1. SHRM Survey Findings: 2014 Economic Conditions—
California Recruiting and Skills Gaps
October 30, 2014

2. • This is Part 2 of the California results from 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. California and U.S. results are
compared, and statistically significant differences are indicated in separate slides in the report.
• California 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 (including industry-specific information) for 2013 can be found on our website at
http://www.shrm.org/research/surveyfindings/articles/pages/shrmpolltheongoingimpactoftherecessio
n.aspx
Economic Conditions—California Recruiting and Skills Gaps ©SHRM 2014 2
Introduction

3. • Is recruiting for specific jobs difficult in California? About one-half (52%) of organizations in
California indicated that they have had difficulty recruiting for full-time regular positions in the past
12 months.
• Among organizations experiencing difficulty in hiring qualified candidates, what are the
reasons? The top reasons California organizations have experienced difficulty in hiring for full-time
regular positions were similar to those for the rest of the U.S.: About one-half indicated that
candidates lack the right technical skills (54%) and the needed work experience (52%), and one-half
reported competition from other employers (50%).
» Compared with the rest of the U.S., organizations in California were less likely to indicate that
they have experienced difficulty in hiring for full-time regular positions because candidates do
not have the needed credentials/certifications or qualified candidates are not interested in
moving to their local area.
• What types of jobs are the most difficult to fill? Similar to the rest of the U.S., the top five most
difficult positions to fill overall were highly skilled positions: scientists (74%), engineers (71%),
managers and executives (71%), IT/computer specialists (70%) and high-skilled medical (e.g.,
nurses, doctors, specialists) (69%).
» Compared with the rest of the U.S., organizations in California were more likely to find it very
difficult to fill educators in full-time regular positions but very easy to fill hourly laborers. U.S.
organizations were more likely to find it very easy to recruit for skilled trade positions.
Economic Conditions—California Recruiting and Skills Gaps ©SHRM 2014 3
Key Findings

4. Key Findings (continued)
• What basic skills/knowledge gaps do job applicants in California typically have? Writing in
English (30%), basic computer skills (24%), English language (spoken) (21%), reading
comprehension (15%) and mathematics (computation) (12%) were the most common skills gaps.
» About two-fifths (42%) of California organizations indicated there were no basic
skills/knowledge gaps for their job applicants, the same as the rest of the U.S.
» Compared with the rest of the U.S., organizations in California were less likely to report that
job applicants lack basic computer skills.
• What applied skills gaps do job applicants in California typically have? The top three applied
skills gaps were critical thinking/problem-solving (36%), professionalism/work ethic (32%) and
leadership (29%).
» Only about one-fourth (23%) of California organizations indicated no applied skills gaps exist
for their job applicants.
Economic Conditions—California Recruiting and Skills Gaps ©SHRM 2014 4

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 U.S., 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, at some level, a
skills mismatch exists between some job seekers and open positions, and this is also inhibiting widespread
job growth in the California and U.S. economies.
• 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 the California and overall U.S.
survey cited competition from other employers, and two out of five California respondents—compared with
37% in the overall U.S.—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—California Recruiting and Skills Gaps ©SHRM 2014 5

6. Percentage of Organizations Having Difficulty Recruiting for
Full-Time Regular Positions in the Last 12 Months
52%
50%
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—California Recruiting and Skills Gaps ©SHRM 2014 6
California (n = 516)
United States
(n = 2,988)

7. Main Reasons That Organizations Have Experienced Difficulty
in Hiring for Full-time Regular Positions
California (n = 253) United States (n = 1,417)
Note: Respondents who answered "don't know" were excluded from this analysis. Percentages may 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—California Recruiting and Skills Gaps ©SHRM 2014 7
Candidates do not have the right
technical skills
54% 50%
Candidates do not have the needed
work experience
52% 50%
Competition from other employers 50% 50%
Candidates do not have the right
professional skills
42% 39%
Low number of applicants 42% 43%
Qualified candidates reject
40% 37%
compensation package
The local market is not producing
enough work-ready/qualified job
candidates
39% 40%
Candidates do not have the right
workplace (soft) skills
32% 27%
Candidates do not have the right
basic skills
22% 22%
Candidates do not have the needed
credentials/certifications
22% 29%

