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

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

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SHRM Survey Findings: 2014 Economic Conditions—Recruiting and Skills Gaps

October 30, 2014

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 2

• 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.

Introduction

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 3

• 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.

Key Findings

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 4

• 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.

Key Findings (continued)

Economic Conditions—Recruiting 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 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.

What Do These Findings Mean for the HR Profession?

Economic Conditions—Recruiting 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.

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 estate and 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 technical services (n = 393)

50%

46%

53%

36%

53%

39%

56%

56%

60%

56%

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 7

Main Reasons That Organizations Have Experienced Difficulty in Hiring for Full-Time Regular Positions (All Industries)

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.

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 compensation package

Candidates do not have the needed credentials/certifications

Candidates do not have the right workplace (soft) skills

Qualified candidates are not interested in moving to our local area

50%

50%

50%

43%

40%

39%

37%

29%

27%

26%

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 8

Main Reasons That Organizations Have Experienced Difficulty in Hiring for Full-Time Regular Positions (All Industries, continued)

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.

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 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

22%

16%

16%

15%

15%

12%

11%

8%

7%

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 9

Main Reasons That Organizations Have Experienced Difficulty in Hiring for Full-Time Regular Positions (All Industries)

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.

1 to 99 em-ployees

100 to 499 employees

500 to 2,499 employees

2,500 to 24,999 employees

25,000 or more employees

25%32%

46% 42%50%

• 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.

1 to 99 em-ployees

100 to 499 employees

500 to 2,499 employees

2,500 to 24,999 employees

25,000 or more employees

36%46%

53%63% 67%

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 10

Main Reasons That Organizations Have Experienced Difficulty in Hiring for Full-Time Regular Positions (by Industry)

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 Compensation 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%

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 11

Main Reasons That Organizations Have Experienced Difficulty in Hiring for Full-Time Regular Positions (by Industry, 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.

Candidates Do Not Have the Needed Credentials/Certification

s

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%

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 12

Main Reasons That Organizations Have Experienced Difficulty in Hiring for Full-Time Regular Positions (by Industry, 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.

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%

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 13

Organizations That Indicated Difficulty in Filling the Following Job Categories for Full-Time Regular Positions (All Industries)

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.”

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

72%

69%

69%

67%

65%

63%

55%

54%

48%

46%

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 14

Organizations That Indicated Difficulty in Filling the Following Job Categories for Full-Time Regular Positions (All Industries, continued)

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”.

HR professionals

Educators

Accounting and finance professionals

Drivers

Production operators

Protective service workers

Hourly laborers

Customer service representatives

Hourly service workers

Administrative support staff

45%

42%

35%

34%

34%

30%

22%

22%

21%

14%

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 15

Organizations That Indicated Difficulty in Filling the Following Job Categories for Full-Time Regular Positions (by Industry)

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 Specialist

s

ScientistsManagers

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% -

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 16

Organizations That Indicated Difficulty in Filling the Following Job Categories for Full-Time Regular Positions (by Industry, continued)

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 Professiona

ls

Educators

Accounting and Finance

ProfessionalsDrivers

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% -

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 17

Organizations That Indicated Difficulty in Filling the Following Job Categories for Full-Time Regular Positions (by Industry, continued)

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%

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 18

Basic Skills/Knowledge Gaps Job Applicants Had in the Last 12 Months (All Industries)

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.

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

42%

31%

26%

17%

16%

15%

7%

6%

4%

2%

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 19

Basic Skills/Knowledge Gaps Job Applicants Had in the Last 12 Months (by Industry)

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

NoneBasic

Computer Skills

Writing in English

(Grammar, Spelling,

etc.)

English Languag

e (Spoken)

Reading Comprehension in English

Mathematics

(Computation)

Spanish Langua

ge

Science

Foreign Languag

es (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%

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 20

Applied Skills Gaps Job Applicants Had in the Last 12 Months (All Industries)

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.

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

20%

40%

38%

34%

27%

25%

22%

20%

14%

13%

13%

12%

3%

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 21

Applied Skills Gaps Job Applicants Had in the Last 12 Months (by Industry)

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

None

Critical Thinking/Problem-Solving

Professionalism/Work

Ethic

Leadership

Written Communicatio

ns

Teamwork/Collaborati

on

Oral Communicatio

ns

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%

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 22

Applied Skills Gaps Job Applicants Had in the Last 12 Months (by Industry, continued)

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

Responsibility

Diversity

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%

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 23

Demographics

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 24

Demographics: Organization Industry

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%

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 25

Demographics: Organization Sector (All Industries)

n = 3,335

Publicly owned for-profit

Government

Privately owned for-profit

Nonprofit

45%

20%

20%

15%

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 26

Demographics: Organization Sector (by Industry)

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%

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 27

Demographics: Region (all Industries)

n = 3,022

39%

23%

22%

16%

South

West

Midwest

Northeast

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 28

Demographics: Region (by Industry)

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%

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 29

Demographics: Organization Staff Size (All Industries)

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

21%

31%

22%

20%

7%

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 30

Demographics: Organization Staff Size (by Industry)

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

1 to 99

Employees100 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%

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 31

n = 3,092

Demographics: Other (All Industries)

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 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 = 3,116

n = 2,223

Economic Conditions—Recruiting Skills Gaps ©SHRM 2014 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 33

• 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—Recruiting Skills Gaps ©SHRM 2014 34

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—Recruiting Skills Gaps ©SHRM 2014 35

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.

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