Shrm economic-conditions-recruiting-skills-gaps

35
SHRM Survey Findings: 2014 Economic ConditionsRecruiting and Skills Gaps October 30, 2014

Transcript of Shrm economic-conditions-recruiting-skills-gaps

Page 1: Shrm economic-conditions-recruiting-skills-gaps

SHRM Survey Findings: 2014 Economic Conditions—

Recruiting and Skills Gaps

October 30, 2014

Page 2: Shrm economic-conditions-recruiting-skills-gaps

• This is Part 2 of a series of SHRM survey results about the state of jobs and skills in the current economic condition, which relates to a SHRM survey series about the ongoing impact of the U.S. and global recession from 2007 to 2012. Overall results will be reported separately in three different topic areas:

» Overall financial health and hiring.

» Recruiting and skills gaps.

» Global competition and hiring strategies.

• Overall results for 2013 will also be reported separately for California.

• Industry-specific results for the nine industries that were included in the sample will also be reported for each question throughout the report. The nine industries are:

» Accommodation and food services, retail/wholesale trade.

» Construction, mining, quarrying, and oil and gas extraction.

» Educational services.

» Finance, insurance, real estate and rental and leasing.

» Government agencies.

» Health care and social assistance.

» High-tech.

» Manufacturing.

» Professional, scientific, and technical services.

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 2

Introduction

Page 3: Shrm economic-conditions-recruiting-skills-gaps

• Is recruiting for specific jobs difficult in the current labor market? One-half (50%) of

organizations indicated that they have had difficulty recruiting for full-time regular positions in the

past 12 months.

» Three-fifths (60%) of organizations in the manufacturing industry indicated the same, followed

by the health care and social assistance industry (56%), high-tech industry (56%), and

professional, scientific, and technical assistance industry (56%).

• Why are organizations experiencing difficulty hiring qualified candidates? The top reasons

organizations have experienced difficulty in hiring for full-time regular positions were that

candidates lack the needed work experience (50%) and the right technical skills (50%) as well as

competition from other employers (50%).

» More than three-quarters (77%) of organizations in the high-tech industry indicated their

candidates did not have the right technical skills. Close to two-thirds (64%) of organizations in

the high-tech industry were also concerned about competition from other employers.

• What types of jobs are the most difficult to fill? Although difficulty in filling specific jobs varied by

industry, the top five most difficult positions to fill overall were highly skilled positions: engineers

(72%), high-skilled medical (e.g., nurses, doctors, specialists) (69%), IT/computer specialists (69%),

scientists (67%), and managers and executives (65%)—similar to results in 2012 and 2011.

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 3

Key Findings

Page 4: Shrm economic-conditions-recruiting-skills-gaps

• What basic skills/knowledge gaps do job applicants typically have? Basic computer skills

(31%), writing in English (26%), English language (spoken) (17%), reading comprehension (16%)

and mathematics (computation) (15%) were the most common skills gaps.

» About two-fifths (42%) of organizations indicated there were no basic skills/knowledge gaps

for their job applicants.

» Almost one-half (46%) of organizations in the health care and social assistance industry

indicated that their job applicants lacked basic computer skills; close to one-third of

organizations in government agencies and the health care and social assistance industry

reported that their job applicants had gaps in writing in English (32% and 31%, respectively).

• What applied skills gaps do job applicants typically have? The top four applied skills gaps were

critical thinking/problem-solving (40%), professionalism/work ethic (38%), leadership (34%) and

written communications (27%).

» One-fifth (20%) of organizations indicated no applied skills gaps exist for their job applicants.

» More than one-half of organizations in the health care and social assistance industry

indicated that their job applicants lack critical thinking/problem-solving skills and

professionalism/work ethic (54% and 53%, respectively). Close to one-half (47%) of

organizations in the accommodation and food services, retail/wholesale trade industry also

indicated that their job applicants lack professionalism/work ethic.

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 4

Key Findings (continued)

Page 5: Shrm economic-conditions-recruiting-skills-gaps

• Despite recent gains in the U.S. labor market, millions of positions are still going unfilled and, consequently, impeding the growth of some employers. In July 2014, there were 4.7 million job openings in the United States, up nearly 800,000 from the beginning of 2014, according to federal data. Many economists and labor market observers cite weak economic demand as the cause of limited job creation in some sectors. But with millions of people seeking work and so many jobs going unfilled, it is clear that a skills mismatch exists between some job seekers and open positions, and this is also inhibiting widespread job growth in the U.S. economy.

