Employer Experience and Expectations: Finding, … and Keeping Qualified Workers ... the survey...

Employer Experiences and Expectations:

Finding, Training, and Keeping Qualified Workers

Report Prepared by: Rebecca Perron, PhD

May 2011

COPYRIGHT © 2011AARP

Research & Strategic AnalysisAll Rights Reserved

601 E Street, NWWashington, DC 20049

D19555 www.aarp.org/research

AARP Foundation is AARP’s affiliated charity. The Foundation is dedicated to serving vulnerable people 50+ by creating solutions that help them secure the essentials and achieve their best life. AARP Foundation focuses on: hunger, housing, income and isolation as our key mission areas. The Foundation envisions: ‘a country free of poverty where no older person feels vulnerable.’ Foundation programs are funded by grants, tax-deductible contributions and AARP. For more information about AARP Foundation, please log on to www.aarp.org/foundation.

This research was funded by a grant from The Bill and Melinda Gates Foundation.

The author would like to acknowledge the following AARP staff for their input: Deborah Russell, Sara Rix, David Whitehead, Jennifer Leslie, Jeff Love, and S. Kathi Brown.

All media inquiries about this project should be directed to AARP’s Media Relations at (202) 434-2560. Inquiries about the survey instrument or additional information about the report should be directed to Rebecca Perron at (202) 434-6324 or [email protected].




www.aarp.org/research

D19555


Finding, Training, and Keeping Qualified WorkersReport Prepared by: Rebecca Perron, PhD May 2011

Table of Contents

Executive Summary 3

Key Findings 4

Finding Qualified Workers: Past, Present… 6

…and Future 9

Employee Skill Sets 12

Employee Degree Requirements 16

Training and Recruiting Workers 20

The Effect of Baby Boom Retirees 28

Conclusion 32

Appendix 1: Survey Methodology 33

Appendix 2: Annotated Survey 35

3

Executive Summary and Key Findings

The graying of the labor force, together with the recession of 2008-2010, has forced employers and prognosticators to take a hard look at workforce preparation, training, and planning.

This employer research survey is one component of a larger project that explores the workforce, labor force projections, and employer views on training, preparedness, and recruiting workers. Survey questions were developed after qualitative research with employers. An in-depth employer bulletin board was conducted in early 2010 to determine what employer experiences were in relation to these issues, which then guided us to the survey items on this questionnaire.1 The bulletin board, together with this survey, aimed to put the objective data on labor force projections in a “real world” context, highlighting what human resource managers say they experience.

Given that previous studies related to labor force projections indicate potential for workforce shortages and that education projections showed a potential shortage of educated persons by degrees, we expected that employers would indicate a difficulty finding well-prepared workers. Further, we expected that some of the effects of the recession would lead to fewer training opportunities for incumbent workers. Results from the survey, however, using the day-to-day experience of human resources managers, do not support these hypotheses.

The questionnaire covers a number of areas related to workforce planning, qualifications, recruitment, and maintenance of a skilled labor force. Results show that employers are not overly concerned about finding qualified workers. They have not had a great deal of difficulty in the past and do not foresee a problem in the future. Although they place an emphasis on basic and industry-specific skills, they have not seen a large drop in the quality of workers with these skills in the past 5-10 years. Employers are cognizant of and concerned about the institutional knowledge loss that may happen when their older workers retire, but they appear to be prepared to offset this loss with knowledge transfer programs and by retaining older workers.

Training opportunities for incumbent workers are at levels similar or greater than five years ago, yet these trainings are more related to legal requirements, certification, and licensure than 5-10 years prior. In order to develop and recruit a qualified workforce, employers are turning to traditional and community colleges, as well as vocational schools.

Smaller employers (fewer than 500 employees) indicate less difficulty in finding skilled workers, more dissatisfaction with current new hires, fewer training opportunities, and fewer relationships with outside schools to train and recruit workers.

This survey of 1003 human resource directors was fielded from May through July 2010. Responses were equally distributed across four company sizes: 20-99 employees, 100-499 employees, 500-999 employees, and 1000+ employees and results were weighted to national data by size of company. Respondents were asked about their company’s hiring practices, training, skill needs, and quality of job applicants, both before and since the recession. We also explored their expectations for the future.

1 A bulletin board is designed with a small group of employers (approximately 30) and allows them to answer general questions in-depth and to respond to other bulletin board discussants.

4 AARP Foundation

Key Findings

n Finding skilled workers is not a problem for the majority of employers. Approximately one-fifth of the respondents have had difficulty finding sufficient numbers of skilled workers both before and after the start of the recession (21 percent and 17 percent, respectively). Although slightly more employers had difficulty before the recession started, this difference is not significant. Further, it appears that smaller employers (20-99 employees) had less trouble than larger employers finding skilled workers before the recession started (19 percent versus 30 percent for employers of both 500-999 and 1000+ employees). Since the start of the recession, employers of 500-999 employees have had the most trouble finding skilled workers (25 percent versus 17 percent for employers of 20-99, 100-499, and 1000+ employees).

n Among the skills most important to employers are communication; people skills; basic reading, writing, and arithmetic; and industry-specific skills. In fact, more than nine in ten respondents indicate that the above-mentioned skills are very or somewhat important to their organization. Moreover, employers also say that they do not have great difficulty finding applicants with these important skills. Larger businesses (those with more than 500 employees) are more likely to say that these skills are very or somewhat important to their companies than smaller businesses (20-499 employees) and more likely to say it is very or somewhat difficult to find applicants with these skills.

n As might be expected, across all industries there is not one particular level of degree that is most preferred or required for positions (high school diploma, bachelor’s degree, master’s degree, etc), though 81 percent say that a high school diploma or GED is required for all or most positions. Employers do indicate, however, that they are still likely to hire workers who may lack the level of degrees typically required for the position, provided their experience or other training makes them suitable for the job. Only 21 percent indicate that the applicant must have the required level or type of degree. Smaller companies (20-99 employees) are most likely to say that they sometimes or often waive the required level of degree.

n Seven in ten of the employers surveyed have “no preference” between traditional and online college degrees, while 27 percent say that their organizations prefer traditional college degrees, and none say online degrees are preferred. For those who do prefer traditional degrees, reasons include that requirements and standards for traditional degrees are well-known, traditional colleges require interaction, and traditional colleges produce students with needed qualifications. Larger companies (500-999 and 1000+ employees) were more likely to state a preference for traditional degrees.

n Employers do not expect to have much difficulty finding qualified workers in the future. More than half say that they expect it will be not very or not at all difficult. Those employers who expect to have difficulty finding qualified workers attribute it to inability to offer competitive salaries, difficulty luring qualified applicants from their current jobs, and competition from other employers when the economy fully rebounds. Larger employers (500-999 and 1000+ employees) expect more difficulty finding qualified workers over the next 5-10 years (versus smaller employers of 20-99 and 100-499 employees).

5Employer Experiences and Expectations

n When asked to compare new hires today versus those from five years ago, employers primarily say that new hires are similar in turnover, qualifications, preparation, and communication skills. New hires are more technologically savvy, but 40 percent of employers say they have a worse work ethic than their counterparts from five years ago. Small employers (20-99 employees) are more likely to say that current new hires are less qualified, less prepared, and have a worse work ethic than new hires from five years ago.

n Almost two-thirds of employers are very or somewhat concerned about losing critical knowledge and experience as older workers retire. Smaller companies (20-99 employees) are less concerned (41 percent) than companies with more than 100 employees. Businesses plan to mitigate this loss by employing several tactics, including keeping retirement-aged workers on staff in a part-time or consulting capacity, using a knowledge transfer program, having a formal succession plan for critical positions, and enticing older workers to remain longer as full-time employees. Larger companies (500+ employees) are more likely to use a knowledge transfer program or formal succession program than companies with fewer than 500 employees.

n Employers continue to offer training to employees at levels at least similar to, if not greater, than they did in the past. However, this training is more likely to be needed for required professional training, occupational safety, and certifications than for basic skills. Approximately seven in ten businesses offer specific technical or professional skills training and supervisory skills training and eight in ten offer occupational safety training.

n Where training has decreased in the past 5-10 years, the primary reason has been due to a decrease in funding (77 percent). The primary reasons given for increased training have been regulatory and compliance requirements, rapid technological change, and as a benefit to retain employees. Smaller companies (20-99 employees) are less likely to offer any on-the-job or other training to their workers.

n Employers are using relationships with various entities to help train and recruit qualified workers. Businesses are most likely to have relationships with traditional colleges, community colleges, and vocational schools in order to help train workers or develop courses that produce skilled workers. Similarly, more than three in ten businesses also use these sources to recruit qualified workers, although employers are most likely to have relationships with job-listing websites for recruiting workers (61 percent). The smallest employers (20-99 employees) are less likely to have any relationships for training and recruiting qualified workers.

