The Ongoing Impact of the Recession—Global Competition and Hiring Strategies

SHRM Survey Findings: The Ongoing Impact of the
Recession—Global Competition and Hiring Strategies

March 12, 2013

Introduction

• This is Part 3 a series of SHRM survey results about the ongoing impact of the U.S. and global
recession, which began in 2007. Overall results will be reported separately in three different
topic areas:
 Overall financial health and hiring.
 Recruiting and skill gaps.
 Global competition and hiring strategies.

• Overall results for 2012 will also be reported separately for California.

• 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.
 High-tech.
 Manufacturing.
 Professional services.
 State and local government.

The Ongoing Impact of the Recession—Global Competition and Hiring Strategies ©SHRM 2013 2

Key Findings

• Is recruiting for select jobs difficult in the current labor market? Two-thirds (66%) of
organizations that are currently hiring full-time staff indicated that they are having a
difficult time recruiting for specific job openings, an increase from 52% in 2011.

• Why are organizations experiencing difficulty hiring qualified candidates? Lack of relevant
qualifications and competition for talent are the top reasons it is difficult to hire qualified
full-time employees, according to HR professionals.
 Nearly one-half (48%) of organizations indicated that candidates do not have the
right skills for the job and 40% said candidates do not have the right work experience.
 About one-third (35%) reported that qualified candidates are not within their
organization’s salary range or hourly range rate, and 35% cited competition from
other employers as a reason for difficulty in hiring.


Key Findings

• What strategies is your organization using to deal with recruiting challenges for full-time
regular positions?
 The most common strategies are related to recruiting new employees: expanding
advertising efforts (47%), using social media to find passive job seekers (44%),
collaborating with education institutions (37%) and expanding the search region
(36%).
 These are followed by strategies that focus on using current employees: training
existing employees to take on the hard-to-fill positions (33%) and increasing retention
efforts (32%).
 Other strategies include providing additional compensation, benefits and training to
attract new employees.

• Are organizations facing global competition for applicants for hard-to-fill jobs? Thirteen
percent of organizations believe they are facing global competition for qualified
applicants for jobs they are having difficulty filling, a decrease from 23% reported in 2011.
 Larger organizations (2,500 or more employees) are more likely to report global
competition than smaller organizations (1-499 employees).
 Organizations in the high-tech industry is 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 hard-to-fill jobs.

Key Findings

• Have organizations been hiring workers from outside the U.S. for jobs that have been
difficult to fill? About one-quarter (24%) of organizations have hired workers from outside
the U.S., the same percentage as in 2011.
 Larger organizations (500 or more employees) are more likely than smaller
organizations (1-499 employees) to have hired workers from outside the U.S.
 The high-tech industry is more likely than other industries to have hired workers from
outside the U.S. in an attempt to recruit for hard-to-fill jobs.

• Have organizations been hiring U.S. veterans for jobs that have been difficult to fill? Over
one-half (58%) of organizations reported hiring U.S. veterans, an increase from 39% in 2011.
Sixteen percent are either considering or have plans to hire veterans in the next 12 months.
 Larger organizations (2,500 or more employees) are more likely than smaller
organizations (1-2,499 employees) to have hired U.S. veterans in an attempt to recruit
for hard-to-fill jobs.
 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.


What do these findings mean for the HR profession?

• HR professionals must prepare for a more difficult recruiting environment as the economy improves. Two-thirds
(66%) of organizations are already saying that they are having a difficult time recruiting for specific job openings.
This difficulty is likely to increase as the economy continues to improve and as the Baby Boom generation begins
to retire, leaving many more job openings to fill.

• In the next several years, many organizations will focus on improving their recruiting processes as a way to deal
with greater challenges in filling jobs. More dollars set aside for recruiting are likely to lead to even more
investments in expanding advertising efforts while organizations also hone their use of social media to find
passive job seekers.

