SHRM Survey Findings: The Ongoing Impact of the Recession—State and Local Government

SHRM Survey Findings: The Ongoing Impact of the
Recession—State and Local Government
September 25, 2013

• These are the State and Local Government 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:
» Construction, mining, oil and gas.
» Federal government.
» Finance.
» Health.
» High-tech.
» Manufacturing.
» Professional services.
• Overall and California results can be found on our website at www.shrm.org/surveys.
The Ongoing Impact of the Recession—State and Local Government ©SHRM 2013 2
Introduction

Skill Gaps

• What basic skills/knowledge gaps do job applicants typically have? The most common basic
skills/knowledge gaps are writing in English (63%), mathematics (33%), reading comprehension (in
English) (32%) and government/economics (31%).
• What applied skill gaps do job applicants typically have? The top five applied skill gaps are
critical thinking/problem solving (51%), written communications (50%), professionalism/work ethic
(48%), leadership (42%) and oral communication (37%).
• What types of jobs are the most difficult to fill? The top five most difficult positions to fill are
high-skilled medical (92%), engineers (83%), high-skilled technical (82%), managers and
executives (70%), and scientists (70%).
Key Findings: Skill Gaps
State and Local Government

In general, what basic skills/knowledge gaps do job applicants have in
your 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.
6%
4%
4%
1%
8%
6%
22%
41%
24%
24%
56%
6%
2%
4%
8%
9%
12%
22%
31%
32%
33%
63%
Other
History/geography
Humanities/arts
Technical (computer, engineering, mechanical, etc.)
Science
Foreign languages
English language (spoken)
Government/economics
Reading comprehension (in English)
Mathematics (computation)
Writing in English (grammar, spelling, etc.)
2012 (n = 332)
2011 (n = 78)
The Ongoing Impact of the Recession—State and Local Government ©SHRM 2013

In general, what applied skill gaps do job applicants have in your
industry?
6
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.
10%
24%
26%
20%
26%
33%
26%
36%
43%
49%
46%
53%
2%
21%
22%
24%
25%
33%
35%
37%
42%
48%
50%
51%
Other
Creativity/innovation
Lifelong learning/self-direction
Diversity (i.e., the ability to work well with a
diverse workforce and customer base)
Ethics/social responsibility
Teamwork/collaboration
Information technology application
Oral communications
Leadership
Professionalism/work ethic
Written communications
Critical thinking/problem solving
2012 (n = 362)
2011 (n = 90)

Organizations having difficulty filling specific job categories for full-
time, regular positions:
7
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.
56%
61%
80%
71%
88%
83%
85%
58%
61%
70%
70%
82%
83%
92%
Accounting and finance professionals
(2012 n = 217, 2011 n = 72)
Skilled trades (e.g., electricians, carpenters)
(2012 n = 163, 2011 n = 51)
Scientists
(2012 n = 44, 2011 n = 20)
Managers and executives
(2012 n = 222, 2011 n = 80)
High-skilled technical (e.g., technicians, programmers)
(2012 n = 193, 2011 n = 72)
Engineers
(2012 n = 127, 2011 n = 53)
High-skilled medical (e.g., nurses, doctors, specialists)
(2012 n = 74, 2011 n = 32)
2012
2011

Organizations having difficulty filling specific job categories for full-
time, regular positions (continued):
8
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.
14%
16%
21%
28%
46%
16%
20%
29%
33%
38%
47%
Customer service representatives
(2012 n = 161, 2011 n = 68)
Administrative support staff
(2012 n = 240, 2011 n = 92)
Hourly laborers
(2012 n = 171, 2011 n = 65)
*Production operators
(2012 n = 46)
Drivers
(2012 n = 115, 2011 n = 36)
HR professionals
(2012 n = 162, 2011 n = 61)
2012
2011

Recruiting Challenges

• Is it difficult to recruit for positions requiring new and different skill sets? One-half of
organizations (50%) reported that it is 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 similar
to what was reported in 2011 (48%), but an increase from 35% in 2010.
• Is recruiting for specific jobs difficult in the current labor market? About one-half of
organizations (52%) currently hiring full-time staff indicated that they were having a difficult time
recruiting for specific job openings, an increase from 34% in 2011.
• Why are organizations experiencing difficulty hiring qualified candidates? About one-half of
organizations (53%) indicated that qualified candidates were not within their salary range or hourly
range rate, and 43% indicated that candidates did not have the right skills for the job. Approximately
one-third cited difficulty because of competition from other employers (35%), or candidates did not
have the right work experience (32%).
• Are organizations facing global competition for applicants for hard-to-fill jobs? Very few
organizations (4%) believe they are facing global competition for qualified applicants for jobs they
are having difficulty filling, which is unchanged from 2011.
Key Findings: Recruiting Challenges

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? State and Local Government
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.
0%
35%
45%
20%
0%
48%
43%
9%
5%
45%
40%
9%
Very difficult
Somewhat difficult
Somewhat easy
Very easy
2012 (n = 97)
2011 (n = 44)
2010 (n = 86)

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? State and Local Government
13
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, 34%
No, 66%
2011
Yes, 52%
No, 48%
2012
n = 302 n = 524

