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One-half (52%) of organizations in the state and local government that were hiring full-time staff reported difficulty recruiting for specific open jobs, an increase from 34% in 2011. The top reasons given for recruiting difficulty were the candidates’ pay requirements not matching the hiring organization’s salary or hourly rates (53%), lack of the right skills among candidates (43%), and competition from other employers (35%). This report is one of eight industry-level SHRM survey findings that look at skill gaps, recruiting challenges and recruiting strategies for employers in the U.S.
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SHRM Survey Findings: The Ongoing Impact of the Recession—State and Local Government
September 25, 2013
The Ongoing Impact of the Recession—State and Local Government ©SHRM 2013 2
• These are the State and Local Government survey findings about the ongoing impact of the U.S. and global recession, which began in 2007. This is the third year that SHRM has conducted this study, and data are reported for 2010 and 2011 where possible. The results are reported in the following sections:
» Skill gaps.» Recruiting challenges.» Recruiting strategies.
• Industry-specific results will be reported separately for each of the following industries:» Construction, mining, oil and gas.» Federal government.» Finance.» Health.» High-tech.» Manufacturing.» Professional services.
• Overall and California results can be found on our website at www.shrm.org/surveys.
Introduction
The Ongoing Impact of the Recession—State and Local Government ©SHRM 2013 3
Skill Gaps
4
• What basic skills/knowledge gaps do job applicants typically have? The most common basic skills/knowledge gaps are writing in English (63%), mathematics (33%), reading comprehension (in English) (32%) and government/economics (31%).
• What applied skill gaps do job applicants typically have? The top five applied skill gaps are critical thinking/problem solving (51%), written communications (50%), professionalism/work ethic (48%), leadership (42%) and oral communication (37%).
• What types of jobs are the most difficult to fill? The top five most difficult positions to fill are high-skilled medical (92%), engineers (83%), high-skilled technical (82%), managers and executives (70%), and scientists (70%).
The Ongoing Impact of the Recession—State and Local Government ©SHRM 2013
Key Findings: Skill GapsState and Local Government
The Ongoing Impact of the Recession—State and Local Government ©SHRM 2013 5
In general, what basic skills/knowledge gaps do job applicants have in your industry?State and Local Government
Note: Percentages do not total 100% due to multiple response options. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question.
Other
History/geography
Humanities/arts
Technical (computer, engineering, mechanical, etc.)
Science
Foreign languages
English language (spoken)
Government/economics
Reading comprehension (in English)
Mathematics (computation)
Writing in English (grammar, spelling, etc.)
6%
4%
4%
1%
8%
6%
22%
41%
24%
24%
56%
6%
2%
4%
8%
9%
12%
22%
31%
32%
33%
63%
2012 (n = 332)2011 (n = 78)
The Ongoing Impact of the Recession—State and Local Government ©SHRM 2013 6
In general, what applied skill gaps do job applicants have in your industry?State and Local Government
Note: Percentages do not total 100% due to multiple response options. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question.
Other
Creativity/innovation
Lifelong learning/self-direction
Diversity (i.e., the ability to work well with a diverse workforce and customer base)
Ethics/social responsibility
Teamwork/collaboration
Information technology application
Oral communications
Leadership
Professionalism/work ethic
Written communications
Critical thinking/problem solving
10%
24%
26%
20%
26%
33%
26%
36%
43%
49%
46%
53%
2%
21%
22%
24%
25%
33%
35%
37%
42%
48%
50%
51%
2012 (n = 362)2011 (n = 90)
The Ongoing Impact of the Recession—State and Local Government ©SHRM 2013 7
Organizations having difficulty filling specific job categories for full-time, regular positions:State and Local Government
Note: This figure represents “Somewhat difficult” and “Very difficult” responses. “Not applicable” responses were excluded from this analysis. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question. Data are not provided where the sample size is less than 20.