• In the longer term, many organizations may have to boost their training investments to build qualified talent from
within. Lack of relevant qualifications and competition for talent are the top reasons HR professionals give for
difficulty hiring qualified full-time employees; training existing employees can help more of them qualify for hard-
to-fill jobs and also acts as a retention tool. More organizations will collaborate with educational institutions to
create a more qualified local talent pool.

• Global competition for skilled and educated employees is likely to increase in the years ahead. Though currently
only 13% of organizations believe they are facing global competition for qualified applicants for jobs they are
having difficulty filling—a decrease from 23% reported in 2011—as working-age populations around the world
shrink, competition for qualified workers is likely to grow. Larger organizations in particular could increase their
numbers of hires from outside the U.S. Businesses in the STEM (science, technology, engineering and math) fields
are also likely to look outside U.S. borders for the needed workers, as is already occurring in the high-tech
industry.


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?

2011 2012

No, 34%
No, 48%
Yes, 52%
Yes, 66%

n = 1,568 n = 2,562

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.

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?

Comparisons by industry

• 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 government 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 to be having difficulty recruiting for
certain types of full-time regular positions.


Federal government (50%)
High-tech(82%) Finance (66%)
>
Manufacturing(79%) Health (65%)
State or local government (52%)

Construction, mining, oil and gas (74%) Federal government (50%)
>
Professional services (70%) State or local government (52%)

Finance (66%)
> State or local government (52%)
Health (65%)

Note: Only statistically significant differences are shown.

What are the main reasons that your organization experiences
difficulty in hiring qualified candidates for full-time regular
positions?

Candidates do not have the right skills for
48%
the job

Candidates do not have the right work
40%
experience

Qualified candidates are not within our
35%
salary range or hourly range rate

Competition from other employers 35%

Low number of applicants 24%

Candidates do not have the needed
21%
credentials/certifications

Qualified candidates are not interested in
14%
moving to our local area

Note: n = 1,647. 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.

What are the main reasons that your organization experiences
difficulty in hiring qualified candidates for full-time regular
positions? (Continued)

Candidates do not have high enough levels of
11%
education/training

Candidates are overqualified 6%

Lack of interest in type of job 6%

Qualified candidates are not able to move to
6%
our local area (due to mortgage or other issues)
Our local education/training system does not
produce enough work-ready/qualified job 6%
candidates
Our organization does not provide relocation
4%
funds

Other 7%

Note: n = 1,647. 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.

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

Expanding advertising efforts 47%

Using social media to find passive job seekers 44%

Collaborating with educational institutions 37%

Expanding search region 36%

Training existing employees to take on the
33%
hard-to-fill positions

Increasing retention efforts 32%

Note: n = 1,635. 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.

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

Providing monetary incentives to candidates
24%
(e.g., signing bonus)

Improving compensation/benefits package 24%

Offering more flexible work arrangements 22%

Expanding training programs to help improve
21%
skills of new hires

Offering new job perks 5%

Other 5%

None; we have not changed our recruiting
8%
strategy

Note: n = 1,635. 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.

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

2011 2012

Yes, 13%

Yes, 23%

No, 77%
No, 87%

n = 720 n = 1,492

were having a difficult time recruiting for certain types of full-time jobs were asked this question.


• 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 the state or local government to believe that
they are s facing global competition for talent for hard-to-fill jobs.

Finance (5%)
Health (6%)
High-tech(33%) > Manufacturing(15%)
Professional services (14%)

Finance (5%)
Construction, mining, oil and gas (22%)
> Health (6%)

Finance (5%)
Manufacturing(15%) >

Professional services (14%) > State or local government (4%)


Comparisons by organization staff size

• Organizations with 2,500 to 24,999 employees are more likely than organizations with 1 to 2,499 employees to believe
that they are facing global competition for talent for hard-to-fill jobs.
• Organizations with 25,000 or more employees are more likely than organizations with 1 to 499 employees to believe that
they are facing global competition for talent for hard-to-fill jobs.