6 AARP Foundation

Finding Qualified Workers: Past, Present, and Future

This survey explores how employers define qualified workers as well as their level of difficulty finding and hiring these qualified workers. Is their level of difficulty higher or lower now than it was before the recession? What qualities are most important to employers? Further, in light of the recession and potential retirements in their workforce, do they suspect that finding qualified workers will be a problem in the future and, if so, why?

Past, Present,…

Approximately one in five employers had trouble finding sufficient numbers of workers with the skills they needed both before and during the recession. Although slightly lower numbers of employers had trouble finding workers since the recession started (17 percent since versus 21 percent before), this difference is not significant (see Chart 1).

Smaller employers with 20-99 employees had fewer troubles finding skilled workers before the recession started (19 percent versus 30 percent for employers of both 500-999 and 1000+ employees). Since the start of the recession, employers of 500-999 employees had the most trouble finding skilled workers: 25 percent versus 17 percent for employers of 20-99, 100-499, and 1000+ employees (not shown).

Chart 1: Difficulty finding sufficient numbers of skilled workers pre- and post-recession (In percent; n=1003)

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77

17

81

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Yes No

Before recession

Since recession

Source question: “Before/Since the recession started, had/has your organization been having trouble finding sufficient numbers of workers with the skills you need to do your business?”


Some comments from the respondent bulletin boards include:2

“We have actually been overwhelmed with candidates that were working in a different industry and because of their current work situation are forced to fall back on skills that they have not used in years.”

“Due to the current economic climate we have too many prospective employees with the skills that meet and at times exceed our needs.”

“There is no shortage of applicants when we open a position, but you still have to work to find the more qualified candidates with the appropriate skills and experience.”

As seen in Chart 2, employers also indicated that, when they were having difficulty finding sufficient numbers of employees, the problem did not apply to all positions in the business. In fact, both before and after the recession, employers overwhelmingly indicated (68 percent before the recession; 70 percent since the recession) that the problem only applied to some positions.

Chart 2: Positions affected by difficulty finding sufficient numbers of workers pre- and post-recession (In percent)*

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14 13

5

70

11 12 6

0

10

20

30

40

50

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70

80

Some positions

Many positions

Most positions

All positions

Before recession (N=214)

Since recession (N=174)

Source question: “And would you say that your organization has/had experienced these troubles for…” *Base: Those who indicate difficulty finding skilled workers in previous question.

“It really depends on the position. For our more technical positions – engineering positions that are specific to our industry – then yes. For more ‘run of the mill’ positions – HR, Accounting, Finance, Customer Management, Materials, etc – we have not had issues.”

2 All quotes contained in the report are derived from the employer bulletin boards that were conducted in advance of the employer survey.

8 AARP Foundation

Employers for whom finding sufficient numbers of workers has not been a problem indicate that the recession has impacted their need for new workers in general. Specifically, these employers cite the following reasons for the lack of difficulty finding workers: the company has not been doing much hiring due to slow business or for budgetary reasons (40 percent major reason; 20 percent minor reason), the poor economy has resulted in a large applicant pool (39 percent major reason; 27 percent minor reason), and the business has fewer job openings because the poor economy has resulted in less turnover (39 percent major reason; 27 percent minor reason)(see Chart 3).

Chart 3: Reasons why employers have not had difficulty finding sufficient numbers of workers since the recession began (In percent; n=813)*

0.5

4

39

39

40

6

14

27

27

20

94

82

33

34

39

0 10 20 30 40 50 60 70 80 90 100

Organization has decided to offshore jobs

Organization has used more contract or temporary workers

The poor economy has resulted in a large applicant pool

Organization has fewer job openings

Organization has not been doing much hiring

Not a reason

Minor reason

Major reason

Source question: “For each of the following, please indicate whether it is a major reason, a minor reason, or not a reason at all that your organization has not had trouble finding qualified workers?”

*Base: Respondents who indicate they have not had trouble finding qualified workers since the recession started

“With all the people looking for jobs, I am finding that everyone and anyone is applying for the positions that we have opened. It is difficult to go through each and every application; it slows the process down.”

“In our business, finding a sufficient number of workers hasn’t been a problem. In our organization, top management has put restraints on hiring because of the state of the economy, but still wants production to outperform with less.”


…and Future

Employers do not anticipate having great difficulty finding qualified workers in the near future (5-10 years) (see Chart 4). Only six percent indicate that they think it will be very difficult to find qualified workers, while 37 percent think it will be somewhat difficult. More than half of the sample (55 percent) think that it will be not very (29 percent) or not at all difficult (26 percent). Larger employers (500+ employees) expect more difficulty finding qualified workers over the next 5-10 years than smaller employers (20-499 employees) (not shown).

Those who thought they would have some difficulty expected it for both supervisory/management positions (50 percent) and non-supervisory/management (59 percent) positions (Chart 5).

Chart 4: Anticipated difficulty finding qualified workers over the next 5-10 years (In percent; n=1003)

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37

29 26

0

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25

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40

Very difficult Somewhat difficult

Not very difficult

Not at all difficult

Source question: “Would you say that it will be very difficult, somewhat difficult, not very difficult, or not at all difficult to find qualified workers over the next 5 to 10 years?”

Chart 5: Difficulty finding qualified workers in the next 5-10 years by type of position (In percent; n=430)*

50

59

44 46 48 50 52 54 56 58 60

Supervisory or management positions

Non-supervisory and non-management positions

Source question: “For which of the following types of positions do you anticipate problems?” * Base: Respondents who indicate that it will be very or somewhat difficult to find qualified workers in the next 5-10 years in the previous question.

10 AARP Foundation

Although most employers do not anticipate having difficulty finding qualified workers over the next 5 to 10 years, Chart 6 shows that employers who foresee difficulty in finding qualified workers over the next 5-10 years say it will be due to highly qualified employed persons not wanting to leave stable jobs (38 percent major reason; 39 percent minor reason), difficulty offering competitive salaries (37 percent major reason; 40 percent minor reason), and competition from other employers when the economy improves (34 percent major reason; 39 percent minor reason).

Chart 6: Reasons that employers anticipate difficulty finding qualified workers in the next 5-10 years (In percent; n=1003)

38 37 34

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18 18

39 40 39 42

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45

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31

44

35

0

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Qualified workers do not want to leave

stable jobs

Difficult to offer competetive

salaries

Competition for workers with

better economy

Qualified workers are not interested in the

jobs that your organization offers

Insufficent applicant pool

due to retirements

Applicant pool is not very qualified

Major reason

Minor reason

Not a reason at all

Source question: “I’m going to read a list of possible reasons why it might be difficult to find qualified workers over the next 5 to 10 years, for each, please indicate if you think it will be a major reason, a minor reason, or not a reason for finding qualified workers.”

“Although we have a flood of applications, the employees we want are still working and don’t want to leave a stable job for an unknown when the market is struggling.”

“I think in the very near future the issue we will have – as the market improves and jobs become available – is not only multiple openings in our organization due to growth, but also due to turnover from employees leaving for other opportunities.”

“…Not being able to offer new recruits a better salary in these tough economic times. This is a current problem and it looks to be this way for the next couple of years.”


When considering future workforce needs, employers say that they plan to find the workers they need through the traditional methods, such as retaining current employees (96 percent) and word-of-mouth (93 percent) (see Chart 7). At least two-thirds of the respondents also say that they would use job websites (79 percent); recruit from colleges, universities, and vocational schools (68 percent); and tap into professional associations (66 percent).

The smallest employers (20-99 employees) most commonly use the informal methods, such as word-of-mouth (93%) and retaining current employees (96%). Larger employers are much more likely than the smallest employers to use more formal approaches, such as using professional associations, recruiting from schools, and job websites (not shown).

Chart 7: Plans to get needed workers (In percent; n=1003)

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13

41

59

63

66

68

79

93

96

0 20 40 60 80 100

Offshore work

Look internationally for talent

Offer better benefits

Social media and networking sites

Newspapers and magazines

Professional associations

Recruit from colleges, universities, and vocational schools

Job websites

Word-of-mouth

Attempt to retain current employees

Source question: “What do you plan to do to get the workers you need?”

