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SHRM Survey Findings: 2014 Economic Conditions—California Recruiting and Skills Gaps
October 30, 2014
Economic Conditions—California Recruiting and Skills Gaps ©SHRM 2014 2
• This is Part 2 of the California results from a series of SHRM survey results about the state of jobs and skills in the current economic condition, which relates to a SHRM survey series about the ongoing impact of the U.S. and global recession from 2007 to 2012. California and U.S. results are compared, and statistically significant differences are indicated in separate slides in the report.
• California results will be reported separately in three different topic areas:» Overall financial health and hiring.» Recruiting and skills gaps.» Global competition and hiring strategies.
• Overall results (including industry-specific information) for 2013 can be found on our website at http://www.shrm.org/research/surveyfindings/articles/pages/shrmpolltheongoingimpactoftherecession.aspx
Introduction
Economic Conditions—California Recruiting and Skills Gaps ©SHRM 2014 3
• Is recruiting for specific jobs difficult in California? About one-half (52%) of organizations in California indicated that they have had difficulty recruiting for full-time regular positions in the past 12 months.
• Among organizations experiencing difficulty in hiring qualified candidates, what are the reasons? The top reasons California organizations have experienced difficulty in hiring for full-time regular positions were similar to those for the rest of the U.S.: About one-half indicated that candidates lack the right technical skills (54%) and the needed work experience (52%), and one-half reported competition from other employers (50%).
» Compared with the rest of the U.S., organizations in California were less likely to indicate that they have experienced difficulty in hiring for full-time regular positions because candidates do not have the needed credentials/certifications or qualified candidates are not interested in moving to their local area.
• What types of jobs are the most difficult to fill? Similar to the rest of the U.S., the top five most difficult positions to fill overall were highly skilled positions: scientists (74%), engineers (71%), managers and executives (71%), IT/computer specialists (70%) and high-skilled medical (e.g., nurses, doctors, specialists) (69%).
» Compared with the rest of the U.S., organizations in California were more likely to find it very difficult to fill educators in full-time regular positions but very easy to fill hourly laborers. U.S. organizations were more likely to find it very easy to recruit for skilled trade positions.
Key Findings
Economic Conditions—California Recruiting and Skills Gaps ©SHRM 2014 4
• What basic skills/knowledge gaps do job applicants in California typically have? Writing in English (30%), basic computer skills (24%), English language (spoken) (21%), reading comprehension (15%) and mathematics (computation) (12%) were the most common skills gaps.
» About two-fifths (42%) of California organizations indicated there were no basic skills/knowledge gaps for their job applicants, the same as the rest of the U.S.
» Compared with the rest of the U.S., organizations in California were less likely to report that job applicants lack basic computer skills.
• What applied skills gaps do job applicants in California typically have? The top three applied skills gaps were critical thinking/problem-solving (36%), professionalism/work ethic (32%) and leadership (29%).
» Only about one-fourth (23%) of California organizations indicated no applied skills gaps exist for their job applicants.
Key Findings (continued)
Economic Conditions—California Recruiting and Skills Gaps ©SHRM 2014 5
• Despite recent gains in the U.S. labor market, millions of positions are still going unfilled and, consequently, impeding the growth of some employers. In July 2014, there were 4.7 million job openings in the U.S., up nearly 800,000 from the beginning of 2014, according to federal data. Many economists and labor market observers cite weak economic demand as the cause of limited job creation in some sectors. But with millions of people seeking work and so many jobs going unfilled, it is clear that, at some level, a skills mismatch exists between some job seekers and open positions, and this is also inhibiting widespread job growth in the California and U.S. economies.
• Knowing that a skills mismatch may prevent jobs from being filled, a multipronged approach is needed to close this gap. HR professionals should explore training opportunities for their employees and potential partnerships with local educational institutions, which can involve creating curricula in line with the skills needed at their organizations. Government job training programs are also active in many communities, and HR professionals should be aware of these as a means of supporting their recruiting efforts.
• Even though many organizations are pursuing partnerships with educational bodies to develop training programs, on-the-job training led mainly by the employers themselves is still a vital part of employee and organizational development.