1 to 99 employees (8%)
2,500 to 24,999 employees (22%) > 100 to 499 employees (9%)
500 to 2,499 employees (13%)

25,000 or more employees (25%) >



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

2012 (n = 1,566) 2011 (n = 755)

72% 72%

24% 24%

4% 3%
0% 1%

Yes No No, but we are No, but we have plans
considering it to do so in the next 12
months



• 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 the
state or local government to have hired workers from outside the U.S. in an attempt to recruit for hard-to-fill jobs.


Finance (16%)
High-tech(50%) > Health (29%)
Manufacturing(24%)

Health (29%)
> State or local government (11%)
Manufacturing(24%)




• Organizations with 500 or more employees are more likely than organizations with 1 to 499 employees to have hired
workers from outside the U.S. in an attempt to recruit for hard-to-fill jobs.


500 to 2,499 employees (31%)
2,500 to 24,999 employees (34%) >
25,000 or more employees (42%)



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

2012 (n = 1,415) 2011 (n = 651)

58%

46%
39%

26%

12% 12%
4% 3%

Yes No No, but we are No, but we have
considering it plans to do so in the
next 12 months


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

• 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.

Finance (40%)
Health (57%)
Federal government (87%) > High-tech(47%)
Manufacturing(60%)

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

Finance (40%)
Manufacturing(60%) >


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


• Organizations with 2,500 or more employees are more likely than organizations with 1 to 2,499 employees to have hired
U.S. veterans in an attempt to recruit for hard-to-fill jobs.
• Organizations with 500 to 2,499 employees are more likely than organizations with 1 to 499 employees to have hired U.S.
veterans in an attempt to recruit for hard-to-fill jobs.
• Organizations with 100 to 499 employees are more likely than organizations with 1 to 99 employees to have hired U.S.
veterans in an attempt to recruit for hard-to-fill jobs.


2,500 to 24,999 employees (84%)
> 100 to 499 employees (48%)
25,000 or more employees (87%)
500 to 2,499 employees (68%)

500 to 2,499 employees (68%) >

100 to 499 employees (48%) > 1 to 99 employees (30%)



Demographics


Demographics: Organization Industry

State or local government 20%

Manufacturing 14%

Professional services 13%

Health 13%

Finance 11%

Construction, mining, oil and gas 10%

High-tech 7%

Federal government 7%

Other 6%

Note: n = 3,481. Percentages do not total 100% due to rounding.


Demographics: Organization Sector

Privately owned for-profit 43%

Government 25%

Publicly owned for-profit 17%

Nonprofit 12%

Other 3%

n = 3,294


Demographics: Organization Staff Size

1 to 99 employees 26%

100 to 499 employees 33%

500 to 2,499 employees 19%

2,500 to 24,999 employees 16%

25,000 or more employees 6%

n = 3,208


Demographics: Other

Does your organization have U.S.- Is your organization a single-unit organization or
based operations (business units) only, a multi-unit organization?
or does it operate multinationally?
Single-unit organization: An organization
U.S.-based operations only 76% in which the location and the 36%
organization are one and the same.
Multinational operations 24% Multi-unit organization: An organization
64%
that has more than one location.
n = 3,311
n = 3,325

For multi-unit organizations, are HR policies and
What is the HR department/function for
practices determined by the multi-unit headquarters,
which you responded throughout this
by each work location or by both?
survey?
Multi-unit headquarters determines HR
Corporate (companywide) 68% 50%
policies and practices

Business unit/division 19% Each work location determines HR
3%
policies and practices
Facility/location 13%
A combination of both the work location
n = 2,206 and the multi-unit headquarters 47%
determines HR policies and practices
n = 2,204


SHRM Survey Findings: The Ongoing Impact of the
Recession—Overall Financial Health and Hiring

Survey Methodology

• Response rate = 15%
• 3,481 HR professionals from a randomly selected sample of SHRM’s membership
participated in this survey
• Margin of error +/-2%
• Survey fielded August 28–September 14, 2012


About SHRM Research

• 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

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


The Ongoing Impact of the Recession—Global Competition and Hiring Strategies

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