• Knowing that a skills mismatch may prevent jobs from being filled, a multipronged approach is needed to close this gap. HR professionals should explore training opportunities for their employees and potential partnerships with local educational institutions, which can involve creating curricula in line with the skills needed at their organizations. Government job training programs are also active in many communities, and HR professionals should be aware of these as a means of supporting their recruiting efforts.

• Even though many organizations are pursuing partnerships with educational bodies to develop training programs, on-the-job training led mainly by the employers themselves is still a vital part of employee and organizational development.

• HR professionals and their employers should not blame recruiting difficulty solely on this skills mismatch. There are other reasons why jobs are going unfilled; half of respondents in this survey cited competition from other employers, and more than one-third said their candidates turned down the compensation offer. That suggests that hiring is becoming more competitive in some sectors, and HR professionals should consider creative compensation packages that include market-rate salaries and perhaps some form of flexible benefits, which are considered attractive by many workers.

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 5

What Do These Findings Mean for the HR Profession?

Page 6: Shrm economic-conditions-recruiting-skills-gaps

Percentage of Organizations Having Difficulty Recruiting for

Full-Time Regular Positions in the Last 12 Months

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 6

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.

50%

46%

53%

36%

53%

39%

56%

56%

60%

56%

All industries (n = 2,988)

Accommodation and food services,retail/wholesale trade (n = 296)

construction, mining, quarrying,and oil and gas extraction (n = 305)

Educational services (n = 324)

Finance, insurance, real estateand rental and leasing (n = 270)

Government agencies (n = 485)

Health care and social assistance (n = 317)

High-tech (n = 147)

Manufacturing (n = 371)

Professional, scientific, and technicalservices (n = 393)

Page 7: Shrm economic-conditions-recruiting-skills-gaps

Main Reasons That Organizations Have Experienced Difficulty

in Hiring for Full-Time Regular Positions (All Industries)

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 7

Note: n = 1,417. Respondents who answered “don't know” were excluded from this analysis. Percentages do not equal 100% due to multiple response

options. Only respondents whose organizations were having difficulty hiring for full-time positions were asked this question.

50%

50%

50%

43%

40%

39%

37%

29%

27%

26%

Candidates do not have the right technical skills

Competition from other employers

Candidates do not have the needed workexperience

Low number of applicants

The local market is not producing enough work-ready/qualified job candidates

Candidates do not have the right professional skills

Qualified candidates reject compensation package

Candidates do not have the neededcredentials/certifications

Candidates do not have the right workplace (soft)skills

Qualified candidates are not interested in moving toour local area

Page 8: Shrm economic-conditions-recruiting-skills-gaps

Main Reasons That Organizations Have Experienced Difficulty in

Hiring for Full-Time Regular Positions (All Industries, continued)

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 8

Note: n = 1,417. Respondents who answered “don't know” were excluded from this analysis. Percentages do not equal 100% due to multiple response

options. Only respondents whose organizations were having difficulty hiring for full-time positions were asked this question.

22%

16%

16%

15%

15%

12%

11%

8%

7%

Candidates do not have the right basic skills

Candidates do not have the needed training

Lack of interest in type of job

Candidates are overqualified

Candidates do not have high enough levels ofeducation

Qualified candidates are not able to move to ourlocal area (due to mortgage or other issues)

Our organization does not provide relocation funds

Qualified candidates reject benefits package

Other

Page 9: Shrm economic-conditions-recruiting-skills-gaps

Main Reasons That Organizations Have Experienced Difficulty in

Hiring for Full-Time Regular Positions (All Industries)

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 9

Note: Only statistically significant differences are shown.

Comparison by organization staff size

• Organizations with 500 or more employees were more likely than organizations with 1 to 99 employees to indicate

that qualified candidates rejecting the compensation package is the main reason for difficulty in hiring.

25%32%

46% 42%50%

1 to 99 employees 100 to 499employees

500 to 2,499employees

2,500 to 24,999employees

25,000 or moreemployees

• Organizations with 500 or more employees were more likely than organizations with 1 to 99 employees to indicate

that competition from other employers is the main reason for difficulty in hiring. Organizations with 2,500 or more

employees were more likely than organizations with 100 to 499 employees to indicate that competition from other

employers is the main reason for difficulty in hiring.

