shrm economic-conditions-financial-health-hiring

SHRM Survey Findings: 2014 Economic Conditions—

Overall Financial Health and Hiring

October 30, 2014

• This is Part 1 of a series of SHRM survey results about the state of jobs and skills in the current economic condition, which relates to a SHRM survey series about the ongoing impact of the U.S. and global recession from 2007 to 2012. Overall results will be reported separately in three different topic areas:

» Overall financial health and hiring.

» Recruiting and skills gaps.

» Global competition and hiring strategies.

• Overall results for 2013 will also be reported separately for California.

• Industry-specific results for the nine industries that were included in the sample will also be reported for each question throughout the report. The nine industries are:

» Accommodation and food services, retail/wholesale trade.

» Construction, mining, quarrying, and oil and gas extraction.

» Educational services.

» Finance, insurance, real estate and rental and leasing.

» Government agencies.

» Health care and social assistance.

» High-tech.

» Manufacturing.

» Professional, scientific, and technical services.

Economic Conditions—Overall Financial Health and Hiring ©SHRM 2014 2

Introduction

http://www.shrm.org/research/surveyfindings/articles/pages/shrmpolltheongoingimpactoftherecession.aspx

• How is the overall financial health of organizations? The majority (80%) of organizations reported their financial health as being “excellent” or “good.” When asked about the change in overall financial health compared to 12 months ago, more than one-half (57%) of organizations reported having significant or mild improvement, an increase from 51% in 2012 and 42% in 2011.

» Larger organizations (with 25,000 or more employees) reported better overall financial health compared to smaller organizations (with 1 to 24,999 employees).

» More than two-fifths (44%) of organizations in the accommodation and food services, retail/wholesale trade industry; and the finance, insurance, real estates and rental and leasing industry reported excellent overall financial health, whereas less than one-fifths (17%) of organizations in the educational services industry and government agencies reported excellent overall financial health.

• What percentage of regular full-time staff have organizations lost in the last 12 months? Close to one-third (31%) of organizations had not lost any staff in the past year, and two-fifths (40%) reported having lost up to 5% of employees.

» Smaller organizations were more likely to have no staff losses compared with larger organizations.

» All industries fared better than the high-tech industry (15%) in terms of losing no employees in the last 12 months.


Key Findings

• Regardless of the status of their current financial health, what actions have organizations taken

as a result of financial challenges in the last 12 months? About one-quarter of organizations have

implemented budget cuts (27%) and laid off employees (25%). However, two-fifths (40%) of

organizations reported they have taken no cost-saving measures in the past year.

» Organizations in the educational services and government agencies industries were more likely

to have implemented budget cuts in the past year (37% and 35%, respectively).

• Regardless of the status of their current financial health, what actions have organizations taken

as a result of financial stability or growth in the last 12 months? Two-fifths (39%) of organizations

have increased salaries, and one-third (33%) have provided bonuses in the past year. One-third (32%)

of organizations have taken no actions that would increase costs to the organization.

» The professional, scientific and technical services industry was more likely than other industries

to have increased salaries (47%) or provided bonuses (48%) in the past year.


Key Findings (continued)

• Have organizations been hiring? The majority (96%) of organizations hired full-time regular

employees, and two-thirds (67%) hired part-time regular employees in the past 12 months. More than

one-half of organizations also hired contract/temporary positions (62% for full-time, 52% for part-time,

respectively).

» The high-tech industry had the highest percentage of organizations hiring for full-time

contract/temporary positions (82%), and the educational services industry was the highest for

hiring part-time contract/temporary positions (73%).

» When making decisions to hire full-time regular positions, maintaining normal business

operations was reported as the most important factor (79% reported extremely/very important),

followed by organizational growth (68%) and changes in business strategy (55%).

• For which full-time job categories are organizations hiring? Administrative support staff (60%),

accounting and finance professionals (53%), managers and executives (49%), IT/computer specialists

(42%), and HR professionals (38%) are among the top full-time job categories organizations have

hired in the last 12 months.



• Are organizations creating new positions or replacing jobs lost? Of those organizations hiring,

the majority (82%) has hired direct replacements of jobs lost, whereas 61% hired for completely

new positions and 42% for replacements with new duties.

» Larger organizations were more likely than smaller organizations to have hired direct

replacements or replacements with new duties in the last 12 months.

» Organizations in the high-tech industry and the professional, scientific and technical services

industry were more likely to have hired completely new positions in the last 12 months.

» When asked about changes in the types of positions hired, two-thirds (66%) of organizations

indicated that hiring for completely new full-time regular positions has increased in the last 12

months.

» Smaller organizations (with 1 to 499 employees) were more likely than larger organizations

(with 500 or more employees) to report increased hiring for completely new positions.



• Have any of the full-time regular positions required new skills? Of those organizations hiring,

about one-half (48%) indicated that new skills were required for full-time regular positions they have

hired in the last 12 months.

» Close to three-quarters (72%) of organizations in the high-tech industry reported requiring

new skills for full-time regular positions they have hired.

