More Related Content Similar to Shrm economic-conditions-recruiting-skills-gaps Similar to Shrm economic-conditions-recruiting-skills-gaps (20) More from SHRMRESEARCH (15) Shrm economic-conditions-recruiting-skills-gaps2. • This is Part 2 of a series of SHRM survey results about the state of jobs and skills in the current economic
condition, which relates to a SHRM survey series about the ongoing impact of the U.S. and global
recession from 2007 to 2012. Overall results will be reported separately in three different topic areas:
» Overall financial health and hiring.
» Recruiting and skills gaps.
» Global competition and hiring strategies.
• Overall results for 2013 will also be reported separately for California.
• Industry-specific results for the nine industries that were included in the sample will also be reported for
each question throughout the report. The nine industries are:
» Accommodation and food services, retail/wholesale trade.
» Construction, mining, quarrying, and oil and gas extraction.
» Educational services.
» Finance, insurance, real estate and rental and leasing.
» Government agencies.
» Health care and social assistance.
» High-tech.
» Manufacturing.
» Professional, scientific, and technical services.
Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 2
Introduction
3. • Is recruiting for specific jobs difficult in the current labor market? One-half (50%) of
organizations indicated that they have had difficulty recruiting for full-time regular positions in the
past 12 months.
» Three-fifths (60%) of organizations in the manufacturing industry indicated the same, followed
by the health care and social assistance industry (56%), high-tech industry (56%), and
professional, scientific, and technical assistance industry (56%).
• Why are organizations experiencing difficulty hiring qualified candidates? The top reasons
organizations have experienced difficulty in hiring for full-time regular positions were that
candidates lack the needed work experience (50%) and the right technical skills (50%) as well as
competition from other employers (50%).
» More than three-quarters (77%) of organizations in the high-tech industry indicated their
candidates did not have the right technical skills. Close to two-thirds (64%) of organizations in
the high-tech industry were also concerned about competition from other employers.
• What types of jobs are the most difficult to fill? Although difficulty in filling specific jobs varied by
industry, the top five most difficult positions to fill overall were highly skilled positions: engineers
(72%), high-skilled medical (e.g., nurses, doctors, specialists) (69%), IT/computer specialists (69%),
scientists (67%), and managers and executives (65%)—similar to results in 2012 and 2011.
Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 3
Key Findings
4. • What basic skills/knowledge gaps do job applicants typically have? Basic computer skills
(31%), writing in English (26%), English language (spoken) (17%), reading comprehension (16%)
and mathematics (computation) (15%) were the most common skills gaps.
» About two-fifths (42%) of organizations indicated there were no basic skills/knowledge gaps
for their job applicants.
» Almost one-half (46%) of organizations in the health care and social assistance industry
indicated that their job applicants lacked basic computer skills; close to one-third of
organizations in government agencies and the health care and social assistance industry
reported that their job applicants had gaps in writing in English (32% and 31%, respectively).
• What applied skills gaps do job applicants typically have? The top four applied skills gaps were
critical thinking/problem-solving (40%), professionalism/work ethic (38%), leadership (34%) and
written communications (27%).
» One-fifth (20%) of organizations indicated no applied skills gaps exist for their job applicants.
» More than one-half of organizations in the health care and social assistance industry
indicated that their job applicants lack critical thinking/problem-solving skills and
professionalism/work ethic (54% and 53%, respectively). Close to one-half (47%) of
organizations in the accommodation and food services, retail/wholesale trade industry also
indicated that their job applicants lack professionalism/work ethic.
Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 4
Key Findings (continued)
5. What Do These Findings Mean for the HR Profession?
• Despite recent gains in the U.S. labor market, millions of positions are still going unfilled and,
consequently, impeding the growth of some employers. In July 2014, there were 4.7 million job
openings in the United States, up nearly 800,000 from the beginning of 2014, according to federal
data. Many economists and labor market observers cite weak economic demand as the cause of
limited job creation in some sectors. But with millions of people seeking work and so many jobs
going unfilled, it is clear that a skills mismatch exists between some job seekers and open
positions, and this is also inhibiting widespread job growth in the U.S. economy.
• Knowing that a skills mismatch may prevent jobs from being filled, a multipronged approach is
needed to close this gap. HR professionals should explore training opportunities for their
employees and potential partnerships with local educational institutions, which can involve creating
curricula in line with the skills needed at their organizations. Government job training programs are
also active in many communities, and HR professionals should be aware of these as a means of
supporting their recruiting efforts.