“We will continue to source from various resources: online boards, job fairs, networking sites, professional groups, internal job postings, and industry recruiting websites.”

“Position the company as an attractive employer with competetive compensation.”

“We will continue our current recruiting from the local high schools and the vocational schools.”

“We are already placing more emphasis in ensuring employee engagement in an effort to retain employees.”

12 AARP Foundation

Employee Skill SetsEmployers indicate that communication skills (81 percent); basic skills such as reading, writing, or arithmetic skills (78 percent); and people skills (78 percent) are very important to their organizations (see Chart 8). Almost seven in ten (68 percent) indicated that industry-specific skills are very important, followed by computer/information technology skills (43 percent), and analytical skills (38 percent).

Larger businesses with more than 500 employees are more likely to say that these skills very or somewhat important than smaller businesses (20-499 employees) and are more likely to say that it is very or somewhat difficult to find applicants with these skills (not shown).

Chart 8: Importance of selected skills (In percent; n=1003)

81 78 78

68

43 38

33 29

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16 18 18 22

41 46

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Communica

tion sk

ills

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skills

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skills

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skills

Computer/

IT sk

ills

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ills

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ills

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t or s

uper

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skills

Fluen

cy in

a fore

ign la

nguag

e

Very important

Somewhat important

Not very important

Not at all important

Source question: “How important are the following skills to your organization?”

“A mixture of an operation skill set along with people skills…”

“People with everyday common sense…”

“We are all looking for life skills that enable employees to have tact, discernment, and understanding of how to react to different situations and people. And we are also looking for adaptability.”


Chart 9 (below) shows that most employers find it difficult to find applicants with specialized industry skills. More than half of the respondents (52 percent) say it is very or somewhat difficult to find these applicants. The chart also shows that more than two in five find it very or somewhat difficult to find applicants with people skills (43 percent), analytical skills (43 percent), and management or supervisory skills (41 percent).

Chart 9: Difficulty finding applicants with selected skills (In percent; n=1003)

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6 5 5 5 4 4 3 3

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Industry

skills

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skills

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skills

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Communica

tion sk

ills

Computer/

IT sk

ills

Basic

skills

Very difficult

Somewhat difficult

Not very difficult

Not at all difficult

Source question: “Would you say that it has been very difficult, somewhat difficult, not very difficult, or not at all difficult to find job applicants with…”

“The most difficult thing for our company has been that we would like them to have skills in all phases of mechanical contracting. Most of our recruits are proficient in some areas, but need to train in other phases.”

“Some don’t have what it takes to do even a simple task such as keeping a security log for their hours worked – a diary of their shift, if you will.”

14 AARP Foundation

As seen in Charts 10 and 11, employers feel that the new hires today are more technologically savvy (71 percent) than their counterparts from 5 years ago, yet most employers say new hires are about the same in turnover (48 percent), qualifications (69 percent), preparation (51 percent), and communication skills (61 percent). While 48 percent of employers feel that new hires have about the same work ethic as five years ago, still 40 percent feel that their work ethic is worse than those hired five years ago.

Compared to the larger employers (with more than 100 employees), small employers (20-99 employees) are more likely to say that current new hires were less qualified (10 percent), less prepared (25 percent), and have a worse work ethic (41 percent) than new hires from 5-10 years prior (not shown).

Chart 10: How new hires compare to hires from five years ago in selected characteristics (In percent; n=1003)

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22 21 19

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26 24

8

24

48 51

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Techonological savvy Turnover Preparation Qualified

More

Less

About the same

Source question: “In general, how do your organization’s new hires today compare to those five years ago?”


Chart 11: How new hires compare to hires from five years ago in selected characteristics (In percent; n=1003)

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Communication skills Work ethic

Better

Worse

About the same

Source question: “In general, how do your organization’s new hires today compare to those five years ago?”

“I think today’s workers are savvier than they have been in the past. They seem to possess more than technical skills. I have found this new crop of workers to be, for the most part, prepared.”

“(Some) new hires come in with a sense that the company should be constructed around their interests. What a lot of them have not learned is a good work ethic.”

“People who were hired 5 to 10 years ago are more seasoned and experienced employees. The skills and aptitudes of new hires today are mediocre – most are still growing, living at home, and have not had a lot of work experience.”

“The skill set is definitely more technologically inclined than in past years but I feel that the grammar aptitude was much higher 5 years ago than the new hires of today.”

16 AARP Foundation

Employee Degree RequirementsAlthough it is understood that the level of degree (meaning high school diploma or GED, associate’s degree, bachelor’s degree, etc.), would not be uniform across all job types and industries, we did want to see what share of positions required certain degrees. Further, while a certain degree may be required from a training and education perspective, we also wanted to determine if concessions are made by substituting experience for those degrees.

With the proliferation of computer and internet use, online learning opportunities have become more prevalent. We wanted the employers’ view on the value that they may place on a traditional college or university degree versus an online degree.

Chart 12: Requirement of degrees or certifications for positions (In percent; n=1003)

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6 5 1

5

16 11

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4

14 12

59 57

38

50

8

24 23

56

31

0

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20

30

40

50

60

70

High school diploma/GED

Associate's degree/2-year

Bachelor's degree/4-year

Advanced degree (JD, PhD,MA)

Certification program

All positions

Most positions

Some positions

No positions

Source question: “As I read each of the following degrees or certifications, please indicate whether your organization requires it for all, most, some or no positions.”

The most common level of degree required for most positions in an organization is a high school diploma or GED (65 percent for all positions and 16 percent for most positions)(see Chart 12).

Results did show that, although certain levels of degrees are required for positions, employers are willing to forego these requirements in favor of experience or other training. As seen in Chart 13 (below), only 21 percent of employers say that applicants must have the degree.

As shown in Chart 13, more than three-quarters of employers allow substitution of training or experience, rarely (27 percent), sometimes (40 percent), or often (9 percent). Smaller companies (20-99 employees) were most likely to say that they sometimes or often waived the degree requirement (not shown).


Chart 13: Substitution of experience and training for required degrees (In percent; n=1003)

21 27

40

9

0

10

20

30

40

50

No, they must have degrees

Yes, but it is rare Yes, sometimes Yes, often

Source question: “Has your organization ever hired workers who lack the degrees you typically require but whose experience or other training appears to make them well suited for the job?”

“Yes and no, because we are an academic environment, higher education is favored. Many of our administrative positions require a degree or an equivalent of work-related experience.”

“Yes, we have different licenses that set individuals apart from each other and in different fields. Our industry has a lot of different certifications that are needed…”

We are all hung up on degrees, but relevant experience, intelligence, and the ability to play nice matter much more.”

“If I have 2 or 3 candidates with the same skills and aptitude, the one with the degree is getting the position.”

18 AARP Foundation

Although more than one-quarter (27 percent) of employers prefer that applicant and employee degrees come from a traditional college or university, 71 percent have no preference between traditional and online programs (see Chart 14). While no employers say they would prefer an online to a traditional degree, it is encouraging for non-traditional learners that 71 percent show no bias between the two.

Not shown in our chart is that smaller companies are more likely to state that they had no preference between online and traditional degrees. Although 76 percent and 67 percent of smaller companies (20-99 and 100-499 employees, respectively) state no preference, 51 percent and 58 percent of larger companies (500-999 and 1000+ employees, respectively) have no preference. Conversely, 22 percent and 30 percent of smaller companies prefer a traditional degree, while 46 and 38 percent of larger companies prefer a traditional degree.

Chart 14: Preferred traditional college or university degree (In percent; n=1003)

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71

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Traditional colleges and universities

Online colleges and universities

No preference It depends

Source question: “And now, thinking only about college degrees, in general, which of the following types of institutions does your organization prefer that job candidates have college degrees from?”

“…Online degrees cause me to pause because of the lack of face-to-face contact and the inability for a student to work in a team environment.”

“In our line of work, it has to be hands on. Online degrees are not going to work; they do not have the hands-on experience.”

“I do not have a preference over one or the other. People have different learning styles and as long as they have the education and can communicate that, I am satisfied.”


When they did prefer traditional colleges or universities, employers indicated that the most common reasons were that traditional colleges and universities produce students with the qualifications that the business needs (93 percent), they require interaction and communication (92 percent), they have requirements and standards that are well known (91 percent), and that individuals gain people skills at traditional institutions (90 percent) (see Chart 15).

Small companies with 20-99 employees that prefer traditional colleges (not shown) are far more likely to attribute this preference to the higher admission standards relative to online programs (91 percent versus 67 percent for companies of size 100-499; 65 percent for companies of size 500-999; and 68 percent for companies of size 1000+) (not shown).