» Top reasons that those positions require new skills were growth of organization (56%),

changing technology (51%) and organizations were developing or offering new products.

• Is it difficult to find qualified individuals for full-time regular positions requiring new skills?

Two-thirds (66%) of organizations reported it was somewhat or very difficult to recruit for full-time

regular positions that require new skills in the last 12 months, a slight increase from 63% in 2012

and 2011.

» The high-tech industry reported the highest percentage (77%) of difficulty in finding qualified

individuals for full-time regular positions that require new skills.



• After a lengthy recession that saw the loss of more than eight million jobs, the U.S. economy is

clearly in recovery, albeit in a tempered period of growth. Four-fifths of respondents to this survey

reported that their organization is either in “excellent” or “good” financial health, an extremely

positive indicator for the economy’s current expansion.

• Despite improved conditions, many employers and sectors of the economy are still struggling.

Certain industries, such as high-tech, are seeing increased demand for their services, but others—

particularly government entities—continue to face budget deficits. And although hiring has improved

in the U.S. labor market overall, some employers have still been forced to cut staff to make ends

meet. One quarter of respondents to this survey laid off workers in response to financial difficulties

during the past 12 months.

• Despite recent job gains, millions of positions are still going unfilled and, consequently, impeding

the growth of some employers. In July 2014, there were 4.7 million job openings in the United

States, up nearly 800,000 from the beginning of 2014, according to federal data. With millions of

people seeking work, it is clear that many jobs are not being filled due to a skills mismatch between

job seekers and open positions. Two-thirds of respondents to this survey indicated that they were

having difficulty hiring for their full-time openings.


What Do These Findings Mean for the HR Profession?

Organizations’ Overall Financial Health


Note: Respondents who answered "don't know" were excluded from this analysis. Percentages may not equal 100% due to rounding.

30%

44%

44%

37%

34%

34%

27%

19%

17%

17%

50%

45%

43%

48%

50%

49%

52%

59%

53%

50%

16%

10%

9%

13%

13%

13%

16%

17%

25%

27%

4%

2%

4%

2%

3%

4%

5%

6%

5%

6%

All industries (n = 3,255)

Accommodation and food services, retail/wholesale trade (n = 321)

Finance, insurance, real estate and rentaland leasing (n = 302)

Manufacturing (n = 399)

Construction, mining, quarrying, and oil andgas extraction (n = 331)

Professional, scientific, and technicalServices (n = 449)

High-tech (n = 153)

Health care and social assistance (n = 341)

Educational services (n = 357)

Government agencies (n = 514)

Excellent Good Fair Poor

Organizations’ Overall Financial Health—Excellent


Note: Only statistically significant differences are shown.

Comparison by organization staff size

• Organizations with 25,000 or more employees were more likely than organizations with 1 to 24,999 employees to

rate their current overall financial health as “excellent.”

26%

30%28%

30%

44%

1 to 99 100 to 499 500 to 2,499 2,500 to 24,999 25,000 or more

Organizations’ Change in Overall Financial Health

Compared to 12 Months Ago (All Industries)



13%

13%

9%

7%

44%

38%

33%

35%

22%

22%

24%

25%

17%

20%

26%

24%

4%

7%

8%

9%

2013 (n = 3,140)

2012 (n = 3,362)

2011 (n = 2,277)

2010 (n = 2,333)

Significantimprovement

Mildimprovement

Nochange

Milddecline

Significantdecline

Organizations’ Change in Overall Financial Health

Compared to 12 Months Ago (by Industry)



Significant

Improvement

Mild

Improvement

No

Change

Mild

Decline

Significant

Decline

All industries (n = 3,140) 13% 44% 22% 17% 4%

Finance, insurance, real estate and

rental and leasing (n = 288)20% 47% 19% 10% 3%

Accommodation and food services,

retail/wholesale trade (n = 309)17% 53% 19% 10% 1%

Construction, mining, quarrying, and

oil and gas extraction (n = 318)16% 47% 16% 17% 4%

Manufacturing (n = 388) 15% 47% 21% 15% 2%

High-tech (n = 150) 15% 47% 15% 19% 4%

Professional, scientific, and technical

services (n = 434)14% 43% 20% 17% 6%

Health care and social assistance

(n = 324)12% 33% 21% 26% 7%

Educational services (n = 346) 6% 37% 35% 19% 3%

Government agencies (n = 500) 6% 44% 30% 16% 5%

Organizations’ Loss of Regular Full-Time Workforce in the Last 12

Months due to Layoffs, Attrition, Restructuring, etc. (All Industries)



31%

40%

16%

9%

4%

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

2013 (n = 3,141)

2012 (n = 3,277)


Months due to Layoffs, Attrition, Restructuring, etc. (All Industries)




• Organizations with 1 to 99 employees were more likely than organizations with 100 or more employees to have

encountered 0% staff loss in the last 12 months. Organizations with 100 to 2,499 employees were more likely

than organizations with 2,500 or more employees to have encountered 0% staff loss in the last 12 months.

