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The Ongoing Impact of the Recession—California Financial Health and Hiring
1.
SHRM Survey Findings:
The Ongoing Impact of the Recession—California Financial Health and Hiring April 18, 2013
2.
• This is
part one (financial health and hiring) of the California results from a series of SHRM survey findings about the ongoing impact of the U.S. and global recession, which began in 2007. California and U.S. results are compared, and statistically significant differences are indicated with an asterisk (*). • Part one results (financial health and hiring) includes the following sections: Organizations’ financial health. Hiring. Creating completely new positions. Demographics. • Part two results (recruiting and skill gaps) includes the following sections: Recruiting challenges. Skill gaps. Recruiting strategies. The Impact of strategic technological changes. Demographics. • Overall and industry-specific results can be found on our website at www.shrm.org/surveys. The Ongoing Impact of the Recession—California Financial Health and Hiring ©SHRM 2013 2 Introduction
3.
The Ongoing Impact
of the Recession—California Financial Health and Hiring ©SHRM 2013 3 Organizations’ Financial Health
4.
• What percentage
of staff have organizations lost since the U.S. and global recession began in December 2007? About one-quarter (24%) of organizations indicated they had not lost any employees since the recession began, and 29% lost up to 5% of staff. • What percentage of staff have organizations lost in the last 12 months? Slightly less than one-half (46%) of organizations have not lost any staff in the past year, and one-third (34%) reported losing up to 5% of employees. • How does the financial health of organizations compare to 12 months ago? Over one-half (54%) of organizations reported a mild to significant improvement; 17% reported no change; and 29% were in a mild or significant decline. The Ongoing Impact of the Recession—California Financial Health and Hiring ©SHRM 2013 4 Key Findings: Organizations’ Financial Health California
5.
• HR professionals
in organizations that experienced layoffs will need to consider the impact on remaining employees. With 29% of organizations reporting that they lost up to 5% of staff during the recession and one-third (34%) reporting losing up to 5% of employees in the last 12 months, workload issues and burnout could be a potential problem. Economic conditions that continue to improve could lead to increased turnover. • The improved financial health of organizations in California could mean that competition for talented employees is likely to begin heating up—if it has not already. With over one- half (54%) of organizations reporting mild to significant improvement in their financial health, employees may begin to feel more confident about new seeking opportunities. With unemployment rates for college graduates relatively low overall, competition for the most educated, skilled or experienced workers could start to become more intense. • Improved financial health could enable more organizations to increase their training and education benefits. Many organizations put off investing in training during tough economic times. As more organizations find their financial footing, an increase in investments in training and development could follow, especially if finding job candidates to fill some jobs proves so challenging that organizations become more focused on growing talent from within. The Ongoing Impact of the Recession—California Financial Health and Hiring ©SHRM 2013 5 Implications for HR: Organizations’ Financial Health California
6.
2% 8% 13% 18% 29% 29% 5% 9% 15% 17% 29% 24% *More than 50%
of staff 21% to 50% of staff 11% to 20% of staff 6% to 10% of staff 1% to 5% of staff *0% of staff California (n = 452) United States (n = 3,236) Since the U.S. and global recession began in December 2007, what percentage of full-time regular jobs at your organization has been lost (e.g., due to layoffs, attrition)? California The Ongoing Impact of the Recession—California Financial Health and Hiring ©SHRM 2013 6 Note: Percentages do not total 100% due to rounding. An asterisk (*) indicates a statistically significant difference between organizations in California compared with those in the United States.
7.
Since the U.S.
and global recession began in December 2007, what percentage of full-time regular jobs at your organization has been lost (e.g., due to layoffs, attrition)? California The Ongoing Impact of the Recession—California Financial Health and Hiring ©SHRM 2013 7 Note: Only statistically significant differences are shown. Comparisons by organization sector: Percentage of organizations that lost 0% of staff Privately owned for-profit (31%) > Publicly owned for-profit (5%) Comparisons by organization sector • Privately owned for-profit organizations are more likely than publicly owned for-profit organizations to have NOT encountered staff losses (lost 0% of staff) since the U.S. and global recession began in December 2007.
8.
