SHRM Survey Findings: 2014 Economic Conditions—California Global Competition and Hiring Strategies...

SHRM Survey Findings: 2014 Economic Conditions—CaliforniaGlobal Competition and Hiring Strategies

October 30, 2014

Economic Conditions—California Global Competition and Hiring Strategies ©SHRM 2014 2

• This is Part 3 of the California results from 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. California and U.S. results are compared, and statistically significant differences are indicated in separate slides in the report.

• California 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 (including industry-specific information) for 2013 can be found on our website at http://www.shrm.org/research/surveyfindings/articles/pages/shrmpolltheongoingimpactoftherecession.aspx

Introduction

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




• What strategies have California organizations been using to deal with recruiting challenges for full-time regular positions? A little more than one-half (51%) of organizations in California indicated using social media to deal with such challenges, followed by the use of a recruitment agency (44%) and collaborating with educational institutions (40%). Organizations have also applied strategies that focus on using current employees, including training existing employees to take on the hard-to-fill positions (37%) and expanding training programs to help improve skills of new hires (35%).

» Organizations in California were less likely to report collaborating with educational institutions (40%) and seeking talent from nontraditional sources (24%) to deal with recruiting challenges, compared with 49% and 33% in the rest of the U.S.

• What recruiting strategies do California organizations cite as most effective? The most effective strategies for dealing with recruiting challenges in California included using a recruitment agency (54%), using social media (52%), expanding advertising efforts (51%) and targeting passive jobseekers (51%).

» Compared with the rest of the U.S., organizations in California were more likely to cite targeting passive job seekers as an effective strategy for dealing with recruiting challenges (42% for the U.S. and 51% for California).

Key Findings


• Have California organizations been hiring workers from outside the U.S. for jobs that have been difficult to fill? Nearly one-quarter (23%) of California organizations have sponsored foreign nationals for H-1B visas in an attempt to fill key full-time regular positions that have been difficult to fill with qualified U.S. employees. For O visas, TN visas and other visas, the percentages were 4%, 11% and 9%, respectively.

• Have California organizations been hiring U.S. veterans for jobs that have been difficult to fill? One-half (50%) of organizations in California reported hiring U.S. veterans for full-time regular positions in the last 12 months, compared with almost two-thirds (64%) in the rest of the U.S.

Key Findings (continued)


• In their desire to find workers with skills that match their organization’s job openings, HR professionals should consider partnerships or some form of outreach with local educational institutions. Private-sector collaboration with vocational schools, which can involve developing curricula that help build skills required by local employers, has become a popular approach in some U.S. cities. Two out of five organizations in California, and nearly 50% of overall U.S. organizations, said they have collaborated with educational institutions to deal with recruiting challenges.

• Recent research by SHRM has shown that many employers have cut back on funding for some forms of professional and career development, such as tuition assistance and cross-training for employees. This runs counterintuitive to efforts to find properly skilled individuals for open positions, and may be due only to economic conditions that have caused some employers to tighten their budgets. Nonetheless, professional development assistance should be an important tool for HR professionals to strengthen the skills of their employees. Nearly half of California organizations (48%) and overall U.S. organizations (49%) said training existing employees for hard-to-fill positions was effective when dealing with recruiting challenges.

• Across all industries in the U.S., high-tech appears to have the greatest demand for highly skilled workers. The sector has been a strong performer in the U.S. economy, but HR professionals in that industry should make concerted efforts to train employees and develop partnerships to recruit and retain high-skilled workers. The high-tech industry in California (23%) and in the U.S. (20%) is the most likely to recruit globally for hard-to-fill positions. Its HR professionals, more frequently than all other sectors, also identify global competition for talent as a recruiting challenge for their organization.

What Do These Findings Mean for the HR Profession?


Strategies Organizations Used to Deal with Recruiting Challenges for Full-Time Regular Positions

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

California (n = 514)United States (n =

2,900)

Using social media 51% 54%

Using a recruitment agency 44% 39%

Collaborating with educational institutions

40% 48%

Expanding advertising efforts 39% 41%

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

37% 39%

Expanding training programs to help improve skills of new hires

35% 37%

Targeting passive job seekers 33% 33%

Expanding geographic search region

25% 30%

Seeking talent from nontraditional sources (e.g., veterans, retirees)

24% 32%


Strategies Organizations Used to Deal with Recruiting Challenges for Full-Time Regular Positions (continued)

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

California (n = 514)United States (n =

2,900)

Increasing retention efforts 32% 37%

Improving compensation 28% 24%

Using/enhancing employee referral program

25% 26%

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

20% 19%

Offering more flexible work arrangements

20% 23%

Improving benefits package 13% 14%

Offering new job perks 6% 7%

Other 3% 3%

None; we are not using any of the above recruiting strategies

10% 7%


Strategies Organizations Used to Deal with Recruiting Challenges for Full-Time Regular Positions (continued)

Note: Only statistically significant differences are shown. California responses were excluded from the United States group for this analysis.

United States—California Comparison

• Organizations in California were less likely to collaborate with educational institutions to deal with recruiting challenges for full-time regular positions compared with the rest of the U.S.

• Organizations in California were less likely to seek talent from nontraditional sources (e.g., veterans, retirees) to deal with recruiting challenges for full-time regular positions compared with the rest of the U.S.

Collaborating with Educational Institutions

California (40%) < United States (49%)

Seeking Talent from Nontraditional Sources

California (24%) < United States (33%)


Recruiting Strategies Organizations Feel Are Most Effective

Note: Respondents who answered “don't know” were excluded from this analysis. Respondents were asked only about those recruiting strategies that their organizations were using and were allowed to select up to three options. Percentages do not equal 100% due to multiple response options.