45%

34%

28%

20%15%

1 to 99 100 to 499 500 to 2,499 2,500 to 24,999 25,000 or more

Number of employees


Months due to Layoffs, Attrition, Restructuring, etc. (by Industry)



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

All industries (n = 3,141) 31% 40% 16% 9% 4% 1%


retail/wholesale trade (n = 302)33% 39% 12% 9% 6% 1%


oil and gas extraction (n = 322)22% 38% 22% 13% 4% 1%

Educational services (n = 337) 34% 47% 11% 5% 2% 1%

Finance, insurance, real estate

and rental and leasing (n = 284)33% 38% 15% 9% 4% 1%

Government agencies (n = 505) 35% 39% 15% 9% 1% <1%


(n = 321)31% 48% 11% 6% 4% 1%

High-tech (n = 150) 15% 37% 27% 16% 5% 1%

Manufacturing (n = 392) 32% 42% 14% 8% 4% 1%


services (n = 440)31% 31% 19% 11% 7% 1%

Actions Organizations Have Taken as a Result of Financial

Challenges in the Last 12 Months (All Industries)


Note: n = 3,211. Respondents who answered "don't know" were excluded from this analysis. Percentages do not equal 100% due to multiple response

options.

40%

27%

25%

19%

16%

15%

13%

11%

11%

6%

4%

3%

4%

None

Implemented budget cuts

Laid off employees

Had a hiring freeze

Eliminated or reduced overtime

Frozen/reduced salaries, raises or bonuses

Cut temporary staff

Reduced benefits or increased employee contribution

Reduced employee hours

Offered early retirement or retirement incentive

Furloughed employees because of the government shutdown

Furloughed employees, unrelated to the government shutdown

Other cuts


Challenges in the Last 12 Months (All Industries)




• Organizations with 1 to 499 employees were more likely than organizations with 500 or more employees to have taken NO actions as a result of financial challenges. Organizations with 500 to 2,499 employees were more likely than organizations with 2,500 or more employees to have taken NO actions as a result of financial challenges.

52%48%

37%

27%

19%

1 to 99 100 to 499 500 to 2,499 2,500 to 24,999 25,000 or more

Number of employees


Challenges in the Last 12 Months (by Industry)


Note: Respondents who answered "don't know" were excluded from this analysis. Percentages do not equal 100% due to multiple response options.

NoneImplemented

Budget Cuts

Laid Off

Employees

Had a Hiring

Freeze

Eliminated

or Reduced

Overtime

Frozen/Reduced

Salaries, Raises

or Bonuses

Cut

Temporar

y Staff

All industries (n = 3,211) 40% 27% 25% 19% 16% 15% 13%


retail/wholesale trade (n = 318)44% 21% 16% 15% 21% 8% 12%


oil and gas extraction (n = 324)43% 20% 37% 19% 11% 11% 14%

Educational services (n = 345) 31% 37% 22% 17% 13% 18% 12%


and rental and leasing (n = 290)53% 20% 21% 11% 9% 9% 9%

Government agencies (n = 520) 33% 35% 13% 24% 17% 27% 13%


(n = 337)30% 33% 29% 20% 29% 19% 14%

High-tech (n = 152) 40% 28% 38% 32% 11% 11% 19%

Manufacturing (n = 396) 44% 22% 28% 21% 20% 8% 19%


services (n = 438)45% 23% 31% 17% 8% 13% 12%


Challenges in the Last 12 Months (by Industry, continued)



Reduced

Benefits or

Increased

Employee

Contribution

Reduced

Employee

Hours

Offered Early

Retirement or

Retirement

Incentive

Furloughed

Employees

Because of

the

Government

Shutdown

Furloughed

Employees,

Unrelated to

the

Government

Shutdown

Other Cuts

All industries (n = 3,211) 11% 11% 6% 4% 3% 4%







and rental and leasing (n = 290)11% 3% 3% 0% <1% 3%

Government agencies (n = 520) 11% 7% 11% 9% 5% 5%


(n = 337)16% 24% 5% 1% 2% 4%

High-tech (n = 152) 8% 6% 6% 3% 5% 2%

Manufacturing (n = 396) 9% 7% 5% 1% 4% 4%


services (n = 438)14% 7% 4% 8% 4% 4%


Stability or Growth in the Last 12 Months (All Industries)


Note: n = 3,095. Respondents who answered "don't know" were excluded from this analysis. Percentages do not equal 100% due to multiple response

options.

