shrm survey findings: the ongoing impact of the recession—construction, mining, oil and gas...

SHRM Survey Findings: The Ongoing Impact of the Recession—Construction, Mining, Oil and Gas Industry

September 25, 2013

The Ongoing Impact of the Recession—Construction, Mining, Oil and Gas Industry ©SHRM 2013 2

• These are the construction, oil, mining and gas industry survey findings about the ongoing impact of the U.S. and global recession, which began in 2007. This is the third year that SHRM has conducted this study and data are reported for 2010 and 2011 where possible. The results are reported in the following sections:

» Skill gaps.» Recruiting challenges.» Recruiting strategies.

• Industry-specific results will be reported separately for each of the following industries:» Federal government.» Finance.» Health.» High-tech.» Manufacturing.» Professional services.» State and local government.

• Overall and California results can be found on our website at www.shrm.org/surveys.

Introduction

http://www.shrm.org/surveys


Skill Gaps

The Ongoing Impact of the Recession—Construction, Mining, Oil and Gas Industry ©SHRM 2013

• What basic skills/knowledge gaps do job applicants typically have? The most common basic skills/knowledge gaps are writing in English (55%), mathematics (40%), reading comprehension (35%) and English language (spoken) (33%).

• What applied skill gaps do job applicants typically have? The top five applied skill gaps are critical thinking/problem solving (48%), leadership (42%), professionalism/work ethic (41%), written communications (38%), and oral communications (34%).

• What types of jobs are the most difficult to fill? The top five most difficult positions to fill are highly skilled positions: engineers (87%), high-skilled technical (e.g., technicians and programmers) (87%), managers and executives (85%), skilled trades (e.g., electricians, carpenters) (79%), and sales representatives (74%).

4

Key Findings: Skill GapsConstruction, Mining, Oil and Gas Industry


In general, what basic skills/knowledge gaps do job applicants have in your industry?Construction, Mining, Oil and Gas Industry

5

Note: Percentages do not total 100% due to multiple response options. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question.

Other

Humanities/arts

History/geography

Government/economics

Foreign languages

Science

Technical (computer, engineering, mechanical, etc.)

English language (spoken)

Reading comprehension (in English)

Mathematics (computation)

Writing in English (grammar, spelling, etc.)

13%

3%

1%

3%

7%

16%

6%

33%

38%

32%

48%

6%

0%

1%

5%

8%

13%

14%

33%

35%

40%

55%

2012 (n = 206)

2011 (n = 69)


In general, what applied skill gaps do job applicants have in your industry?Construction, Mining, Oil and Gas Industry

Note: Percentages do not total 100% due to multiple response options. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question.

Other

Diversity

Ethics/social responsibility

Information technology application

Creativity/innovation

Lifelong learning/self-direction

Teamwork/collaboration

Oral communications

Written communications

Professionalism/work ethic

Leadership

Critical thinking/problem solving

1%

20%

20%

23%

24%

19%

29%

44%

46%

45%

45%

52%

7%

17%

18%

19%

20%

25%

33%

34%

38%

41%

42%

48%

2012 (n = 232)2011 (n = 84)


Organizations having difficulty filling specific job categories for full-time regular positions:Construction, Mining, Oil and Gas Industry

Note: This figure represents “Somewhat difficult” and “Very difficult” responses. “Not applicable” responses were excluded from this analysis. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question. Data are not provided where the sample size is less than 20.

Drivers(2012 n = 78, 2011 n = 42)

Sales representatives(2012 n = 54, 2011 n = 37)

Skilled trades (e.g., electricians, carpenters)(2012 n = 139, 2011 n = 75)

Managers and executives(2012 n = 107, 2011 n = 72)

High-skilled technical (e.g., technicians, programmers)(2012 n = 90, 2011 n = 62)

Engineers(2012 n = 101, 2011 n = 66)

52%

60%

68%

76%

79%

88%

59%

74%

79%

85%

87%

87%

20122011


Organizations having difficulty filling specific job categories for full-time regular positions (continued):Construction, Mining, Oil and Gas Industry

Note: This figure represents “Somewhat difficult” and “Very difficult” responses. “Not applicable” responses were excluded from this analysis. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question. Data are not provided where the sample size is less than 20.

