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SHRM Poll: The Ongoing Impact of the
Recession—Recruiting and Skill Gaps

                             November 7, 2011
Introduction


 This is part one of a series of SHRM poll results about the ongoing impact of the
  recession. Overall results will be reported separately in three different topic areas:
     Recruiting and skill gaps.
     Overall financial health and hiring.
     Global competition and hiring strategies.


 Industry-specific results will be reported separately for each of the eight industries
  that were included in the sample:
     Construction, oil, mining and gas.
     Federal government.
     Finance.
     Health.
     Manufacturing.
     State and local government.
     Services—professional.
     High-tech.


                                   SHRM Poll: The Ongoing Impact of the Recession—Recruiting and Skill Gaps ©SHRM 2011
                                                                                                                         2
Key Findings



 Is recruiting for specific jobs difficult in the current labor market? About one half
  (52%) of organizations that are currently hiring full-time staff indicated that they are
  having a difficult time recruiting for specific job openings.

 What types of jobs are the most difficult to fill? Although difficulty in filling specific
  jobs varies by industry, the top five most difficult positions to fill overall are
  engineers (88%), high-skilled medical (e.g., nurses, doctors, specialists) (86%), high-
  skilled technical (e.g., technicians and programmers) (85%), scientists (83%), and
  managers and executives (78%).

 What basic knowledge and applied skill gaps do job applicants typically have? For
  basic knowledge skills, writing in English (48%), mathematics (38%), reading
  comprehension (30%) and English language (spoken) (30%) are the most common
  skill gaps. The top four applied skill gaps are critical thinking/problem solving (54%),
  professionalism/work ethic (44%), written communication (41%) and leadership
  (39%).

                               SHRM Poll: The Ongoing Impact of the Recession—Recruiting and Skill Gaps ©SHRM 2011
                                                                                                                     3
In general, in the current labor market, is your organization having a
  difficult time recruiting for specific jobs that are open in your
  organization?




                   No, 48%



                                                                                                                       Yes, 52%




Note: n = 1,568. 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.
                                                       SHRM Poll: The Ongoing Impact of the Recession—Recruiting and Skill Gaps ©SHRM 2011
                                                                                                                                                      4
In general, in the current labor market, is your organization having a
difficult time recruiting for specific jobs that are open in your
organization?

Comparisons by industry
The manufacturing and high-tech industries are more likely to be having a difficult time recruiting for specific job openings
compared with the construction, mining, oil and gas; federal government; finance; and state and local government industries.


                                                        …are more likely to
                                                                                          Construction, mining, oil and gas (51%)
                                               be having a difficult time recruiting
          Manufacturing (68%)                                                                    Federal government (31%)
                                              for specific jobs that are open in their
             High-tech (71%)                                                                           Finance (49%)
                                                           organization
                                                                                             State and local government (33%)
                                                              than...


The construction, mining, oil and gas, and professional services industries are more likely to be having a difficult time recruiting for
specific job openings at their organizations compared with the federal, state and local governments.

                                                        …are more likely to
                                               be having a difficult time recruiting
 Construction, mining, oil and gas (51%)                                                         Federal government (31%)
                                              for specific jobs that are open in their
       Services—professional (59%)                                                           State and local government (33%)
                                                           organization
                                                              than...



                                               SHRM Poll: The Ongoing Impact of the Recession—Recruiting and Skill Gaps ©SHRM 2011
                                                                                                                                           5
In general, what basic knowledge skill gaps do job applicants have in
your industry?


                  Writing in English (grammar, spelling, etc.)                                                                         48%

                                    Mathematics (computation)                                                              38%

                          Reading comprehension (in English)                                                     30%

                                       English language (spoken)                                                 30%

                                                               Science                             18%

                                         Government/economics                             11%

                                                 Foreign languages                     8%

       Technical (computer, engineering, mechanical, etc.)                           7%

                                                    Humanities/arts            2%

                                                 History/geography            1%

                                                                 Other                  9%

Note: n = 597. Percentages do not total 100% because respondents were able to select multiple response options. Only respondents whose organizations
were having a difficult time recruiting for certain types of jobs were asked this question.
                                                   SHRM Poll: The Ongoing Impact of the Recession—Recruiting and Skill Gaps ©SHRM 2011
                                                                                                                                                       6
In general, what applied skill gaps do job applicants have in your
industry?