32%

39%

33%

23%

11%

10%

10%

9%

3%

1%

3%

None

Increased salaries

Provided bonuses

Filled positions that were lost(e.g., due to layoffs, attrition, restructuring)

Improved benefits package

Increased budgets

Allowed for increased employee hours(e.g., back to normal hours or allowing overtime)

Ended hiring freeze

Ended furlough

Provided back-pay for furloughed employees

Other improvements


Stability or Growth in the Last 12 Months(by Industry)



NoneIncreased

Salaries

Provided

Bonuses

Filled

Positions

That Were

Lost

Improved

Benefits

Package

Increased

Budgets

All industries (n = 3,095) 32% 39% 33% 23% 11% 10%







rental and leasing (n = 283)29% 41% 46% 19% 15% 11%

Government agencies (n = 489) 33% 36% 9% 27% 4% 8%


(n = 321)40% 33% 26% 15% 9% 7%

High-tech (n = 147) 28% 43% 43% 33% 13% 15%

Manufacturing (n = 383) 28% 44% 43% 23% 10% 9%

Professional, scientific, and

technical services (n = 423)26% 47% 48% 24% 13% 12%

Actions Organizations Have Taken as a Result of Financial Stability or

Growth in the Last 12 Months(by Industry, continued)



Allowed for

Increased

Employee

Hours

Ended Hiring

Freeze

Ended

Furlough

Provided

Back-Pay for

Furloughed

Employees

Other

Improvements

All industries (n = 3,095) 10% 9% 3% 1% 3%


retail/wholesale trade (n = 305)14% 10% <1% 0% 2%


oil and gas extraction (n = 323)13% 8% 2% <1% 2%






(n = 321)8% 8% <1% 0% 2%

High-tech (n = 147) 8% 13% 5% 1% 5%

Manufacturing (n = 383) 17% 9% 1% 0% 3%


services (n = 423)10% 6% 5% 1% 6%

Organizations Hiring Full- and Part-Time Regular Staff in

the Last 12 Months


Note: Respondents who answered "don't know" were excluded from this analysis.

96%

98%

97%

96%

95%

96%

97%

99%

97%

91%

67%

85%

47%

87%

67%

73%

89%

56%

41%

60%

All industries (n = 3,236 - 3,330)

Accommodation and food services,retail/wholesale trade (n = 323 - 329)

Construction, mining, quarrying,and oil and gas extraction (n = 319 - 335)

Educational services (n = 359 - 367)

Finance, insurance, real estate andrental and leasing (n = 299 - 307)

Government agencies (n = 523 - 534)

Health care and social assistance(n = 345 - 349)

High-tech (n = 149 - 156)

Manufacturing (n = 388 - 404)

Professional, scientific, andtechnical services (n = 442 - 458)

RegularFull-Time

RegularPart-Time

Organizations Hiring Full- and Part-Time Contract/Temporary

Staff in the Last 12 Months


Note: Respondents who answered "don't know" were excluded from this analysis.

62%

57%

57%

62%

57%

62%

57%

82%

73%

63%

52%

53%

37%

73%

46%

62%

57%

62%

35%

50%

All industries (n = 3,082 - 3,172)

Accommodation and food services,retail/wholesale trade (n = 294 - 303)

Construction, mining, quarrying,and oil and gas extraction (n = 312 - 327)

Educational services (n = 337 - 339)

Finance, insurance, real estate andrental and leasing (n = 284 - 298)

Government agencies (n = 493 - 498)

Health care and social assistance(n = 315 - 324)

High-tech (n = 144 - 153)

Manufacturing (n = 382 - 398)

Professional, scientific, andtechnical services (n = 430 - 446)

Contract/temporaryFull-Time

Contract/temporaryPart-Time

Importance of Factors in Organizations’ Decision to Hire for

Full-Time Regular Positions (All Industries)


Note: n = 2,873 - 3,055. Respondents who answered "don't know" were excluded from this analysis. Only respondents whose organizations were hiring

full-time staff were asked this question. Percentages may not equal 100% due to rounding.

33%

26%

17%

10%

46%

42%

38%

25%

17%

16%

24%

33%

3%

8%

11%

18%

2%

8%

9%

13%

Maintain normal businessoperations

Organizational growth

Changes in businessstrategy

Improved economy

Extremelyimportant

Veryimportant

Somewhatimportant

Not veryimportant

Not importantat all

Importance of “Maintaining Normal Business Operations” in

Organizations’ Decision to Hire for Full-Time Regular Positions (by

Industry)


Note: Respondents who answered “don't know” were excluded from this analysis. Only respondents whose organizations were hiring full-time staff were

asked this question. Percentages for “not very important” and “not important at all” were combined. Percentages may not equal 100% due to rounding.

33%

32%

32%

33%

31%

37%

43%

18%

26%

34%

46%

48%

47%

46%

45%

44%

42%

50%

50%

42%

17%

18%

17%

18%

20%

15%

12%

23%

19%

17%

3%

2%

2%

1%

3%

2%

2%

5%

3%

5%

5%

2%

4%

2%

5%

4%

3%

8%

6%

7%


Accommodation and food services,retail/wholesale trade (n = 309)



Finance, insurance, real estate and rental andleasing (n = 282)



High-tech (n = 150)


Professional, scientific, and technical services(n = 398)

Extremely important Very important Somewhat important Not very important Not important at all

Importance of “Organizational Growth” in Organizations’ Decision

to Hire for Full-Time Regular Positions (by Industry)


Note: Respondents who answered "don't know" were excluded from this analysis. Only respondents whose organizations were hiring full-time staff were

asked this question. Percentages may not equal 100% due to rounding.

