SHRM Survey Findings: The Ongoing Impact of the Recession—Finance Industry

SHRM Survey Findings: The Ongoing Impact of the Recession—Finance Industry

September 25, 2013

The Ongoing Impact of the Recession—Finance Industry ©SHRM 2013 2

• These are the Finance industry 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.» Health.» High-tech.» Manufacturing.» Professional services.» State and local government.

• Overall and California results can be found on our website at www.shrm.org/surveys.

Introduction

http://www.shrm.org/surveys


Skill Gaps

4

• What basic skills/knowledge gaps do job applicants typically have? The most common basic skills/knowledge gaps are writing in English (60%), mathematics (55%), reading comprehension (28%), and English language (spoken) (23%).

• What applied skill gaps do job applicants typically have? The top five applied skill gaps are professionalism/work ethic (55%), critical thinking/problem solving (49%), written communications (41%), leadership (38%), and oral communications (33%).

• What types of jobs are the most difficult to fill? The top five most difficult positions to fill are high-skilled technical (e.g., technicians and programmers) (89%), managers and executives (85%), sales representatives (74%), accounting and finance professionals (73%), and HR professionals (53%).

The Ongoing Impact of the Recession—Finance Industry ©SHRM 2013

Key Findings: Skill GapsFinance Industry


In general, what basic skills/knowledge gaps do job applicants have in your industry?Finance Industry

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

Science

History/geography

Technical (computer, engineering, mechanical, etc.)

Humanities/arts

Foreign languages

Government/economics

English language (spoken)

Reading comprehension (in English)

Mathematics (computation)

Writing in English (grammar, spelling, etc.)

9%

6%

0%

0%

0%

2%

5%

36%

38%

47%

66%

13%

3%

3%

4%

4%

7%

16%

23%

28%

55%

60%

2012 (n = 205)2011 (n = 87)


In general, what applied skill gaps do job applicants have in your industry?Finance Industry

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

Diversity

Ethics/social responsibility

Lifelong learning/self-direction

Creativity/innovation

Information technology application

Teamwork/collaboration

Oral communications

Leadership

Written communications

Critical thinking/problem solving

Professionalism/work ethic

3%

11%

18%

23%

22%

30%

36%

45%

40%

61%

59%

54%

5%

11%

16%

19%

21%

27%

30%

33%

38%

41%

49%

55%

2012 (n = 237)2011 (n = 100)


How easy or difficult has it been to fill the following job categories for full-time regular positions?Finance Industry

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.

Administrative support staff(2012 n = 154, 2011 n = 92)

Hourly laborers (2012 n = 37, 2011 n = 35)

Customer service representatives(2012 n = 147, 2011 n = 84)

HR professionals(2012 n = 86, 2011 n = 46)

Accounting and finance professionals (2012 n = 146, 2011 n = 82)

Sales representatives (2012 n = 107, 2011 n = 62)

Managers and executives (2012 n = 143, 2011 n = 84)

High-skilled technical (e.g., technicians, programmers)(2012 n = 102, 2011 n = 65)

41%

26%

53%

54%

73%

77%

83%

88%

29%

32%

44%

53%

73%

74%

85%

89%

20122011


Recruiting Challenges


• Is it difficult to recruit for positions requiring new and different skill sets? More than one-half (57%) of organizations reported it was 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 consistent with findings in 2011 (56%) and is an increase from 35% in 2010.

• Is recruiting for specific jobs difficult in the current labor market? Two-thirds (66%) of organizations currently hiring full-time staff indicated that they are having a difficult time recruiting for specific job openings, an increase from 49% in 2011.

• Why are organizations experiencing difficulty hiring qualified candidates? About one-half of organizations indicated that candidates do not have the right skills (55%) or the right work experience (50%) for the job. Thirty-eight percent said that qualified candidates were not within their salary range or hourly range rate. One-third (34%) cited competition from other employers.

• Are organizations facing global competition for applicants for hard-to-fill jobs? Only five percent of organizations believe they are facing global competition for qualified applicants for jobs they are having difficulty filling, similar to what was found in 2011 (8%).

Key Findings: Recruiting ChallengesFinance Industry


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? Finance Industry

Note: 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

5%

30%

51%

14%

4%

52%

39%

5%

7%

50%

37%

6%

2012 (n = 103)2011 (n = 77)2010 (n = 112)


In general, in the current labor market, is your organization having a difficult time recruiting for specific jobs that are open in your organization? Finance Industry

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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; 49%No; 51%

2011

Yes; 66%

No; 34%

2012

n = 234 n = 293

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—Finance Industry ©SHRM 2013 12Note: 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 the state or local government industries to be having difficulty recruiting for certain types of full-time, regular positions.


What are the main reason(s) that your organization experiences difficulty in hiring qualified candidates for full-time regular positions? Finance Industry

Note: n = 187. 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 the right skills for the job

Candidates do not have the right work experience

Qualified candidates are not within our salary range or hourly range rate

Competition from other employers

Low number of applicants

Candidates do not have the needed credentials/certifications

Candidates are overqualified

55%

50%

38%

34%

16%

13%

12%


What are the main reason(s) that your organization experiences difficulty in hiring qualified candidates for full-time, regular positions? (continued) Finance Industry

Note: n = 187. 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 interested in moving to our local area

Candidates do not have high enough levels of education/training

Lack of interest in type of job

Local education/training system does not produce enough work-ready/qualified job candidates

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

Our organization does not provide relocation funds

Other

10%

7%

6%

5%

4%

3%

5%


Do you believe that your organization is facing global competition (i.e., competition from other countries) for talent for hard-to-fill jobs?Finance Industry

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, 8%

No, 92%

2011

Yes, 5%

No, 95%

2012

n = 100 n = 174

Do you believe that your organization is facing global competition (i.e., competition from other countries) for talent for hard-to-fill jobs?