• HR professionals and their employers should not blame recruiting difficulty solely on this skills mismatch. There are other reasons why jobs are going unfilled; half of respondents in the California and overall U.S. survey cited competition from other employers, and two out of five California respondents—compared with 37% in the overall U.S.—said their candidates turned down the compensation offer. That suggests that hiring is becoming more competitive in some sectors, and HR professionals should consider creative compensation packages that include market-rate salaries and perhaps some form of flexible benefits, which are considered attractive by many workers.
What Do These Findings Mean for the HR Profession?
Economic Conditions—California Recruiting and Skills Gaps ©SHRM 2014 6
Percentage of Organizations Having Difficulty Recruiting for Full-Time Regular Positions in the Last 12 Months
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.
California (n = 516)
United States (n = 2,988)
52%
50%
Economic Conditions—California Recruiting and Skills Gaps ©SHRM 2014 7
Main Reasons That Organizations Have Experienced Difficulty in Hiring for Full-time Regular Positions
Note: Respondents who answered "don't know" were excluded from this analysis. Percentages may not equal 100% due to multiple response options. Only respondents whose organizations were having difficulty hiring for full-time positions were asked this question.
California (n = 253)United States (n =
1,417)Candidates do not have the right technical skills
54% 50%
Candidates do not have the needed work experience
52% 50%
Competition from other employers
50% 50%
Candidates do not have the right professional skills
42% 39%
Low number of applicants 42% 43%
Qualified candidates reject compensation package
40% 37%
The local market is not producing enough work-ready/qualified job candidates
39% 40%
Candidates do not have the right workplace (soft) skills
32% 27%
Candidates do not have the right basic skills
22% 22%
Candidates do not have the needed credentials/certifications
22% 29%
Economic Conditions—California Recruiting and Skills Gaps ©SHRM 2014 8
Main Reasons That Organizations Have Experienced Difficulty in Hiring for Full-Time Regular Positions (continued)
Note: Respondents who answered "don't know" were excluded from this analysis. Percentages may not equal 100% due to multiple response options. Only respondents whose organizations were having difficulty hiring for full-time positions were asked this question.
California (n = 253)United States (n =
1,417)
Candidates are overqualified 18% 15%
Qualified candidates are not interested in moving to our local area
16% 26%
Qualified candidates are not able to move to our local area (due to mortgage or other issues)
15% 12%
Candidates do not have the needed training
13% 16%
Candidates do not have high enough levels of education
12% 15%
Lack of interest in type of job 11% 16%
Qualified candidates reject benefits package
9% 8%
Our organization does not provide relocation funds
9% 11%
Other 10% 7%
Economic Conditions—California Recruiting and Skills Gaps ©SHRM 2014 9
Main Reasons That Organizations Have Experienced Difficulty in Hiring for Full-Time Regular Positions
Note: Only statistically significant differences are shown. California responses were excluded from the United States group for this analysis.
United States—California Comparison
• Organizations in California are less likely to indicate that they have experienced difficulty in hiring for full-time regular positions because candidates do not have the needed credentials/certifications compared with the rest of the U.S.
• Organizations in California are less likely to indicate that they have experienced difficulty in hiring for full-time regular positions because qualified candidates are not interested in moving to their local area compared with the rest of the U.S.
Candidates do not have the needed credentials/certifications
California (22%) < United States (30%)
Qualified candidates are not interested in moving to local area
California (16%) < United States (27%)
Economic Conditions—California Recruiting and Skills Gaps ©SHRM 2014 10
Organizations Having Difficulty Filling Certain Job Categories for Full-Time Regular Positions over the Last 12 Months
Note: Respondents who answered “don't know” were excluded from this analysis. Percentages do not equal 100% due to multiple response options. Only respondents whose organizations were hiring full-time staff were asked this question. Figure represents those who answered “very difficult” and “somewhat difficult.”