26%

28%

29%

18%

33%

12%

26%

40%

24%

35%

42%

47%

44%

43%

46%

29%

43%

40%

47%

39%

16%

13%

17%

18%

11%

24%

13%

13%

17%

15%

8%

8%

5%

13%

5%

15%

10%

5%

5%

5%

8%

4%

4%

9%

4%

20%

7%

2%

6%

5%








High-tech (n = 149)




Importance of “Changes in Business Strategy” in Organizations’

Decision to Hire for Full-Time Regular Positions (by Industry)




17%

15%

18%

15%

21%

11%

15%

32%

15%

20%

38%

42%

36%

38%

43%

28%

43%

42%

44%

39%

24%

26%

25%

24%

23%

23%

22%

17%

24%

25%

11%

9%

13%

12%

6%

19%

13%

6%

10%

10%

9%

8%

8%

11%

7%

19%

7%

3%

7%

6%








High-tech (n = 146)




Importance of “Improved Economy” in Organizations’ Decision to

Hire for Full-Time Regular Positions (by Industry)




10%

14%

13%

8%

8%

12%

7%

6%

10%

11%

25%

30%

30%

21%

31%

22%

20%

22%

27%

25%

33%

29%

34%

36%

32%

28%

33%

39%

34%

34%

18%

16%

13%

19%

21%

17%

27%

22%

18%

17%

13%

11%

10%

16%

9%

20%

13%

11%

12%

13%








High-tech (n = 144)


Professional, scientific, and technical tervices(n = 377)


Types of Full-Time Regular Positions That Organizations

Hired in the Last 12 Months



asked this question. Percentages do not equal 100% due to multiple response options.

82%

81%

78%

82%

80%

86%

87%

76%

80%

79%

61%

56%

64%

62%

68%

40%

55%

81%

62%

74%

42%

37%

39%

50%

42%

41%

44%

64%

43%

35%



Construction, mining, quarrying, and oiland gas extraction (n = 301)


Finance, insurance, real estate andrental and leasing (n = 258)


Health care and social assistance(n = 302)

High-tech (n = 135)


Professional, scientific, and technicalservices (n = 374)

Replacements

Completely newpositions

Replacements, butwith new duties

Types of Full-Time Regular Positions That Organizations

Hired in the Last 12 Months




• Organizations with 100 or more employees were more likely than organizations with 1 to 99 employees to have

hired replacements in the last 12 months.

70%81% 83% 86% 89%

1 to 99 100 to 499 500 to 2,499 2,500 to 24,999 25,000 or more

Number of employees

• Organizations with 500 to 24,999 employees were more likely than organizations with 1 to 499 employees to

have hired replacements but with new duties in the last 12 months.

30%36%

49% 51%40%

1 to 99 100 to 499 500 to 2,499 2,500 to 24,999 25,000 or more

Number of employees

Change in Hiring Types for Full-Time Regular Positions in the

Last 12 Months (All Industries)



asked this question.

25%

45%

66%

62%

49%

26%

13%

6%

8%

Replacements(n = 2,254)

Replacements, but with newduties

(n = 1,114)

Completely new positions(n = 1,655)

Increased Stayed the same Decreased

Increased Hiring for Completely New Full-Time Regular

Positions in the Last 12 Months (All Industries)




• Organizations with 1 to 499 employees were more likely than organizations with 500 or more employees to report

increased hiring for completely new full-time regular positions in the last 12 months.

76% 74%

60% 58%51%

1 to 99 employees 100 to 499employees

500 to 2,499employees

2,500 to 24,999employees

25,000 or moreemployees

Change in Hiring Types for Full-Time Regular Positions in the

Last 12 Months (by Industry)




Replacements Replacements, but with New

DutiesCompletely New Positions

IncreasedStayed the

SameDecreased Increased

Stayed the

SameDecreased Increased

Stayed the

sameDecreased

All industries (n = 1,114 - 2,254) 25% 62% 13% 45% 49% 6% 66% 26% 8%


retail/wholesale trade (n = 96 - 222)23% 64% 12% 47% 47% 6% 66% 28% 6%

Construction, mining, quarrying, and oil

and gas extraction (n = 109 - 229)31% 55% 14% 48% 48% 5% 79% 16% 5%

Educational services (n = 151 - 258) 18% 69% 13% 45% 50% 5% 54% 36% 9%


rental and leasing (n = 100 - 196)24% 66% 10% 48% 48% 4% 74% 23% 4%

Government agencies (n = 176 - 380) 27% 58% 15% 49% 44% 6% 65% 26% 8%


(n = 119 - 252)22% 63% 15% 42% 50% 8% 56% 25% 19%

High-tech (n = 82 - 105) 26% 58% 16% 34% 54% 12% 63% 24% 13%

Manufacturing (n = 140 - 276) 25% 64% 11% 44% 51% 5% 66% 27% 6%


services (n = 120 - 282)28% 61% 11% 41% 48% 11% 66% 24% 9%

Organizations Requiring New Skills for Full-Time Regular

Positions Hired in the Last 12 Months


Note: Respondents who answered “don't know” were excluded from this analysis. Only respondents whose organizations were hiring full-time staff were


