More Related Content Similar to The Ongoing Impact of the Recession—Recruiting and Skill Gaps (20) The Ongoing Impact of the Recession—Recruiting and Skill Gaps2. Introduction
• This is Part 2 of 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—Recruiting and Skill Gaps ©SHRM 2013 2
3. Key Findings: Difficulties in Recruiting
• Is recruiting for specific 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% reported in 2011.
• What basic knowledge and applied skill gaps do job applicants typically have? For basic
knowledge skills, writing in English (55%), mathematics (38%), reading comprehension (31%)
and English language (spoken) (29%) are the most common skills gaps. The top four
applied skills gaps are critical thinking/problem solving (53%), professionalism/work ethic
(46%), written communications (41%) and leadership (38%).
• What types of jobs are the most difficult to fill? Although difficulty in filling specific jobs varies
by industry, the top five most difficult positions to fill overall are highly skilled positions:
scientists (88%), engineers (86%), high-skilled technical (e.g., technicians and programmers)
(85%), high-skilled medical (e.g., nurses, doctors, specialists) (83%), and managers and
executives (77%).
The Ongoing Impact of the Recession—Recruiting and Skill Gaps ©SHRM 2013 3
4. Key Findings: The Impact of Strategic Technological
Changes
• How many organizations are making major technology changes that affect the work of
employees? Thirty percent of organizations indicated that in the last 12 months they had
made major strategic changes involving the use of technology (e.g., robotics,
computerized systems, software technologies) that affect the work of employees, and 10%
plan to do so in the next 12 months.
• Will these technological changes affect the number of full-time regular employees? For
organizations that have made technological changes in the last 12 months or that plan to
in the next 12 months, 71% indicated that the number of employees will stay the same.
Sixteen percent reported an increase, and 13% a decrease, in the total number of
employees.
• Will these technological changes affect what employee skills are required for the
organization? Although 72% of organizations indicated these technological changes
would require new skills, they would not require new staff. Eighteen percent indicated
employees would require the same skills, and 10% would need to hire new staff for the new
skills that would be required.
The Ongoing Impact of the Recession—Recruiting and Skill Gaps ©SHRM 2013 4
5. What do these findings mean for the HR profession?
• HR professionals may need to convince hiring managers that staffing for some jobs will be
more difficult than expected. This is particularly true of STEM (science, technology,
engineering and math) jobs. In particular, the high-tech and manufacturing industries are
experiencing difficulty recruiting for certain positions. HR professionals may need to work
with their organizational leaders to come up with more effective compensation packages
for hard-to-fill jobs.
• Staffing for replacement needs of jobs exited by retiring Baby Boomers may create an
even bigger staffing challenge in the years ahead. The U.S. Bureau of Labor Statistics’ (BLS)
2010-2020 Employment Project Report forecasts a decreasing overall labor force from 2010
to 2020. With the Baby Boomers leaving the workforce, replacement needs will exceed
new job growth vacancies in four out of five occupations.
• Technological changes may reduce the number of full-time regular employees for some
organizations. HR professionals will need to take a lead role in driving increases in
productivity while making sure employees are not at risk of burnout.
• Skills shortages may put renewed emphasis on training. In the years ahead, HR
professionals will need to work with their organizational leaders and relevant education
and training bodies to invest in education and training as a way to meet skills shortfalls.
The Ongoing Impact of the Recession—Recruiting and Skill Gaps ©SHRM 2013 5
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?
2011 2012
No, 34%
No, 48%
Yes, 52%
Yes, 66%
n = 1,568 n = 2,562
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.
The Ongoing Impact of the Recession—Recruiting and Skill Gaps ©SHRM 2013 7
8. 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 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 state or local governments to be having difficulty recruiting for
certain 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—Recruiting and Skill Gaps ©SHRM 2013 8
9. In general, what basic skills/knowledge gaps do job applicants
have in your industry?
Writing in English (grammar, spelling, etc.) 55%
48%
Mathematics (computation) 38%
38%
Reading comprehension (in English) 31%
30%
English language (spoken) 29%
30%
Science 14%
18%
13% 2012 (n = 1,928)
Government/economics
11%
2011 (n = 597)
Technical (computer, engineering, 11%
mechanical, etc.) 7%
Foreign languages 8%
8%
Humanities/arts 2%
2%
History/geography 2%
1%
Other 9%
9%
Note: Percentages do not total 100% due to multiple response options. Respondents whose organizations were not having a
difficult time recruiting for certain types of full-time jobs were not asked this question.
The Ongoing Impact of the Recession—Recruiting and Skill Gaps ©SHRM 2013 9
10. In general, what applied skills gaps do job applicants have in your
industry?