36%46%

53%63% 67%

1 to 99 employees 100 to 499employees

500 to 2,499employees

2,500 to 24,999employees

25,000 or moreemployees

Page 10: Shrm economic-conditions-recruiting-skills-gaps

Main Reasons That Organizations Have Experienced Difficulty in

Hiring for Full-Time Regular Positions (by Industry)

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 10

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.

Candidates

Do Not Have

the Right

Technical

Skills

Competition

from Other

Employers

Candidates

Do Not Have

the Needed

Work

Experience

Low Number

of Applicants

The Local

Market Is Not

Producing

Enough Work-

Ready/

Qualified Job

Candidates

Candidates

Do Not Have

the Right

Professional

Skills

Qualified

Candidates

Reject

Compensatio

n Package

All industries (n = 1,417) 50% 50% 50% 43% 40% 39% 37%

Accommodation and food

services, retail/wholesale trade (n

= 127)

32% 51% 46% 40% 38% 39% 41%

Construction, mining, quarrying,

and oil and gas extraction (n =

159)

60% 49% 52% 48% 42% 34% 27%

Educational services (n = 109) 27% 52% 43% 44% 31% 35% 50%

Finance, insurance, real estate

and rental and leasing (n = 135)42% 48% 58% 41% 35% 46% 33%

Government agencies (n = 180) 48% 51% 43% 38% 33% 38% 47%

Health care and social assistance

(n = 165)41% 50% 50% 48% 39% 39% 34%

High-tech (n = 81) 77% 64% 48% 44% 32% 38% 48%

Manufacturing (n = 213) 61% 43% 50% 41% 51% 37% 29%

Professional, scientific, and

technical services (n = 210)63% 52% 55% 43% 42% 46% 37%

Page 11: Shrm economic-conditions-recruiting-skills-gaps

Main Reasons That Organizations Have Experienced Difficulty in

Hiring for Full-Time Regular Positions (by Industry, continued)

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 11

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.

Candidates Do

Not Have the

Needed

Credentials/Cer

tifications

Candidates Do

Not Have the

Right

Workplace

(Soft) Skills

Qualified

Candidates Are

Not Interested

in Moving to

Our Local Area

Candidates Do

Not Have the

Right Basic

Skills

Candidates Do

Not Have the

Needed

Training

Lack of Interest

in Type of Job

All industries (n = 1,417) 29% 27% 26% 22% 16% 16%

Accommodation and food services,

retail/wholesale trade (n = 127)10% 35% 25% 31% 9% 28%

Construction, mining, quarrying, and

oil and gas extraction (n = 159)26% 21% 32% 25% 14% 16%

Educational services (n = 109) 40% 27% 26% 20% 15% 12%

Finance, insurance, real estate and

rental and leasing (n = 135)27% 29% 22% 23% 14% 13%

Government agencies (n = 180) 38% 26% 24% 22% 24% 16%

Health care and social assistance (n =

165)44% 20% 24% 18% 24% 12%

High-tech (n = 81) 30% 21% 21% 10% 16% 7%

Manufacturing (n = 213) 20% 26% 35% 25% 14% 21%

Professional, scientific, and technical

services (n = 210)29% 33% 23% 22% 12% 10%

Page 12: Shrm economic-conditions-recruiting-skills-gaps

Main Reasons That Organizations Have Experienced Difficulty in

Hiring for Full-Time Regular Positions (by Industry, continued)

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 12

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.

Candidates Are

Overqualified

Candidates Do

Not Have High

Enough Levels

of Education

Qualified

Candidates Are

Not Able to

Move to Our

Local Area

(due to

Mortgage or

Other Issues)