• Even though many organizations are pursuing partnerships with educational bodies to develop
training programs, on-the-job training led mainly by the employers themselves is still a vital part of
employee and organizational development.
• HR professionals and their employers should not blame recruiting difficulty solely on this skills
mismatch. There are other reasons why jobs are going unfilled; half of respondents in this survey
cited competition from other employers, and more than one-third said their candidates turned down
the compensation offer. That suggests that hiring is becoming more competitive in some sectors,
and HR professionals should consider creative compensation packages that include market-rate
salaries and perhaps some form of flexible benefits, which are considered attractive by many
workers.
Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 5
6. Percentage of Organizations Having Difficulty Recruiting for
Full-Time Regular Positions in the Last 12 Months
50%
46%
53%
36%
53%
39%
56%
56%
60%
56%
Note: Respondents who answered “don't know” were excluded from this analysis. Only respondents whose organizations were hiring full-time staff were
asked this question.
Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 6
All industries (n = 2,988)
Accommodation and food services,
retail/wholesale trade (n = 296)
construction, mining, quarrying,
and oil and gas extraction (n = 305)
Educational services (n = 324)
Finance, insurance, real estate
and rental and leasing (n = 270)
Government agencies (n = 485)
Health care and social assistance
(n = 317)
High-tech (n = 147)
Manufacturing (n = 371)
Professional, scientific, and technical
services (n = 393)
7. Main Reasons That Organizations Have Experienced Difficulty
in Hiring for Full-Time Regular Positions (All Industries)
50%
50%
50%
43%
40%
39%
37%
29%
27%
26%
Note: n = 1,417. Respondents who answered “don't know” were excluded from this analysis. Percentages do not equal 100% due to multiple response
options. Only respondents whose organizations were having difficulty hiring for full-time positions were asked this question.
Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 7
Candidates do not have the right technical skills
Competition from other employers
Candidates do not have the needed work
experience
Low number of applicants
The local market is not producing enough work-ready/
qualified job candidates
Candidates do not have the right professional skills
Qualified candidates reject compensation package
Candidates do not have the needed
credentials/certifications
Candidates do not have the right workplace (soft)
skills
Qualified candidates are not interested in moving to
our local area
8. Main Reasons That Organizations Have Experienced Difficulty in
Hiring for Full-Time Regular Positions (All Industries, continued)
22%
16%
16%
15%
15%
12%
11%
8%
7%
Note: n = 1,417. Respondents who answered “don't know” were excluded from this analysis. Percentages do not equal 100% due to multiple response
options. Only respondents whose organizations were having difficulty hiring for full-time positions were asked this question.
Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 8
Candidates do not have the right basic skills
Candidates do not have the needed training
Lack of interest in type of job
Candidates are overqualified
Candidates do not have high enough levels of
education
Qualified candidates are not able to move to our
local area (due to mortgage or other issues)
Our organization does not provide relocation funds
Qualified candidates reject benefits package
Other
9. Main Reasons That Organizations Have Experienced Difficulty in
Hiring for Full-Time Regular Positions (All Industries)
• Organizations with 500 or more employees were more likely than organizations with 1 to 99 employees to indicate
that qualified candidates rejecting the compensation package is the main reason for difficulty in hiring.
Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 9
Comparison by organization staff size
25%
32%
Note: Only statistically significant differences are shown.
46% 42%
50%
1 to 99 employees 100 to 499
employees
500 to 2,499
employees
2,500 to 24,999
employees
25,000 or more
employees
• Organizations with 500 or more employees were more likely than organizations with 1 to 99 employees to indicate
that competition from other employers is the main reason for difficulty in hiring. Organizations with 2,500 or more
employees were more likely than organizations with 100 to 499 employees to indicate that competition from other
employers is the main reason for difficulty in hiring.
36%
46%
53%
63% 67%
1 to 99 employees 100 to 499
employees
500 to 2,499
employees
2,500 to 24,999
employees
25,000 or more
employees
10. Main Reasons That Organizations Have Experienced Difficulty in
Hiring for Full-Time Regular Positions (by Industry)
Note: Respondents who answered “don't know” were excluded from this analysis. Percentages do not equal 100% due to multiple response options.
Only respondents whose organizations were hiring full-time staff were asked this question.
Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 10
Candidates
Do Not Have
the Right
Technical
Skills
Competition
from Other
Employers
Candidates
Do Not Have
the Needed
Work
Experience
Low Number
of Applicants
The Local
Market Is Not
Producing
Enough Work-
Ready/
Qualified Job
Candidates
Candidates
Do Not Have
the Right
Professional
Skills
Qualified
Candidates
Reject
Compensatio
n Package
All industries (n = 1,417) 50% 50% 50% 43% 40% 39% 37%
Accommodation and food
services, retail/wholesale trade (n
32% 51% 46% 40% 38% 39% 41%
= 127)
Construction, mining, quarrying,
and oil and gas extraction (n =
159)
60% 49% 52% 48% 42% 34% 27%
Educational services (n = 109) 27% 52% 43% 44% 31% 35% 50%
Finance, insurance, real estate
42% 48% 58% 41% 35% 46% 33%
and rental and leasing (n = 135)
Government agencies (n = 180) 48% 51% 43% 38% 33% 38% 47%
Health care and social assistance
41% 50% 50% 48% 39% 39% 34%
(n = 165)
High-tech (n = 81) 77% 64% 48% 44% 32% 38% 48%
Manufacturing (n = 213) 61% 43% 50% 41% 51% 37% 29%
Professional, scientific, and
63% 52% 55% 43% 42% 46% 37%
technical services (n = 210)
11. Main Reasons That Organizations Have Experienced Difficulty in
Hiring for Full-Time Regular Positions (by Industry, continued)
Note: Respondents who answered “don't know” were excluded from this analysis. Percentages do not equal 100% due to multiple response options.
Only respondents whose organizations were hiring full-time staff were asked this question.
Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 11
Candidates Do
Not Have the
Needed
Credentials/Cer
tifications
Candidates Do
Not Have the
Right
Workplace
(Soft) Skills
Qualified
Candidates Are
Not Interested
in Moving to
Our Local Area
Candidates Do
Not Have the
Right Basic
Skills
Candidates Do
Not Have the
Needed
Training
Lack of Interest
in Type of Job
All industries (n = 1,417) 29% 27% 26% 22% 16% 16%
Accommodation and food services,
retail/wholesale trade (n = 127)
10% 35% 25% 31% 9% 28%
Construction, mining, quarrying, and
oil and gas extraction (n = 159)
26% 21% 32% 25% 14% 16%
Educational services (n = 109) 40% 27% 26% 20% 15% 12%
Finance, insurance, real estate and
rental and leasing (n = 135)
27% 29% 22% 23% 14% 13%
Government agencies (n = 180) 38% 26% 24% 22% 24% 16%
Health care and social assistance (n =
165)
44% 20% 24% 18% 24% 12%
High-tech (n = 81) 30% 21% 21% 10% 16% 7%
Manufacturing (n = 213) 20% 26% 35% 25% 14% 21%
Professional, scientific, and technical
services (n = 210)
29% 33% 23% 22% 12% 10%
12. Main Reasons That Organizations Have Experienced Difficulty in
Hiring for Full-Time Regular Positions (by Industry, continued)
Note: Respondents who answered “don't know” were excluded from this analysis. Percentages do not equal 100% due to multiple response options.
Only respondents whose organizations were hiring full-time staff were asked this question.
Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 12
Candidates Are
Overqualified
Candidates Do
Not Have High
Enough Levels
of Education
Qualified
Candidates Are
Not Able to
Move to Our
Local Area
(due to
Mortgage or
Other Issues)
Our
Organization
Does Not
Provide
Relocation
Funds
Qualified
Candidates
Reject Benefits
Package
Other
All industries (n = 1,417) 15% 15% 12% 11% 8% 7%
Accommodation and food services,
retail/wholesale trade (n = 127)
24% 6% 17% 13% 11% 8%
Construction, mining, quarrying, and
oil and gas extraction (n = 159)
14% 12% 9% 8% 8% 6%
Educational services (n = 109) 14% 26% 7% 11% 10% 7%
Finance, insurance, real estate and
rental and leasing (n = 135)
25% 11% 8% 7% 10% 7%
Government agencies (n = 180) 12% 21% 14% 18% 6% 10%
Health care and social assistance
(n = 165)
5% 24% 8% 10% 11% 8%
High-tech (n = 81) 12% 6% 15% 9% 10% 7%
Manufacturing (n = 213) 15% 14% 14% 9% 5% 5%
Professional, scientific, and technical
services (n = 210)
15% 10% 12% 11% 5% 7%
13. Organizations That Indicated Difficulty in Filling the Following
Job Categories for Full-Time Regular Positions (All Industries)
72%
69%
69%
67%
65%
63%
55%
54%
48%
46%
Note: n = 195 - 1,721. Respondents who answered “don't know” were excluded from this analysis. Percentages do not equal 100% due to multiple
response options. Only respondents whose organizations were hiring full-time staff were asked this question. Figure represents those who answered “very
difficult” and “somewhat difficult.”
Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 13
Engineers
High-skilled medical
IT/computer specialists
Scientists
Managers and executives
High-skilled technicians
Skilled trades
Sales representatives
Lawyers, judges and legal support workers
Community and social service workers
14. Organizations That Indicated Difficulty in Filling the Following Job
Categories for Full-Time Regular Positions (All Industries, continued)
45%
42%
35%
34%
34%
30%
22%
22%
21%
Note: n = 195-1,721. Respondents who answered “don't know” were excluded from this analysis. Percentages do not equal 100% due to multiple response
options. Only respondents whose organizations were hiring full-time staff were asked this question. Figure represents those who answered “very difficult”
and “somewhat difficult”.
Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 14
14%
HR professionals
Educators
Accounting and finance professionals
Drivers
Production operators
Protective service workers
Hourly laborers
Customer service representatives
Hourly service workers
Administrative support staff
15. Organizations That Indicated Difficulty in Filling the Following
Job Categories for Full-Time Regular Positions (by Industry)
Note: Respondents who answered “don't know” were excluded from this analysis. Only respondents whose organizations were hiring full-time staff for
the particular job category were asked this question. Percentages represent those who answered “very difficult” and “somewhat difficult.” Percentages
do not equal 100% due to multiple response options. “-” percentage cannot be reported due to small sample size (n < 30).
Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 15
Engineers
High-Skilled
Medical
IT/Computer
Specialists
Scientists
Managers
and
Executives
High-Skilled
Technicians
Skilled
Trades
All industries (n = 195 - 1,721) 72% 69% 69% 67% 65% 63% 55%
Accommodation and food
services, retail/wholesale trade
- - 74% - 59% - 59%
(n = 44 - 153)
Construction, mining, quarrying,
and oil and gas extraction
(n = 30 - 178)
67% 67% 64% - 68% 56% 62%
Educational services
(n = 36 - 330)
- 54% 61% - 51% - 32%
Finance, insurance, real estate
and rental and leasing
(n = 31 - 260)
- - 79% - 69% - -
Government agencies
(n = 53 - 316)
61% 74% 63% - 55% 62% 44%
Health care and social
assistance (n = 32 - 220)
- 69% 64% - 72% 62% 34%
High-tech (n = 32 - 97) 77% - 76% - 78% 72% -
Manufacturing (n = 33 - 217) 77% - 73% 68% 77% 68% 78%
Professional, scientific, and
75% - 71% 63% 67% 64% -
technical services (n = 45 - 212)
16. Organizations That Indicated Difficulty in Filling the Following Job
Categories for Full-Time Regular Positions (by Industry, continued)
Note: Respondents who answered “don't know” were excluded from this analysis. Only respondents whose organizations were hiring full-time staff for
the particular job category were asked this question. Percentages represent those who answered “very difficult” and “somewhat difficult.” Percentages
do not equal 100% due to multiple response options. “-” percentage cannot be reported due to small sample size (n < 30).
Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 16
Sales
Representatives
Lawyers,
Judges and
Legal Support
Workers
Community
and Social
Service
Workers
HR
Professionals
Educators
Accounting and
Finance
Professionals
Drivers
All industries (n = 195 - 1,721) 54% 48% 46% 45% 42% 35% 34%
Accommodation and food
services, retail/wholesale trade
54% - - 52% - 35% 43%
(n = 44 - 153)
Construction, mining, quarrying,
and oil and gas extraction
(n = 30 - 178)
50% - - 51% - 31% 38%
Educational services
(n = 36 - 330)
- - 39% 37% 42% 25% 42%
Finance, insurance, real estate
and rental and leasing
(n = 31 - 260)
51% 61% - 43% - 45% -
Government agencies
(n = 53 - 316)
- 44% 42% 44% 44% 33% 25%
Health care and social
assistance (n = 32 - 220)
- - 53% 46% - 39% 15%
High-tech (n = 32 - 97) 58% - - 40% - 27% -
Manufacturing (n = 33 - 217) 54% - - 44% - 36% 48%
Professional, scientific, and
63% 56% - 47% - 40% -
technical services (n = 45 - 212)
17. Organizations That Indicated Difficulty in Filling the Following Job
Categories for Full-Time Regular Positions (by Industry, continued)
Note: Respondents who answered “don't know” were excluded from this analysis. Only respondents whose organizations were hiring full-time staff for
the particular job category were asked this question. Percentages represent those who answered “very difficult” and “somewhat difficult.” Percentages
do not equal 100% due to multiple response options. “-” percentage cannot be reported due to small sample size (n < 30).
Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 17
Production
Operators
Protective
Service
Workers
Hourly
Laborers
Customer
Service
Representatives
Hourly
Service
Workers
Administrative
Support Staff
All industries (n = 195 - 1,721) 34% 30% 22% 22% 21% 14%
Accommodation and food
services, retail/wholesale trade
- - 30% 21% 29% 13%
(n = 44 - 153)
Construction, mining, quarrying,
and oil and gas extraction
(n = 30 - 178)
40% - 26% 23% - 10%
Educational services
(n = 36 - 330)
- 32% 8% 12% 14% 9%
Finance, insurance, real estate
and rental and leasing
(n = 31 - 260)
- - - 27% - 20%
Government agencies
(n = 53 - 316)
- 31% 16% 11% 15% 12%
Health care and social
assistance (n = 32 - 220)
- - 19% 17% 20% 15%
High-tech (n = 32 - 97) - - - 36% - 6%
Manufacturing (n = 33 - 217) 35% - 26% 26% - 14%
Professional, scientific, and
- - - 30% - 20%
technical services (n = 45 - 212)
18. Basic Skills/Knowledge Gaps Job Applicants Had in the Last
12 Months (All Industries)
42%
31%
26%
17%
16%
15%
Note: n = 2,441. Respondents who answered “don't know” were excluded from this analysis. Percentages do not equal 100% due to multiple response
options.
Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 18
7%
6%
4%
2%
None
Basic computer skills
Writing in English (grammar, spelling,
etc.)
English language (spoken)
Reading comprehension in English
Mathematics (computation)
Spanish language
Science
Foreign languages (except Spanish)
Other
19. Basic Skills/Knowledge Gaps Job Applicants Had in the Last
12 Months (by Industry)
Note: Respondents who answered "don't know" were excluded from this analysis. Percentages may not equal 100% due to multiple response options.
Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 19
None
Basic
Compute
r Skills
Writing in
English
(Grammar,
Spelling,
etc.)
English
Language
(Spoken)
Reading
Comprehensio
n in English
Mathematics
(Computatio
n)
Spanish
Languag
e
Science
Foreign
Language
s (Except
Spanish)
Other
All industries (n = 2,441) 42% 31% 26% 17% 16% 15% 7% 6% 4% 2%
Accommodation and food
services, retail/wholesale
34% 35% 24% 24% 17% 16% 10% 1% 6% 1%
trade (n = 252)
Construction, mining,
quarrying, and oil and gas
extraction (n = 237)
42% 30% 22% 17% 14% 11% 7% 5% 5% 3%
Educational services
(n = 254)
42% 28% 28% 17% 12% 15% 11% 8% 6% 2%
Finance, insurance, real
estate and rental and
leasing (n = 203)
43% 33% 30% 14% 12% 11% 9% 1% 3% 2%
Government agencies
(n = 406)
43% 34% 32% 13% 14% 17% 5% 6% 2% 3%
Health care and social
assistance (n = 254)
34% 46% 31% 19% 22% 8% 9% 5% 3% 1%
High-tech (n = 107) 54% 16% 20% 19% 10% 14% 4% 10% 7% 3%
Manufacturing (n = 326) 41% 28% 17% 17% 21% 29% 4% 8% 1% 3%
Professional, scientific,
and technical services
51% 20% 23% 16% 12% 9% 6% 10% 3% 3%
(n = 329)
20. Applied Skills Gaps Job Applicants Had in the Last 12
Months (All Industries)
20%
40%
38%
34%
27%
25%
22%
20%
14%
Note: n = 2,583. Respondents who answered “don't know” were excluded from this analysis. Percentages do not equal 100% due to multiple response
options.
