SHRM Survey Findings: The Ongoing Impact of the Recession—Professional Services Industry September 25, 2013

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

September 25, 2013

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

• These are the Professional Services 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.» Finance.» Health» High-tech.» Manufacturing.» 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 (61%), English language (spoken) (32%), mathematics (29%) and reading comprehension (26%).

• What applied skill gaps do job applicants typically have? The top five applied skill gaps are critical thinking/problem solving (51%), written communications (45%), professionalism/work ethic (44%), oral communications (37%) and leadership (34%).

• What types of jobs are the most difficult to fill? The top five most difficult positions to fill are engineers (87%), high-skilled technical (87%), high-skilled medical (86%), scientists (85%) and sales representatives (81%).

The Ongoing Impact of the Recession—Professional Services Industry ©SHRM 2013

Key Findings: Skill GapsProfessional Services Industry


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

Humanities/arts

History/geography

Foreign languages

Technical (computer, engineering, mechanical, etc.)

Government/economics

Science

Reading comprehension (in English)

Mathematics (computation)

English language (spoken)

Writing in English (grammar, spelling, etc.)

13%

1%

0%

8%

8%

7%

24%

16%

24%

22%

47%

14%

3%

3%

8%

9%

10%

15%

26%

29%

32%

61%

2012 (n = 256)

2011 (n = 85)


In general, what applied skill gaps do job applicants have in your industry?Professional Services 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

Leadership

Oral communications

Professionalism/work ethic

Written communications

Critical thinking/problem solving

4%

10%

8%

15%

19%

27%

28%

30%

28%

43%

32%

43%

8%

15%

18%

21%

22%

28%

29%

34%

37%

44%

45%

51%

2012 (n = 301)2011 (n = 115)


Organizations having difficulty filling specific job categories for full-time, regular positions:Professional Services 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.

Managers and executives (2012 n = 152, 2011 n = 96)

Sales representatives (2012 n = 64, 2011 n = 43)

Scientists(2012 n = 33, 2011 n = 25)

*High-skilled medical(2012 n = 21)

High-skilled technical (e.g., technicians, programmers)

(2012 n = 136, 2011 n = 89)

Engineers(2012 n = 77, 2011 n = 58)

80%

72%

88%

83%

88%

77%

81%

85%

86%

87%

87%

20122011


Organizations having difficulty filling specific job categories for full-time, regular positions (continued):Professional Services 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.

Hourly laborers (2012 n = 46, 2011 n = 41)

Administrative support staff(2012 n = 173, 2011 n = 96)

HR professionals(2012 n = 103, 2011 n = 61)

Customer service representatives(2012 n = 56, 2011 n = 40)

Skilled trades(2012 n = 29, 2011 n = 27)

Accounting and finance professionals (2012 n = 135, 2011 n = 82)

22%

29%

37%

38%

61%

52%

24%

27%

46%

46%

55%

56%

2012


Recruiting Challenges


• Is it difficult to recruit for positions requiring new and different skill sets? Two-thirds (65%) of organizations 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, an increase from 45% in 2010.

• Is recruiting for specific jobs difficult in the current labor market? The majority (70%) of organizations currently hiring full-time staff indicated that they are having a difficult time recruiting for specific job openings, an increase from 57% in 2011.

• Why are organizations experiencing difficulty hiring qualified candidates? One-half of organizations indicated that candidates do not have the right work experience (50%) or the right skills for the job (49%). Two-fifths (39%) cited competition from other employers, and 30% said that qualified candidates were not within their salary range or hourly range rate.

• Are organizations facing global competition for applicants for hard-to-fill jobs? Fourteen percent of organizations believe they are facing global competition for qualified applicants for jobs they are having difficulty filling.

Key Findings: Recruiting ChallengesProfessional Services 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? Professional Services 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

4%

41%

43%

12%

10%

50%

35%

5%

13%

52%

28%

7%

2012 (n = 128)

2011 (n = 100)

2010 (n = 118)


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


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.


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.