In the last
12 months, from August 1, 2011, to July 31, 2012, what percentage of full-time regular jobs at your organization has been lost (e.g., due to layoffs, attrition)? California The Ongoing Impact of the Recession—California Financial Health and Hiring ©SHRM 2013 8 Note: An asterisk (*) indicates a statistically significant difference between organizations in California compared those in with the United States. 46% 34% 10% 7% 2% 1% 49% 33% 10% 5% 2% 1% 0% of staff 1% to 5% of staff 6% to 10% of staff *11% to 20% of staff 21% to 50% of staff More than 50% of staff California (n = 456) United States (n = 3,277)
9.
In the last
12 months, from August 1, 2011, to July 31, 2012, what percentage of full-time regular jobs at your organization has been lost (e.g., due to layoffs, attrition)? California The Ongoing Impact of the Recession—California Financial Health and Hiring ©SHRM 2013 9 Note: Only statistically significant differences are shown. Comparisons by organization staff size: Percentage of organizations that lost 0% of staff 1 to 99 employees (59%) > 2,500 to 24,999 employees (27%) 25,000 or more employees (16%) Comparisons by organization staff size • Organizations with 1 to 99 employees are more likely than organizations with 2,500 or more employees to have NOT encountered staff losses (lost 0% of staff) in the last 12 months. Comparisons by organization sector: Percentage of organizations that lost 0% of staff Privately owned for-profit (49%) Nonprofit (46%) > Publicly owned for-profit (17%) • Privately owned for-profit and nonprofit organizations are more likely than publicly owned for-profit organizations to have NOT encountered staff losses (lost 0% of staff) in the last 12 months. Comparisons by organization sector
10.
Compared to 12
months ago, would you say your organization's overall financial health is improving, has not changed or is declining? California The Ongoing Impact of the Recession—California Financial Health and Hiring ©SHRM 2013 10 7% 20% 22% 38% 13% 8% 21% 17% 41% 13% Significant decline Mild decline *No change Mild improvement Significant improvement California (n = 472) United States (n = 3,362) Note: An asterisk (*) indicates a statistically significant difference between organizations in California compared with those in the United States.
11.
Compared to 12
months ago, would you say your organization's overall financial health is improving, has not changed or is declining? California The Ongoing Impact of the Recession—California Financial Health and Hiring ©SHRM 2013 11 Note: Only statistically significant differences are shown. Comparisons by organization sector: Significant decline Government (21%) > Privately owned for-profit (4%) Comparisons by organization sector • Government organizations are more likely than privately owned for-profit organizations to be in a significant decline compared to 12 months ago.
12.
The Ongoing Impact
of the Recession—California Financial Health and Hiring ©SHRM 2013 12 Hiring
13.
• Are organizations
currently hiring? About three-quarters (76%) of organizations reported hiring full-time employees, and one-third (34%) part-time employees. For temporary/contract positions, 39% of organizations are hiring full-time employees, and 30% part-time employees. • For what types of positions are organizations hiring? Most organizations are hiring at nonmanagement levels (70% for hourly and 64% for salaried positions), and approximately one-half (51%) reported hiring for management positions such as directors and managers. One-quarter of organizations (25%) are hiring at the executive/upper-management (e.g., CEO, CFO) level. The Ongoing Impact of the Recession—California Financial Health and Hiring ©SHRM 2013 13 Key Findings: Hiring California
14.
• An uptick
in hiring could influence recruiting difficulty and eventually new-hire compensation. With three-quarters (76%) of organizations reporting hiring full-time employees, and one-third (34%) part-time employees, a more robust labor market is developing. Though this change is a welcome development for California’s economy, with a smaller pool of unemployed job seekers and more opportunities to move for those currently in jobs, staffing for some roles could grow more challenging. Eventually this could lead to increases in compensation packages offered to some new-hires. • Use of contract and temporary workers will continue to be an option. Some organizations will put off hiring employees until economic conditions further stabilize. For these organizations, hiring temporary or contract workers may be the strategy they focus on in the next several years. • HR professionals will need to work with hiring managers to set realistic expectations for filling some jobs. Hiring managers may have become acclimated to a “buyers market” economic environment where filling many jobs was relatively easy. But with improved labor market conditions this may no longer be the case, especially for jobs requiring in-demand education, credentials, skills or experience. In these situations, HR professionals will need to work with hiring managers to set reasonable expectations for how long it will take to fill some jobs and to develop competitive compensation packages. The Ongoing Impact of the Recession—California Financial Health and Hiring ©SHRM 2013 14 Implications for HR: Hiring California
15.