                 Critical thinking/problem solving                                                                                           54%
                         Professionalism/work ethic                                                                            44%
                             Written communications                                                                        41%
                                                Leadership                                                               39%
                             Teamwork/collaboration                                                                 36%
                                  Oral communications                                                               36%
              Information technology application                                                            30%
                                 Creativity/innovation                                                25%
                    Lifelong learning/self-direction                                            21%
                          Ethics/social responsibility                                       19%
                                                   Diversity                               17%
                                                       Other               5%


Note: n = 716. Percentages do not total 100% because respondents were able to select multiple response options. Only respondents whose organizations
were having a difficult time recruiting for certain types of jobs were asked this question.
                                                   SHRM Poll: The Ongoing Impact of the Recession—Recruiting and Skill Gaps ©SHRM 2011
                                                                                                                                                       7
Specific Job Categories Organizations Having Difficulty Recruiting


                                                         Engineers (n=425)                                                                                 88%
High-skilled medical (e.g., nurses, doctors, specialists) (n=104)                                                                                        86%
High-skilled technical (e.g., technicians, programmers) (n=557)                                                                                         85%
                                                         Scientists (n=121)                                                                            83%
                                    Managers and executives (n=601)                                                                                78%
                                          Sales representatives (n=326)                                                                       72%
            Skilled trades (e.g., electricians, carpenters) (n=337)                                                                        68%
                    Accounting and finance professionals (n=528)                                                                54%
                                          Production operators (n=256)                                                        52%
                                                HR professionals (n=384)                                                    49%
                                                            Drivers (n=157)                                      36%
                         Customer service representatives (n=398)                                              34%
                                                 Hourly laborers (n=428)                                    29%
                                Administrative support staff (n=610)                                   24%
   Note: n = 104-610. Chart 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.
                                                        SHRM Poll: The Ongoing Impact of the Recession—Recruiting and Skill Gaps ©SHRM 2011
                                                                                                                                                                8
Demographics: Organization Industry



                         State and local government                                                               20%


                                           Manufacturing                                                 16%


                                                     Finance                                          15%


                                 Services--professional                                             14%


                  Construction, mining, oil and gas                                                 14%


                                                  High-tech                               10%


                                    Federal government                               8%


                                                      Health                4%


Note: n = 2,286. Percentages do not total 100% due to rounding.

                                                    SHRM Poll: The Ongoing Impact of the Recession—Recruiting and Skill Gaps ©SHRM 2011
                                                                                                                                          9
Demographics: Organization Sector




          Publicly owned for-profit organization                        19%



        Privately owned for-profit organization                                                    47%



                         Nonprofit organization              8%



                            Government sector                                24%



                                          Other        2%

   Note: n = 2,187.

                                     SHRM Poll: The Ongoing Impact of the Recession—Recruiting and Skill Gaps ©SHRM 2011
                                                                                                                           10
Demographics: Organization Staff Size




                           31%
          25%
                                                   23%
                                                                              17%



                                                                                                          4%


  1 to 99 employees 100 to 499 employees 00 to 2,499 employees to 24,999 employees or more employees
                                       5                   2,500              25,000
 Note: n = 2,161.



                                 SHRM Poll: The Ongoing Impact of the Recession—Recruiting and Skill Gaps ©SHRM 2011
                                                                                                                       11
Demographics: Other



Does your organization have U.S.-                                 Is your organization a single-unit company or a
based operations (business units) only                            multi-unit company?
or does it operate multi-nationally?                               Single-unit company: A company in which
                                                                   the location and the company are one             38%
 U.S.-based operations only              74%                       and the same.
                                                                   Multi-unit company: A company that has
 Multinational operations                26%                                                                        62%
                                                                   more than one location.
n = 2,196.                                                         n = 2,226.


                                                                   Are HR policies and practices determined by the
 What is the HR department/function                                multi-unit corporate headquarters, by each work
 for which you responded throughout                                location or both?
 this survey?                                                        Multi-unit headquarters determines HR policies
                                                                                                                              52%
                                                                     and practices
   Corporate (company wide)                69%
                                                                     Each work location determines HR policies and
   Business unit/division                  19%                                                                                3%
                                                                     practices

   Facility/location                       12%                       A combination of both the work location and the
                                                                     multi-unit headquarters determine HR policies            44%
 n = 1,444.
                                                                     and practices

                                                                     n = 1,442.
 Note: Percentages may not total 100% due to rounding.