48%

42%

42%

49%

53%

41%

45%

72%

51%

48%

57%



Construction, mining, Quarrying,and oil and gas extraction (n = 271)


Finance, insurance, real estateand rental and leasing (n = 228)



High-tech (n = 126)


Professional, scientific, and technicalServices (n = 343)

Other industry (n = 74)

Reasons That Those Positions Require New Skills (All

Industries)


Note: n = 1,221. Respondents who answered “don't know” were excluded from this analysis. Percentages do not equal 100% due to multiple response

options. Only respondents whose organizations were hiring full-time positions that required new skills were asked this question.

56%

51%

44%

39%

33%

10%

9%

7%

Growth of organization

Changing technology

Developing or offering new products/services

Expanding business into new markets

Reorganization

Merger or acquisition

Replacing temporary workers, part-timeemployees, contractors or freelancers with full-time

positions

Other

Reasons That Those Positions Require New Skills—

Changing Technology (All Industries)




• Organizations with 500 to 2,499 employees were more likely than organizations with 1 to 99 employees to indicate that changing technology is one of the main reasons positions require new skills. Organizations with 2,500 or more employees were more likely than organizations with 1 to 499 employees to indicate that changing technology is one of the main reasons positions require new skills.

33%

46%52%

66% 64%

1 to 99 employees 100 to 499employees

500 to 2,499employees

2,500 to 24,999employees

25,000 or moreemployees

Reasons That Those Positions Require New Skills (by

Industry)


Note: Respondents who answered “don't know” were excluded from this analysis. Percentages do not equal 100% due to multiple response options.

Only respondents whose organizations were hiring full-time positions that required new skills were asked this question.

Growth of

Organization

Changing

Technology

Developing

or Offering

New

Products/

Services

Expanding

Business

into New

Markets

Reorgan

ization

Merger or

Acquisitio

n

Replacing Temporary

Workers, Part-time

Employees, Contractors

or Freelancers with Full-

Time Positions

Other

All industries (n = 1,221) 56% 51% 44% 39% 33% 10% 9% 7%

Accommodation and food

services, retail/wholesale trade

(n = 102)

61% 51% 49% 45% 26% 15% 10% 5%

Construction, mining, quarrying,

and oil and gas extraction (n =

110)

65% 37% 32% 46% 25% 14% 5% 6%

Educational services (n = 137) 45% 53% 40% 31% 38% 1% 9% 12%


and rental and leasing (n = 116)64% 47% 47% 41% 33% 12% 9% 11%

Government agencies (n = 171) 33% 57% 28% 11% 54% 4% 16% 9%

Health care and social

assistance (n = 118)53% 50% 43% 29% 32% 8% 3% 12%

High-tech (n = 90) 70% 59% 63% 61% 28% 18% 6% 3%

Manufacturing (n = 174) 60% 52% 48% 48% 25% 10% 9% 4%


technical services (n = 162)63% 49% 50% 49% 30% 12% 5% 4%

Level of Difficulty to Find Qualified Individuals for Full-time Regular Positions

That Require New Skills in the Last 12 Months (All Industries)



12%

10%

7%

3%

54%

53%

56%

36%

31%

33%

32%

45%

4%

4%

5%

16%

2013 (n = 1,199)

2012 (n = 852)

2011 (n = 528)

2010 (n = 749)

Very difficult Somewhat difficult Somewhat easy Very easy

Level of Difficulty to Find Qualified Individuals for Full-time Regular Positions

That Require New Skills in the Last 12 Months (by Industry)


Note: Respondents who answered “don't know” were excluded from this analysis. Only respondents whose organizations were hiring full-time positions

that required new skills were asked this question. Percentages may not equal 100% due to rounding.

12%

10%

11%

8%

12%

7%

15%

12%

20%

12%

54%

54%

52%

50%

56%

49%

54%

65%

48%

58%

31%

33%

34%

34%

30%

36%

27%

21%

30%

27%

4…

3%

3%

8%

2%

7%

4%

1%

2%

2%








High-tech (n = 89)



Very difficult Somewhat difficult Somewhat easy Very easy

Types of Full-Time Job Categories Organizations Hired in

the Last 12 Months (All Industries)



options. Only respondents whose organizations were hiring full-time staff were asked this question.

60%

53%

49%

42%

38%

31%

30%

25%

24%

22%

Administrative support staff

Accounting and finance professionals

Managers and executives

IT/computer specialists, such as IT analysts, softwaredevelopers and programmers, database administrators

HR professionals

Customer service representatives

Hourly laborers

Engineers

Skilled trades, such as electricians, carpenters,machinists, mechanics, welders, plumbers

Sales representatives

Types of Full-Time Job Categories Organizations Hired in

the Last 12 Months (All Industries, continued)



options. Only respondents whose organizations were hiring full-time staff were asked this question.