Chart 15: Reasons why employers prefer traditional colleges or university degrees to online degrees (In percent: n=266)*

93 92

91 90

78

70

75

80

85

90

95

Produce students with the

qualifications you need

Require interaction and communication

Requirements and standards are well-known

Individuals gain people skills

Admission standards are

higher

Source question: “Why does your organization prefer degrees from traditional colleges/universities?” *Base: Respondents who indicate that their business prefers traditional college degrees in previous question.

“There is no interaction in person with others. Verbal communications are shared and therefore are an attribute when dealing with customers. In addition, answers may be easily checked online versus traditional college, [where] you have to think on your feet.”

“Degrees from traditional colleges have a much higher perceived value because they are known entities. We want achievers in our company and achievers successfully attend traditional colleges.”

“Because colleges and universities offer good educations and off-campus people skills.”

“…There are a lot of fly-by-night programs out there where the curriculum is less than rigorous and you’re essentially paying a fee in exchange for the granting of a degree.”

20 AARP Foundation

Training and Recruiting WorkersWorkers may be offered a myriad of training opportunities that range from full-semester college courses to regulated safety training in-house. This section explores the types of training offered to workers and poses some questions: Has it increased or decreased from past levels and why? Also, what motivates a company to offer a certain type of training? Do companies have relationships with learning centers to train or recruit well-qualified employees?

Employers still offer various types of training to their workers, both for basic skills and professional development. The most common types of training for workers are occupational safety training (80 percent), technical or professional skills (72 percent), and supervisory or management training skills (69 percent)(see Chart 16). Still, more than half of those employers surveyed also offer computer or IT training (62 percent), required professional training (58 percent), formal courses toward a degree or certification (55 percent), and communication skills training (51 percent).

Chart 16: Job training offered to workers (In percent; n=1003)

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11

20

23

37

38

51

55

58

62

69

72

80

0 10 20 30 40 50 60 70 80 90

Foreign language training

English as a second language (ESL) classes

Negotiation skills training

Career counseling

Basic skills (arithmetic, reading, etc.)

Project management training

Communication skills training

Formal courses toward a degree or certification

Required professional training

Computer or IT training

Supervisory or management skills training

Technical or professional skills

Occupational safety training

Source question: “Does your organization provide the following on-the-job or other training to your workers?”


“We do much of our training in-house. We have provided funding for more specific training, such as supervisory workshops. We are open to funding training that applies to the individual’s job.”

“We have an internal learning and development organization that has put together a great catalog of courses, ranging from management and leadership development to specific product training, as well as training to prepare our reps for their licensing exams.”

“Some of the training cannot be done in-house because it is state mandated. These classes are paid for by the company.”

22 AARP Foundation

Most companies indicate that they had either increased training (46 percent) or kept about the same amount of training (41 percent) as in years past (Chart 17). For those employers whose organization had decreased training, the most common reason is that funding had been decreased or completely cut (77 percent major reason; 18 percent minor reason), followed by the expectation that newly hired employees were expected to have most of the skills needed (44 percent major reason; 32 percent minor reason) (Chart 18).

Chart 17: Change in number of training opportunities over the past 5-10 years (In percent; n=1003)

41 46

11

0

10

20

30

40

50

Has not changed Has increased Has decreased

Source question: “Have the number of training opportunities your organization provides to workers changed over the past 5-10 years?


Chart 18: Reasons why training has decreased in the past 5-10 years (In percent; n=105)*

7

17

44

77

25

22

32

18

68

61

25

5

0 10 20 30 40 50 60 70 80 90

Employees are not interested in training

Organization does not see a need for training

New hires are expected to have most skills

Funding has decreased

Not a reason at all

Minor reason

Major reason

Source question: “For each of the following, please indicate if it is a major reason, a minor reason, or not a reason at all that the number of training opportunities your organization provides has decreased.” *Base: Respondents who indicate that their training opportunities have decreased in the previous question.

“For the most part, it hasn’t changed nor will it change. I was always big on training and continued training to maintain focus and get better.”

“Our training and funding has decreased over the last three years. We were putting a lot of resources into it, but unfortunately it was one of the first things that was cut.”

24 AARP Foundation

Although more employers indicate that training has increased rather than decreased in the past 5-10 years, their reasons for increasing training relate to the needs associated with legal requirements and technology (Chart 19) rather than a fringe benefit to employees. Almost two-thirds of employers (65 percent) state that a major reason their training increased was that regulatory and compliance requirements have resulted in training on more topics, such as sexual harassment, occupational safety, and/or age discrimination. An additional 23 percent say it was a minor reason.

Fifty-four percent indicate that a major reason was that rapid technological change requires more frequent training (an additional 28 percent selected this as a minor reason). Employers have also increased training as another benefit to retain employees (46 percent major reason; 30 percent minor reason). Finally, 44 percent of employers say a major reason for more training was that there are more requirements for certifications and qualifications than in the past (31 percent minor reason).

Smaller companies (20-99 employees) are less likely to offer any on-the-job or other training to their workers, relative to businesses with more than 100 employees (not shown).

Chart 19: Reasons why training has increased in the past 5-10 years (In percent; n=463)*

16

18

44

46

54

65

30

31

31

30

28

23

53

51

25

24

18

11

0 10 20 30 40 50 60 70

New hires are not as skilled as they were in the past

Training is less expensive now

More requirements for certifications/qualifications

Organization uses it as another benefit to retain workers

Rapid technological change requires more frequent training

Regulatory and compliance requirements result in more training

Not a reason at all

Minor reason

Major reason

Source question: “ For each of the following, please indicate if it is a major reason, a minor reason, or not a reason at all that the number of training opportunities your organization provides has increased.” *Base: Respondents who indicate that their training opportunities have increased in the previous question.


”Our training will change depending on the new technology that we are presented within our industry.”

“For the most part, the proliferation of technology has caused us to increase the amount of training.”

“The increase in training has been mostly in the compliance area. This is due to the many new government regulations, federal and state.”

“…We may have to provide more individuals with time off and funds to get all appropriate licenses and certifications.”

The past 5-10 years have changed the way in which businesses conduct and offer training (see Chart 20). Three in five employers say that technology has led to more self-paced training opportunities, such as computer-based training programs that individuals complete at their own pace. A similar percent indicate that more training is offered on the internet (59 percent).

Chart 20: Ways in which training has changed in the past 5-10 years (In percent; n=1003)

60 59

0 10 20 30 40 50 60 70 80 90

100

Technology has led to more self-paced training

opportunities

More training offered on the internet

Source question: “In which of the following ways, if any, has the training offered by your organization changed in the past 5 to 10 years?”

“In the past, meetings were held which took valuable time away from both management and lower-level personnel. Nowadays, online training is a must as it offers the opporutnity for the employees to work at their own pace.”

“We’ve added some web-based training for some of the ongoing training that we do [related to] safety, quality, etc.”

26 AARP Foundation

The focus of the training that organizations offer has changed in the past 5-10 years (see Chart 21). Employers say that training has become more focused on specific professional skills (71 percent); more focused on regulatory and compliance requirements, such as age discrimination, sexual harassment, and occupational safety (71 percent); more focused on new technologies (67 percent); and more focused on skills related to certification (54 percent). Only 19 percent indicate that training today is more focused on the basic arithmetic, reading, and writing, skills. This could mean that the employees are less in need of these trainings, or that businesses no longer have the time and resources to train for these basic skills.

Chart 21: How the focus of training opportunities has changed in the past 5-10 years (In percent; n=1003)

19

54

67

71

71

0 10 20 30 40 50 60 70 80

More focused on basic skills, such as arithmetic, reading, and writing

More focused on skills related to certification

More focused on new technologies

More focused on specific professional skills

More focused on regulatory and compliance requirements

How focus of training has changed in the past 5 to 10 years

Source question: “In which of the following ways has the focus of your organization’s training opportunities changed in the past 5 to 10 years?”


Employers indicate that they have relationships with various schools for the purposes of training and recruiting qualified employees (see Chart 22). Most commonly, organizations have training relationships with traditional colleges or universities (36 percent), community colleges (32 percent), and vocational schools or centers (30 percent). In order to recruit qualified workers, employers most commonly utilize relationships with job websites (61 percent). They also rely on their relationships with traditional colleges and universities (45 percent), community colleges (34 percent), and vocational schools (32 percent) to recruit qualified workers.