Critical thinking/problem solving 53%
54%
Professionalism/work ethic 46%
44%
Written communications 41%
41%
Leadership 38%
39%
Oral communications 34%
36%
Teamwork/collaboration 33%
36% 2012 (n = 2,168)
Information technology application 29% 2011 (n = 716)
30%
Creativity/innovation 21%
25%
Lifelong learning/self-direction 21%
21%
Diversity 18%
17%
Ethics/social responsibility 18%
19%
Other 5%
5%
Note: Percentages do not total 100% due to multiple response options. Respondents whose organizations were not having a
difficult time recruiting for certain types of full-time jobs were not asked this question.
The Ongoing Impact of the Recession—Recruiting and Skill Gaps ©SHRM 2013 10
11. Specific job categories for which organizations are having
difficulty recruiting
88%
Scientists
83%
86%
Engineers
88%
High-skilled technical 85%
(e.g., technicians, programmers) 85%
High-skilled medical 83% 2012
(e.g., nurses, doctors, specialists) 86% 2011
77%
Managers and executives
78%
70%
Skilled trades (e.g., electricians, carpenters)
68%
68%
Sales representatives
72%
Note: n = 242-1,344 (2012); n = 104-610 (2011). 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 full-time jobs were asked this question.
The Ongoing Impact of the Recession—Recruiting and Skill Gaps ©SHRM 2013 11
12. Specific job categories for which organizations are having
difficulty recruiting
53%
Accounting and finance professionals
54%
49%
HR professionals
49%
44%
Production operators
52%
41%
2012
Drivers
36% 2011
34%
Hourly laborers
29%
31%
Customer service representatives
34%
21%
Administrative support staff
24%
Note: n = 242-1,344 (2012); n = 104-610 (2011). 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 full-time jobs were asked this question.
The Ongoing Impact of the Recession—Recruiting and Skill Gaps ©SHRM 2013 12
13. The Impact of Strategic
Technological Changes
The Ongoing Impact of the Recession—Recruiting and Skill Gaps ©SHRM 2013 13
14. In the last 12 months, has your organization made any major strategic
changes involving the use of technology (e.g., robotics, computerized
systems, software technologies) that affect the work of employees?
59%
30%
10%
Yes No No, but we have plans
to do so in the next 12
months
Note: n = 3,324. Percentages do not total 100% due to rounding.
The Ongoing Impact of the Recession—Recruiting and Skill Gaps ©SHRM 2013 14
15. In the last 12 months, has your organization made any major strategic
changes involving the use of technology (e.g., robotics, computerized
systems, software technologies) that affect the work of employees?
Comparisons by industry
• The health industry is more likely than the construction, mining, oil and gas; federal government; finance; high-tech;
professional services and state or local government industries to have made any major strategic changes involving the
use of technology that affect the work of employees in the last 12 months.
Comparisons by industry
Construction, mining, oil and gas (27%)
Federal government (28%)
Finance (28%)
Health (42%) >
High-tech(24%)
Professional services (28%)
State or local government (26%)
Note: Only statistically significant differences are shown.
The Ongoing Impact of the Recession—Recruiting and Skill Gaps ©SHRM 2013 15
16. In the last 12 months, has your organization made any major strategic
changes involving the use of technology (e.g., robotics, computerized
systems, software technologies) that affect the work of employees?
Comparisons by organization staff size
• Organizations with 2,500 to 24,999 employees are more likely than organizations with 100 to 499 employees to have
made major strategic changes involving the use of technology that affect the work of employees in the last 12 months.
Comparisons by organization staff size
2,500 to 24,999 employees (35%) > 100 to 499 employees (28%)
Note: Only statistically significant differences are shown.
The Ongoing Impact of the Recession—Recruiting and Skill Gaps ©SHRM 2013 16
17. As a result of these technological changes, has (or will) the total
number of full-time, regular employees at your organization
increased, stayed the same or decreased?
71%
16%
13%
Increase Stay the same Decrease
Note: n = 1,345. Only respondents whose organizations made or planned to make any major strategic changes involving the
use of technology in the past 12 months or next 12 months were asked this question.
The Ongoing Impact of the Recession—Recruiting and Skill Gaps ©SHRM 2013 17
18. As a result of these technological changes, has (or will) the total
number of full-time, regular employees at your organization
increased?
Comparisons by industry
• The high-tech industry is more likely than the federal government, health, professional services, and state or local
government industries to have an increase in the total number of full-time, regular employees as a result of recent or
planned technological changes.
• The construction, mining, oil and gas; finance; and manufacturing industries are more likely than state or local
governments to have an increase in the total number of full-time, regular employees as a result of recent or planned
technological changes.
Comparisons by industry: Increase in total number of full-time, regular employees
Federal government (10%)
Health (15%)
High-tech (37%) >
Professional services (14%)
State or local government (7%)
Construction, mining, oil and gas (25%)
Finance (18%) > State or local government (7%)
Manufacturing(19%)
Note: Only statistically significant differences are shown.
The Ongoing Impact of the Recession—Recruiting and Skill Gaps ©SHRM 2013 18
19. As a result of these technological changes, has (or will) the total
number of full-time, regular employees at your organization
decreased?