Our

Organization

Does Not

Provide

Relocation

Funds

Qualified

Candidates

Reject Benefits

Package

Other

All industries (n = 1,417) 15% 15% 12% 11% 8% 7%

Accommodation and food services,

retail/wholesale trade (n = 127)24% 6% 17% 13% 11% 8%

Construction, mining, quarrying, and

oil and gas extraction (n = 159)14% 12% 9% 8% 8% 6%

Educational services (n = 109) 14% 26% 7% 11% 10% 7%

Finance, insurance, real estate and

rental and leasing (n = 135)25% 11% 8% 7% 10% 7%

Government agencies (n = 180) 12% 21% 14% 18% 6% 10%

Health care and social assistance

(n = 165)5% 24% 8% 10% 11% 8%

High-tech (n = 81) 12% 6% 15% 9% 10% 7%

Manufacturing (n = 213) 15% 14% 14% 9% 5% 5%

Professional, scientific, and technical

services (n = 210)15% 10% 12% 11% 5% 7%

Page 13: Shrm economic-conditions-recruiting-skills-gaps

Organizations That Indicated Difficulty in Filling the Following

Job Categories for Full-Time Regular Positions (All Industries)

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 13

Note: n = 195 - 1,721. Respondents who answered “don't know” were excluded from this analysis. Percentages do not equal 100% due to multiple

response options. Only respondents whose organizations were hiring full-time staff were asked this question. Figure represents those who answered “very

difficult” and “somewhat difficult.”

72%

69%

69%

67%

65%

63%

55%

54%

48%

46%

Engineers

High-skilled medical

IT/computer specialists

Scientists

Managers and executives

High-skilled technicians

Skilled trades

Sales representatives

Lawyers, judges and legal support workers

Community and social service workers

Page 14: Shrm economic-conditions-recruiting-skills-gaps

Organizations That Indicated Difficulty in Filling the Following Job

Categories for Full-Time Regular Positions (All Industries, continued)

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 14

Note: n = 195-1,721. Respondents who answered “don't know” were excluded from this analysis. Percentages do not equal 100% due to multiple response

options. Only respondents whose organizations were hiring full-time staff were asked this question. Figure represents those who answered “very difficult”

and “somewhat difficult”.

45%

42%

35%

34%

34%

30%

22%

22%

21%

14%

HR professionals

Educators

Accounting and finance professionals

Drivers

Production operators

Protective service workers

Hourly laborers

Customer service representatives

Hourly service workers

Administrative support staff

Page 15: Shrm economic-conditions-recruiting-skills-gaps

Organizations That Indicated Difficulty in Filling the Following

Job Categories for Full-Time Regular Positions (by Industry)

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 15

Note: Respondents who answered “don't know” were excluded from this analysis. Only respondents whose organizations were hiring full-time staff for

the particular job category were asked this question. Percentages represent those who answered “very difficult” and “somewhat difficult.” Percentages

do not equal 100% due to multiple response options. “-” percentage cannot be reported due to small sample size (n < 30).

EngineersHigh-Skilled

Medical

IT/Computer

SpecialistsScientists

Managers

and

Executives

High-Skilled

Technicians

Skilled

Trades

All industries (n = 195 - 1,721) 72% 69% 69% 67% 65% 63% 55%

Accommodation and food

services, retail/wholesale trade

(n = 44 - 153)- - 74% - 59% - 59%

Construction, mining, quarrying,

and oil and gas extraction

(n = 30 - 178)67% 67% 64% - 68% 56% 62%

Educational services

(n = 36 - 330)- 54% 61% - 51% - 32%

Finance, insurance, real estate

and rental and leasing

(n = 31 - 260)- - 79% - 69% - -

Government agencies

(n = 53 - 316)61% 74% 63% - 55% 62% 44%

Health care and social

assistance (n = 32 - 220)- 69% 64% - 72% 62% 34%

High-tech (n = 32 - 97) 77% - 76% - 78% 72% -

Manufacturing (n = 33 - 217) 77% - 73% 68% 77% 68% 78%

Professional, scientific, and

technical services (n = 45 - 212)75% - 71% 63% 67% 64% -

Page 16: Shrm economic-conditions-recruiting-skills-gaps

Organizations That Indicated Difficulty in Filling the Following Job

Categories for Full-Time Regular Positions (by Industry, continued)

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 16

Note: Respondents who answered “don't know” were excluded from this analysis. Only respondents whose organizations were hiring full-time staff for

the particular job category were asked this question. Percentages represent those who answered “very difficult” and “somewhat difficult.” Percentages

do not equal 100% due to multiple response options. “-” percentage cannot be reported due to small sample size (n < 30).