Smaller employers (20-99 employees) were less likely to have any of these relationships for training and recruiting qualified workers (not shown).

Chart 22: Relationships with training centers or schools for purposes of training or recruiting workers (In percent; n=1003)

18

11

21 24

30 32 32

34 36

45

61

0

10

20

30

40

50

60

70

For training For recruiting

Online colleges or universities

Local high schools

Vocational schools or centers

Community colleges

Traditional colleges or universities

Websites that list job openings

Source questions: “Does your organization have relationships with any of the following training centers or schools to help train workers or develop courses that produce workers with the skills your organization needs?” “Does your organization have relationships with any of the following training centers or schools to help recruit workers?”

“We do not anticipate any problems with finding the right people with the right skills as we have a great source from the local vocational schools, which has really created a good beginning for those who want to try our industry.”

“We work with a lot of the local colleges to recruit graduates. We have also partnered with local community colleges to provide trainers for the courses we offer.”

28 AARP Foundation

The Effect of Baby Boom RetireesAs baby boomers reach age 60 and beyond and traditional sources of retirement income become available to them, will they create a knowledge vacuum in their wake? This section explores how concerned employers are with the impending retirement of the baby boomers. What plans do they have in place for when the older worker retires?

As shown in Chart 23, employers appear to be concerned about losing knowledge and critical experience as their organization’s older workers retire. In fact, 24 percent said they are very concerned and an additional 39 percent said they are somewhat concerned.

Smaller companies with 20-99 employees are less concerned (41 percent not very concerned or not at all concerned) than companies with more than 100 employees (versus 33 percent for companies with 100-499 employees; 28 percent for companies with 500-999 employees; and 25 percent for companies with 1000+ employees) (not shown).

Chart 23: Concern about losing knowledge and critical experience as older workers retire (In percent; n=1003)

24

39

22

15

0

5

10

15

20

25

30

35

40

45

Very concerned Somewhat concerned Not very concerned Not at all concerned

Source question: “How concerned are you about losing knowledge and critical experience as your organization’s older workers retire?”


“As older workers retire there is real concern about losing a great deal of knowledge. But what concerns me (as much) is finding the right individual who has the same work ethic as the older person.”

“This is definitely a concern for us. We have many older workers who have great institutional knowledge and we are looking for ways to transition this knowledge.”

“This is a huge concern. The aging workforce and the potential hemorrhaging of knowledge as a result will pose a significant challenge to our business.”

“We generally have a young workforce. Our senior management team are mostly in their 40s so this is not a major issue for us.”

30 AARP Foundation

In considering how to mitigate this potential loss of knowledge, employers plan to take certain steps to stem the loss of critical experience (see Chart 24). More than half of the employers in this survey say that they will try to keep older workers on as part-time workers or consultants (69 percent), they will use a knowledge transfer program to allow workers who are approaching retirement age to mentor or transfer knowledge to younger workers (53 percent), and they will use a succession plan for critical positions (51 percent).

Larger companies with 500 or more employees are more likely to use a knowledge transfer or formal succession program versus smaller companies (not shown).

Chart 24: Plans to address the knowledge and experience gap created by retiring workers (In percent; n=1003)

46

69

53 51

0

10

20

30

40

50

60

70

80

Try to entice older workers to remain as full-time

employees

Keep older workers on as part-time employees or

consultants

Training or knowledge transfer program

A succession plan for critical positions

Source question: “How do you plan to address the knowledge and experience gap that your organization may face as older workers retire?”


“My idea is to keep some of the older workers around for consulting on a part-time basis as needed.”

“We have a succession plan in place so that a transfer of knowledge can take place…”

“…I am hoping that there will be enough around through consultancy work that they can quickly mentor the younger workers enough so that the large exodus doesn’t reduce business effectiveness.”

“We have introduced a part-time status for those who want semi-retirement that is flexible to their needs and wants, but still provides us with access to their skills and knowledge.”

32 AARP Foundation

ConclusionAt the outset of this research, we expected that employers would have some concerns about finding skilled workers, now and in the future, and that most would indicate cuts in training. Most employers report that they have not had a high level of difficulty finding skilled applicants and do not expect a problem in the future. They are somewhat concerned that they will lose critical knowledge when workers retire but plan to mitigate that loss by keeping older workers on as part-time employees or consultants and by developing knowledge transfer programs. Despite recent problems in the economy, most employers have not cut training for their employees, but this may be in part due to the need for training to satisfy the high level of regulatory and licensing requirements.

Although most employers do not express anxiety about finding qualified workers in the future, this may be because they are seeing the issue through the lens of the recession, where workers are applying for open positions in droves and may be willing to make concessions in accepting a job. It is possible that employers are being somewhat short-sighted, both in their relatively low concern at finding skilled workers and in judging the impact of the retirement of a generation of workers.


Appendix 1: Survey MethodologyThe AARP Human Resource Survey involved telephone interviews with a random sample of 1003 human resource directors of companies with 20 or more employees. The telephone interviews were conducted in English by Woelfel Research, Inc. (WRI) from May 17 to July 7, 2010. The results from the study were weighted by company size. The margin of sampling error for the sample was ±3.1 percent.

Details on the design and execution of the survey are discussed below.

Design and Data Collection Procedures

Sample DesignWoelfel Research, Inc. acquired a random sample of businesses drawn from the Dun & Bradstreet population of all companies in the United States with 20 or more employees. Respondents from the businesses were screened for the following characteristics:

n Head, manager, or high level human resources executive n Been with the organization at least six months n Respondent worked at headquarters, a subsidiary headquarters, or the company’s sole location n Had a high degree of influence over recruiting and workforce planning n Had a high degree of knowledge and/or decision-making responsibility for training and

development programs for employees

The sampling plan was to conduct an even number of interviews in each of four size segments:

n 20-99 employees (n=251) n 100-499 employees (n=250) n 500-999 employees (n=250) n 1000+ employees (n=252)

Questionnaire Development and TestingThe questionnaire was developed by AARP staff. In order to improve the quality of the data, the questionnaire was pretested with a small number of respondents. The pretest interviews were monitored by WRI and AARP staff, and conducted using experienced interviewers who could best judge the quality of the answers given and the degree to which respondents understood the questions.

Contact Procedures Each telephone number in the sample was called an average of four times. The sample was released for interviewing in replicates, which were representative subsamples of the larger sample. Using replicates to control the release of the sample ensured that completed call procedures were followed for the entire sample. It also ensured that the geographic distribution of the numbers called was appropriate. Calls were staggered over times of day and days of the week to maximize the chance of making contact with potential respondents. After four calls a message was left on the answering machine of the respondent informing him or her of the purpose of the survey along with an 800 number to call to be interviewed.

34 AARP Foundation

WeightingThe total sample was weighted by number of employees. The table below contains information about the weighting.

The table explains the percent of the population for all companies in each size category based on Dun & Bradstreet; the percent of each type of business in the sample; and the percent of each company after applying the weights.

Table 1. Weights Number of Employees Population Sample Weighted Sample50-99 58.0 percent 25.0 percent 58.1 percent100-499 30.1 percent 25.0 percent 30.1 percent500-999 5.4 percent 25.0 percent 5.4 percent1000+ 6.4 percent 25.0 percent 6.4 percent

Statistical Testing

The significance testing reported in this study used the “effective” base size as opposed to either the weighted or unweighted base size. The effective base size was calculated simply as the (sum of the weight factors) squared/sum of the squared weight factors. The formula was as follows:

n

(Sw1)2

__i=1___

n

Sw1

2

i=1

Where: w was the magnitude of the weight n was the number of cases in the sample i was the first case

Response Rate/Cooperation Rate/Refusal Rate

The response rate for this study was measured using AAPOR’s response rate 3 method. The cooperation rate was measured using AAPOR’s cooperation rate 3 method. The refusal rate was measured using AAPOR’s refusal rate 3 method.

Response Rate Cooperation Rate Refusal RateTelephone 10 percent 95 percent 3 percent

Source: AAPOR Outcome Rate Calculator Version 2.1, May 2003, www.aapor.org.


Appendix 2: Annotated SurveyJune 2010

n=1,003, Sampling Error =±3.1 percent, RESPONSE RATE 10 percent

Quotas:

Group 1 (20-99 employees): 250 Respondents Group 2 (100-499 employees): 250 Respondents Group 3 (500-999 employees): 250 Respondents Group 4 (1000+ employees): 250 Respondents

Screener Questions

S1. [BEGIN ONLY AFTER IT APPEARS YOU MAY HAVE THE RIGHT PERSON ON THE PHONE] Hello, my name is _________. I am calling from [vendor] regarding a National Human Resources Survey of Employers. I am trying to reach [CONTACT NAME FROM SAMPLE OR, IF NO NAME SUPPLIED, “the head of your human resources department”].