*ITC stands for Information and Communications Technology.
Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 20
13%
13%
12%
3%
None
Critical Thinking/Problem-Solving
Professionalism/Work Ethic
Leadership
Written Communications
Teamwork/Collaboration
Oral Communications
Application of ITC*
Creativity/Innovation
Lifelong Learning/Self-Direction
Ethics/Social Responsibility
Diversity
Other
21. Applied Skills Gaps Job Applicants Had in the Last 12
Months (by Industry)
Note: Respondents who answered "don't know" were excluded from this analysis. Percentages do not equal 100% due to multiple response options.
Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 21
None
Critical Thinking/
Problem-Solving
Professionalism
/Work Ethic
Leadership
Written
Communications
Teamwork/
Collaboration
Oral
Communication
s
All industries (n = 2,583) 20% 40% 38% 34% 27% 25% 22%
Accommodation and food
services, retail/wholesale trade (n
14% 45% 47% 37% 29% 26% 25%
= 258)
Construction, mining, quarrying,
and oil and gas extraction
(n = 256)
22% 32% 31% 34% 24% 28% 20%
Educational services (n = 256) 25% 30% 29% 32% 25% 21% 17%
Finance, insurance, real estate
18% 42% 40% 32% 30% 20% 21%
and rental and leasing (n = 220)
Government agencies (n = 423) 23% 40% 36% 30% 34% 26% 26%
Health care and social assistance
9% 54% 53% 39% 29% 34% 24%
(n = 277)
High-tech (n = 117) 25% 32% 28% 35% 15% 19% 20%
Manufacturing (n = 340) 21% 40% 38% 35% 22% 29% 19%
Professional, scientific, and
25% 39% 34% 30% 25% 22% 22%
technical services (n = 361)
22. Applied Skills Gaps Job Applicants Had in the Last 12 Months
(by Industry, continued)
Note: Respondents who answered "don't know" were excluded from this analysis. Percentages do not equal 100% due to multiple response options.
Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 22
Application of
Information and
Communications
Technology (ITC)
Creativity/
Innovation
Lifelong
Learning/Self-
Direction
Ethics/Social
Responsibility
Diversity Other
All industries (n = 2,583) 20% 14% 13% 13% 12% 3%
Accommodation and food services,
19% 17% 16% 14% 12% 3%
retail/wholesale trade (n = 258)
Construction, mining, quarrying,
and oil and gas extraction (n = 256)
16% 9% 13% 16% 12% 4%
Educational services (n = 256) 22% 13% 10% 7% 18% 3%
Finance, insurance, real estate and
16% 9% 14% 12% 9% 3%
rental and leasing (n = 220)
Government agencies (n = 423) 24% 14% 17% 16% 14% 2%
Health care and social assistance
28% 12% 11% 17% 16% 4%
(n = 277)
High-tech (n = 117) 14% 21% 13% 6% 3% 2%
Manufacturing (n = 340) 12% 17% 13% 11% 11% 4%
Professional, scientific, and
20% 16% 12% 8% 10% 3%
technical services (n = 361)
24. Demographics: Organization Industry
Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 24
Note: n = 3,335. Percentages do not equal 100% due to rounding.
Percentage
Accommodation and food services, retail/wholesale trade 10%
Construction, mining, quarrying, and oil and gas extraction 10%
Educational services 11%
Finance, insurance, real estate and rental and leasing 9%
Government agencies 16%
Health care and social assistance 10%
High-tech 5%
Manufacturing 12%
Professional, scientific, and technical services 14%
Other industry 3%
25. Demographics: Organization Sector (All Industries)
Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 25
n = 3,335
45%
20%
20%
15%
Publicly owned for-profit
Government
Privately owned for-profit
Nonprofit
26. Demographics: Organization Sector (by Industry)
Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 26
Note: Percentages may not equal 100% due to rounding.