15%

15%

14%

13%

13%

12%

12%

10%

8%

7%

5%

Hourly service workers, such as cashiers, retail sales,food service workers

High-skilled technicians, such as health,telecommunications and environmental technicians

High-skilled medical, such as nurses, doctors,specialists

Production operators

Drivers

Educators, such as teachers, professors

Community and social service workers, such ascounselors, therapists, social workers

Lawyers, judges and legal support workers

Protective service workers, such as firefighters, lawenforcement, security guards

Scientists

Other

Types of Full-time Job Categories Organizations Hired in

the Last 12 Months (by Industry)



Only respondents whose organizations were hiring full-time staff were asked this question.

Administrative

Support Staff

Accounting

and Finance

Professionals

Managers

and

Executives

IT/Computer

Specialists

HR

Professionals

Customer

Service

Representatives

Hourly

Laborers

All industries (n = 3,023) 60% 53% 49% 42% 38% 31% 30%


services, retail/wholesale trade (n

= 294)

55% 54% 57% 33% 39% 52% 37%


and oil and gas extraction

(n = 312)

59% 58% 47% 27% 36% 10% 49%






(n = 323)64% 44% 50% 41% 39% 33% 20%

High-tech (n = 150) 49% 57% 57% 71% 43% 34% 14%

Manufacturing (n = 376) 41% 46% 47% 27% 31% 27% 56%


technical services (n = 398)58% 48% 40% 52% 38% 24% 8%


the Last 12 Months (by Industry, continued)




EngineersSkilled

Trades

Sales

Representatives

Hourly

Service

Workers

High-Skilled

Technicians

High-Skilled

Medical

Production

Operators

All industries (n = 3,023) 25% 24% 22% 15% 15% 14% 13%


services, retail/wholesale trade (n

= 294)

9% 16% 45% 52% 5% 4% 10%



(n = 312)

51% 56% 19% 0% 13% 1% 18%






(n = 323)2% 12% 10% 33% 37% 74% 2%

High-tech (n = 150) 63% 9% 51% 2% 24% 3% 16%

Manufacturing (n = 376) 56% 39% 32% 2% 11% 2% 59%




the Last 12 Months (by Industry, continued)




Drivers Educators

Community

and Social

Service

Workers

Lawyers,

Judges and

Legal

Support

Workers

Protective

Service WorkersScientists Other

All industries (n = 3,023) 13% 12% 12% 10% 8% 7% 5%


services, retail/wholesale trade

(n = 294)

28% 2% 1% 5% 1% 1% 2%



(n = 312)

17% 0% 0% 6% 2% 6% 6%





Health care and social

assistance (n = 323)14% 9% 46% 4% 6% 2% 5%

High-tech (n = 150) 3% 3% 1% 17% 1% 15% 0%

Manufacturing (n = 376) 10% 0% 0% 5% 1% 10% 4%




Demographics

Demographics: Organization Industry


Note: n = 3,335. Percentages do not equal 100% due to rounding.

Percentage

Accommodation and food services, retail/wholesale trade 10%

Construction, mining, quarrying, and oil and gas extraction 10%

Educational services 11%

Finance, insurance, real estate and rental and leasing 9%

Government agencies 16%

Health care and social assistance 10%

High-tech 5%

Manufacturing 12%

Professional, scientific, and technical services 14%

Other industry 3%

Demographics: Organization Sector (All Industries)


n = 3,335

45%

20%

20%

15%

Publicly owned for-profit

Government

Privately owned for-profit

Nonprofit

Demographics: Organization Sector (by Industry)


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

Privately Owned

For-ProfitGovernment

Publicly Owned

For-ProfitNonprofit

All industries (n = 3,335) 45% 20% 20% 15%


retail/wholesale trade (n = 330)63% 0% 36% 2%


and gas extraction (n = 336)71% 0% 28% 1%

Educational services (n = 367) 9% 39% 4% 48%

Finance, insurance, real estate and rental

and leasing (n = 307)56% 0% 24% 19%

Government agencies (n = 537) 0% 100% 0% 0%


(n = 349)32% 0% 9% 59%

High-tech (n = 156) 54% 0% 44% 2%

Manufacturing (n = 404) 63% 0% 36% 1%


services (n = 458)76% 0% 19% 5%

Other industry (n = 91) 57% 0% 22% 21%

Demographics: Region (All Industries)


n = 3,022

39%

23%

22%

16%South

West

Midwest

Northeast

Demographics: Region (by Industry)



South West Midwest Northeast

All industries (n = 3,022) 39% 23% 22% 16%


retail/wholesale trade (n = 287)37% 29% 20% 14%


and gas extraction (n = 304)44% 25% 18% 13%

Educational services (n = 330) 36% 18% 26% 20%

Finance, insurance, real estate and rental

and leasing (n = 279)33% 19% 25% 23%

Government agencies (n = 494) 48% 24% 21% 6%


(n = 323)37% 22% 23% 18%

High-tech (n = 142) 30% 36% 12% 23%

Manufacturing (n = 365) 36% 16% 33% 16%


services (n = 418)42% 24% 17% 17%

Other industry (n = 80) 39% 23% 16% 23%

Demographics: Organization Staff Size (All Industries)


Note: n = 2,945. Percentages do not equal 100% due to rounding.