[IF NO HUMAN RESOURCES DEPARTMENT OR PERSON FROM SAMPLE IS NO LONGER WITH ORGANIZATION, “Then may I speak with the person who makes decisions regarding recruiting, training, and other decisions related to human resources.”

[PROCEED ONCE CORRECT PERSON IS ON THE PHONE]

[IF PERSON NOT AVAILABLE, RECORD NAME AND CONTACT NUMBER FOR CALLBACK.]

NEW HR CONTACT NAME: _______________________________________

NEW HR CONTACT PHONE: ______________________________________

[INTERVIEWERS: IF NECESSARY CALLBACK IMMEDIATELY TO GET THE ABOVE INFORMATION.]

S2. We are conducting a national study among HR executives across the country. Your organization has been randomly selected to participate and we would very much like to include your views.

Is now a good time to do this? [IF NOT: Can we schedule another time that is more convenient? [IF NECESSARY: “In all, the survey will take 15 to 20 minutes depending on your answers.”] 1 Yes, Now is a Good Time è [PROCEED] 2 No, Now is NOT a Good Time è [SCHEDULE CALLBACK] 3 REFUSED è TERMINATE

INTERVIEWER&PROGRAMMERNOTE:PLEASEASKFORPHONENUMBERFIRST,THENCONTACTNAME.HOWEVER,ALLOWINTERVIEWERSTORECORDTHEMINEITHERORDERINCASERESPONDENTOFFERSONEBEFORETHEOTHER.

36 AARP Foundation

IF NECESSARY: “I assure you that we are not selling anything and you will not be contacted by anyone as a result of your participating in this survey.”

“All of your answers would remain completely confidential. Neither you nor your organization would be specifically identified in the data.”

S3. Let’s get started. First, are you the head of human resources for your organization?

Base: Total respondentsn=1003 percent

1 Yes è [SKIP TO S6] 962 No 498 DON’T KNOW / NOT SURE -99 REFUSED è [TERMINATE] -

S3a. Are you a manager or higher-level executive with responsibilities for human resources policies for your organization?

Base: Total askedn=44

percent1 Yes 100

S4a. When it comes to making decisions about human resource policies that include recruiting and workforce planning, would you say you…


percent1 MakE DECiSioNS By youRSElf aND havE a high DEgREE of iNfluENCE

over recruiting and workforce planning for your organization33

2 Make decisions by yourself and have SoME DEgREE of iNfluENCE over recruiting and workforce planning for your organization

5

3 MakE DECiSioNS WiTh oThERS aND havE a high DEgREE of influence over recruiting and workforce planning for your organization

62

S4b. Would you say that you have a high degree of knowledge or have decision-making responsibility in your organization for training and development programs for employees?

[INTERVIEWERS: NOTE THAT THE RESPONDENT DOES NOT NEED TO HAVE PRIMARY RESPONSIBILITY OR DIRECTLY HANDLE TRAINING AND DEVELOPMENT PROGRAMS. HAVINGA“HIGHDEGREEOFKNOWLEDGE”ABOUTTHEAREAISALSOACCEPTABLE. VERIFY ‘NO’ TO BOTH BEFORE ENTERING ‘NO’]


percent1 Yes 1002 No -98 DON’T KNOW / NOT SURE -99 REFUSED è [TERMINATE] -

{Continue with survey only if respondent answers “yes” to S4b. Otherwise, terminate.} {If correct person on phone based on screening criteria above, continue to S6} {If not the correct person on the phone, based on responses above, continue to S5a and S5b}


S5a. Can you please tell us the name and contact information for the head of your Human Resources department or a person with a primary decision–making responsibility in the areas of benefits, workforce planning, and employee training?

NEW HR CONTACT NAME: _______________________________________

NEW HR CONTACT PHONE: _______________________________________

S5b. May I speak to him/her? 1. Yes, Coming to Phone è [SKIP TO S2] 2. No, Not available è [SCHEDULE CALLABCK] 3. REFUSED è [TERMINATE]

S6. Have you been with your current organization for at least six months?


1 Yes 100

S7. Which of the following best describes your organization? (READ LIST. ACCEPT ONLY ONE ANSWER)


1 Federal, state, or local government 12 Public school system or public university 93 Private school system or private university 24 Non-profit organization other than government 175 For-profit organization 7197 Other (Please specify: ______________________) 1

IfS7=publicschoolsystemorpubicuniversity,orprivateschoolsystemorprivateuniversity:

S7a. Which of the following best describes the location of your offices? Are your offices located at your school system’s or university’s headquarters or main office, at the sole location for your school system or university, or are they located somewhere else?

Base: Public/private school system or public/private university

n=102 percent

1 Headquarters or main office 892 Sole location 11

IfS7doesNOTequalpublicschoolsystem/universityorprivateschoolsystem/university:

S7b. Which of the following best describes the location of your offices? Are they located at your organization’s headquarters, a subsidiary headquarters, at the sole location for your organization, or are they located somewhere else?

Base: Not public/private school system or public/private university

n=901 percent

1 Headquarters 792 Subsidiary headquarters 93 Sole location 12

38 AARP Foundation

S8. Excluding nonpermanent employees, such as contract or temporary workers, approximately how many employees does your organization have TOTAL, in all locations in the United States? [IF NECESSARY: “Just your best estimate is fine.”] [RECORD ACTUAL # AND CHECK QUOTA BASED ON CATEGORIES BELOW]


1 20-99 employees 582 100-499 employees 303 500-999 employees 54 1000+ employees 6

If S7= nonprofit, for profit, or other {auto fill for schools and government per instructions below}

S9. Which of the following best describes the industry or type of business your organization is primarily involved in? [READ LIST. ACCEPT ONE RESPONSE ONLY. IF RESPONDENT OFFERS MORE THAN ONE ASK, “If you had to pick only one of these to represent your organization, which one do you think best describes it?”]


1 Retail or wholesale trade 172 Healthcare / health services 93 Education and educational services {Auto fill for S7=2 or 3} 144 Construction 65 Manufacturing 18

6Professional and business services (IF NECESSARY: “This includes services such as legal services, marketing, advertising, consulting, bookkeeping, and engineering.”) 6

7

Technology, information, and information services (IF NECESSARY: “This includes services such as publishing, media, telecommunications, and internet service providers.”) 6

8 Finance/insurance/real estate 89 Hospitality/leisure 310 Government {Auto fill for S7=1} 2

11Or is your organization involved in some other industry? [Please specify: _______________________ ] 11

98 [DO NOT READ] DD DON’T KNOW RR REFUSED 1

S10. In what U.S. state is your organization’s headquarters or home office in? [Please capture the state’s two-letter abbreviation]


1 Northeast 682 Southeast 93 Midwest 124 Southwest 75 West 598 DK/refused <0.5


STaTEn=1003 percent STaTE

n=1003 percent STaTE

n=1003 percent

1 AK 0 19 LA <0.5 37 OK <0.52 AL 1 20 MA 25 38 OR <0.53 AR <0.5 21 MD 1 39 PA 24 AZ <0.5 22 ME 10 40 RI 25 CA 3 23 MI 2 41 SC 16 CO <0.5 24 MN 1 42 SD 17 CT 6 25 MO 1 43 TN 18 DC <0.5 26 MS 1 44 TX 29 DE <0.5 27 MT 0 45 UT 1

10 FL 2 28 NC 2 46 VA 211 GA 1 29 ND 0 47 VT 412 HI <0.5 30 NE <0.5 48 WA 113 IA 1 31 NH 8 49 WI 114 ID <0.5 32 NJ 7 50 WV <0.515 IL 2 33 NM <0.5 51 WY <0.516 IN 1 34 NV <0.5 98 DK/REF <0.517 KS 1 35 NY 418 KY 1 36 OH 2

Survey Questions

1. Before the recession started, had your organization been having trouble finding sufficient numbers of workers with the skills you need to do your business?


1 Yes 212 No 7798 Don’t know 299 Refused <0.5

1a. If yes: And, before the recession, would you say that your organization experienced these troubles for {Read, and reverse order of response options for 50 percent of respondents}

Base: “yes” in Q.1n=214

percent1 Some positions 682 Many positions 143 Most positions 134 All positions 598 Don’t know <0.5

2. Since the recession started, has your organization had trouble finding sufficient numbers of workers with the skills you need to do your business?


