Shrm economic-conditions-recruiting-skills-gaps-ca

SHRM Survey Findings: 2014 Economic Conditions—

California Recruiting and Skills Gaps

October 30, 2014

• This is Part 2 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/shrmpolltheongoingimpactoftherecessio

n.aspx

Economic Conditions—California Recruiting and Skills Gaps ©SHRM 2014 2

Introduction

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

• Is recruiting for specific jobs difficult in California? About one-half (52%) of organizations in California indicated that they have had difficulty recruiting for full-time regular positions in the past 12 months.

• Among organizations experiencing difficulty in hiring qualified candidates, what are the reasons? The top reasons California organizations have experienced difficulty in hiring for full-time regular positions were similar to those for the rest of the U.S.: About one-half indicated that candidates lack the right technical skills (54%) and the needed work experience (52%), and one-half reported competition from other employers (50%).

» Compared with the rest of the U.S., organizations in California were less likely to indicate that they have experienced difficulty in hiring for full-time regular positions because candidates do not have the needed credentials/certifications or qualified candidates are not interested in moving to their local area.

• What types of jobs are the most difficult to fill? Similar to the rest of the U.S., the top five most difficult positions to fill overall were highly skilled positions: scientists (74%), engineers (71%), managers and executives (71%), IT/computer specialists (70%) and high-skilled medical (e.g., nurses, doctors, specialists) (69%).

» Compared with the rest of the U.S., organizations in California were more likely to find it very difficult to fill educators in full-time regular positions but very easy to fill hourly laborers. U.S. organizations were more likely to find it very easy to recruit for skilled trade positions.


Key Findings

• What basic skills/knowledge gaps do job applicants in California typically have? Writing in

English (30%), basic computer skills (24%), English language (spoken) (21%), reading

comprehension (15%) and mathematics (computation) (12%) were the most common skills gaps.

» About two-fifths (42%) of California organizations indicated there were no basic

skills/knowledge gaps for their job applicants, the same as the rest of the U.S.

» Compared with the rest of the U.S., organizations in California were less likely to report that

job applicants lack basic computer skills.

• What applied skills gaps do job applicants in California typically have? The top three applied

skills gaps were critical thinking/problem-solving (36%), professionalism/work ethic (32%) and

leadership (29%).

» Only about one-fourth (23%) of California organizations indicated no applied skills gaps exist

for their job applicants.


Key Findings (continued)

• Despite recent gains in the U.S. labor market, 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 U.S., up nearly 800,000 from the beginning of 2014, according to federal data. Many economists and

labor market observers cite weak economic demand as the cause of limited job creation in some sectors.

But with millions of people seeking work and so many jobs going unfilled, it is clear that, at some level, a

skills mismatch exists between some job seekers and open positions, and this is also inhibiting widespread

job growth in the California and U.S. economies.

• Knowing that a skills mismatch may prevent jobs from being filled, a multipronged approach is needed to

close this gap. HR professionals should explore training opportunities for their employees and potential

partnerships with local educational institutions, which can involve creating curricula in line with the skills

needed at their organizations. Government job training programs are also active in many communities,

and HR professionals should be aware of these as a means of supporting their recruiting efforts.

• Even though many organizations are pursuing partnerships with educational bodies to develop training

programs, on-the-job training led mainly by the employers themselves is still a vital part of employee and

organizational development.

• HR professionals and their employers should not blame recruiting difficulty solely on this skills mismatch.

There are other reasons why jobs are going unfilled; half of respondents in the California and overall U.S.

survey cited competition from other employers, and two out of five California respondents—compared with

37% in the overall U.S.—said their candidates turned down the compensation offer. That suggests that

hiring is becoming more competitive in some sectors, and HR professionals should consider creative

compensation packages that include market-rate salaries and perhaps some form of flexible benefits,

which are considered attractive by many workers.


What Do These Findings Mean for the HR Profession?

Percentage of Organizations Having Difficulty Recruiting for

Full-Time Regular Positions 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.

52%

50%

California (n = 516)

United States (n = 2,988)

Main Reasons That Organizations Have Experienced Difficulty

in Hiring for Full-time Regular Positions


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

Only respondents whose organizations were having difficulty hiring for full-time positions were asked this question.

California (n = 253) United States (n = 1,417)

Candidates do not have the right

technical skills54% 50%

Candidates do not have the needed

work experience52% 50%

Competition from other employers 50% 50%


professional skills42% 39%

Low number of applicants 42% 43%

Qualified candidates reject

compensation package40% 37%

The local market is not producing

enough work-ready/qualified job

candidates

39% 40%


workplace (soft) skills32% 27%


basic skills22% 22%


credentials/certifications22% 29%

Main Reasons That Organizations Have Experienced

Difficulty in Hiring for Full-Time Regular Positions (continued)


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

Only respondents whose organizations were having difficulty hiring for full-time positions were asked this question.