Privately Owned
For-Profit
Government
Publicly Owned
For-Profit
Nonprofit
All industries (n = 3,335) 45% 20% 20% 15%
Accommodation and food services,
63% 0% 36% 2%
retail/wholesale trade (n = 330)
Construction, mining, quarrying, and oil
and gas extraction (n = 336)
71% 0% 28% 1%
Educational services (n = 367) 9% 39% 4% 48%
Finance, insurance, real estate and rental
56% 0% 24% 19%
and leasing (n = 307)
Government agencies (n = 537) 0% 100% 0% 0%
Health care and social assistance
(n = 349)
32% 0% 9% 59%
High-tech (n = 156) 54% 0% 44% 2%
Manufacturing (n = 404) 63% 0% 36% 1%
Professional, scientific, and technical
76% 0% 19% 5%
services (n = 458)
Other industry (n = 91) 57% 0% 22% 21%
27. Demographics: Region (all Industries)
Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 27
n = 3,022
39%
23%
22%
16%
South
West
Midwest
Northeast
28. Demographics: Region (by Industry)
Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 28
Note: Percentages may not equal 100% due to rounding.
South West Midwest Northeast
All industries (n = 3,022) 39% 23% 22% 16%
Accommodation and food services,
37% 29% 20% 14%
retail/wholesale trade (n = 287)
Construction, mining, quarrying, and oil
and gas extraction (n = 304)
44% 25% 18% 13%
Educational services (n = 330) 36% 18% 26% 20%
Finance, insurance, real estate and rental
33% 19% 25% 23%
and leasing (n = 279)
Government agencies (n = 494) 48% 24% 21% 6%
Health care and social assistance
(n = 323)
37% 22% 23% 18%
High-tech (n = 142) 30% 36% 12% 23%
Manufacturing (n = 365) 36% 16% 33% 16%
Professional, scientific, and technical
42% 24% 17% 17%
services (n = 418)
Other industry (n = 80) 39% 23% 16% 23%
29. Demographics: Organization Staff Size (All Industries)
Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 29
Note: n = 2,945. Percentages do not equal 10% due to rounding.
21%
31%
22%
20%
7%
1 to 99 employees
100 to 499 employees
500 to 2,499 employees
2,500 to 24,999 employees
25,000 or more employees
30. Demographics: Organization Staff Size (by Industry)
Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 30
1 to 99
Employees
Note: Percentages may not equal 100% due to rounding.
100 to 499
Employees
500 to 2,499
Employees
2,500 to 24,999
Employees
25,000 or More
Employees
All industries (n = 2,945) 21% 31% 22% 20% 7%
Accommodation and food services,
retail/wholesale trade (n = 278)
14% 27% 17% 19% 24%
Construction, mining, quarrying, and
oil and gas extraction (n = 301)
23% 33% 20% 20% 3%
Educational services (n = 318) 10% 29% 32% 25% 3%
Finance, insurance, real estate and
29% 31% 20% 14% 6%
rental and leasing (n = 279)
Government agencies (n = 470) 13% 32% 30% 21% 4%
Health care and social assistance
15% 29% 23% 24% 9%
(n = 314)
High-tech (n = 143) 27% 27% 16% 21% 9%
Manufacturing (n = 355) 17% 32% 22% 23% 6%
Professional, scientific, and technical
40% 32% 11% 13% 5%
services (n = 409)
Other industry (n = 78) 23% 36% 17% 17% 8%
31. n = 3,092
Demographics: Other (All Industries)
Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 31
U.S.-based operations only 71%
Multinational operations 29%
Single-unit organization: An organization
in which the location and the organization
are one and the same.
31%
Multi-unit organization: An organization
that has more than one location.
69%
Multi-unit headquarters determines HR
policies and practices
48%
Each work location determines HR policies
and practices
3%
A combination of both the work location and
the multi-unit headquarters determines HR
policies and practices
49%
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 = 3,116
n = 2,223
32. 32
SHRM Survey Findings
Survey Methodology
• Response rate = 13%
• 3,335 HR professionals participated in this survey from a randomly selected sample of SHRM’s
membership from nine different industries:
» Accommodation and food services, retail/wholesale trade.
» Construction, mining, quarrying, and oil and gas extraction.
» Educational services.
» Finance, insurance, real estate and rental and leasing.
» Government agencies.
» Health care and social assistance.
» High-tech.
» Manufacturing.
» Professional, scientific, and technical services.