Sales

Representatives

Lawyers,

Judges and

Legal Support

Workers

Community

and Social

Service

Workers

HR

ProfessionalsEducators

Accounting and

Finance

Professionals

Drivers

All industries (n = 195 - 1,721) 54% 48% 46% 45% 42% 35% 34%

Accommodation and food

services, retail/wholesale trade

(n = 44 - 153)54% - - 52% - 35% 43%

Construction, mining, quarrying,

and oil and gas extraction

(n = 30 - 178)50% - - 51% - 31% 38%

Educational services

(n = 36 - 330)- - 39% 37% 42% 25% 42%

Finance, insurance, real estate

and rental and leasing

(n = 31 - 260)51% 61% - 43% - 45% -

Government agencies

(n = 53 - 316)- 44% 42% 44% 44% 33% 25%

Health care and social

assistance (n = 32 - 220)- - 53% 46% - 39% 15%

High-tech (n = 32 - 97) 58% - - 40% - 27% -

Manufacturing (n = 33 - 217) 54% - - 44% - 36% 48%

Professional, scientific, and

technical services (n = 45 - 212)63% 56% - 47% - 40% -

Page 17: Shrm economic-conditions-recruiting-skills-gaps

Organizations That Indicated Difficulty in Filling the Following Job

Categories for Full-Time Regular Positions (by Industry, continued)

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 17

Note: Respondents who answered “don't know” were excluded from this analysis. Only respondents whose organizations were hiring full-time staff for

the particular job category were asked this question. Percentages represent those who answered “very difficult” and “somewhat difficult.” Percentages

do not equal 100% due to multiple response options. “-” percentage cannot be reported due to small sample size (n < 30).

Production

Operators

Protective

Service

Workers

Hourly

Laborers

Customer

Service

Representatives

Hourly

Service

Workers

Administrative

Support Staff

All industries (n = 195 - 1,721) 34% 30% 22% 22% 21% 14%

Accommodation and food

services, retail/wholesale trade

(n = 44 - 153)- - 30% 21% 29% 13%

Construction, mining, quarrying,

and oil and gas extraction

(n = 30 - 178)40% - 26% 23% - 10%

Educational services

(n = 36 - 330)- 32% 8% 12% 14% 9%

Finance, insurance, real estate

and rental and leasing

(n = 31 - 260)- - - 27% - 20%

Government agencies

(n = 53 - 316)- 31% 16% 11% 15% 12%

Health care and social

assistance (n = 32 - 220)- - 19% 17% 20% 15%

High-tech (n = 32 - 97) - - - 36% - 6%

Manufacturing (n = 33 - 217) 35% - 26% 26% - 14%

Professional, scientific, and

technical services (n = 45 - 212)- - - 30% - 20%

Page 18: Shrm economic-conditions-recruiting-skills-gaps

Basic Skills/Knowledge Gaps Job Applicants Had in the Last

12 Months (All Industries)

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 18

Note: n = 2,441. Respondents who answered “don't know” were excluded from this analysis. Percentages do not equal 100% due to multiple response

options.

42%

31%

26%

17%

16%

15%

7%

6%

4%

2%

None

Basic computer skills

Writing in English (grammar, spelling,etc.)

English language (spoken)

Reading comprehension in English

Mathematics (computation)

Spanish language

Science

Foreign languages (except Spanish)

Other

Page 19: Shrm economic-conditions-recruiting-skills-gaps

Basic Skills/Knowledge Gaps Job Applicants Had in the Last

12 Months (by Industry)

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 19

Note: Respondents who answered "don't know" were excluded from this analysis. Percentages may not equal 100% due to multiple response options.

None

Basic

Compute

r Skills

Writing in

English

(Grammar,

Spelling,

etc.)

