The Ongoing Impact of the Recession - High-Tech Industry

SHRM Poll: The Ongoing Impact of the
Recession—High-Tech Industry

July 31, 2012

The Ongoing Impact of the Recession:
High-Tech

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

SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012
2

Introduction

 Overall results have been released in three different topic areas:
 Recruiting and skill gaps (released November 7, 2011).
 Overall financial health and hiring (released November 22, 2011).
 Global competition and hiring strategies (released December 14, 2011).

 Industry-specific results are reported separately for each of the eight industries
included in the sample. These findings cover the results for the high-tech industry.
The following industries were also included in the sample:
 Construction, mining, oil and gas (released March 9, 2012).
 Manufacturing (released April 4, 2012).
 Federal government (released June 4, 2012).
 State and local government (released June 4, 2012).
 Finance (released June 4, 2012).
 Professional services (released July 31, 2012).
 Health.

3

Key Findings: Organizations’ Financial Health
High-Tech

 What percentage of staff have organizations laid off since the U.S. and global
recession began in December 2007? In 2011, 29% of organizations from the high-
tech industry indicated they had not laid off any staff since the recession began.
Forty-six percent had lost between 1% and 10% of their staff. In total for
2011, three-quarters (75%) of organizations in the high-tech industry laid off 0% to
10% of staff, an improvement compared with 2010 when fewer organizations (59%)
reported losing less than 10% of employees since the recession began in December
2007.

 How does the financial health of organizations compare to 12 months ago? The
high-tech industry’s organizational financial health has declined compared with a
year ago. In 2011, 30% of organizations from the high-tech industry were in a
significant or mild decline, an increase from 18% in 2010. At the same time there
has been a 20-point decrease for organizations reporting a mild recovery from 49%
in 2010 to 29% in 2011.

4

Key Findings: Hiring
High-Tech

 Are organizations currently hiring? Eighty percent of organizations in the high-tech
industry were hiring full-time staff in 2011, similar to 2010 (75%). They are more
likely to be hiring compared with the construction, mining, oil and gas industry. Of
those who were hiring in the high-tech industry, the majority (91%) hired
nonmanagement salaried employees. About one-half (51% and 47% respectively)
hired nonmanagment hourly employees and other management-level staff. Sixteen
percent reported they were hiring executive or upper-management employees.

 Are organizations creating new positions or replacing jobs lost? Fewer
organizations in the high-tech industry indicated they mainly hired for completely
new positions in 2011 (46%) than in 2010 (60%), whereas there has been an
increase in hiring direct replacements of jobs lost from 25% in 2010 to 39% in 2011.
The remaining 15% for both 2011 and 2010 hired for positions with new duties
added to jobs lost since the recession began. The high-tech industry is more likely to
be hiring for completely new positions compared with the federal government,
state and local government, finance and health industries.

5

Key Findings: Recruiting Challenges
High-Tech

 Is it difficult to find qualified individuals for new jobs that require new and
different skill sets? Nearly three-quarters (73%) of organizations in the high-tech
industry found it somewhat or very difficult to recruit qualified candidates for these
positions, an increase from 47% in 2010.

 Is recruiting for specific jobs difficult in the current labor market? Among the high-
tech industry organizations that are currently hiring full-time staff, 71% reported
having difficulty recruiting for specific open jobs.

 What types of jobs are the most difficult to fill? The top five most difficult positions
to fill for the high-tech industry are engineers (95%), high-skilled technical
(e.g., technicians and programmers) (88%), sales representatives (79%), managers
and executives (78%), and customer service representatives (47%).