• Margin of error +/-2%
• Survey fielded December 16, 2013 – January 16, 2014
Economic Conditions—Recruiting Skills Gaps ©SHRM 2014
33. • SHRM Leading Indicators of National Employment (LINE)
» http://www.shrm.org/research/monthlyemploymentindices/line/pages/default.aspx
• SHRM Jobs Outlook Survey (JOS)
» http://www.shrm.org/research/monthlyemploymentindices/lmo/pages/default.aspx
• SHRM Metro Economic Outlooks
» http://www.shrm.org/research/monthlyemploymentindices/pages/metroeconomicoutlooks.aspx
• SHRM’s Workforce Readiness Resource Page
» http://www.shrm.org/hrdisciplines/staffingmanagement/articles/pages/workforcereadiness.aspx
• SHRM Foundation: What’s Next: Future Global Trends Affecting Your Organization, Evolution of Work
and the Worker
» http://www.shrm.org/about/foundation/shapingthefuture/documents/2-
14%20theme%201%20paper-final%20for%20web.pdf
Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 33
Additional SHRM Resources
34. For more survey/poll findings, visit shrm.org/surveys
For more information about SHRM’s Customized Research Services, visit
shrm.org/customizedresearch
Follow us on Twitter @SHRM_Research
Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 34
About SHRM Research
Project lead:
Tanya Mulvey, researcher, SHRM Research
Project contributors:
Alexander Alonso, Ph.D., SPHR, vice president, SHRM Research
Evren Esen, director, Survey Programs, SHRM Research
Yan Dong, Survey Research Center, SHRM Research
Christina Lee, researcher, SHRM Research
Qikun Niu, intern, SHRM Research
Jennifer Schramm, manager, Workplace Trends and Forecasting, SHRM Research
Joseph Coombs, senior analyst, Workforce Trends, SHRM Research
Copy editor:
Katya Scanlan, SHRM Knowledge Center
35. Founded in 1948, the Society for Human Resource Management (SHRM) is the
world’s largest HR membership organization devoted to human resource management.
Representing more than 275,000 members in over 160 countries, the Society is the
leading provider of resources to serve the needs of HR professionals and advance the
professional practice of human resource management. SHRM has more than 575
affiliated chapters within the United States and subsidiary offices in China, India and
United Arab Emirates. Visit us at shrm.org.
Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 35
About SHRM
Editor's Notes One-half (50%) of organizations indicated that they have been having difficulty recruiting for full-time regular positions in the past 12 months.
Three-fifths (60%) of organizations in the manufacturing industry indicated the same, followed by the health care and social assistance industry (56%), high-tech industry (56%), and professional, scientific, and technical assistance industry (56%). The top reasons organizations have experienced difficulty in hiring for full-time regular positions were that candidates lack the needed work experience (50%) and the right technical skills (50%) as well as competition from other employers (50%). More than three-quarters (77%) of organizations in the high-tech industry indicated their candidates do not have the right technical skills. About three-fifths of organizations in the professional, scientific and technical services industry (63%) as well as the construction, mining, quarrying, and oil and gas extraction industry (60%) stated the same. Close to two-thirds (64%) of organizations in the high-tech industry were also concerned about competition from other employers. What types of jobs are the most difficult to fill? Although difficulty in filling specific jobs varied by industry, the top five most difficult positions to fill overall were highly skilled positions: engineers (72%), high-skilled medical (e.g., nurses, doctors, specialists) (69%), IT/computer specialists (69%), scientists (67%), and managers and executives (65%)—similar to results in 2012 and 2011. What basic skills/knowledge gaps do job applicants typically have? Basic computer skills (31%), writing in English (26%), English language (spoken) (17%), reading comprehension (16%) and mathematics (computation) (15%) were the most common skills gaps.
About two-fifths (42%) of organizations indicated there were no basic skills/knowledge gaps for their job applicants. Almost one-half (46%) of organizations in the health care and social assistance industry indicated that their job applicants lacked basic computer skills; close to one-third of organizations in government agencies and the health care and social assistance industry reported that their job applicants had gaps in writing in English (32% and 31%, respectively). What applied skills gaps do job applicants typically have? The top four applied skills gaps were critical thinking/problem-solving (40%), professionalism/work ethic (38%), leadership (34%) and written communications (27%).
One-fifth (20%) of organizations indicated no applied skills gaps exist for their job applicants. More than one-half of organizations in the health care and social assistance industry indicated that their job applicants lack critical thinking/problem-solving skills and professionalism/work ethic (54% and 53%, respectively). Close to one-half (47%) of organizations in the accommodation and food services, retail/wholesale trade industry also indicated that their job applicants lack professionalism/work ethic.