Accounting and finance professionals (2012 n = 217, 2011 n = 72)
Skilled trades (e.g., electricians, carpenters)(2012 n = 163, 2011 n = 51)
Scientists(2012 n = 44, 2011 n = 20)
Managers and executives (2012 n = 222, 2011 n = 80)
High-skilled technical (e.g., technicians, programmers)(2012 n = 193, 2011 n = 72)
Engineers(2012 n = 127, 2011 n = 53)
High-skilled medical (e.g., nurses, doctors, specialists)(2012 n = 74, 2011 n = 32)
56%
61%
80%
71%
88%
83%
85%
58%
61%
70%
70%
82%
83%
92%
2012
2011
The Ongoing Impact of the Recession—State and Local Government ©SHRM 2013 8
Organizations having difficulty filling specific job categories for full-time, regular positions (continued):State and Local Government
Note: This figure represents “Somewhat difficult” and “Very difficult” responses. “Not applicable” responses were excluded from this analysis. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question. *Data are not provided where the sample size is less than 20.
Customer service representatives(2012 n = 161, 2011 n = 68)
Administrative support staff(2012 n = 240, 2011 n = 92)
Hourly laborers (2012 n = 171, 2011 n = 65)
*Production operators(2012 n = 46)
Drivers(2012 n = 115, 2011 n = 36)
HR professionals(2012 n = 162, 2011 n = 61)
14%
16%
21%
28%
46%
16%
20%
29%
33%
38%
47%
2012
2011
The Ongoing Impact of the Recession—State and Local Government ©SHRM 2013 9
Recruiting Challenges
The Ongoing Impact of the Recession—State and Local Government ©SHRM 2013 10
• Is it difficult to recruit for positions requiring new and different skill sets? One-half of organizations (50%) reported that it is somewhat or very difficult to recruit for completely new positions or positions with new duties added that required new and different skill sets. This is similar to what was reported in 2011 (48%), but an increase from 35% in 2010.
• Is recruiting for specific jobs difficult in the current labor market? About one-half of organizations (52%) currently hiring full-time staff indicated that they were having a difficult time recruiting for specific job openings, an increase from 34% in 2011.
• Why are organizations experiencing difficulty hiring qualified candidates? About one-half of organizations (53%) indicated that qualified candidates were not within their salary range or hourly range rate, and 43% indicated that candidates did not have the right skills for the job. Approximately one-third cited difficulty because of competition from other employers (35%), or candidates did not have the right work experience (32%).
• Are organizations facing global competition for applicants for hard-to-fill jobs? Very few organizations (4%) believe they are facing global competition for qualified applicants for jobs they are having difficulty filling, which is unchanged from 2011.
Key Findings: Recruiting ChallengesState and Local Government
The Ongoing Impact of the Recession—State and Local Government ©SHRM 2013 11
For the new full-time, regular positions being created by your organization that require new and different skill sets, how easy or difficult do you think it will be or has been thus far to find qualified individuals for those positions? State and Local Government
Note: Percentages may not total 100% due to rounding. Only respondents whose organizations were hiring full-time staff for positions with “new duties added to jobs lost” or “completely new positions” that required either “a mixture of new skills and the same types of skills” or “completely new and different skills” were asked this question.
Very difficult
Somewhat difficult
Somewhat easy
Very easy
0%
35%
45%
20%
0%
48%
43%
9%
5%
45%
40%
9%
2012 (n = 97)2011 (n = 44)
The Ongoing Impact of the Recession—State and Local Government ©SHRM 2013 12
For the new full-time, regular positions being created by your organization that require new and different skill sets, how easy or difficult do you think it will be or has been thus far to find qualified individuals for those positions?
Note: Only statistically significant differences are shown.
Comparisons by industry
Comparisons by industry
Health (54%) >
Construction, mining, oil and gas (27%)
High-tech (23%)
Manufacturing (20%)
Professional services (28%)
State or local government (40%) > Manufacturing (20%)
• The health industry is more likely than the construction, mining, oil and gas; high-tech; manufacturing; and professional services industries to indicate it will be or has been somewhat easy to find qualified individuals for new full-time positions.
• State or local governments are more likely than the manufacturing industry to indicate it will be or has been somewhat easy to find qualified individuals for new full-time positions.