California (n = 20-261)United States (n = 102-

1,571)

Using a recruitment agency 54% 51%

Using social media 52% 51%

Expanding advertising efforts 51% 51%

Targeting passive job seekers 51% 42%

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

48% 49%

Collaborating with educational institutions

36% 37%

Expanding geographic search region

35% 33%

Expanding training programs to help improve skills of new hires

31% 37%

Seeking talent from nontraditional sources (e.g., veterans, retirees)

27% 27%


Recruiting Strategies Organizations Feel Are Most Effective (continued)

Note: Respondents who answered “don't know” were excluded from this analysis. Respondents were asked only about those recruiting strategies that their organizations were using and were allowed to select up to three options. Percentages do not equal 100% due to multiple response options.

California (n = 20-261)United States (n = 102-

1,571)Offering more flexible work arrangements

43% 40%

Improving compensation package

41% 41%

Using/enhancing employee referral program

40% 42%

Increasing retention efforts 35% 33%

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

34% 31%

Improving benefits package 20% 29%

Offering new job perks 10% 12%

Other 40% 31%


Recruiting Strategies Organizations Feel Are Most Effective



• Organizations in California were more likely to target passive job seekers as one of the three most effective recruiting strategies compared with the rest of the U.S.

Targeting Passive Job Seekers

California (51%) > United States (41%)


Sponsorship for Foreign Nationals for Key Full-Time Positions That Are Difficult to Fill with Qualified U.S. Employees

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

Have Recruited/Hired

and Plan to Continue

Have Recruited/Hired but Do NOT Plan

to Continue

Have Not Recruited/Hired

but Plan to in the Next 12 Months

Have Not Recruited/Hired and Do NOT Plan to in the Next 12

Months

CA (n = 474)

U.S. (n =

2,560)

CA (n = 413)

U.S. (n =

2,261)

CA (n = 424)

U.S. (n =

2,301)

CA (n = 387)

U.S. (n =

2,131)

H-1B visas (specialty occupation workers)

23% 20% 8% 7% 2% 2% 68% 71%

O visas (individuals with extraordinary ability or achievement)

4% 2% 1% 1% 2% 3% 93% 94%

TN visas (Treaty NAFTA visas for Mexican and Canadian businesspeople)

11% 8% 3% 2% 2% 3% 84% 88%

Other visas 9% 7% 3% 2% 1% 2% 87% 89%


Hired U.S. Veterans for Full-Time Regular Positions in the Last 12 Months

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

Yes

No

No, but we are considering it

No, but we have plans to do so in the next 12 months

50%

35%

11%

4%

64%

24%

9%

4%

United States (n = 2,561)California (n = 428)


Hired U.S. Veterans for Full-Time Regular Positions in the Last 12 Months



• Organizations in California were less likely to have hired U.S. veterans for full-time positions in the last 12 months compared with the rest of the U.S.

Hired U.S. Veterans

California (50%) > United States (65%)


Demographics (California)


Demographics (CA): Organization Industry

Note: n = 572. Percentages do not equal 100% due to multiple response options.

Percentage

Professional, scientific, and technical services 16%

Accommodation and food services, retail/wholesale trade 11%

Health care and social assistance 11%

Manufacturing 11%

High-tech 10%

Other industry 9%

Government agencies 9%

Finance, insurance, real estate and rental and leasing 8%

Educational services 7%

Construction, mining, quarrying, and oil and gas extraction 6%


Demographics (CA): Organization Sector

Note: n = 572. Percentages do not equal 100% due to rounding.

Privately owned for-profit

Publicly owned for-profit

Nonprofit/not-for-profit organization

Government

49%

22%

17%

11%


Demographics (CA): Organization Staff Size

n = 504

1 to 99 employees

100 to 499 employees

500 to 2,499 employees

2,500 to 24,999 employees

25,000 or more employees

28%

30%

20%

15%

7%


n = 535

Demographics (CA): Other

U.S.-based operations only 67%

Multinational operations 33%

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

30%

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

70%

Multi-unit headquarters determines HR policies and practices

48%

Each work location determines HR policies and practices

3%

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 = 542

n = 398


SHRM Survey Findings

• 3,655 HR professionals participated in this survey from a randomly selected sample of SHRM’s membership from the entire United States and an additional random sample from California

• U.S. respondents (including CA) = 3,335, response rate = 13%, margin of error = +/-2%

• CA respondents = 572, response rate = 10%, margin of error = +/-4%

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

Survey Methodology


• SHRM California Resources» http://www.shrm.org/hrdisciplines/pages/california.aspx

• 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/metroeconomicout

looks.aspx

• SHRM’s Workforce Readiness Resource Page» http://www.shrm.org/hrdisciplines/staffingmanagement/articles/pages/workforceread

iness.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/hrdisciplines/pages/california.aspx

http://www.shrm.org/hrdisciplines/pages/california.aspx

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/research/monthlyemploymentindices/pages/metroeconomicoutlooks.aspx

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

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

http://www.shrm.org/about/foundation/shapingthefuture/documents/2-14%20theme%201%20paper-final%20for%20web.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 ResearchEvren Esen, director, Survey Programs, SHRM ResearchYan Dong, Survey Research Center, SHRM ResearchChristina Lee, researcher, SHRM ResearchQikun Niu, intern, SHRM ResearchJennifer Schramm, manager, Workplace Trends and Forecasting, SHRM ResearchJoseph 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 affiliated chapters within the United States and subsidiary offices in China, India and United Arab Emirates. Visit us at shrm.org.

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