English

Language

(Spoken)

Reading

Comprehensio

n in English

Mathematics

(Computatio

n)

Spanish

Languag

e

Science

Foreign

Language

s (Except

Spanish)

Other

All industries (n = 2,441) 42% 31% 26% 17% 16% 15% 7% 6% 4% 2%

Accommodation and food

services, retail/wholesale

trade (n = 252)

34% 35% 24% 24% 17% 16% 10% 1% 6% 1%

Construction, mining,

quarrying, and oil and gas

extraction (n = 237)

42% 30% 22% 17% 14% 11% 7% 5% 5% 3%

Educational services

(n = 254)42% 28% 28% 17% 12% 15% 11% 8% 6% 2%

Finance, insurance, real

estate and rental and

leasing (n = 203)

43% 33% 30% 14% 12% 11% 9% 1% 3% 2%

Government agencies

(n = 406)43% 34% 32% 13% 14% 17% 5% 6% 2% 3%

Health care and social

assistance (n = 254)34% 46% 31% 19% 22% 8% 9% 5% 3% 1%

High-tech (n = 107) 54% 16% 20% 19% 10% 14% 4% 10% 7% 3%

Manufacturing (n = 326) 41% 28% 17% 17% 21% 29% 4% 8% 1% 3%

Professional, scientific,

and technical services

(n = 329)

51% 20% 23% 16% 12% 9% 6% 10% 3% 3%

Page 20: Shrm economic-conditions-recruiting-skills-gaps

Applied Skills Gaps Job Applicants Had in the Last 12

Months (All Industries)

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 20

Note: n = 2,583. Respondents who answered “don't know” were excluded from this analysis. Percentages do not equal 100% due to multiple response

options.

*ITC stands for Information and Communications Technology.

20%

40%

38%

34%

27%

25%

22%

20%

14%

13%

13%

12%

3%

None

Critical Thinking/Problem-Solving

Professionalism/Work Ethic

Leadership

Written Communications

Teamwork/Collaboration

Oral Communications

Application of ITC*

Creativity/Innovation

Lifelong Learning/Self-Direction

Ethics/Social Responsibility

Diversity

Other

Page 21: Shrm economic-conditions-recruiting-skills-gaps

Applied Skills Gaps Job Applicants Had in the Last 12

Months (by Industry)

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 21

Note: Respondents who answered "don't know" were excluded from this analysis. Percentages do not equal 100% due to multiple response options.

NoneCritical Thinking/

Problem-Solving

Professionalism

/Work EthicLeadership

Written

Communications

Teamwork/

Collaboration

Oral

Communication

s

All industries (n = 2,583) 20% 40% 38% 34% 27% 25% 22%

Accommodation and food

services, retail/wholesale trade (n

= 258)

14% 45% 47% 37% 29% 26% 25%

Construction, mining, quarrying,

and oil and gas extraction

(n = 256)

22% 32% 31% 34% 24% 28% 20%

Educational services (n = 256) 25% 30% 29% 32% 25% 21% 17%

Finance, insurance, real estate

and rental and leasing (n = 220)18% 42% 40% 32% 30% 20% 21%

Government agencies (n = 423) 23% 40% 36% 30% 34% 26% 26%

Health care and social assistance

(n = 277)9% 54% 53% 39% 29% 34% 24%

High-tech (n = 117) 25% 32% 28% 35% 15% 19% 20%

Manufacturing (n = 340) 21% 40% 38% 35% 22% 29% 19%

Professional, scientific, and

technical services (n = 361)25% 39% 34% 30% 25% 22% 22%

Page 22: Shrm economic-conditions-recruiting-skills-gaps

Applied Skills Gaps Job Applicants Had in the Last 12 Months

(by Industry, continued)

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 22

Note: Respondents who answered "don't know" were excluded from this analysis. Percentages do not equal 100% due to multiple response options.

Application of

Information and

Communications

Technology (ITC)

Creativity/

Innovation

Lifelong

Learning/Self-

Direction

Ethics/Social

ResponsibilityDiversity Other

All industries (n = 2,583) 20% 14% 13% 13% 12% 3%

Accommodation and food services,

retail/wholesale trade (n = 258)19% 17% 16% 14% 12% 3%

Construction, mining, quarrying,

and oil and gas extraction (n = 256)16% 9% 13% 16% 12% 4%

Educational services (n = 256) 22% 13% 10% 7% 18% 3%

Finance, insurance, real estate and

rental and leasing (n = 220)16% 9% 14% 12% 9% 3%

Government agencies (n = 423) 24% 14% 17% 16% 14% 2%

Health care and social assistance

(n = 277)28% 12% 11% 17% 16% 4%

High-tech (n = 117) 14% 21% 13% 6% 3% 2%

Manufacturing (n = 340) 12% 17% 13% 11% 11% 4%

Professional, scientific, and

technical services (n = 361)20% 16% 12% 8% 10% 3%

Page 23: Shrm economic-conditions-recruiting-skills-gaps

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 23

Demographics

Page 24: Shrm economic-conditions-recruiting-skills-gaps

Demographics: Organization Industry

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 24

Note: n = 3,335. Percentages do not equal 100% due to rounding.