Comparisons by industry
Manufacturing (63%) > Health (40%)
• The manufacturing industry is more likely than the health industry to indicate it will be or has been somewhat difficult to find qualified individuals for new full-time positions.
The Ongoing Impact of the Recession—State and Local Government ©SHRM 2013
In general, in the current labor market, is your organization having a difficult time recruiting for specific jobs that are open in your organization? State and Local Government
13
Note: Respondents who answered “don’t know” were excluded from this analysis. Only respondents whose organizations were currently hiring full-time staff were asked this question.
Yes; 34%
No; 66%
2011
Yes; 52%No; 48%
2012
n = 302 n = 524
In general, in the current labor market, are you having a difficult time recruiting for certain types of full-time, regular positions that are open in your organization?
The Ongoing Impact of the Recession—State and Local Government ©SHRM 2013 14
Note: Only statistically significant differences are shown.
Comparisons by industry
High-tech (82%)
Manufacturing (79%)>
Federal government (50%)
Finance (66%)
Health (65%)
State or local government (52%)
Construction, mining, oil and gas (74%)
Professional services (70%)>
Federal government (50%)
State or local government (52%)
Finance (66%)
Health (65%)> State or local government (52%)
Comparisons by industry
• Although there is recruiting difficulty across all industries, certain industries are experiencing more difficulty than others.
• The high-tech and manufacturing industries are more likely than the federal government, finance, health and state or local government industries to be having difficulty recruiting for certain types of full-time, regular positions.
• The construction, mining, oil, and gas and professional services industries are more likely than the federal government and state or local governments to be having difficulty recruiting for certain types of full-time, regular positions.
• The finance and health industries are more likely than state or local governments to be having difficulty recruiting for certain types of full-time, regular positions.
The Ongoing Impact of the Recession—State and Local Government ©SHRM 2013 15
What are the main reason(s) that your organization experiences difficulty in hiring qualified candidates for full-time, regular positions? State and Local Government
Note: n = 265. Percentages do not total 100% due to multiple response options. Respondents who answered “don’t know” were excluded from this analysis. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question.
Qualified candidates are not within our salary range or hourly range rate
Candidates do not have the right skills for the job
Competition from other employers
Candidates do not have the right work experience
Candidates do not have the needed credentials/certifications
Low number of applicants
Qualified candidates are not interestedin moving to our local area
53%
43%
35%
32%
27%
22%
12%
The Ongoing Impact of the Recession—State and Local Government ©SHRM 2013 16
What are the main reason(s) that your organization experiences difficulty in hiring qualified candidates for full-time, regular positions? (continued)State and Local Government
Note: n = 265. Percentages do not total 100% due to multiple response options. Respondents who answered “don’t know” were excluded from this analysis. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question.
Candidates do not have high enough levels of education/training
Our organization does not providerelocation funds
Lack of interest in type of job
Candidates are overqualified
Qualified candidates are not able to move to our local area (due to mortgage or other issues)
Local education/training system does not produce enough work-ready/qualified job candidates
Other
12%
8%
7%
5%
4%
3%
8%
The Ongoing Impact of the Recession—State and Local Government ©SHRM 2013 17
Do you believe that your organization is facing global competition (i.e., competition from other countries) for talent for hard-to-fill jobs?State and Local Government
Note: Respondents who answered “don’t know” were excluded from this analysis. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question.
Yes; 4%
No; 96%
2011 Yes; 4%
No; 96%
2012
n = 96 n = 245
Do you believe that your organization is facing global competition (i.e., competition from other countries) for talent for hard-to-fill jobs?
The Ongoing Impact of the Recession—State and Local Government ©SHRM 2013 18Note: Only statistically significant differences are shown.