Administrative support staff(2012 n = 139, 2011 n = 80)

Customer service representatives(2012 n = 33, 2011 n = 24)

Hourly laborers(2012 n = 136, 2011 n = 75)

Accounting and finance professionals(2012 n = 111, 2011 n = 65)

HR professionals(2012 n = 86, 2011 n = 47)

Production operators(2012 n = 69, 2011 n = 43)

26%

29%

32%

41%

49%

56%

18%

36%

43%

50%

51%

55%

20122011


Recruiting Challenges


• Is it difficult to recruit for positions requiring new and different skill sets? About two-thirds (67%) of organizations reported it was somewhat or very difficult to recruit for completely new positions or positions with new duties added that required new and different skill sets. This is an increase from 58% in 2011 and 47% in 2010.

• Is recruiting for specific jobs difficult in the current labor market? Nearly three-quarters (74%) of organizations currently hiring full-time staff indicated that they are having a difficult time recruiting for specific job openings, an increase from 51% in 2011.

• Why are organizations experiencing difficulty hiring qualified candidates? About one-half (52%) of organizations indicated that candidates do not have the right skills for the job, and 44% said candidates do not have the right work experience. Two in five organizations (40%) cited competition from other employers, and one-quarter (26%) reported that a low number of applicants were creating difficulty in hiring.

• Are organizations facing global competition for applicants for hard-to-fill jobs? Twenty-two percent of organizations believe they are facing global competition for qualified applicants for jobs they are having difficulty filling, which has decreased from 34% in 2011.

Key Findings: Recruiting ChallengesConstruction, Mining, Oil and Gas Industry


For the new full-time regular positions being created by your organization that require new and different skill sets, how easy or difficult do you think it will be or has been thus far to find qualified individuals for those positions? Construction, Mining, Oil and Gas Industry

Note: Percentages may not total 100% due to rounding. Only respondents whose organizations were hiring full-time staff for positions with “new duties added to jobs lost” or “completely new positions” that required either “a mixture of new skills and the same types of skills” or “completely new and different skills” were asked this question.

Very difficult

Somewhat difficult

Somewhat easy

Very easy

1%

46%

32%

21%

1%

57%

37%

5%

7%

60%

27%

7%

2012 (n = 89)

2011 (n = 79)

2010 (n = 87)


For the new full-time, regular positions being created by your organization that require new and different skill sets, how easy or difficult do you think it will be or has been thus far to find qualified individuals for those positions?

Note: Only statistically significant differences are shown.

Comparisons by industry


Health (54%) >

Construction, mining, oil and gas (27%)

High-tech (23%)

Manufacturing (20%)

Professional services (28%)

State or local government (40%) > Manufacturing (20%)

• The health industry is more likely than the construction, mining, oil and gas; high-tech; manufacturing; and professional services industries to indicate it will be or has been somewhat easy to find qualified individuals for new full-time positions.

• State or local governments are more likely than the manufacturing industry to indicate it will be or has been somewhat easy to find qualified individuals for new full-time positions.


Manufacturing (63%) > Health (40%)

• The manufacturing industry is more likely than the health industry to indicate it will be or has been somewhat difficult to find qualified individuals for new full-time positions.


In general, in the current labor market, is your organization having a difficult time recruiting for specific jobs that are open in your organization? Construction, Mining, Oil and Gas Industry

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

Yes; 51%No; 49%

2011

Yes; 74%

No; 26%

2012

n = 195 n = 231


In general, in the current labor market, are you having a difficult time recruiting for certain types of full-time, regular positions that are open in your organization?



High-tech (82%)

Manufacturing (79%)>

Federal government (50%)

Finance (66%)

Health (65%)

State or local government (52%)


Professional services (70%)>



Finance (66%)

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

Comparisons by industry• Although there is recruiting difficulty across all industries, certain industries are experiencing more

difficulty than others.

• The high-tech and manufacturing industries are more likely than the federal government, finance, health and state or local government industries to be having difficulty recruiting for certain types of full-time, regular positions.

• The construction, mining, oil and gas and professional services industries are more likely than the federal government and state or local governments to be having difficulty recruiting for certain types of full-time, regular positions.