6

High-Tech

Organizations’ Financial Health

7

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

Not applicable—did not lay off any 29% 2011 (n = 233)
staff 2010 (n = 259)
26% 75%
1% to 5% of staff

20%
6% to 10% of staff

10% or less (2011 data) 75%
Less than 10% (2010 data)* 59%

11% to 20% of staff (2011 data) 12%
10% to 20% (2010 data)* 26%

9%
21% to 50% of staff
11%

3%
More than 50% of staff
4%

Note: Percentages may not total 100% due to rounding. An asterisk (*) indicates 2010 data had different categories than 2011 data: “Less than 10% of staff”
and “10% to 20% of staff.”
8

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

Comparisons by Industry

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

Construction, mining, oil and gas (20%)
. . . are more likely to Manufacturing (21%)
Federal government (50%)
have had NO layoffs State and local government (30%)
Finance (45%)
than . . . Services—professional (30%)
High-tech (29%)

The construction, mining, oil and gas industry is more likely to have lost more than 50% of staff compared with the federal
government; finance; manufacturing; professional services; and high-tech industries.

. . . is more likely to Finance (0%)
Construction, mining, oil and gas (10%) have lost more than 50% of staff Manufacturing (2%)
High-tech (3%)

Note: Only statistically significant differences are shown.

9

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

14% 2011 (n = 234)
In a significant recovery
14% 2010 (n = 258)

29%
In a mild recovery
49%

27%
No change compared with 12 months ago
19%

26%
In a mild decline
13%

4%
In a significant decline
5%

10

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

. . . is more likely to
High-tech (14%) be in a significant recovery
State and local government (1%)
than . . .

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

Health (23%)
Finance (46%) be in a mild recovery
than . . .
High-tech (29%)

The federal government and state and local governments are more likely to be in a significant decline compared with the
finance, manufacturing, professional services, and high-tech industries.
Finance (3%)
. . . are more likely to
Federal government (29%) Manufacturing (4%)
be in a significant decline
State and local government (13%) Services—professional (5%)
than . . .
High-tech (4%)
11

High-Tech

Hiring

12

Is your organization currently hiring full-time staff?
High-Tech

80%
Yes
75%

2011 (n = 235)
2010 (n = 253)

20%
No
25%

13

Is your organization currently hiring full-time staff?
High-Tech


The high-tech industry is more likely to be currently hiring full-time staff compared with the construction, mining, oil and gas
industry.

High-tech (80%) be currently hiring full-time staff Construction, mining, oil and gas (66%)
than . . .


14

At what level(s) is your organization hiring?
High-Tech

Nonmanagement salaried employees 91%

Nonmanagement hourly employees 51%

Other management (e.g., directors, managers) 47%

Executive/upper management (e.g., CEO, CFO) 16%

Note: n = 186. Percentages do not total 100% due to multiple response options. Only respondents whose organizations were currently hiring full-time staff
were asked this question.
15

At what level(s) is your organization hiring?
High-Tech


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

Finance (19%)
Federal government (39%) be hiring executive/upper-
Manufacturing (20%)
Health (39%) management employees
Services—professional (18%)
than . . .
High-tech (16%)

The high-tech industry is more likely to be hiring nonmanagement salaried employees compared with the
construction, mining, oil and gas; finance; health; manufacturing; state and local government; and professional services industries.

be hiring nonmanagement salaried Health (60%)
High-tech (91%)
employees Manufacturing (64%)
than . . . State and local government (66%)

16

At what level(s) is your organization hiring? (continued)
High-Tech


The construction, mining, oil and gas; finance; health; manufacturing; and state and local government industries are more likely to
be hiring nonmanagement hourly employees compared with the federal government and high-tech industry.

Finance (77%)
be hiring nonmanagement hourly Federal government (53%)
Health (89%)
employees High-tech (51%)
Manufacturing (84%)
than . . .


17

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

46%
Completely new positions
60%

15%
New duties added to jobs lost (e.g., due to 2011 (n = 184)
layoffs, attrition) since the recession began 2010 (n = 187)
15%

39%
Direct replacements of jobs lost (e.g., due to
layoffs, attrition) since the recession began
25%

Note: Only respondents whose organizations were currently hiring full-time staff were asked this question.

18

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


The federal government, finance, health, manufacturing, and state and local government industries are more likely to be hiring
direct replacements of jobs lost since the recession began compared with the high-tech industry.

Finance (60%)
be hiring direct replacements of jobs
Health (66%) High-tech (39%)
lost since the recession began
Manufacturing (54%)
than . . .