Comparisons by industry
High-tech (33%) >
Finance (5%)
Health (6%)
Manufacturing (15%)
Professional services (14%)
State or local government (4%)
Construction, mining, oil and gas (22%)
Federal government (22%)>
Finance (5%)
Health (6%)
State or local government (4%)
Manufacturing (15%) >Finance (5%)
State or local government (4%)
Professional services (14%) > State or local government (4%)
Comparisons by industry• Organizations in the high-tech industry are more likely than those in the finance, health, manufacturing, professional
services and state or local government industries to believe that they are facing global competition for talent for hard-to-fill jobs.
• Organizations in the construction, mining, oil, and gas and federal government industries are more likely than those in the finance, health and state or local government industries to believe that they are facing global competition for talent for hard-to-fill jobs.
• Organizations in the manufacturing industry are more likely than those in the finance and state or local government industries to believe that they are facing global competition for talent for hard-to-fill jobs.
• Organizations in the professional services industry are more likely than those in state or local governments to believe that they are facing global competition for talent for hard-to-fill jobs.
The Ongoing Impact of the Recession—State and Local Government ©SHRM 2013 19
Recruiting Strategies
The Ongoing Impact of the Recession—State and Local Government ©SHRM 2013 20
• What strategies is your organization using to deal with recruiting challenges for full-time, regular positions? The most common strategies reported by organizations are expanding advertising efforts (49%), training existing employees to take on the hard-to-fill positions (33%), expanding the search region (31%) and collaborating with educational institutions (27%).
• Have organizations been hiring workers from outside the U.S. for jobs that have been difficult to fill? Eleven percent of organizations have hired workers from outside the U.S., which is the same as 2011 findings.
• Have organizations been hiring U.S. veterans for jobs that have been difficult to fill? A majority (71%) of organizations reported hiring U.S. veterans, an increase from 37% in 2011. Another 8% are either considering or have plans to hire veterans in the next 12 months.
Key Findings: Recruiting StrategiesState and Local Government
The Ongoing Impact of the Recession—State and Local Government ©SHRM 2013 21
What strategies is your organization using to deal with recruiting challenges for full-time, regular positions?State and Local Government
Note: n = 265. Percentages do not total 100% due to multiple response options. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question.
Expanding advertising efforts
Training existing employees to take onthe hard-to-fill positions
Expanding search region
Collaborating with educational institutions
Using social media to find passive job seekers
Increasing retention efforts
Offering more flexible work arrangements
49%
33%
31%
27%
25%
23%
23%
The Ongoing Impact of the Recession—State and Local Government ©SHRM 2013 22
What strategies is your organization using to deal with recruiting challenges for full-time, regular positions? (continued)State and Local Government
Note: n = 265. Percentages do not total 100% due to multiple response options. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question.
Improving compensation/benefits package
Expanding training programs to helpimprove skills of new hires
Providing monetary incentives to candidates(e.g., signing bonus)
Offering new job perks
Other
None; we have not changed our recruiting strategy
17%
16%
6%
3%
2%
14%
The Ongoing Impact of the Recession—State and Local Government ©SHRM 2013 23
Has your organization hired any workers from outside the United States in an attempt to staff key jobs that have been difficult to fill?State and Local Government
Note: Respondents who answered “don’t know” were excluded from this analysis. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question.
Yes No No, but we are considering it
No, but we have plans to do so in
the next 12 months
11%
89%
0% 0%
11%
88%
1% 0%
2012 (n = 254) 2011 (n = 94)
Has your organization hired any workers from outside the United States in an attempt to staff key jobs that have been difficult to fill?
The Ongoing Impact of the Recession—State and Local Government ©SHRM 2013 24
Note: Only statistically significant differences are shown.
Comparisons by industry
High-tech (50%) >
Construction, mining, oil and gas (26%)
Federal government (16%)
Finance (16%)
Health (29%)
Manufacturing (24%)
Professional services (24%)
State or local government (11%)
Construction, mining, oil and gas (26%)
Health (29%)
Manufacturing (24%)
Professional services (24%)
> State or local government (11%)
Comparisons by industry• The high-tech industry is more likely than the construction, mining, oil and gas; federal government;
finance; health; manufacturing; professional services; and state or local government industries to have hired workers from outside the U.S. in an attempt to recruit for hard-to-fill jobs.