• The finance and health industries are more likely than state or local governments to be having difficulty recruiting for certain types of full-time, regular positions.


What are the main reason(s) that your organization experiences difficulty in hiring qualified candidates for full-time regular positions? Construction, Mining, Oil and Gas Industry

Note: n = 167. Percentages do not total 100% due to multiple response options. Respondents who answered “don’t know” were excluded from this analysis. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question.

Candidates do not have the right skills for the job

Candidates do not have the right work experience

Competition from other employers

Low number of applicants

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

Candidates do not have the needed credentials/certifications

Qualified candidates are not interested in moving to our local area

52%

44%

40%

26%

18%

16%

13%


What are the main reason(s) that your organization experiences difficulty in hiring qualified candidates for full-time regular positions? (continued) Construction, Mining, Oil and Gas Industry

Note: n = 167. Percentages do not total 100% due to multiple response options. Respondents who answered “don’t know” were excluded from this analysis. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question.

Candidates do not have high enough levels of edu-cation/training

Lack of interest in type of job

Qualified candidates are not able to move to our local area (due to mortgage or other issues)

Our local education/training system does not produce enough work-ready/qualified job candidates

Candidates are overqualified

Our organization does not provide relocation funds

Other

10%

9%

8%

8%

7%

4%

10%


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

Note: Respondents who answered “don’t know” were excluded from this analysis. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question.

Yes; 34%

No; 66%

2011

Yes; 22%

No; 78%

2012

n = 90 n = 152

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

The Ongoing Impact of the Recession—Construction, Mining, Oil and Gas Industry ©SHRM 2013 18Note: Only statistically significant differences are shown.


High-tech (33%) >

Finance (5%)

Health (6%)

Manufacturing (15%)




Federal government (22%)>

Finance (5%)

Health (6%)


Manufacturing (15%) >Finance (5%)


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

Comparisons by industry• Organizations in the high-tech industry are more likely than those in the finance, health, manufacturing, professional

services and state or local government industries to believe that they are facing global competition for talent for hard-to-fill jobs.

• Organizations in the construction, mining, oil and gas, and federal government industries are more likely than those in the finance, health and state or local government industries to believe that they are facing global competition for talent for hard-to-fill jobs.

• Organizations in the manufacturing industry are more likely than those in the finance and state or local government industries to believe that they are facing global competition for talent for hard-to-fill jobs.

• Organizations in the professional services industry are more likely than those in the state or local government to believe that they are s facing global competition for talent for hard-to-fill jobs.


Recruiting Strategies


• What strategies is your organization using to deal with recruiting challenges for full-time regular positions? The most common strategies that organizations reported are expanding advertising efforts (48%), collaborating with educational institutions (37%), using social media to find passive job seekers (37%), expanding the search region (34%) and training existing employees to take on the hard-to-fill positions (33%).

• Have organizations been hiring workers from outside the U.S. for jobs that have been difficult to fill? About one-quarter (26%) of organizations have hired workers from outside the U.S. Another 3% are considering hiring workers from outside the U.S.

• Have organizations been hiring U.S. veterans for jobs that have been difficult to fill? Seventy percent of organizations reported hiring U.S. veterans, an increase from 50% in 2011. Fifteen percent are either considering or have plans to hire veterans in the next 12 months.

Key Findings: Recruiting StrategiesConstruction, Mining, Oil and Gas Industry


What strategies is your organization using to deal with recruiting challenges for full-time regular positions?Construction, Mining, Oil and Gas Industry

Note: n = 163. Percentages do not total 100% due to multiple response options. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question.

Expanding advertising efforts

Collaborating with educational institutions

Using social media to find passive job seekers

Expanding search region

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

Increasing retention efforts

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

48%

37%

37%

34%

33%

30%

28%


What strategies is your organization using to deal with recruiting challenges for full-time regular positions? (continued)Construction, Mining, Oil and Gas Industry

Note: n = 163. Percentages do not total 100% due to multiple response options. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question.