                                                   SHRM Poll: The Ongoing Impact of the Recession—Recruiting and Skill Gaps ©SHRM 2011
                                                                                                                                         12
SHRM Poll: The Ongoing Impact of the Recession



 Methodology


       Response rate = 11%

       Sample composed of 2,286 randomly selected HR
        professionals from eight different industries in SHRM’s
        membership

       Margin of error +/- 2%

       Survey fielded August 18-September 2, 2011

              For more poll findings, visit www.shrm.org/surveys
              Follow us on Twitter: http://twitter.com/SHRM_Research



                              SHRM Poll: The Ongoing Impact of the Recession—Recruiting and Skill Gaps ©SHRM 2011
                                                                                                                    13

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Recession poll 2011 recruiting skillgaps_final

  • 1. SHRM Poll: The Ongoing Impact of the Recession—Recruiting and Skill Gaps November 7, 2011
  • 2. Introduction  This is part one of a series of SHRM poll results about the ongoing impact of the recession. Overall results will be reported separately in three different topic areas:  Recruiting and skill gaps.  Overall financial health and hiring.  Global competition and hiring strategies.  Industry-specific results will be reported separately for each of the eight industries that were included in the sample:  Construction, oil, mining and gas.  Federal government.  Finance.  Health.  Manufacturing.  State and local government.  Services—professional.  High-tech. SHRM Poll: The Ongoing Impact of the Recession—Recruiting and Skill Gaps ©SHRM 2011 2
  • 3. Key Findings  Is recruiting for specific jobs difficult in the current labor market? About one half (52%) of organizations that are currently hiring full-time staff indicated that they are having a difficult time recruiting for specific job openings.  What types of jobs are the most difficult to fill? Although difficulty in filling specific jobs varies by industry, the top five most difficult positions to fill overall are engineers (88%), high-skilled medical (e.g., nurses, doctors, specialists) (86%), high- skilled technical (e.g., technicians and programmers) (85%), scientists (83%), and managers and executives (78%).  What basic knowledge and applied skill gaps do job applicants typically have? For basic knowledge skills, writing in English (48%), mathematics (38%), reading comprehension (30%) and English language (spoken) (30%) are the most common skill gaps. The top four applied skill gaps are critical thinking/problem solving (54%), professionalism/work ethic (44%), written communication (41%) and leadership (39%). SHRM Poll: The Ongoing Impact of the Recession—Recruiting and Skill Gaps ©SHRM 2011 3
  • 4. In general, in the current labor market, is your organization having a difficult time recruiting for specific jobs that are open in your organization? No, 48% Yes, 52% Note: n = 1,568. 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. SHRM Poll: The Ongoing Impact of the Recession—Recruiting and Skill Gaps ©SHRM 2011 4
  • 5. In general, in the current labor market, is your organization having a difficult time recruiting for specific jobs that are open in your organization? Comparisons by industry The manufacturing and high-tech industries are more likely to be having a difficult time recruiting for specific job openings compared with the construction, mining, oil and gas; federal government; finance; and state and local government industries. …are more likely to Construction, mining, oil and gas (51%) be having a difficult time recruiting Manufacturing (68%) Federal government (31%) for specific jobs that are open in their High-tech (71%) Finance (49%) organization State and local government (33%) than... The construction, mining, oil and gas, and professional services industries are more likely to be having a difficult time recruiting for specific job openings at their organizations compared with the federal, state and local governments. …are more likely to be having a difficult time recruiting Construction, mining, oil and gas (51%) Federal government (31%) for specific jobs that are open in their Services—professional (59%) State and local government (33%) organization than... SHRM Poll: The Ongoing Impact of the Recession—Recruiting and Skill Gaps ©SHRM 2011 5
