Ongoing Impact of the Recession—Finance Industry ©SHRM 2013 29 SHRM Survey Findings: The Ongoing Impact of the Recession—Finance Industry Survey Methodology
  30. 30. • 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_Research The Ongoing Impact of the Recession—Finance Industry ©SHRM 2013 30 About SHRM Research Project leader: Tanya Mulvey, researcher, talent management & workforce skills, SHRM Research Project contributors: Alexander Alonso, Ph.D., SPHR, vice president, SHRM Research Evren Esen, manager, Survey Research Center, SHRM Research Yan Dong, Intern, SHRM Research Copy editor: Katya Scanlan, SHRM Knowledge Center
  31. 31. The Society for Human Resource Management (SHRM) is the world’s largest association devoted to human resource management. Representing more than 250,000 members in over 140 countries, the Society serves the needs of HR professionals and advances the interests of the HR profession. Founded in 1948, SHRM has more than 575 affiliated chapters within the United States and subsidiary offices in China and India. The Ongoing Impact of the Recession—Finance Industry ©SHRM 2013 31 About SHRM

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