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

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; 57%

No; 43%

2011

Yes; 70%

No; 30%

2012

n = 234 n = 316

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—Professional Services Industry ©SHRM 2013 14Note: Only statistically significant differences are shown.


High-tech (82%)

Manufacturing (79%)>

Federal government (50%)

Finance (66%)

Health (65%)

State or local government (52%)


Professional services (70%)>



Finance (66%)

Health (65%)> State or local government (52%)


• 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.


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

Note: n = 212. 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 work experience

Candidates do not have the right skills for the job

Competition from other employers

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

Low number of applicants

Candidates do not have the needed credentials/certifications

Qualified candidates are not interested in moving to our local area

50%

49%

39%

30%

25%

20%

13%


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

Note: n = 212. 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

Candidates are overqualified

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

Lack of interest in type of job

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

candidates

Our organization does not provide relocation funds

Other

11%

8%

5%

4%

3%

1%

6%


Do you believe that your organization is facing global competition (i.e., competition from other countries) for talent for hard-to-fill jobs?Professional Services 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, 21%

No, 79%

2011

Yes, 14%

No, 86%

2012

n = 119 n = 190

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—Professional Services Industry ©SHRM 2013 18Note: Only statistically significant differences are shown.


High-tech (33%) >

Finance (5%)

Health (6%)

Manufacturing (15%)




Federal government (22%)>

Finance (5%)

Health (6%)


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 using social media to find passive job seekers (57%), expanding advertising efforts (41%), expanding search region (39%) and increasing retention efforts (37%).

• Have organizations been hiring workers from outside the U.S. for jobs that have been difficult to fill? One-quarter (24%) of organizations have hired workers from outside the U.S., and 5% are considering or have plans to hire workers from outside the U.S. in the next 12 months.

• Have organizations been hiring U.S. veterans for jobs that have been difficult to fill? Forty-three percent of organizations reported hiring U.S. veterans. Another 21% are considering or have plans to hire veterans in the next 12 months, an increase from 11% in 2011.

Key Findings: Recruiting StrategiesProfessional Services Industry


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

Note: n = 211. 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.

Using social media to find passive job seekers

Expanding advertising efforts

Expanding search region

Increasing retention efforts

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

Collaborating with educational institutions

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

57%

41%

39%

37%

32%

32%

29%


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

Note: n = 211. 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.

Offering more flexible work arrangements

Improving compensation/benefits package

Expanding training programs to help improve skills of new hires

Offering new job perks

Other

None; we have not changed our recruiting strategy

29%

24%

19%

8%

6%

7%


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

24%

70%

4% 1%

25%

68%

5% 2%

2012 (n = 205) 2011 (n = 130)

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%) >



Finance (16%)

Health (29%)

Manufacturing (24%)




Health (29%)

Manufacturing (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.


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

43%

36%

17%

4%

38%

52%

6% 5%

2012 (n = 187) 2011 (n = 106)

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




Federal government (87%) >

Finance (40%)

Health (57%)

High-tech (47%)

Manufacturing (60%)



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 SectorProfessional Services Industry

Note: n = 435. Percentages do not equal 100% due to rounding.

Privately owned for-profit

Publicly owned for-profit

Nonprofit

Other

Government

77%

11%

8%

4%

< 1%


Demographics: Organization Staff SizeProfessional Services Industry


1 to 99 employees

100 to 499 employees

500 to 2,499 employees

2,500 to 24,999 employees

25,000 or more employees

47%

30%

11%

9%

4%


n = 436

Other DemographicsProfessional Services Industry

30

U.S.-based operations only 76%

Multinational operations 24%

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

39%

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

61%

Multi-unit headquarters determines HR policies and practices.

55%

Each work location determines HR policies and practices.

2%

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

43%

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 = 442

n = 284

Corporate (companywide) 72%

Business unit/division 19%

Facility/location 10%


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

• Response rate = 16%

• 462 randomly selected HR professionals from the Professional Services 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—Professional Services 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


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SHRM Survey Findings: The Ongoing Impact of the Recession—Professional Services Industry September 25, 2013