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%)
>
Finance (66%)
Health (65%)
> State or local government (52%)
• 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?
Note: n = 265. 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.
53%
43%
35%
32%
27%
22%
12%
Qualified candidates are not within our salary
range or hourly range rate
Candidates do not have the right skills for the
job
Competition from other employers
Candidates do not have the right work
experience
Candidates do not have the needed
credentials/certifications
Low number of applicants
Qualified candidates are not interested
in moving to our local area

What are the main reason(s) that your organization experiences difficulty in
hiring qualified candidates for full-time, regular positions? (continued)
Note: n = 265. 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.
12%
8%
7%
5%
4%
3%
8%
Candidates do not have high enough levels of
education/training
Our organization does not provide
relocation funds
Lack of interest in type of job
Candidates are overqualified
Qualified candidates are not able to move to our
local area (due to mortgage or other issues)
Local education/training system does not produce
enough work-ready/qualified job candidates
Other

Do you believe that your organization is facing global competition
(i.e., competition from other countries) for talent for hard-to-fill jobs?
17
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, 4%
No, 96%
2011
Yes, 4%
No, 96%
2012
n = 96 n = 245

Do you believe that your organization is facing global competition
(i.e., competition from other countries) for talent for hard-to-fill jobs?
High-tech (33%) >
Finance (5%)
Health (6%)
Manufacturing (15%)
>
Finance (5%)
Health (6%)
Manufacturing (15%) >
Finance (5%)
Professional services (14%) > State or local government (4%)
• 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 state or local governments to believe that they are
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 reported by organizations are expanding
advertising efforts (49%), training existing employees to take on the hard-to-fill positions
(33%), expanding the search region (31%) and collaborating with educational institutions (27%).
• Have organizations been hiring workers from outside the U.S. for jobs that have been
difficult to fill? Eleven percent of organizations have hired workers from outside the U.S., which is
the same as 2011 findings.
• Have organizations been hiring U.S. veterans for jobs that have been difficult to fill? A
majority (71%) of organizations reported hiring U.S. veterans, an increase from 37% in 2011.
Another 8% are either considering or have plans to hire veterans in the next 12 months.
Key Findings: Recruiting Strategies

What strategies is your organization using to deal with recruiting
challenges for full-time, regular positions?
Note: n = 265. Percentages do not total 100% due to multiple response options. Only respondents whose organizations were having a difficult time
49%
33%
31%
27%
25%
23%
23%
Expanding advertising efforts
Training existing employees to take on
the hard-to-fill positions
Expanding search region
Collaborating with educational institutions
Using social media to find passive job seekers
Increasing retention efforts
Offering more flexible work arrangements

What strategies is your organization using to deal with recruiting challenges
for full-time, regular positions? (continued)
Note: n = 265. Percentages do not total 100% due to multiple response options. Only respondents whose organizations were having a difficult time
17%
16%
6%
3%
2%
14%
Improving compensation/benefits package
Expanding training programs to help
improve skills of new hires
Providing monetary incentives to candidates
(e.g., signing bonus)
Offering new job perks
Other
None; we have not changed our recruiting strategy

Has your organization hired any workers from outside the United States
in an attempt to staff key jobs that have been difficult to fill?
23
11%
89%
0% 0%
11%
88%
1% 0%
Yes No No, but we are
considering it
No, but we have plans
to do so in the next 12
months
2012 (n = 254) 2011 (n = 94)

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%)
• 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 state
or local governments 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?
25
71%
21%
6%
2%
37%
54%
6%
3%
Yes No No, but we are
considering it
No, but we have
plans to do so in the
next 12 months
2012 (n = 228) 2011 (n = 67)

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%)
>
Finance (40%)
High-tech (47%)
Manufacturing (60%) >
Finance (40%)
• 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 Staff Size
n = 646
17%
39%
27%
15%
2%
1 to 99 employees
100 to 499 employees
500 to 2,499 employees
2,500 to 24,999 employees
25,000 or more employees

Note: n = 663. Percentages do not equal 100% due
to rounding.
Other Demographics
U.S.-based operations only 100%
Multinational operations <1%
Single-unit organization: An organization
in which the location and the organization
are one and the same.
59%
Multi-unit organization: An organization
that has more than one location.
41%
Multi-unit headquarters determines HR
policies and practices.
56%
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.
42%
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 = 665
n = 268. Percentages do not equal 100% due to rounding.
Corporate (companywide) 74%
Business unit/division 19%
Facility/location 7%
n = 269
What is the HR department/function for
which you responded throughout this
survey?

• Response rate = 25%
• 691 randomly selected HR professionals from the state and local government 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—State and Local Government
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 Research
Evren Esen, manager, Survey Research Center, SHRM Research
Copy editor:
Katya Scanlan, SHRM Knowledge Center

The Society for Human Resource Management (SHRM) is the world’s largest association devoted to
human resource management. Representing more than 250,000 members in over 140 countries, the
Society serves the needs of HR professionals and advances the interests of the HR profession.
Founded in 1948, SHRM has more than 575 affiliated chapters within the United States and
subsidiary offices in China and India.
About SHRM

SHRM Survey Findings: The Ongoing Impact of the Recession—State and Local Government

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