Comparisons by industry
• The federal government is more likely than the construction, mining, oil and gas; health; high-tech; manufacturing;
professional services; and state or local government industries to have a decrease in the total number of full-time, regular
employees as a result of recent or planned technological changes.
Comparisons by industry: Decrease in total number of full-time, regular employees
Construction, mining, oil and gas (8%)
Health (11%)
High-tech (9%)
Federal government (33%) >
Manufacturing(15%)
Professional services (9%)
State or local government (12%)
Note: Only statistically significant differences are shown.
The Ongoing Impact of the Recession—Recruiting and Skill Gaps ©SHRM 2013 19
20. As a result of these technological changes, has (or will) the total
number of full-time, regular employees at your organization
decreased?
Comparisons by organization staff size
• Organizations with 25,000 or more employees are more likely than organizations with 1 to 499 employees to have a
decrease in the total number of full-time, regular employees as a result of recent or planned technological changes.
Comparisons by organization staff size: Decrease in total number of full-time, regular employees
1 to 99 employees (9%)
25,000 or more employees (27%) >
100 to 499 employees (9%)
Note: Only statistically significant differences are shown.
The Ongoing Impact of the Recession—Recruiting and Skill Gaps ©SHRM 2013 20
21. How have (or will) these technological changes affected the
employee skills required in your organization?
72%
18%
10%
we do not need to hire new staff (e.g., existing staff can be trained iffor which we need to hire new staff
Require the same skills
Require new skills, necessary)
Note: n = 1,345. Only respondents whose organizations made or planned to make any major strategic changes involving the
use of technology in the past 12 months or next 12 months were asked this question.
The Ongoing Impact of the Recession—Recruiting and Skill Gaps ©SHRM 2013 21
22. How have (or will) these technological changes affected the
employee skills required in your organization?
Comparisons by industry
• The finance and professional services industries are more likely than the health and state or local government industries
to require the same skills for employees as a result of technological changes.
• The finance industry is more likely than the manufacturing industry to require the same skills for employees as a result of
technological changes.
Comparisons by industry: Require the same skills
Finance(31%) Health (11%)
>
Professional services (27%) State or local government (14%)
Finance(31%) > Manufacturing(16%)
• The health and state or local government industries are more likely than the finance, high-tech and professional services
industries to require new skills, but they do not need to hire new staff as a result of technological changes.
Comparisons by industry: Require new skills, but do not need to hire new staff
Finance(61%)
Health (81%)
> High-tech (56%)
State or local government (81%)
Professional services (66%)
Note: Only statistically significant differences are shown.
The Ongoing Impact of the Recession—Recruiting and Skill Gaps ©SHRM 2013 22
23. How have (or will) these technological changes affected the
employee skills required in your organization?
Comparisons by industry (continued)
• The high-tech industry is more likely than the finance, health, professional services, and state or local government
industries to require new skills and need to hire new staff as a result of technological changes.
Comparisons by industry: Require new skills and need to hire new staff
Finance(8%)
Health (8%)
High-tech (24%) >
Professional services (8%)
State or local government (6%)
Note: Only statistically significant differences are shown.
The Ongoing Impact of the Recession—Recruiting and Skill Gaps ©SHRM 2013 23
24. How have (or will) these technological changes affected the
employee skills required in your organization?
Comparisons by organization staff size
• Organizations with 1 to 99 employees are more likely than organizations with 500 to 25,000 employees to require the
same skills for employees as a result of technological changes.
• Organizations with 100 to 499 employees are more likely than organizations with 500 to 2,499 employees to require the
same skills for employees as a result of technological changes.
Comparisons by organization staff size: Require the same skills
500 to 2,499 employees (12%)
1 to 99 employees (25%) >
2,500 to 24,999 employees (14%)
100 to 499 employees (21%) > 500 to 2,499 employees (12%)
Note: Only statistically significant differences are shown.
The Ongoing Impact of the Recession—Recruiting and Skill Gaps ©SHRM 2013 24
25. Demographics
The Ongoing Impact of the Recession—Recruiting and Skill Gaps ©SHRM 2013 25
26. 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—Recruiting and Skill Gaps ©SHRM 2013 26
27. 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—Recruiting and Skill Gaps ©SHRM 2013 27
28. 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—Recruiting and Skill Gaps ©SHRM 2013 28
29. Demographics: Other
Does your organization have U.S.- Is your organization a single-unit organization or
based 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 and
What 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—Recruiting and Skill Gaps ©SHRM 2013 29
30. SHRM Survey Findings: The Ongoing Impact of the
Recession—Overall Financial Health and Hiring
Survey 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
30
31. 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_Research
Project leader:
Tanya Mulvey, survey research analyst, SHRM Research
Project 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 Research
Copy editor:
Katya Scanlan, SHRM Knowledge Center
The Ongoing Impact of the Recession—Recruiting and Skill Gaps ©SHRM 2013 31