Is your organization
currently hiring for any of the following types of staff? California The Ongoing Impact of the Recession—California Financial Health and Hiring ©SHRM 2013 15 Note: Percentages do not total 100% due to multiple response options. 26% 37% 38% 78% 30% 39% 34% 76% Part-time contract/temporary Full-time contract/temporary Part-time Full-time California (n = 489) United States (n = 3,480-3,481)
16.
Is your organization
currently hiring full-time or part-time staff? California The Ongoing Impact of the Recession—California Financial Health and Hiring ©SHRM 2013 16 Note: Only statistically significant differences are shown. Comparisons by organization staff size • Organizations with 100 to 2,499 employees are more likely than organizations with 1 to 99 employees to be currently hiring full-time staff. Comparisons by organization staff size: Full-time staff 100 to 499 employees (80%) 500 to 2,499 employees (91%) > 1 to 99 employees (60%) • Organizations with 500 to 2,499 or 25,000 or more employees are more likely than organizations with 1 to 499 employees to be currently hiring part-time staff. • Organizations with 2,500 to 24,999 employees are more likely than organizations with 1 to 99 employees to be currently hiring part-time staff. Comparisons by organization staff size: Part-time staff 500 to 2,499 employees (56%) 25,000 or more employees (71%) > 1 to 99 employees (17%) 100 to 499 employees (27%) 2,500 to 24,999 employees (48%) > 1 to 99 employees (17%)
17.
Is your organization
currently hiring full-time or part-time contract/temporary staff? California The Ongoing Impact of the Recession—California Financial Health and Hiring ©SHRM 2013 17 Note: Only statistically significant differences are shown. Comparisons by organization staff size • Organizations with 500 or more employees are more likely than organizations with 1 to 99 employees to be currently hiring full-time contract/temporary staff. Comparisons by organization staff size: Full-time contract/temporary staff 500 to 2,499 employees (59%) 2,500 to 24,999 employees (52%) 25,000 or more employees (54%) > 1 to 99 employees (22%) Comparisons by organization sector: Full-time contract/temporary staff Publicly owned for-profit (57%) > Privately owned for-profit (32%) Comparisons by organization sector • Publicly owned for-profit organizations are more likely than privately owned for-profit organizations to be currently hiring full-time contract/temporary staff. Comparisons by organization sector: Part-time contract/temporary staff Government (69%) > Privately owned for-profit (21%) • Government organizations are more likely than privately owned for-profit organizations to be currently hiring part-time contract/temporary staff.
18.
At what level(s)
is your organization hiring? California The Ongoing Impact of the Recession—California Financial Health and Hiring ©SHRM 2013 18 Note: Only respondents whose organizations were currently hiring full-time regular staff were asked this question. An asterisk (*) indicates a statistically significant difference between organizations in California compared with those in the United States. 20% 49% 70% 71% 25% 51% 64% 70% *Executive/upper management (e.g., CEO, CFO) Management (e.g., directors, managers) *Nonmanagement salaried employees Nonmanagement hourly employees California (n = 371) United States (n = 2,722)
19.
Is your organization
currently hiring nonmanagement hourly or management (e.g., directors, managers) employees? California The Ongoing Impact of the Recession—California Financial Health and Hiring ©SHRM 2013 19 Note: Only statistically significant differences are shown. Comparisons by organization staff size • Organizations with 100 to 499 and 2,500 or more employees are more likely than organizations with 1 to 99 employees to be currently hiring nonmanagement hourly employees. Comparisons by organization staff size: Nonmanagement hourly 100 to 499 employees (82%) 2,500 to 24,999 employees (83%) 25,000 or more employees (90%) > 1 to 99 employees (42%) • Organizations with 2,500 to 24,999 employees are more likely than organizations with 1 to 99 employees to be currently hiring management-level employees. Comparisons by organization staff size: Management 2,500 to 24,999 employees (71%) > 1 to 99 employees (27%)
20.
The Ongoing Impact
of the Recession—California Financial Health and Hiring ©SHRM 2013 20 Creating Completely New Positions
21.