High-tech (33%) >


Manufacturing (15%)Professional services (14%)


Construction, mining, oil and gas (22%)Federal government (22%)

>Finance (5%)

Health (6%)State or local government (4%)

Manufacturing (15%) >Finance (5%)


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.


Recruiting Strategies


• 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 (46%), using social media to find passive job seekers (44%), improving compensation/benefits packages (32%), increasing retention efforts (32%), and training existing employees to take on the hard-to-fill positions (31%).

• Have organizations been hiring workers from outside the U.S. for jobs that have been difficult to fill? Sixteen percent of organizations have hired workers from outside the U.S., an increase from 5% in 2011. Another 2% are considering hiring workers from outside the U.S.

• Have organizations been hiring U.S. veterans for jobs that have been difficult to fill? Two out of five (40%) organizations reported hiring U.S. veterans, an increase from 13% in 2011. About one-fifth (21%) are either considering or have plans to hire veterans in the next 12 months.

Key Findings: Recruiting StrategiesFinance Industry


What strategies is your organization using to deal with recruiting challenges for full-time, regular positions?Finance Industry

Note: n = 186. 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

Using social media to find passive job seekers

Improving compensation/benefits package

Increasing retention efforts

Training existing employees to take on the hard-to-fill positions

Collaborating with educational institutions

Expanding search region

Expanding training programs to help improve skills of new hires

46%

44%

32%

32%

31%

28%

26%

24%


What strategies is your organization using to deal with recruiting challenges for full-time, regular positions? (continued)Finance Industry

Note: n = 186. 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.

Providing monetary incentives to candidates(e.g., signing bonus)

Offering more flexible work arrangements

Offering new job perks

Other

None; we have not changed our recruiting strategy

23%

20%

4%

7%

6%


Has your organization hired any workers from outside the United States in an attempt to staff key jobs that have been difficult to fill?Finance Industry

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

16%

82%

2% 0%5%

92%

3% 1%

2012 (n = 178) 2011 (n = 107)

Has your organization hired any workers from outside the United States in an attempt to staff key jobs that have been difficult to fill?



High-tech (50%) >

Construction, mining, oil and gas (26%)Federal government (16%)




Construction, mining, oil and gas (26%)Health (29%)


> 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.


Has your organization hired any U.S. veterans in an attempt to staff key jobs that have been difficult to fill?Finance Industry

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

40% 39%

17%

5%13%

66%

19%

2%

2012 (n = 154) 2011 (n = 91)

Has your organization hired any U.S. veterans in an attempt to staff key jobs that have been difficult to fill?



Federal government (87%) >


High-tech (47%)Manufacturing (60%)

Professional services (43%)

Construction, mining, oil and gas (70%)State or local government (71%)

>Finance (40%)High-tech(47%)


Manufacturing (60%) >Finance (40%)


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.


Demographics


Demographics: Organization SectorFinance Industry

Note: n = 371. Percentages do not total 100% due to rounding.

Privately owned for-profit

Publicly owned for-profit

Nonprofit

Government

Other

40%

35%

21%

0%

3%


Demographics: Organization Staff SizeFinance Industry

Note: n = 362. Percentages do not total 100% due to rounding.

1 to 99 employees

100 to 499 employees

500 to 2,499 employees

2,500 to 24,999 employees

25,000 or more employees

31%

34%

17%

13%

4%


n = 373

Other DemographicsFinance Industry

28

U.S.-based operations only 82%

Multinational operations 18%

Single-unit organization: An organization in which the location and the organization are one and the same

22%

Multi-unit organization: An organization that has more than one location 78%

Multi-unit headquarters determines HR policies and practices 68%

Each work location determines HR policies and practices 1%

A combination of both the work location and the multi-unit headquarters determines HR policies and practices

31%

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 = 373

n = 294

Corporate (companywide) 85%

Business unit/division 13%

Facility/location 2%

n = 293

What is the HR department/function for which you responded throughout this survey?

• Response rate = 13%• 387 randomly selected HR professionals from the finance 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


SHRM Survey Findings: The Ongoing Impact of the Recession—Finance Industry

Survey Methodology

• 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 ResearchYan Dong, Intern, SHRM Research

Copy editor:Katya Scanlan, SHRM Knowledge Center

http://www.shrm.org/surveys

http://www.shrm.org/customizedresearch

http://twitter.com/SHRM_Research

http://twitter.com/SHRM_Research

The Society for Human Resource Management (SHRM) is the world’s largest association devoted to human resource management. Representing more than 250,000 members in over 140 countries, the Society serves the needs of HR professionals and advances the interests of the HR profession. Founded in 1948, SHRM has more than 575 affiliated chapters within the United States and subsidiary offices in China and India.


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