The high-tech industry is more likely to be hiring for completely new positions compared with the federal
government, finance, health, and state and local government industries.

. . . is more likely to Federal government (21%)
be hiring for completely new Finance (29%)
High-tech (46%)
positions Health (21%)


19

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

A mixture of new skills and the same
64%
types of skills

Approximately the same types of
23%
skills

Completely new and different skills 13%

Note: n = 83. Only respondents whose organizations were hiring full-time staff for “completely new positions” were asked this question.

20

High-Tech

Recruiting Challenges

21

If the new jobs being created by your organization require new and
different skill sets, how easy do you think it will be—or has been thus
far—to find qualified individuals for those positions?
High-Tech

5%
Very easy 2011 (n = 91)
10%
2010 (n = 126)

21%
Somewhat easy
43%

60%
Somewhat difficult
43%

13%
Very difficult
4%

Note: Percentages may not total 100% due to rounding. Only respondents whose organizations were hiring full-time staff for positions with “new duties
added to jobs lost” or “completely new positions” (see slide 18) that required either “a mixture of new skills and the same types of skills” or “completely new
and different skills” (see slide 20) were asked this question.
22

If the new jobs being created by your organization require new and
different skill sets, how easy do you think it will be—or has been thus
far—to find qualified individuals for those positions?
High-Tech

The high-tech industry is more likely to find it very difficult to find qualified individuals for new jobs with new and different skill
sets compared with the construction, mining, oil and gas industry.

find it very difficult to find qualified
High-tech (13%) individuals for new jobs with new Construction, mining, oil and gas (1%)
and different skill sets
than . . .


23

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

No, 29%

Yes, 71%

Note: n = 178. 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.
24

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

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

be having difficulty recruiting for
Manufacturing (68%) Federal government (35%)
specific jobs that are open in their
High-tech (71%) Finance (49%)
organization
than . . .


25

Do you believe that your organization is facing global competition
(i.e., competition from other countries) for jobs that your organization
is having difficulty filling?
High-Tech

Yes, 42%

No, 58%

Note: n = 106. Respondents who answered “Don’t know” were excluded from this analysis. Only respondents whose organizations were having a difficult
time recruiting for specific jobs were asked this question.
26

Do you believe that your organization is facing global competition
(i.e., competition from other countries) for jobs that your organization
is having difficulty filling?
High-Tech


The high-tech industry is more likely to believe that their organization is facing global competition compared with the finance, state
and local government, and professional services industries.

Finance (8%)
believe that their organization is
High-tech (42%) State and local government (4%)
facing global competition
than . . .


27

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

Yes 50%

No 44%

No, but we are
6%
considering it

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

Note: n = 119. Percentages do not total 100% due to rounding. Respondents who answered “Don’t know” were excluded from this analysis. Only respondents
whose organizations were having a difficult time recruiting for specific jobs were asked this question.

28

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


The high-tech industry is more likely to have hired workers from outside the U.S. in an attempt to recruit for hard-to-fill jobs
compared with the finance, manufacturing, state and local government, and professional services industries.

have hired workers from Manufacturing (20%)
High-tech (50%)
outside the U.S. State and local government (11%)


29

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

No 51%

Yes 34%

No, but we are
11%
considering it

No, but we have
plans to do so in the 4%
next 12 months

Note: n = 102. Respondents who answered “Don’t know” were excluded from this analysis. Only respondents whose organizations were having a difficult
time recruiting for specific jobs were asked this question.

30

jobs that have been difficult to fill?
High-Tech

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

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


31

jobs that have been difficult to fill? (continued)
High-Tech


The federal government is more likely to have hired U.S. veterans in an attempt to recruit for hard-to-fill jobs compared with
the construction, mining, oil and gas; finance; health; manufacturing; state and local government; professional services; and
high-tech industries.

