SHRM Survey Findings: 2014 Economic Conditions—Overall Financial Health and Hiring October 30,...

SHRM Survey Findings: 2014 Economic Conditions—Overall Financial Health and Hiring

October 30, 2014

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

• 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.

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.

All industries (n = 3,255)

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

Construction, mining, quarrying, and oil and

gas extraction (n = 331)

High-tech (n = 153)

Educational services (n = 357)

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%

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.”

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

26%30%

28%30%

44%


Organizations’ Change in Overall Financial Health Compared to 12 Months Ago (All Industries)


2013 (n = 3,140)

2012 (n = 3,362)

2011 (n = 2,277)

2010 (n = 2,333)

13%

13%

9%

7%

44%

38%

33%

35%

22%

22%

24%

25%

17%

20%

26%

24%

4%

7%

8%

9%

Significantimprovement

Mildimprovement

Nochange

Milddecline

Significantdecline


Organizations’ Change in Overall Financial Health Compared to 12 Months Ago (by Industry)


SignificantImprovemen

t

MildImprovement

NoChange

MildDecline

SignificantDecline

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 technicalservices (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)


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

31%

40%

16%

9%

4%

1%

49%

33%

10%

5%

2%

1%

2012 (n = 3,277)2013 (n = 3,141)


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

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

45%

34%28%

20%15%

Number of employees


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


33% 39% 12% 9% 6% 1%


22% 38% 22% 13% 4% 1%

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


33% 38% 15% 9% 4% 1%

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


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%

Professional, scientific, and technical 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.

None

Laid off employees

Eliminated or reduced overtime

Cut temporary staff

Reduced employee hours

Furloughed employees because of the government shutdown

Other cuts

40%

27%

25%

19%

16%

15%

13%

11%

11%

6%

4%

3%

4%


Actions Organizations Have Taken as a Result of Financial 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.

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

52%48%

37%

27%19%

Number of employees


Actions Organizations Have Taken as a Result of Financial 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 Employee

s

Had a Hiring Freeze

Eliminated or

Reduced Overtime

Frozen/Reduced Salaries, Raises or Bonuses

Cut Temporary Staff

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


44% 21% 16% 15% 21% 8% 12%


43% 20% 37% 19% 11% 11% 14%

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

Finance, insurance, real estate and rental and leasing (n = 290) 53% 20% 21% 11% 9% 9% 9%

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

Health care and social assistance (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%

Professional, scientific, and technical services (n = 438) 45% 23% 31% 17% 8% 13% 12%


Actions Organizations Have Taken as a Result of Financial 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%


9% 22% 2% 1% 1% 4%


9% 9% 6% 3% 5% 3%



11% 3% 3% 0% <1% 3%

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


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%


14% 7% 4% 8% 4% 4%


Actions Organizations Have Taken as a Result of Financial 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.

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

32%

39%

33%

23%

11%

10%

10%

9%

3%

1%

3%


Actions Organizations Have Taken as a Result of Financial 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%


34% 38% 39% 20% 16% 14%


30% 36% 42% 27% 13% 11%



29% 41% 46% 19% 15% 11%

Government agencies (n = 489)

33% 36% 9% 27% 4% 8%

Health care and social assistance(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%


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

EndedFurlough

Provided Back-Pay for Furloughed Employees

Other Improvemen

ts

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


14% 10% <1% 0% 2%


13% 8% 2% <1% 2%



7% 6% 0% 0% 3%


Health care and social assistance(n = 321)

8% 8% <1% 0% 2%

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

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


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.

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 and rental 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, and technical services (n = 442 - 458)

96%

98%

97%

96%

95%

96%

97%

99%

97%

91%

67%

85%

47%

87%

67%

73%

89%

56%

41%

60%

Regular Part-Time

Regular Full-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.

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






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

High-tech (n = 144 - 153)

Manufacturing (n = 382 - 398)


62%

57%

57%

62%

57%

62%

57%

82%

73%

63%

52%

53%

37%

73%

46%

62%

57%

62%

35%

50%

Contract/tem-porary Part-Time Contract/tem-porary Full-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.

Maintain normal business operations

Organizational growth

Changes in business strategy

Improved economy

33%

26%

17%

10%

46%

42%

38%

25%

17%

16%

24%

33%

3%

8%

11%

18%

2%

8%

9%

13%

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.








High-tech (n = 150)

Manufacturing (n = 376)


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%

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.








High-tech (n = 149)



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%



Importance of “Changes in Business Strategy” in Organizations’ Decision to Hire for Full-Time Regular Positions (by Industry)









High-tech (n = 146)



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%



Importance of “Improved Economy” in Organizations’ Decision to Hire for Full-Time Regular Positions (by Industry)









High-tech (n = 144)


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

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%



Types of Full-Time Regular Positions That Organizations 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 asked this question. Percentages do not equal 100% due to multiple response options.








High-tech (n = 135)



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%

Replacements, but with new duties

Completely new positions

Replacements


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.

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

70%81% 83% 86% 89%

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.

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

30% 36%49% 51%

40%

Number of employees


Change in Hiring Types for Full-Time Regular Positions in the Last 12 Months (All Industries)

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.

Replacements(n = 2,254)

Replacements, but with new duties

(n = 1,114)

Completely new positions(n = 1,655)

25%

45%

66%

62%

49%

26%

13%

6%

8%

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.