Expanding training programs to help improve skills of new hires

Improving compensation/benefits package

Offering more flexible work arrangements

Offering new job perks

Other

None; we have not changed our recruiting strategy

26%

26%

11%

6%

7%

8%


Has your organization hired any workers from outside the United States in an attempt to staff key jobs that have been difficult to fill?Construction, Mining, Oil and Gas Industry


Yes No No, but we are considering it

No, but we have plans to do so in

the next 12 months

26%

71%

3% 0%

31%

66%

3% 0%

2012 (n = 161) 2011 (n = 96)

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




High-tech (50%) >



Finance (16%)

Health (29%)

Manufacturing (24%)




Health (29%)

Manufacturing (24%)


> State or local government (11%)

Comparisons by industry• The high-tech industry is more likely than the construction, mining, oil and gas; federal government;

finance; health; manufacturing; professional services; and state or local government industries to have hired workers from outside the U.S. in an attempt to recruit for hard-to-fill jobs.

• The construction, mining, oil and gas; health; manufacturing; and professional services industries are more likely than the state or local government to have hired workers from outside the U.S. in an attempt to recruit for hard-to-fill jobs.


Has your organization hired any U.S. veterans in an attempt to staff key jobs that have been difficult to fill?Construction, Mining, Oil and Gas Industry


Yes No No, but we are considering it

No, but we have plans to do so in

the next 12 months

70%

15%11%

4%

50%

38%

10%

2%

2012 (n = 150) 2011 (n = 84)

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




Federal government (87%) >

Finance (40%)

Health (57%)

High-tech (47%)

Manufacturing (60%)



State or local government (71%)>

Finance (40%)

High-tech (47%)


Manufacturing (60%) >Finance (40%)


Comparisons by industry• The federal government is more likely than the finance, health, high-tech, manufacturing and

professional services industries to have hired U.S. veterans in an attempt to recruit for hard-to-fill jobs.

• The construction, mining, oil and gas, and state or local government industries are more likely than the finance, high-tech and professional services industries to have hired U.S. veterans in an attempt to recruit for hard-to-fill jobs.

• The manufacturing industry is more likely than the finance and professional services industries to have hired U.S. veterans in an attempt to recruit for hard-to-fill jobs.


Demographics


Demographics: Organization SectorConstruction, Mining, Oil and Gas Industry

n = 315

Privately owned for-profit

Publicly owned for-profit

Nonprofit

Government

Other

71%

25%

1%

0%

3%


Demographics: Organization Staff SizeConstruction, Mining, Oil and Gas Industry

n = 304

1 to 99 employees

100 to 499 employees

500 to 2,499 employees

2,500 to 24,999 employees

25,000 or more employees

26%

36%

19%

17%

2%


n = 314

Other DemographicsConstruction, Mining, Oil and Gas Industry

30

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

26%

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

74%

Multi-unit headquarters determines HR policies and practices

51%

Each work location determines HR policies and practices

2%

A combination of both the work location and the multi-unit headquarters determines HR policies and practices

47%

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 = 316

n = 239

Corporate (companywide) 74%

Business unit/division 19%

Facility/location 8%

Note: n = 239. Percentages do not total 100% due to rounding.

What is the HR department/function for which you responded throughout this survey?

• Response rate = 12%

• 333 randomly selected HR professionals from the construction, mining, oil and gas industry in SHRM’s membership participated in this survey.

• With small sample sizes, the response of one participant can affect the overall results considerably; this should be noted when making interpretations of the data, particularly when interpreting small percentage differences.

• Survey fielded August 28-September 14, 2012


SHRM Survey Findings: The Ongoing Impact of the Recession—Construction, Mining, Oil and Gas Industry

Survey Methodology


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

• For more information about SHRM’s Customized Research Services, visit www.shrm.org/customizedresearch

• Follow us on Twitter @SHRM_Research

About SHRM Research

Project leader:Tanya Mulvey, researcher, talent management & workforce

skills, SHRM Research

Project contributors:Alexander Alonso, Ph.D., SPHR, vice president, SHRM ResearchEvren Esen, manager, Survey Research Center, SHRM ResearchYan Dong, Intern, SHRM Research

http://www.shrm.org/surveys

http://www.shrm.org/customizedresearch

http://twitter.com/SHRM_Research

http://twitter.com/SHRM_Research


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