• Are organizations
creating new positions or replacing jobs lost? Of those organizations hiring, approximately one-half (51%) primarily hired direct replacements of jobs lost, whereas 38% hired for completely new positions. About one in 10 (11%) organizations added new duties to the jobs lost. California (38%) is more likely than the U.S. (31%) to be hiring for completely new positions, and the U.S. is more likely to be hiring direct replacements (57% versus 51%). • Do the completely new positions hired require new and different skill sets? Compared with the skills required for the jobs lost since the recession began: Most (70%) organizations required a mixture of new skills and the same types of skills for new positions. One in five (20%) required completely new and different skill sets, and 10% required approximately the same types of skills. California (70%) is more likely than the U.S. (58%) to require a mix of new and the same skills for new positions, whereas the U.S. is more likely to be requiring approximately the same types of skills (23% versus 10%). Compared with the skills required in existing jobs (for organizations that had not lost any jobs since the recession began): Three in five (60%) organizations required a mixture of new skills and the same types of skills. Thirty-one percent required approximately the same types of skills. Few organizations (9%) required completely new and different skills. The Ongoing Impact of the Recession—California Financial Health and Hiring ©SHRM 2013 21 Key Findings: Creating Completely New Positions California
22.
• For California,
as for most parts of the U.S., the focus in the coming decade is likely to be on replacement job fillings. In the coming years, HR professionals are likely to be staffing for replacement needs more than filling newly created positions. According to the U.S. Bureau of Labor Statistics’ (BLS) 2010-2020 Employment Project Report, slower population growth will lead to a decreasing overall labor force from 2010 to 2020. It projects 54.8 million total job openings in this time period with more than half—61.6%—resulting from “replacement needs,” i.e., the need to replace workers who retire or otherwise permanently leave an occupation. Replacement needs will exceed new job growth vacancies in four out of five occupations. Of those California organizations hiring, approximately one-half (51%) primarily hired direct replacements of jobs lost. • Staffing for replacement needs of jobs exited by retiring Baby Boomers may create an even bigger staffing challenge in the years ahead. The retirement of the Baby Boomer generation will add to replacement needs hiring. For many jobs requiring high levels of education, this change could result in recruiting difficulty. • If replacement needs hiring proves increasingly challenging, California HR professionals may need to convince their hiring managers that staffing for some jobs will be more difficult than expected. This is particularly true of STEM jobs such as engineering, science and tech jobs. HR professionals may need to work with their organizational leaders to come up with more effective recruitment strategies for hard-to-fill jobs. • Jobs requiring new skills may require more organizational investment in training and development. Though most new job openings may be due to replacement needs, many organizations in California are hiring for completely new positions (38%) or adding new duties to jobs that were in place pre-recession (11%). Getting new-hires up-to-speed with the needed skills may require an investment in training and development. A greater reliance on new entrants to the labor force to replace retiring Baby Boomers could also emphasize the need to invest in training and development programs. The Ongoing Impact of the Recession—California Financial Health and Hiring ©SHRM 2013 22 Implications for HR: Creating Completely New Positions California
23.
Which of the
following best describes, in general, the nature of full-time positions for which your organization is currently hiring? California The Ongoing Impact of the Recession—California Financial Health and Hiring ©SHRM 2013 23 Note: Percentages may not total 100% due to rounding. Only respondents whose organizations were currently hiring full-time regular staff were asked this question. An asterisk (*) indicates a statistically significant difference between organizations in California compared with those in the United States. 11% 31% 57% 11% 38% 51% New duties added to jobs lost (e.g., due to layoffs, attrition) since the recession began *Completely new positions *Direct replacements of jobs lost (e.g., due to layoffs, attrition) since the recession began California (n = 365) United States (n = 2,665)
24.
Which of the
following best describes, in general, the nature of full-time positions for which your organization is currently hiring? California The Ongoing Impact of the Recession—California Financial Health and Hiring ©SHRM 2013 24 Note: Only statistically significant differences are shown. Comparisons by organization sector: Direct replacements of jobs lost Government (83%) > Nonprofit (37%) Comparisons by organization sector • Government organizations are more likely than nonprofit organizations to be currently hiring direct replacements of jobs lost (e.g., due to layoffs, attrition) since the recession began. Comparisons by organization sector: New duties added to jobs lost Nonprofit (22%) > Privately owned for-profit (3%) • Nonprofit organizations are more likely than privately owned for-profit organizations to be currently hiring for new duties added to jobs lost (e.g., due to layoffs, attrition) since the recession began.
25.