8. Main Reasons That Organizations Have Experienced
Difficulty in Hiring for Full-Time Regular Positions (continued)
California (n = 253) United States (n = 1,417)
Candidates are overqualified 18% 15%
Qualified candidates are not
interested in moving to our local
area
16% 26%
Note: Respondents who answered "don't know" were excluded from this analysis. Percentages may 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—California Recruiting and Skills Gaps ©SHRM 2014 8
Qualified candidates are not able to
move to our local area (due to
mortgage or other issues)
15% 12%
Candidates do not have the needed
training
13% 16%
Candidates do not have high
enough levels of education
12% 15%
Lack of interest in type of job 11% 16%
Qualified candidates reject benefits
9% 8%
package
Our organization does not provide
relocation funds
9% 11%
Other 10% 7%

9. Main Reasons That Organizations Have Experienced Difficulty
in Hiring for Full-Time Regular Positions
Note: Only statistically significant differences are shown. California responses were excluded from the United States group for this analysis.
Economic Conditions—California Recruiting and Skills Gaps ©SHRM 2014 9
United States—California Comparison
• Organizations in California are less likely to indicate that they have experienced difficulty in hiring for full-time regular
positions because candidates do not have the needed credentials/certifications compared with the rest of the U.S.
• Organizations in California are less likely to indicate that they have experienced difficulty in hiring for full-time regular
positions because qualified candidates are not interested in moving to their local area compared with the rest of the
U.S.
Candidates do not have the needed credentials/certifications
California (22%) < United States (30%)
Qualified candidates are not interested in moving to local area
California (16%) < United States (27%)

10. Organizations Having Difficulty Filling Certain Job Categories for
Full-Time Regular Positions over the Last 12 Months
74%
67%
71%
72%
71%
65%
70%
69%
69%
60%
55%
55%
54%
54%
51%
48%
49%
69%
63%
45%
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. Figure represents those who answered “very difficult” and
“somewhat difficult.”
Economic Conditions—California Recruiting and Skills Gaps ©SHRM 2014 10
Scientists
Engineers
Managers and executives
IT/computer specialists
High-skilled medical
High-skilled technicians
Skilled trades
Sales representatives
Lawyers, judges and legal support workers
HR professionals
California
(n = 19-284)
United States
(n = 195-
1,721)

11. Organizations Having Difficulty Filling Certain Job Categories for Full-
Time Regular Positions over the Last 12 Months (continued)
46%
42%
39%
38%
36%
29%
23%
22%
19%
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. Figure represents those who answered “very difficult” and
“somewhat difficult.”
Economic Conditions—California Recruiting and Skills Gaps ©SHRM 2014 11
13%
46%
30%
42%
34%
35%
34%
22%
22%
21%
14%
Community and social service workers
Protective service workers
Educators
Drivers
Accounting and finance professionals
Production operators
Customer service representatives
Hourly laborers
Hourly service workers
Administrative support staff
California
(n = 19-284)
United States
(n = 195-
1,721)

12. Organizations Having Difficulty Filling Certain Job Categories for
Full-Time Regular Positions over the Last 12 Months
Note: Only statistically significant differences are shown. California responses were excluded from the United States group for this analysis.
Economic Conditions—California Recruiting and Skills Gaps ©SHRM 2014 12
United States—California Comparison
• In the last 12 months, organizations in California were more likely to find it very difficult to fill positions for full-time
educators (e.g., teachers, professors) compared with the rest of the U.S.
• In the last 12 months, organizations in California were more likely to find it very easy to fill positions for hourly
laborers compared with the rest of the U.S.
• In the last 12 months, organizations in California were less likely to find it very easy to fill positions for skilled trades
(e.g., electricians, carpenters, machinists, mechanics, welders, plumbers) compared with the rest of the U.S.
Very Difficult—Educators (e.g., teachers, professors)
California (21%) > United States (8%)
Very Easy—Hourly Laborers
California (47%) > United States (35%)
Very Easy—Skilled Trades
California (5%) < United States (12%)

13. Basic Skills/Knowledge Gaps Job Applicants Had in the Last
12 Months
42%
30%
24%
21%
15%
12%
9%
7%
Note: Respondents who answered "don't know" were excluded from this analysis. Percentages do not equal 100% due to multiple response options.
Economic Conditions—California Recruiting and Skills Gaps ©SHRM 2014 13
5%
3%
42%
26%
31%
17%
16%
15%
7%
6%
4%
2%
None
Writing in English
Basic computer skills
English language (spoken)
Reading comprehension in English
Mathematics (computation)
Spanish language
Science
Foreign languages (except Spanish)
Other
California (n = 435)
United States (n = 2,441)