  • 6. In general, what basic knowledge skill gaps do job applicants have in your industry? Writing in English (grammar, spelling, etc.) 48% Mathematics (computation) 38% Reading comprehension (in English) 30% English language (spoken) 30% Science 18% Government/economics 11% Foreign languages 8% Technical (computer, engineering, mechanical, etc.) 7% Humanities/arts 2% History/geography 1% Other 9% Note: n = 597. Percentages do not total 100% because respondents were able to select multiple response options. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question. SHRM Poll: The Ongoing Impact of the Recession—Recruiting and Skill Gaps ©SHRM 2011 6
  • 7. In general, what applied skill gaps do job applicants have in your industry? Critical thinking/problem solving 54% Professionalism/work ethic 44% Written communications 41% Leadership 39% Teamwork/collaboration 36% Oral communications 36% Information technology application 30% Creativity/innovation 25% Lifelong learning/self-direction 21% Ethics/social responsibility 19% Diversity 17% Other 5% Note: n = 716. Percentages do not total 100% because respondents were able to select multiple response options. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question. SHRM Poll: The Ongoing Impact of the Recession—Recruiting and Skill Gaps ©SHRM 2011 7
  • 8. Specific Job Categories Organizations Having Difficulty Recruiting Engineers (n=425) 88% High-skilled medical (e.g., nurses, doctors, specialists) (n=104) 86% High-skilled technical (e.g., technicians, programmers) (n=557) 85% Scientists (n=121) 83% Managers and executives (n=601) 78% Sales representatives (n=326) 72% Skilled trades (e.g., electricians, carpenters) (n=337) 68% Accounting and finance professionals (n=528) 54% Production operators (n=256) 52% HR professionals (n=384) 49% Drivers (n=157) 36% Customer service representatives (n=398) 34% Hourly laborers (n=428) 29% Administrative support staff (n=610) 24% Note: n = 104-610. Chart 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. SHRM Poll: The Ongoing Impact of the Recession—Recruiting and Skill Gaps ©SHRM 2011 8
  • 9. Demographics: Organization Industry State and local government 20% Manufacturing 16% Finance 15% Services--professional 14% Construction, mining, oil and gas 14% High-tech 10% Federal government 8% Health 4% Note: n = 2,286. Percentages do not total 100% due to rounding. SHRM Poll: The Ongoing Impact of the Recession—Recruiting and Skill Gaps ©SHRM 2011 9
  • 10. Demographics: Organization Sector Publicly owned for-profit organization 19% Privately owned for-profit organization 47% Nonprofit organization 8% Government sector 24% Other 2% Note: n = 2,187. SHRM Poll: The Ongoing Impact of the Recession—Recruiting and Skill Gaps ©SHRM 2011 10
  • 11. Demographics: Organization Staff Size 31% 25% 23% 17% 4% 1 to 99 employees 100 to 499 employees 00 to 2,499 employees to 24,999 employees or more employees 5 2,500 25,000 Note: n = 2,161. SHRM Poll: The Ongoing Impact of the Recession—Recruiting and Skill Gaps ©SHRM 2011 11
  • 12. Demographics: Other Does your organization have U.S.- Is your organization a single-unit company or a based operations (business units) only multi-unit company? or does it operate multi-nationally? Single-unit company: A company in which the location and the company are one 38% U.S.-based operations only 74% and the same. Multi-unit company: A company that has Multinational operations 26% 62% more than one location. n = 2,196. n = 2,226. Are HR policies and practices determined by the What is the HR department/function multi-unit corporate headquarters, by each work for which you responded throughout location or both? this survey? Multi-unit headquarters determines HR policies 52% and practices Corporate (company wide) 69% Each work location determines HR policies and Business unit/division 19% 3% practices Facility/location 12% A combination of both the work location and the multi-unit headquarters determine HR policies 44% n = 1,444. and practices n = 1,442. Note: Percentages may not total 100% due to rounding. SHRM Poll: The Ongoing Impact of the Recession—Recruiting and Skill Gaps ©SHRM 2011 12
  • 13. SHRM Poll: The Ongoing Impact of the Recession Methodology  Response rate = 11%  Sample composed of 2,286 randomly selected HR professionals from eight different industries in SHRM’s membership  Margin of error +/- 2%  Survey fielded August 18-September 2, 2011 For more poll findings, visit www.shrm.org/surveys Follow us on Twitter: http://twitter.com/SHRM_Research SHRM Poll: The Ongoing Impact of the Recession—Recruiting and Skill Gaps ©SHRM 2011 13