Compared with the
skills required for jobs lost (e.g., due to layoffs, attrition) since the recession began in December 2007, do these completely new full-time positions require: California The Ongoing Impact of the Recession—California Financial Health and Hiring ©SHRM 2013 25 Note: Only respondents whose organizations had lost jobs since the recession began in December 2007 and were hiring full- time staff for “completely new positions” were asked this question. An asterisk (*) indicates a statistically significant difference between organizations in California compared with those in the United States. 23% 19% 58% 10% 20% 70% *Approximately the same types of skills Completely new and different skills *A mixture of new skills and the same types of skills California (n = 83) United States (n = 391)
26.
Compared with the
skills required in existing jobs in your organization, do these completely new full-time regular positions require: California The Ongoing Impact of the Recession—California Financial Health and Hiring ©SHRM 2013 26 Note: Percentages may not total 100% due to rounding. Only respondents whose organizations had not lost jobs since the recession began in December 2007 and were hiring full-time staff for “completely new positions” were asked this question. 5% 42% 54% 9% 31% 60% Completely new and different skills Approximately the same types of skills A mixture of new skills and the same types of skills California (n = 55) United States (n = 437)
27.
The Ongoing Impact
of the Recession—California Financial Health and Hiring ©SHRM 2013 27 Demographics
28.
Demographics: Organization Industry California The
Ongoing Impact of the Recession—California Financial Health and Hiring ©SHRM 2013 28 Note: Percentages may not total 100% due to rounding. 22% 13% 11% 9% 8% 8% 5% 2% 22% 13% 13% 14% 20% 11% 7% 10% 7% 6% Professional services Health Manufacturing State or local government Finance High-tech Construction, mining, oil and gas Federal government Other California (n = 489) United States (n = 3,481)
29.
Demographics: Organization Sector California The
Ongoing Impact of the Recession—California Financial Health and Hiring ©SHRM 2013 29 Note: Percentages may not total 100% due to rounding. 48% 19% 17% 12% 3% 43% 17% 12% 25% 3% Privately owned for-profit Publicly owned for-profit Nonprofit Government Other California (n = 473) United States (n = 3,294)
30.
Demographics: Organization Staff
Size California The Ongoing Impact of the Recession—California Financial Health and Hiring ©SHRM 2013 30 30% 32% 16% 14% 8% 26% 33% 19% 16% 6% 1 to 99 employees 100 to 499 employees 500 to 2,499 employees 2,500 to 24,999 employees 25,000 or more employees California (n = 460) United States (n = 3,208)
31.
CA U.S. U.S.-based operations only 74%
76% Multinational operations 26% 24% n = 476 (CA), 3,311 (U.S.) Other Demographics California The Ongoing Impact of the Recession—California Financial Health and Hiring ©SHRM 2013 31 CA U.S. Single-unit organization: An organization in which the location and the organization are one and the same. 34% 36% Multi-unit organization: An organization that has more than one location. 66% 64% CA U.S. Multi-unit headquarters determines HR policies and practices 46% 50% Each work location determines HR policies and practices 4% 3% A combination of both the work location and the multi-unit headquarters determines HR policies and practices 50% 47% 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 = 478 (CA), 3,325 (U.S.) n = 327 (CA), 2,204 (U.S.) CA U.S. Corporate (companywide) 65% 68% Business unit/division 22% 19% Facility/location 13% 13% n = 328 (CA), 2,206 (U.S.) What is the HR department/function for which you responded throughout this survey?
32.
• California response
rate = 10% • United States response rate = 15% • 491(California) and 3,481 (United States) HR professionals from a randomly selected sample of SHRM’s membership participated in this survey • Margin of error: California +/-4%, United States +/-2% • Survey fielded August 28 through September 14, 2012 The Ongoing Impact of the Recession—California Financial Health and Hiring ©SHRM 2013 32 SHRM Survey Findings: The Ongoing Impact of the Recession—California Financial Health and Hiring Survey Methodology
33.
• 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 The Ongoing Impact of the Recession—California Financial Health and Hiring ©SHRM 2013 33 About SHRM Research Project leader: Tanya Mulvey, survey research analyst, SHRM Research Project contributors: Alexander Alonso, Ph.D., SPHR, vice president, SHRM Research Evren Esen, manager, Survey Research Center, SHRM Research Jennifer Schramm, GPHR, manager, Workplace Trends and Forecasting, SHRM Research Copy editor: Katya Scanlan, SHRM Knowledge Center
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