1 Yes 172 No 8198 Don’t know 199 Refused <0.5

40 AARP Foundation

2a. If yes: And, since the recession started, would you say that your organization has experienced these troubles for {Read, and reverse order of response options for 50 percent of respondents}

Base: “yes” in Q.2n=174

percent1 Some positions 702 Many positions 113 Most positions 124 All positions 698 Don’t know 199 Refused 1

2b. If Q2=No: For each of the following, please indicate whether it is a major reason, a minor reason, or not a reason at all that your organization has not had trouble finding qualified workers ? {Randomize.}

Base: “No” in Q.2Major reason

Minor reason

Not a reason at

all Dk Refn=813 percent percent percent percent percenta. The poor economy has resulted in a large applicant

pool39 27 33 1 <0.5

b. Your organization hasn’t been doing much hiring due to slow business or for budgetary reasons

40 20 39 <0.5 <0.5

c. Your organization has fewer job openings because the poor economy has resulted in less turnover

39 27 34 1 -

d. Your organization has used more contract or temporary workers

4 14 82 1 -

e. Your organization has decided to offshore jobs to other locations

<0.5 6 94 <0.5 -

3. How important are the following skills to your organization? [For each, ask very important, somewhat important, not very important, or not at all important] {Randomize}

Base: Total respondentsvery

importantSomewhat important

Not very important

Not at all important Dk Ref

n=1003 percent percent percent percent percent percenta. Skills that are specialized to your

industry68 22 7 3 1 -

b. Computer and information technology skills

43 41 9 6 <0.5 -

c. Skills related to licensure or certifications

33 26 22 18 1 -

d. Management or supervisory skills 29 51 12 7 2 <0.5e. Analytical skills 38 46 11 5 1 -f. Basic skills, such as basic arithmetic,

basic writing, or reading skills78 18 3 1 <0.5 -

g. Fluency in a foreign language other than English

5 23 32 39 1 <0.5

h. Communication skills 81 16 1 1 <0.5 -i. People skills 78 18 3 1 <0.5 -


4. Would you say that it has been very difficult, somewhat difficult, not very difficult, or not at all difficult to find job applicants with {Read, and randomize. Record response for each. Allow “not applicable,” but don’t read.}

Base: Total respondentsvery

difficultSomewhat

difficultNot very difficult

Not at all difficult Dk Ref

n=1003 percent percent percent percent percent percenta. Skills that are specialized to your

industry13 39 25 21 2 -

b. Computer and information technology skills

3 27 38 30 2 <0.5

c. Skills related to licensure or certifications

5 25 29 33 6 2

d. Management or supervisory skills 5 36 30 25 3 1e. Analytical skills 6 37 29 26 3 <0.5f. Basic skills, such as basic arithmetic,

basic writing, or reading skills3 13 40 41 3 -

g. Fluency in a foreign language other than English

4 17 21 41 13 4

h. Communication skills 4 35 36 23 1 -i. People skills 5 38 33 23 1 -

5. As I read each of the following degrees or certifications, please indicate whether your organization requires it for all, most, some, or no positions.

Base: Total respondentsall

positionsMost

positionsSome

positionsNo

positions Dk Refn=1003 percent percent percent percent percent percent

1 High school diploma or G-E-D 65 16 12 8 <0.5 -2 Associate’s degree, or 2-year

college degree 6 11 59 24 <0.5 <0.5

3 Bachelor’s degree, or 4-year college degree

5 15 57 23 <0.5 <0.5

4 Advanced degree, such as Master’s, Ph.D., law degree, etc.…

1 4 38 56 <0.5 <0.5

5 Completion of a certification program

5 14 50 31 1 1

6. Has your organization ever hired workers who lack the degrees you typically require but whose experience or other training appears to make them well suited for the job?


1 No, applicants must have the degree 212 Yes, but it is rare 273 Yes, sometimes 404 Yes, this happens often 998 Don’t know 499 Refused <0.5

42 AARP Foundation

7. And now, thinking only about college degrees, in general, which of the following types of institutions does your organization prefer that job candidates have college degrees from? {Read, and rotate top 2.}


1 Traditional colleges and universities 272 Online colleges and universities -3 Your organization has no preference 714 It depends {allow, but don’t read} 298 Don’t know <0.599 Refused 1

7a. If traditional colleges/universities in above question:

Why does your organization prefer degrees from traditional colleges/universities? (interviewer should read this list and capture yes/no responses) {Randomize} Base: “Traditional colleges” in Q.7 yes No Dk Refn=266 percent percent percent percenta. Requirements and standards for graduation from traditional colleges and

universities are well known 91 8 2 -

b. Admission standards are higher for traditional colleges and universities 78 13 9 -c. Traditional colleges and universities require interaction and communication 92 6 2 -d. Individuals gain people skills in traditional colleges and universities 90 8 2 <0.5e. Traditional colleges and universities produce students with the qualifications

your organization needs93 4 2 <0.5

f. Other 32 67 2 <0.5

8. Would you say that it will be very difficult, somewhat difficult, not very difficult, or not at all difficult to find qualified workers over the next 5 to 10 years?


1 Very difficult 62 Somewhat difficult 373 Not very difficult 294 Not at all difficult 2698 Don’t know 299 Refused -

8a. If 8 = Very/somewhat for which of the following types of positions do you anticipate problems? {read and rotate}

Base: “very/somewhat difficult” in Q.8 yes No Dk Refn=430 percent percent percent percent

1 Supervisory and management 50 49 1 -2 Non-supervisory and non-management 59 40 <0.5 -


9. I’m going to read a list of possible reasons why it might be difficult to find qualified workers over the next 5 to 10 years, for each, please indicate if you think it will be a major reason, a minor reason, or not a reason for finding qualified workers:

Base: Total respondentsMajor reason

Minor reason

Not a reason at all Dk Ref

n=1003 percent percent percent percent percenta. Competition for workers from other employers will increase

as the economy improves34 39 27 <0.5 <0.5

b. It may be difficult to offer competitive salaries 37 40 23 <0.5 <0.5c. The pool of applicants will be insufficient due to baby

boomer retirements 18 36 44 1 <0.5

d. Applicant pool is not very qualified 18 45 35 1 <0.5e. Highly qualified employed people do not want to leave

stable jobs38 39 23 1 <0.5

f. It may be difficult to find qualified workers who are interested in the types of jobs that your organization offers

26 42 31 1 <0.5

10. What do you plan to do to get the workers you need? {Read these items and capture yes/no for each. Randomize) Base: Total respondents yes No Dk Refn=1003 percent percent percent percenta. Use job websites 79 21 <0.5 -b. Advertise in newspapers and magazines 63 37 <0.5 -c. Utilize word-of-mouth 93 7 <0.5 -d. Use social media and networking sites 59 39 2 -e. Tap into professional associations 66 33 1 -f. Recruit from colleges, universities, and vocational schools 68 31 1 -g. Offer a better benefits package 41 56 3 <0.5h. Look internationally for talent 13 85 1 <0.5i. Offshore work 6 93 1 -j. Attempt to retain current employees 96 4 <0.5 -

44 AARP Foundation

11. In general, how do your organization’s new hires today compare to those five years ago? Would you say new hires today {For each characteristic, indicate better/more or worse/less or about the same): {Randomize}

Base: Total respondents More lessabout

the same Dk Refn=1003 percent percent percent percent percenta. Exhibit more turnover, less turnover, or is turnover about

the same as it was 5 years ago? 22 26 48 4 <0.5

b. Are less qualified, more qualified, or are their qualifications about the same as new hires 5 years ago?

19 8 69 3 <0.5

c. Are more technologically savvy, less technologically savvy, or just as technologically savvy as new hires 5 years ago?

71 2 24 2 1

d. Are more prepared, less prepared, or as prepared as new hires five years ago to fill jobs at your organization?

21 24 51 3 <0.5

Better Worseabout

the same Dk Refe. Have better communication skills, worse communication

skills, or similar communication skills as new hires 5 years ago?

17 19 61 3 <0.5

f. Have a better work ethic, worse work ethic, or similar work ethic to new hires 5 years ago?