Scientists
Engineers
Managers and executives
IT/computer specialists
High-skilled medical
High-skilled technicians
Skilled trades
Sales representatives
Lawyers, judges and legal support workers
HR professionals
74%
71%
71%
70%
69%
60%
55%
54%
51%
49%
67%
72%
65%
69%
69%
63%
55%
54%
48%
45%
United States (n = 195-1,721)
California (n = 19-284)
Economic Conditions—California Recruiting and Skills Gaps ©SHRM 2014 11
Organizations Having Difficulty Filling Certain Job Categories for Full-Time Regular Positions over the Last 12 Months (continued)
Note: Respondents who answered “don't know” were excluded from this analysis. Percentages do not equal 100% due to multiple response options. Only respondents whose organizations were hiring full-time staff were asked this question. Figure represents those who answered “very difficult” and “somewhat difficult.”
Community and social service workers
Protective service workers
Educators
Drivers
Accounting and finance professionals
Production operators
Customer service representatives
Hourly laborers
Hourly service workers
Administrative support staff
46%
42%
39%
38%
36%
29%
23%
22%
19%
13%
46%
30%
42%
34%
35%
34%
22%
22%
21%
14%
United States (n = 195-1,721) California (n = 19-284)
Economic Conditions—California Recruiting and Skills Gaps ©SHRM 2014 12
Organizations Having Difficulty Filling Certain Job Categories for Full-Time Regular Positions over the Last 12 Months
Note: Only statistically significant differences are shown. California responses were excluded from the United States group for this analysis.
United States—California Comparison
• In the last 12 months, organizations in California were more likely to find it very difficult to fill positions for full-time educators (e.g., teachers, professors) compared with the rest of the U.S.
• In the last 12 months, organizations in California were more likely to find it very easy to fill positions for hourly laborers compared with the rest of the U.S.
• In the last 12 months, organizations in California were less likely to find it very easy to fill positions for skilled trades (e.g., electricians, carpenters, machinists, mechanics, welders, plumbers) compared with the rest of the U.S.
Very Difficult—Educators (e.g., teachers, professors)
California (21%) > United States (8%)
Very Easy—Hourly Laborers
California (47%) > United States (35%)
Very Easy—Skilled Trades
California (5%) < United States (12%)
Economic Conditions—California Recruiting and Skills Gaps ©SHRM 2014 13
Basic Skills/Knowledge Gaps Job Applicants Had in the Last 12 Months
Note: Respondents who answered "don't know" were excluded from this analysis. Percentages do not equal 100% due to multiple response options.
None
Writing in English
Basic computer skills
English language (spoken)
Reading comprehension in English
Mathematics (computation)
Spanish language
Science
Foreign languages (except Spanish)
Other
42%
30%
24%
21%
15%
12%
9%
7%
5%
3%
42%
26%
31%
17%
16%
15%
7%
6%
4%
2%
United States (n = 2,441)California (n = 435)
Economic Conditions—California Recruiting and Skills Gaps ©SHRM 2014 14
Basic Skills/Knowledge Gaps Job Applicants Had in the Last 12 Months (continued)
Note: Only statistically significant differences are shown. California responses were excluded from the United States group for this analysis.
United States—California Comparison
• In the last 12 months, organizations in California were less likely to report that job applicants lack basic computer skills (e.g., using a mouse, typing, opening/closing/saving files, terminology, accessing the Internet) compared with the rest of the U.S.
Basic Computer Skills
California (24%) < United States (32%)
Economic Conditions—California Recruiting and Skills Gaps ©SHRM 2014 15
Applied Skill Gaps Job Applicants Had in the Last 12 Months
Note: Respondents who answered "don't know" were excluded from this analysis. Percentages may not equal 100% due to rounding.
None
Critical Thinking/Problem-Solving
Professionalism/Work Ethic
Leadership
Written Communications
Oral Communications
Teamwork/Collaboration
Application of Information and Communications Technology (ITC)
Lifelong Learning/Self-Direction
Creativity/Innovation
Ethics/Social Responsibility
Diversity
Other
23%
36%
32%
29%
25%
24%
22%
18%
14%
14%
12%
8%
4%
20%
40%
38%
34%
27%
22%
25%
20%
13%
14%
13%
12%
3%
United States (n = 2,583)
California (n = 451)
Economic Conditions—California Recruiting and Skills Gaps ©SHRM 2014 16
California Demographics
Economic Conditions—California Recruiting and Skills Gaps ©SHRM 2014 17
Demographics (CA): Organization Industry
Note: n = 572. Percentages do not equal 100% due to multiple response options.