Percentage

Accommodation and food services, retail/wholesale trade 10%

Construction, mining, quarrying, and oil and gas extraction 10%

Educational services 11%

Finance, insurance, real estate and rental and leasing 9%

Government agencies 16%

Health care and social assistance 10%

High-tech 5%

Manufacturing 12%

Professional, scientific, and technical services 14%

Other industry 3%

Page 25: Shrm economic-conditions-recruiting-skills-gaps

Demographics: Organization Sector (All Industries)

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 25

n = 3,335

45%

20%

20%

15%

Publicly owned for-profit

Government

Privately owned for-profit

Nonprofit

Page 26: Shrm economic-conditions-recruiting-skills-gaps

Demographics: Organization Sector (by Industry)

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 26

Note: Percentages may not equal 100% due to rounding.

Privately Owned

For-ProfitGovernment

Publicly Owned

For-ProfitNonprofit

All industries (n = 3,335) 45% 20% 20% 15%

Accommodation and food services,

retail/wholesale trade (n = 330)63% 0% 36% 2%

Construction, mining, quarrying, and oil

and gas extraction (n = 336)71% 0% 28% 1%

Educational services (n = 367) 9% 39% 4% 48%

Finance, insurance, real estate and rental

and leasing (n = 307)56% 0% 24% 19%

Government agencies (n = 537) 0% 100% 0% 0%

Health care and social assistance

(n = 349)32% 0% 9% 59%

High-tech (n = 156) 54% 0% 44% 2%

Manufacturing (n = 404) 63% 0% 36% 1%

Professional, scientific, and technical

services (n = 458)76% 0% 19% 5%

Other industry (n = 91) 57% 0% 22% 21%

Page 27: Shrm economic-conditions-recruiting-skills-gaps

Demographics: Region (all Industries)

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 27

n = 3,022

39%

23%

22%

16%South

West

Midwest

Northeast

Page 28: Shrm economic-conditions-recruiting-skills-gaps

Demographics: Region (by Industry)

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 28

Note: Percentages may not equal 100% due to rounding.

South West Midwest Northeast

All industries (n = 3,022) 39% 23% 22% 16%

Accommodation and food services,

retail/wholesale trade (n = 287)37% 29% 20% 14%

Construction, mining, quarrying, and oil

and gas extraction (n = 304)44% 25% 18% 13%

Educational services (n = 330) 36% 18% 26% 20%

Finance, insurance, real estate and rental

and leasing (n = 279)33% 19% 25% 23%

Government agencies (n = 494) 48% 24% 21% 6%

Health care and social assistance

(n = 323)37% 22% 23% 18%

High-tech (n = 142) 30% 36% 12% 23%

Manufacturing (n = 365) 36% 16% 33% 16%

Professional, scientific, and technical

services (n = 418)42% 24% 17% 17%

Other industry (n = 80) 39% 23% 16% 23%

Page 29: Shrm economic-conditions-recruiting-skills-gaps

Demographics: Organization Staff Size (All Industries)

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 29

Note: n = 2,945. Percentages do not equal 10% due to rounding.

21%

31%

22%

20%

7%

1 to 99 employees

100 to 499 employees

500 to 2,499 employees

2,500 to 24,999 employees

25,000 or more employees

Page 30: Shrm economic-conditions-recruiting-skills-gaps

Demographics: Organization Staff Size (by Industry)

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 30

Note: Percentages may not equal 100% due to rounding.