9 40 48 3 <0.5

12. How concerned are you about losing knowledge and critical experience as your organization’s older workers retire?


1 Very concerned 242 Somewhat concerned 393 Not very concerned 224 Not at all concerned 1598 Don’t know 199 Refused -

13. How do you plan to address the knowledge and experience gap that your organization may face as older workers retire? (Read and capture yes/no for each. Randomize) Base: Total respondents yes No Dk Refn=1003 percent percent percent percenta. Try to entice older workers to remain as full-time workers 46 52 3 <0.5b. Your organization will keep older workers on as part-time

workers or consultants69 27 4 <0.5

c. Your organization is planning a training or knowledge transfer program to allow workers who are approaching retirement age to mentor or transfer knowledge to younger workers

53 45 2 <0.5

d. Your organization has a succession plan in place for critical positions

51 46 3 -

e. Other: specify 9 90 1 -


14. Does your organization provide the following on-the-job or other training to your workers? {Read and randomize.} Base: Total respondents yes No Dk Refn=1003 percent percent percent percenta. Specific technical or professional skills training 72 28 1 -b. Basic skills training (basic arithmetic, basic writing, or

reading skills) 37 62 <0.5 <0.5

c. Formal courses that lead to certification or degrees applicable to the job

55 44 1 -

d. Required professional training (e.g., continuing legal or accounting credits)

58 41 1 -

e. Computer / information technology and communication technology skills training

62 38 1 -

f. Communication skills training (e.g., presentation or writing skills)

51 49 1 -

g. Project management skills training 38 61 1 -h. Negotiation skills training 20 79 1 -i. Supervisory or management skills training 69 30 <0.5 -j. Career counseling 23 77 1 -k. English as a Second Language (ESL) classes 11 89 <0.5 -l. Foreign language training 7 93 <0.5 -m. Occupational safety training 80 20 1 <0.5

15. Have the number of training opportunities your organization provides to workers changed over the past 5-10 years?


1 Has not changed 412 It has increased 463 It has decreased 1198 Don’t know 299 Refused <0.5

15a. If 15=decreased: For each of the following, please indicate if it is a major reason, a minor reason, or not a reason at all that the number of training opportunities your organization provides has decreased. {Randomize}

Base: “Decreased” in Q.15 Major reason Minor reasonNot a reason

at alln=105 percent percent percenta. Funding has decreased or been completely cut 77 18 5b. New hires are expected to have most of the skills needed 44 32 25c. Employees aren’t interested in training 7 25 68d. Your organization doesn’t see a need for training 17 22 61

46 AARP Foundation

15b. If 15 =increased, why? For each of the following, please indicate if it is a major reason, a minor reason, or not a reason at all that the number of training opportunities your organization provides has increased. {Randomize}

Base: “increased” in Q.15Major reason

Minor reason

Not a reason at

all Dkn=463 percent percent percent percenta. There are more requirements for certifications/

qualifications44 31 25 <0.5

b. Training is less expensive now, which enables you to offer more training opportunities.

18 31 51 1

c. Regulatory and compliance requirements have resulted in training on more topics, such as sexual harassment, occupational safety, and/or age discrimination

65 23 11 1

d. Your organization uses it as another benefit to retain employees

46 30 24 1

e. New hires are not as skilled as they were in the past 16 30 53 1f. Rapid technological change requires more frequent

training.54 28 18 <0.5

16. In which of the following ways, if any, has the training offered by your organization changed in the past 5 to 10 years? {Read, randomize, capture yes/no for each.} Base: Total respondents yes No Dk Refn=1003 percent percent percent percenta. Technology has led to more self-paced training

opportunities, such as computer-based training programs that individuals complete at their own pace. 60 39 1 1

b. More training is offered on the internet 59 39 2 1

17. In which of the following ways has the focus of your organization’s training opportunities changed in the past 5 to 10 years? {Read, randomize, capture yes/no for each.}Base: Total respondents yes No Dk Refn=1003 percent percent percent percenta. Training today is more focused on skills related to

certification 54 43 2 <0.5b. Training today is more focused on basic skills, such as

basic arithmetic, writing, or reading 19 79 2 <0.5c. Training today is more focused on new technologies 67 32 2 <0.5d. Training today is more focused on specific professional skills 71 27 2 <0.5e. Training today is more focused on regulatory and

compliance requirements (e.g., age discrimination, sexual harassment, and occupational safety) 71 27 2 <0.5

18. Does your organization have relationships with any of the following training centers or schools to help trainworkersordevelopcourses that produce workers with the skills your organization needs? (Randomize) Base: Total respondents yes No Dk Refn=1003 percent percent percent percenta. Local high schools 21 79 <0.5 <0.5b. Community colleges 32 68 <0.5 <0.5c. Vocational schools or centers 30 69 1 <0.5d. Online colleges or universities 18 82 1 <0.5e. Traditional colleges or universities 36 64 1 <0.5


19. Does your organization have relationships with any of the following training centers or schools to help recruit workers? (randomize)Base: Total respondents yes No Dk Refn=1003 percent percent percent percenta. Local high schools 24 75 1 <0.5b. Vocational schools or centers 32 67 1 <0.5c. Community colleges 34 65 <0.5 <0.5d. Online colleges or universities 11 88 1 <0.5e. Traditional colleges or universities 45 55 <0.5 <0.5f. Web sites that list job openings (such as monster.com or

careerbuilder.com) 61 38 1 <0.5

Firmo-/Demographics

D1. Finally I have just a few last questions. Does your organization have more than one location?


1 Yes 782 No 2298 DON’T KNOW / NOT SURE <0.599 REFUSED <0.5

D2. Excluding contract and temporary workers, has the number of your organization’s total U.S. employees increased, decreased, or stayed about the same over the past five years?


1 Increased 322 Decreased 383 Stayed about the same 2998 DON’T KNOW / NOT SURE 199 REFUSED <0.5

D3. What percentage of your total workforce in all your locations in the United States is age 50 years or older? [IF NEEDED, IF RESPONDENT SAYS HE/SHE DOES NOT KNOW: “If you are not sure, your best estimate is fine.”] RECORD EXACT PERCENTAGE [MUST BE BETWEEN 0 AND 100]: ___ percent


1 Zero 12 1 percent - 10 percent 213 11 percent - 20 percent 184 21 percent - 30 percent 195 31 percent - 40 percent 146 41 percent - 50 percent 137 51 percent - 60 percent 48 61 percent - 70 percent 29 71 percent - 80 percent 110 81 percent - 90 percent 111 91 percent - 100 percent -98 DON’T KNOW / NOT SURE 699 REFUSED 1

48 AARP Foundation

D4. What is your current job title? [USE THE FOLLOWING RED ITEMS AS RESPONSES OPTIONS AND THEN AN OTHER FOR ANYTHING THAT DOESN’T FIT]

[THE FOLLOWING IS FOR CODING PURPOSES ONLY]


01 Vice President, Human Resources / Human Resources VP 502 Vice President, Personnel / Personnel VP 203 Personnel Director / Director, Personnel 104 Human Resources Director / Director, Human Resources 2105 Human Resources Manager / Manager, Human Resources 2406 Personnel Manager / Manager, Personnel 107 HR Specialist / HR Generalist 508 Human Resources Professional 309 Other Manager/Director/Officer 1597 Other Title [SPECIFY] 2198 DON’T KNOW / NOT SURE <0.5

98 REFUSED 2

D5. What is your age?

____________ (RECORD RESPONSE) (range 18-96)


1 21 - 34 122 35 - 49 373 50 - 59 324 60 + 1398 DK/refused 7

D6. Record respondent’s gender:


1 Male 272 Female 73

Thankyouverymuch.Thoseareallmyquestions.

AARP Foundation is AARP’s affiliated charity. The Foundation is dedicated to serving vulnerable people 50+ by creating solutions that help them secure the essentials and achieve their best life. AARP Foundation focuses on: hunger, housing, income and isolation as our key mission areas. The Foundation envisions: ‘a country free of poverty where no older person feels vulnerable.’ Foundation programs are funded by grants, tax-deductible contributions and AARP. For more information about AARP Foundation, please log on to www.aarp.org/foundation.

This research was funded by a grant from The Bill and Melinda Gates Foundation.

The author would like to acknowledge the following AARP staff for their input: Deborah Russell, Sara Rix, David Whitehead, Jennifer Leslie, Jeff Love, and S. Kathi Brown.

All media inquiries about this project should be directed to AARP’s Media Relations at (202) 434-2560. Inquiries about the survey instrument or additional information about the report should be directed to Rebecca Perron at (202) 434-6324 or [email protected].


Finding, Training, and Keeping Qualified Workers

Report Prepared by: Rebecca Perron, PhD

May 2011




D19555 www.aarp.org/research

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