California (n = 253) United States (n = 1,417)

Candidates are overqualified 18% 15%

Qualified candidates are not

interested in moving to our local

area

16% 26%

Qualified candidates are not able to

move to our local area (due to

mortgage or other issues)

15% 12%


training13% 16%

Candidates do not have high

enough levels of education12% 15%

Lack of interest in type of job 11% 16%

Qualified candidates reject benefits

package9% 8%

Our organization does not provide

relocation funds9% 11%

Other 10% 7%

Main Reasons That Organizations Have Experienced Difficulty

in Hiring for Full-Time Regular Positions


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 are less likely to indicate that they have experienced difficulty in hiring for full-time regular

positions because candidates do not have the needed credentials/certifications compared with the rest of the U.S.

• Organizations in California are less likely to indicate that they have experienced difficulty in hiring for full-time regular

positions because qualified candidates are not interested in moving to their local area compared with the rest of the

U.S.

Candidates do not have the needed credentials/certifications

California (22%) < United States (30%)

Qualified candidates are not interested in moving to local area


Organizations Having Difficulty Filling Certain Job Categories for

Full-Time Regular Positions over the Last 12 Months


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. Figure represents those who answered “very difficult” and

“somewhat difficult.”

74%

71%

71%

70%

69%

60%

55%

54%

51%

49%

67%

72%

65%

69%

69%

63%

55%

54%

48%

45%

Scientists

Engineers

Managers and executives

IT/computer specialists

High-skilled medical

High-skilled technicians

Skilled trades

Sales representatives

Lawyers, judges and legal support workers

HR professionals

California (n = 19-284)

United States (n = 195-1,721)

Organizations Having Difficulty Filling Certain Job Categories for Full-

Time Regular Positions over the Last 12 Months (continued)


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. Figure represents those who answered “very difficult” and

“somewhat difficult.”

46%

42%

39%

38%

36%

29%

23%

22%

19%

13%

46%

30%

42%

34%

35%

34%

22%

22%

21%

14%

Community and social service workers

Protective service workers

Educators

Drivers

Accounting and finance professionals

Production operators

Customer service representatives

Hourly laborers

Hourly service workers

Administrative support staff

California(n = 19-284)

United States(n = 195-1,721)

Organizations Having Difficulty Filling Certain Job Categories for

Full-Time Regular Positions over the Last 12 Months




• In the last 12 months, organizations in California were more likely to find it very difficult to fill positions for full-time

educators (e.g., teachers, professors) compared with the rest of the U.S.

• In the last 12 months, organizations in California were more likely to find it very easy to fill positions for hourly

laborers compared with the rest of the U.S.

• In the last 12 months, organizations in California were less likely to find it very easy to fill positions for skilled trades

(e.g., electricians, carpenters, machinists, mechanics, welders, plumbers) compared with the rest of the U.S.

Very Difficult—Educators (e.g., teachers, professors)

California (21%) > United States (8%)

Very Easy—Hourly Laborers

California (47%) > United States (35%)

Very Easy—Skilled Trades


Basic Skills/Knowledge Gaps Job Applicants Had in the Last

12 Months


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

42%

30%

24%

21%

15%

12%

9%

7%

5%

3%

42%

26%

31%

17%

16%

15%

7%

6%

4%

2%

None

Writing in English

Basic computer skills

English language (spoken)

Reading comprehension in English

Mathematics (computation)

Spanish language

Science

Foreign languages (except Spanish)

Other



Basic Skills/Knowledge Gaps Job Applicants Had in the Last

12 Months (continued)




• In the last 12 months, organizations in California were less likely to report that job applicants lack basic computer

skills (e.g., using a mouse, typing, opening/closing/saving files, terminology, accessing the Internet) compared with

the rest of the U.S.

Basic Computer Skills


Applied Skill Gaps Job Applicants Had 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.

23%

36%

32%

29%

25%

24%

22%

18%

14%

14%

12%

8%

4%

20%

40%

38%

34%

27%

22%

25%

20%

13%

14%

13%

12%

3%

None

Critical Thinking/Problem-Solving

Professionalism/Work Ethic

Leadership

Written Communications

Oral Communications

Teamwork/Collaboration

Application of Information and Communications Technology(ITC)

Lifelong Learning/Self-Direction

Creativity/Innovation

Ethics/Social Responsibility

Diversity

Other




California Demographics

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.

49%

22%

17%

11%

Privately owned for-profit

Publicly owned for-profit

Nonprofit/not-for-profit organization

Government

Demographics (CA): Organization Staff Size


n = 504

28%

30%

20%

15%

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

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 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 = 542

n = 398

21

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

Economic Conditions—California Recruiting and Skills Gaps ©SHRM 2014

• 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/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/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/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

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