1 to 99 em-ployees

100 to 499 employees

500 to 2,499 employees

2,500 to 24,999 employees

25,000 or more employees

76% 74%

60% 58%51%


Change in Hiring Types for Full-Time Regular Positions 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 staff were asked this question.

Replacements Replacements, but with

New DutiesCompletely New Positions

IncreasedStayed

the SameDecrease

dIncreased

Stayed the Same

Decreased

IncreasedStayed

the sameDecrease

d

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


23% 64% 12% 47% 47% 6% 66% 28% 6%


31% 55% 14% 48% 48% 5% 79% 16% 5%


18% 69% 13% 45% 50% 5% 54% 36% 9%


24% 66% 10% 48% 48% 4% 74% 23% 4%


27% 58% 15% 49% 44% 6% 65% 26% 8%

Health care and social assistance (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%


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 asked this question.



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





High-tech (n = 126)


Professional, scientific, and technical Services (n = 343)

Other industry (n = 74)

48%

42%

42%

49%

53%

41%

45%

72%

51%

48%

57%


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.

Growth of organization

Changing technology

Developing or offering new products/services

Expanding business into new markets

Reorganization

Merger or acquisition

Replacing temporary workers, part-time employees, contractors or freelancers with

full-time positions

Other

56%

51%

44%

39%

33%

10%

9%

7%


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.

1 to 99 em-ployees





33%

46%52%

66% 64%


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 Technolo

gy

Developing or

Offering New

Products/Services

Expanding

Business into New Markets

Reorganizatio

n

Merger or

Acquisition

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%


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


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


45% 53% 40% 31% 38% 1% 9% 12%


64% 47% 47% 41% 33% 12% 9% 11%


33% 57% 28% 11% 54% 4% 16% 9%


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%


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)


2013 (n = 1,199)

2012 (n = 852)

2011 (n = 528)

2010 (n = 749)

12%

10%

7%

3%

54%

53%

56%

36%

31%

33%

32%

45%

4%

4%

5%

16%

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.








High-tech (n = 89)



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%

Very difficult Somewhat difficult Somewhat easy Very easy


Types of Full-Time Job Categories Organizations Hired in the Last 12 Months (All Industries)

Note: n = 3,023. 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 staff were asked this question.

Administrative support staff

Accounting and finance professionals

Managers and executives

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

HR professionals

Customer service representatives

Hourly laborers

Engineers

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

Sales representatives

60%

53%

49%

42%

38%

31%

30%

25%

24%

22%


Types of Full-Time Job Categories Organizations Hired in the Last 12 Months (All Industries, continued)

Note: n = 3,023. 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 staff were asked this question.

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 as counselors, therapists, social workers

Lawyers, judges and legal support workers

Protective service workers, such as firefighters, law enforcement, security guards

Scientists

Other

15%

15%

14%

13%

13%

12%

12%

10%

8%

7%

5%


Types of Full-time Job Categories Organizations Hired 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. Only respondents whose organizations were hiring full-time staff were asked this question.

Administrative Support

Staff

Accounting and

Finance Professiona

ls

Managers and

Executives

IT/Computer Specialists

HR Professiona

ls

Customer Service

Representatives

Hourly Laborer

s

All industries (n = 3,023) 60% 53% 49% 42% 38% 31% 30%Accommodation and food services, retail/wholesale trade (n = 294)

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


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


79% 50% 47% 45% 45% 16% 29%


64% 68% 55% 44% 36% 55% 8%


68% 56% 50% 51% 37% 36% 36%


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%


58% 48% 40% 52% 38% 24% 8%


Types of Full-time Job Categories Organizations Hired in the Last 12 Months (by Industry, continued)


EngineersSkilled Trades

Sales Representati

ves

Hourly Service Workers

High-Skilled Technicians

High-Skilled Medical

Production

Operators


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


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


6% 30% 6% 25% 10% 14% 2%


3% 9% 39% 11% 5% 7% 2%


21% 32% 2% 11% 18% 15% 4%


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%


28% 6% 25% 3% 12% 4% 6%


Types of Full-time Job Categories Organizations Hired in the Last 12 Months (by Industry, continued)


DriversEducator

s

Community and Social

Service Workers

Lawyers, Judges and

Legal Support Workers

Protective Service Workers

Scientists Other


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


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


12% 83% 22% 5% 12% 9% 4%


1% 0% 2% 12% 0% 0% 6%


19% 12% 27% 17% 35% 6% 6%


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%


3% 1% 1% 17% 1% 16% 10%


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

Publicly owned for-profit

Government

Privately owned for-profit

Nonprofit

45%

20%

20%

15%


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%


63% 0% 36% 2%


71% 0% 28% 1%

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


56% 0% 24% 19%

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


32% 0% 9% 59%

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

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


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%


37% 29% 20% 14%


44% 25% 18% 13%

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


33% 19% 25% 23%

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


37% 22% 23% 18%

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

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


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.

1 to 99 employees





21%

31%

22%

20%

7%


Demographics: Organization Staff Size (by Industry)


1 to 99

Employees100 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%Accommodation and food services, retail/wholesale trade (n = 278)

14% 27% 17% 19% 24%


23% 33% 20% 20% 3%



29% 31% 20% 14% 6%



15% 29% 23% 24% 9%

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

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


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 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 = 3,116

n = 2,223


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


• 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/metroeconomicou

tlooks.aspx

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

diness.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/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



57

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

Economic Conditions—Overall Financial Health and Hiring ©SHRM 2014

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.

About SHRM

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