Percentage
Professional, scientific, and technical services 16%
Accommodation and food services, retail/wholesale trade 11%
Health care and social assistance 11%
Manufacturing 11%
High-tech 10%
Other industry 9%
Government agencies 9%
Finance, insurance, real estate and rental and leasing 8%
Educational services 7%
Construction, mining, quarrying, and oil and gas extraction 6%
Economic Conditions—California Recruiting and Skills Gaps ©SHRM 2014 18
Demographics (CA): Organization Sector
Note: n = 572. Percentages do not equal 100% due to rounding.
Privately owned for-profit
Publicly owned for-profit
Nonprofit/not-for-profit organization
Government
49%
22%
17%
11%
Economic Conditions—California Recruiting and Skills Gaps ©SHRM 2014 19
Demographics (CA): Organization Staff Size
n = 504
1 to 99 employees
100 to 499 employees
500 to 2,499 employees
2,500 to 24,999 employees
25,000 or more employees
28%
30%
20%
15%
7%
Economic Conditions—California Recruiting and Skills Gaps ©SHRM 2014 20
n = 535
Demographics (CA): Other
U.S.-based operations only 67%
Multinational operations 33%
Single-unit organization: An organization in which the location and the organization are one and the same.
30%
Multi-unit organization: An organization that has more than one location.
70%
Multi-unit headquarters determines HR policies and practices
48%
Each work location determines HR policies and practices
3%
A combination of both the work location and the multi-unit headquarters determines HR policies and practices
49%
Is your organization a single-unit organization or a multi-unit organization?
For multi-unit organizations, are HR policies and practices determined by the multi-unit headquarters, by each work location or by both?
Does your organization have U.S.-based operations (business units) only, or does it operate multinationally?
n = 542
n = 398
Economic Conditions—California Recruiting and Skills Gaps ©SHRM 2014 21
SHRM Survey Findings
• 3,655 HR professionals participated in this survey from a randomly selected sample of SHRM’s membership from the entire United States and an additional random sample from California
• U.S. respondents (including CA) = 3,335, response rate = 13%, margin of error = +/-2%
• CA respondents = 572, response rate = 10%, margin of error = +/-4%
• Survey fielded December 16, 2013 - January 16, 2014
Survey Methodology
Economic Conditions—California Recruiting and Skills Gaps ©SHRM 2014 22
• SHRM California Resources» http://www.shrm.org/hrdisciplines/pages/california.aspx
• SHRM Leading Indicators of National Employment (LINE)» http://www.shrm.org/research/monthlyemploymentindices/line/pages/default.aspx
• SHRM Jobs Outlook Survey (JOS)» http://www.shrm.org/research/monthlyemploymentindices/lmo/pages/default.aspx
• SHRM Metro Economic Outlooks» http://www.shrm.org/research/monthlyemploymentindices/pages/metroeconomicout
looks.aspx
• SHRM’s Workforce Readiness Resource Page» http://www.shrm.org/hrdisciplines/staffingmanagement/articles/pages/workforceread
iness.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
Additional SHRM Resources
Economic Conditions—California Recruiting and Skills Gaps ©SHRM 2014 23
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
About SHRM Research
Project lead:Tanya Mulvey, researcher, SHRM Research
Project contributors:Alexander Alonso, Ph.D., SPHR, vice president, SHRM ResearchEvren Esen, director, Survey Programs, SHRM ResearchYan Dong, Survey Research Center, SHRM ResearchChristina Lee, researcher, SHRM ResearchQikun Niu, intern, SHRM ResearchJennifer Schramm, manager, Workplace Trends and Forecasting, SHRM ResearchJoseph Coombs, senior analyst, Workforce Trends, SHRM Research
Copy editor:Katya Scanlan, SHRM Knowledge Center
Economic Conditions—California Recruiting and Skills Gaps ©SHRM 2014 24
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