Finance (13%)
. . . is more likely to Health (42%)
Federal government (96%) have hired U.S. veterans Manufacturing (44%)
High-tech (34%)


32

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

Writing in English (grammar, spelling, etc.) 40%

English language (spoken) 37%

Mathematics (computation) 28%

Science 27%

Reading comprehension (in English) 16%

Technical (computer, engineering, mechanical, etc.) 16%

Foreign languages 7%

Government/economics 6%

Humanities/arts 1%

History/geography 0%

Other 7%

Note: n = 82. Percentages do not total 100% due to multiple response options. Only respondents whose organizations were having a difficult time recruiting
for specific jobs were asked this question.
33

In general, what applied skill gaps do job applicants have in your
industry?
High-Tech

Critical thinking/problem solving 48%

Information technology application 47%

Leadership 36%

Teamwork/collaboration 35%

Professionalism/work ethic 34%

Oral communications 32%

Written communications 32%

Creativity/innovation 27%

Diversity 22%

Lifelong learning/self-direction 18%

Ethics/social responsibility 14%

Other 6%

Note: n = 111. Percentages do not total 100% due to multiple response options. Only respondents whose organizations were having a difficult time recruiting
for specific jobs were asked this question.
34

Specific Job Categories in Which Organizations Have Difficulty Recruiting
High-Tech

Engineers (n = 87) 95%

High-skilled technical (e.g., technicians, programmers) (n = 117) 88%

Sales representatives (n = 75) 79%

Managers and executives (n = 87) 78%

Customer service representatives (n = 60) 47%

Accounting and finance professionals (n = 78) 44%

HR professionals (n = 49) 39%

Production operators (n = 21) 24%

Hourly laborers (n = 36) 17%

Administrative support staff (n = 81) 13%

Note: Chart represents “somewhat difficult” and “very difficult” responses. “Not applicable” responses were excluded from this analysis. Only respondents
whose organizations were having a difficult time recruiting for specific jobs were asked this question. No statistics are provided where the n is less than 20;
therefore, the job categories of “drivers” (n = 5), “skilled trades” (n = 15), “high-skilled medical” (n = 7) and “scientists” (n = 16) were excluded from this analysis.
35

High-Tech

Demographics

36

Demographics: Organization Sector
High-Tech

Privately owned for-profit 59%

Publicly owned for-profit 38%

Nonprofit 2%

Government 0%

Other 2%

Note: n = 226. Percentages do not total 100% due to rounding.

37

Demographics: Organization Staff Size
High-Tech

1 to 99 employees 33%

100 to 499 employees 27%

500 to 2,499 employees 18%

2,500 to 24,999 employees 15%

25,000 or more employees 7%

n = 221

38

Demographics: Other
High-Tech

Does your organization have U.S.- Is your organization a single-unit organization
based operations (business units) only, or a multi-unit organization?
or does it operate multinationally? Single-unit organization: An organization in
which the location and the organization are 36%
U.S.-based operations only 47% one and the same.

Multinational operations 53% Multi-unit organization: An organization
64%
that has more than one location.
n = 225
n = 226

For multi-unit organizations, are HR policies and
What is the HR department/function practices determined by the multi-unit
for which you responded throughout headquarters, by each work location or by both?
this survey?
Multi-unit headquarters determines HR
44%
policies and practices.
Corporate (companywide) 67%
Each work location determines HR policies
Business unit/division 23% 6%
and practices.

Facility/location 9% A combination of both the work location
and the multi-unit headquarters 50%
Note: n = 166. Percentages do not total 100% due to
rounding.
determines HR policies and practices.

n = 165

39

SHRM Poll: The Ongoing Impact of the Recession:
High-Tech

Methodology
 Response rate = 8%.
 Sample composed of 235 randomly selected HR professionals from the professional
service industry in SHRM’s membership.
 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 18 to September 2, 2011.

For more poll findings, visit www.shrm.org/surveys
Follow us on Twitter: http://twitter.com/SHRM_Research
Project leader:
Tanya A. Mulvey, survey research analyst, SHRM Research

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

Copy editor:
Katya Scanlan, SHRM Knowledge Center
40

The Ongoing Impact of the Recession - High-Tech Industry

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