14. Basic Skills/Knowledge Gaps Job Applicants Had in the Last
12 Months (continued)
Note: Only statistically significant differences are shown. California responses were excluded from the United States group for this analysis.
Economic Conditions—California Recruiting and Skills Gaps ©SHRM 2014 14
United States—California Comparison
• In the last 12 months, organizations in California were less likely to report that job applicants lack basic computer
skills (e.g., using a mouse, typing, opening/closing/saving files, terminology, accessing the Internet) compared with
the rest of the U.S.
Basic Computer Skills
California (24%) < United States (32%)

15. Applied Skill Gaps Job Applicants Had in the Last 12 Months
23%
32%
29%
25%
24%
20%
22%
22%
18%
14%
13%
14%
14%
12%
8%
4%
34%
27%
25%
20%
13%
12%
3%
Note: Respondents who answered "don't know" were excluded from this analysis. Percentages may not equal 100% due to rounding.
36%
40%
38%
Economic Conditions—California Recruiting and Skills Gaps ©SHRM 2014 15
None
Critical Thinking/Problem-Solving
Professionalism/Work Ethic
Leadership
Written Communications
Oral Communications
Teamwork/Collaboration
Application of Information and Communications Technology
(ITC)
Lifelong Learning/Self-Direction
Creativity/Innovation
Ethics/Social Responsibility
Diversity
Other
California (n = 451)
United States (n = 2,583)

16. California Demographics
Economic Conditions—California Recruiting and Skills Gaps ©SHRM 2014 16

17. Demographics (CA): Organization Industry
Professional, scientific, and technical services 16%
Accommodation and food services, retail/wholesale trade 11%
Health care and social assistance 11%
Manufacturing 11%
High-tech 10%
Other industry 9%
Government agencies 9%
Finance, insurance, real estate and rental and leasing 8%
Educational services 7%
Construction, mining, quarrying, and oil and gas extraction 6%
Note: n = 572. Percentages do not equal 100% due to multiple response options.
Percentage
Economic Conditions—California Recruiting and Skills Gaps ©SHRM 2014 17

18. Demographics (CA): Organization Sector
Economic Conditions—California Recruiting and Skills Gaps ©SHRM 2014 18
Note: n = 572. Percentages do not equal 100% due to rounding.
49%
22%
17%
11%
Privately owned for-profit
Publicly owned for-profit
Nonprofit/not-for-profit organization
Government

19. Demographics (CA): Organization Staff Size
Economic Conditions—California Recruiting and Skills Gaps ©SHRM 2014 19
n = 504
28%
30%
20%
15%
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

20. n = 535
Demographics (CA): Other
Economic Conditions—California Recruiting and Skills Gaps ©SHRM 2014 20
U.S.-based operations only 67%
Multinational operations 33%
Single-unit organization: An organization
in which the location and the organization
are one and the same.
30%
Multi-unit organization: An organization
that has more than one location.
70%
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 = 542
n = 398

21. 21
SHRM Survey Findings
Survey Methodology
• 3,655 HR professionals participated in this survey from a randomly selected sample of SHRM’s
membership from the entire United States and an additional random sample from California
• U.S. respondents (including CA) = 3,335, response rate = 13%, margin of error = +/-2%
• CA respondents = 572, response rate = 10%, margin of error = +/-4%
• Survey fielded December 16, 2013 - January 16, 2014
Economic Conditions—California Recruiting and Skills Gaps ©SHRM 2014

22. Additional SHRM Resources
• SHRM California Resources
» http://www.shrm.org/hrdisciplines/pages/california.aspx
• 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.asp
x
• SHRM’s Workforce Readiness Resource Page
» http://www.shrm.org/hrdisciplines/staffingmanagement/articles/pages/workforcereadiness.asp
x
• 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—California Recruiting and Skills Gaps ©SHRM 2014 22

23. About SHRM Research
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—California Recruiting and Skills Gaps ©SHRM 2014 23
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

24. 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—California Recruiting and Skills Gaps ©SHRM 2014 24
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