1 to 99

Employees

100 to 499

Employees

500 to 2,499

Employees

2,500 to 24,999

Employees

25,000 or More

Employees

All industries (n = 2,945) 21% 31% 22% 20% 7%

Accommodation and food services,

retail/wholesale trade (n = 278)14% 27% 17% 19% 24%

Construction, mining, quarrying, and

oil and gas extraction (n = 301)23% 33% 20% 20% 3%

Educational services (n = 318) 10% 29% 32% 25% 3%

Finance, insurance, real estate and

rental and leasing (n = 279)29% 31% 20% 14% 6%

Government agencies (n = 470) 13% 32% 30% 21% 4%

Health care and social assistance

(n = 314)15% 29% 23% 24% 9%

High-tech (n = 143) 27% 27% 16% 21% 9%

Manufacturing (n = 355) 17% 32% 22% 23% 6%

Professional, scientific, and technical

services (n = 409)40% 32% 11% 13% 5%

Other industry (n = 78) 23% 36% 17% 17% 8%

Page 31: Shrm economic-conditions-recruiting-skills-gaps

n = 3,092

Demographics: Other (All Industries)

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 31

U.S.-based operations only 71%

Multinational operations 29%

Single-unit organization: An organization

in which the location and the organization

are one and the same.

31%

Multi-unit organization: An organization

that has more than one location.69%

Multi-unit headquarters determines HR

policies and practices48%

Each work location determines HR policies

and practices3%

A combination of both the work location and

the multi-unit headquarters determines HR

policies and practices

49%

Is your organization a single-unit organization or a

multi-unit organization?

For multi-unit organizations, are HR policies and practices

determined by the multi-unit headquarters, by each work

location or by both?

Does your organization have U.S.-based

operations (business units) only, or does it

operate multinationally?

n = 3,116

n = 2,223

Page 32: Shrm economic-conditions-recruiting-skills-gaps

32

SHRM Survey Findings

• Response rate = 13%

• 3,335 HR professionals participated in this survey from a randomly selected sample of SHRM’s membership from nine different industries:

» Accommodation and food services, retail/wholesale trade.

» Construction, mining, quarrying, and oil and gas extraction.

» Educational services.

» Finance, insurance, real estate and rental and leasing.

» Government agencies.

» Health care and social assistance.

» High-tech.

» Manufacturing.

» Professional, scientific, and technical services.

• Margin of error +/-2%

• Survey fielded December 16, 2013 – January 16, 2014

Survey Methodology

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014

Page 33: Shrm economic-conditions-recruiting-skills-gaps

• SHRM Leading Indicators of National Employment (LINE)

» http://www.shrm.org/research/monthlyemploymentindices/line/pages/default.aspx

• SHRM Jobs Outlook Survey (JOS)

» http://www.shrm.org/research/monthlyemploymentindices/lmo/pages/default.aspx

• SHRM Metro Economic Outlooks

» http://www.shrm.org/research/monthlyemploymentindices/pages/metroeconomicoutlooks.aspx

• SHRM’s Workforce Readiness Resource Page

» http://www.shrm.org/hrdisciplines/staffingmanagement/articles/pages/workforcereadiness.aspx

• SHRM Foundation: What’s Next: Future Global Trends Affecting Your Organization, Evolution of Work

and the Worker

» http://www.shrm.org/about/foundation/shapingthefuture/documents/2-

14%20theme%201%20paper-final%20for%20web.pdf

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 33

Additional SHRM Resources

Page 34: Shrm economic-conditions-recruiting-skills-gaps

For more survey/poll findings, visit shrm.org/surveys

For more information about SHRM’s Customized Research Services, visit

shrm.org/customizedresearch

Follow us on Twitter @SHRM_Research

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 34

About SHRM Research

Project lead:

Tanya Mulvey, researcher, SHRM Research

Project contributors:

Alexander Alonso, Ph.D., SPHR, vice president, SHRM Research

Evren Esen, director, Survey Programs, SHRM Research

Yan Dong, Survey Research Center, SHRM Research

Christina Lee, researcher, SHRM Research

Qikun Niu, intern, SHRM Research

Jennifer Schramm, manager, Workplace Trends and Forecasting, SHRM Research

Joseph Coombs, senior analyst, Workforce Trends, SHRM Research

Copy editor:

Katya Scanlan, SHRM Knowledge Center

Page 35: Shrm economic-conditions-recruiting-skills-gaps

Founded in 1948, the Society for Human Resource Management (SHRM) is the

world’s largest HR membership organization devoted to human resource management.

Representing more than 275,000 members in over 160 countries, the Society is the

leading provider of resources to serve the needs of HR professionals and advance the

professional practice of human resource management. SHRM has more than 575

affiliated chapters within the United States and subsidiary offices in China, India and

United Arab Emirates. Visit us at shrm.org.

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 35

About SHRM