• The construction, mining, oil and gas; health; manufacturing; and professional services industries are more likely than state or local governments to have hired workers from outside the U.S. in an attempt to recruit for hard-to-fill jobs.
The Ongoing Impact of the Recession—State and Local Government ©SHRM 2013 25
Has your organization hired any U.S. veterans in an attempt to staff key jobs that have been difficult to fill?State and Local Government
Note: Respondents who answered “don’t know” were excluded from this analysis. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question.
Yes No No, but we are considering it
No, but we have plans to do so in
the next 12 months
71%
21%
6%2%
37%
54%
6% 3%
2012 (n = 228) 2011 (n = 67)
Has your organization hired any U.S. veterans in an attempt to staff key jobs that have been difficult to fill?
The Ongoing Impact of the Recession—State and Local Government ©SHRM 2013 26
Note: Only statistically significant differences are shown.
Comparisons by industry
Federal government (87%) >
Finance (40%)
Health (57%)
High-tech (47%)
Manufacturing (60%)
Professional services (43%)
Construction, mining, oil and gas (70%)
State or local government (71%)>
Finance (40%)
High-tech (47%)
Professional services (43%)
Manufacturing (60%) >Finance (40%)
Professional services (43%)
Comparisons by industry• The federal government is more likely than the finance, health, high-tech, manufacturing and
professional services industries to have hired U.S. veterans in an attempt to recruit for hard-to-fill jobs.
• The construction, mining, oil, and gas and state or local government industries are more likely than the finance, high-tech and professional services industries to have hired U.S. veterans in an attempt to recruit for hard-to-fill jobs.
• The manufacturing industry is more likely than the finance and professional services industries to have hired U.S. veterans in an attempt to recruit for hard-to-fill jobs.
The Ongoing Impact of the Recession—State and Local Government ©SHRM 2013 27
Demographics
The Ongoing Impact of the Recession—State and Local Government ©SHRM 2013 28
Demographics: Organization Staff SizeState and Local Government
n = 646
1 to 99 employees
100 to 499 employees
500 to 2,499 employees
2,500 to 24,999 employees
25,000 or more employees
17%
39%
27%
15%
2%
The Ongoing Impact of the Recession—State and Local Government ©SHRM 2013
Note: n = 663. Percentages do not equal 100% due to rounding.
Other DemographicsState and Local Government
29
U.S.-based operations only 100%
Multinational operations <1%
Single-unit organization: An organization in which the location and the organization are one and the same.
59%
Multi-unit organization: An organization that has more than one location.
41%
Multi-unit headquarters determines HR policies and practices.
56%
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.
42%
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 = 665
n = 268. Percentages do not equal 100% due to rounding.
Corporate (companywide) 74%
Business unit/division 19%
Facility/location 7%
n = 269
What is the HR department/function for which you responded throughout this survey?
• Response rate = 25%
• 691 randomly selected HR professionals from the state and local government industry in SHRM’s membership participated in this survey.
• With small sample sizes, the response of one participant can affect the overall results considerably; this should be noted when making interpretations of the data, particularly when interpreting small percentage differences.
• Survey fielded August 28-September 14, 2012
The Ongoing Impact of the Recession—State and Local Government ©SHRM 2013 30
SHRM Survey Findings: The Ongoing Impact of the Recession—State and Local Government
Survey Methodology
The Ongoing Impact of the Recession—State and Local Government ©SHRM 2013 31
• For more survey/poll findings, visit www.shrm.org/surveys
• For more information about SHRM’s Customized Research Services, visit www.shrm.org/customizedresearch
• Follow us on Twitter @SHRM_Research
About SHRM Research
Project leader:Tanya Mulvey, researcher, talent management & workforce
skills, SHRM Research
Project contributors:Alexander Alonso, Ph.D., SPHR, vice president, SHRM ResearchEvren Esen, manager, Survey Research Center, SHRM Research
Copy editor:Katya Scanlan, SHRM Knowledge Center
The Ongoing Impact of the Recession—State and Local Government ©SHRM 2013 32
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