21%

31%

22%

20%

7%

1 to 99 employees

100 to 499 employees

500 to 2,499 employees

2,500 to 24,999 employees

25,000 or more employees

Demographics: Organization Staff Size (by 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

All industries (n = 2,945) 21% 31% 22% 20% 7%


retail/wholesale trade (n = 278)14% 27% 17% 19% 24%


oil and gas extraction (n = 301)23% 33% 20% 20% 3%






(n = 314)15% 29% 23% 24% 9%

High-tech (n = 143) 27% 27% 16% 21% 9%

Manufacturing (n = 355) 17% 32% 22% 23% 6%


services (n = 409)40% 32% 11% 13% 5%

Other industry (n = 78) 23% 36% 17% 17% 8%

n = 3,092

Demographics: Other (All Industries)


U.S.-based operations only 71%

Multinational operations 29%

Single-unit organization: An organization

in which the location and the organization

are one and the same.

31%

Multi-unit organization: An organization

that has more than one location.69%

Multi-unit headquarters determines HR

policies and practices48%

Each work location determines HR policies

and practices3%

A combination of both the work location and

the multi-unit headquarters determines HR

policies and practices

49%

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 = 3,116

n = 2,223

55

SHRM Survey Findings

• Response rate = 13%

• 3,335 HR professionals participated in this survey from a randomly selected sample of SHRM’s membership from nine different industries:

» Accommodation and food services, retail/wholesale trade.

» Construction, mining, quarrying, and oil and gas extraction.

» Educational services.

» Finance, insurance, real estate and rental and leasing.

» Government agencies.

» Health care and social assistance.

» High-tech.

» Manufacturing.

» Professional, scientific, and technical services.

• Margin of error +/-2%

• Survey fielded December 16, 2013 - January 16, 2014

Survey Methodology

Economic Conditions—Overall Financial Health and Hiring ©SHRM 2014

• SHRM Leading Indicators of National Employment (LINE)

» http://www.shrm.org/research/monthlyemploymentindices/line/pages/default.aspx

• SHRM Jobs Outlook Survey (JOS)

» http://www.shrm.org/research/monthlyemploymentindices/lmo/pages/default.aspx

• SHRM Metro Economic Outlooks

» http://www.shrm.org/research/monthlyemploymentindices/pages/metroeconomicoutlooks.aspx

• SHRM’s Workforce Readiness Resource Page

» http://www.shrm.org/hrdisciplines/staffingmanagement/articles/pages/workforcereadiness.aspx

• SHRM Foundation: What’s Next: Future Global Trends Affecting Your Organization, Evolution of Work

and the Worker

» http://www.shrm.org/about/foundation/shapingthefuture/documents/2-

14%20theme%201%20paper-final%20for%20web.pdf


Additional SHRM Resources

http://www.shrm.org/research/monthlyemploymentindices/line/pages/default.aspx

http://www.shrm.org/research/monthlyemploymentindices/lmo/pages/default.aspx

http://www.shrm.org/research/monthlyemploymentindices/pages/metroeconomicoutlooks.aspx

http://www.shrm.org/hrdisciplines/staffingmanagement/articles/pages/workforcereadiness.aspx

http://www.shrm.org/about/foundation/shapingthefuture/documents/2-14 theme 1 paper-final for web.pdf

For more survey/poll findings, visit shrm.org/surveys

For more information about SHRM’s Customized Research Services, visit

shrm.org/customizedresearch

Follow us on Twitter @SHRM_Research


About SHRM Research

Project lead:

Tanya Mulvey, researcher, SHRM Research

Project contributors:

Alexander Alonso, Ph.D., SPHR, vice president, SHRM Research

Evren Esen, director, Survey Programs, SHRM Research

Yan Dong, Survey Research Center, SHRM Research

Christina Lee, researcher, SHRM Research

Qikun Niu, intern, SHRM Research

Jennifer Schramm, manager, Workplace Trends and Forecasting, SHRM Research

Joseph Coombs, senior analyst, Workforce Trends, SHRM Research

Copy editor:

Katya Scanlan, SHRM Knowledge Center

http://www.shrm.org/surveys

http://www.shrm.org/customizedresearch

http://twitter.com/SHRM_Research

Founded in 1948, the Society for Human Resource Management (SHRM) is the

world’s largest HR membership organization devoted to human resource management.

Representing more than 275,000 members in over 160 countries, the Society is the

leading provider of resources to serve the needs of HR professionals and advance the

professional practice of human resource management. SHRM has more than 575

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United Arab Emirates. Visit us at shrm.org.


About SHRM

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