SHRM Survey Findings The Ongoing Impact of the

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

Introduction • These are the Federal 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. » 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. The Ongoing Impact of the Recession—Federal Government Agencies ©SHRM 2013 2

Skill Gaps The Ongoing Impact of the Recession—Federal Government Agencies ©SHRM 2013 3

Key Findings: Skill Gaps Federal Government • What basic skills/knowledge gaps do job applicants typically have? The most common basic skills/knowledge gaps are writing in English (46%), government/economics (38%), mathematics (25%) and reading comprehension (in English) (24%). • What applied skill gaps do job applicants typically have? Over one-third of respondents cited the following applied skill gaps: critical thinking/problem solving (59%), written communications (47%), professionalism (42%), oral communication (41%), teamwork/collaboration (38%) and leadership (37%). • What types of jobs are the most difficult to fill? The top five most difficult positions to fill are scientists (92%), high-skilled technical (82%), engineers (73%), managers and executives (64%), and skilled trades (e. g. , electricians, carpenters) (56%). The Ongoing Impact of the Recession—Federal Government Agencies ©SHRM 2013 4

In general, what basic skills/knowledge gaps do job applicants have in your industry? Federal Government Writing in English (grammar, spelling, etc. ) 38% 39% Government/economics 25% Mathematics (computation) Reading comprehension (in English) 13% 0% 2012 (n = 108) 2011 (n = 23) 13% 10% Foreign languages 35% 26% 4% 4% Humanities/arts Other 24% 14% Science History/geography 39% 20% 17% English language (spoken) Technical (computer, engineering, mechanical, etc. ) 46% 22% 0% 4% 4% 13% 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. The Ongoing Impact of the Recession—Federal Government Agencies ©SHRM 2013 5

In general, what applied skill gaps do job applicants have in your industry? Federal Government 59% 64% Critical thinking/problem solving Written communications 42% 36% Professionalism/work ethic Oral communications 41% 24% Teamwork/collaboration 38% 28% Leadership 20% Information technology application 20% 37% 31% 25% Diversity 2012 (n = 118) 2011 (n = 25) 32% 23% 28% Creativity/innovation Lifelong learning/self-direction 16% 23% 17% Ethics/social responsibility Other 47% 28% 0% 28% 8% 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. The Ongoing Impact of the Recession—Federal Government Agencies ©SHRM 2013 6

How easy or difficult has it been to fill the following job categories for full-time, regular positions? Federal Government *Scientists (2012 n = 25) 92% High-skilled technical (e. g. , technicians, programmers) (2012 n = 55, 2011 n = 21) 82% 81% *Engineers (2012 n = 44) 73% Managers and executives (2012 n = 61, 2011 n = 20) 64% 65% *Skilled trades (e. g. , electricians, carpenters) (2012 n = 34) 56% 2012 *HR professionals (2012 n = 50) 54% Accounting and finance professionals (2012 n = 58, 2011 n = 23) 50% 56% *Hourly laborers (2012 n = 31) Administrative support staff (2012 n = 62, 2011 n = 22) *Customer service representatives (2012 n = 24) 2011 39% 23% 28% 17% 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. The Ongoing Impact of the Recession—Federal Government Agencies ©SHRM 2013 7

Recruiting Challenges The Ongoing Impact of the Recession—Federal Government Agencies ©SHRM 2013 8

Key Findings: Recruiting Challenges Federal Government • Is it difficult to recruit for positions requiring new and different skill sets? Over one-half (54%) of organizations 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. Recruiting difficulty for new and different skill sets has increased from 34% in 2010. • Is recruiting for specific jobs difficult in the current labor market? One-half (50%) of organizations currently hiring full-time staff indicated that they were having a difficult time recruiting for specific job openings, an increase from 35% in 2011. • Why are organizations experiencing difficulty hiring qualified candidates? Nearly one-half (44%) of organizations indicated that candidates did not have the right skills for the job, and 40% said that candidates do not have the needed credentials/certification. Thirty-seven percent of organizations indicated that qualified candidates were not within their salary range or hourly range rate. Three in ten reported that candidates did not have the right work experience (31%) or cited competition from other employers (29%). • Are organizations facing global competition for applicants for hard-to-fill jobs? About one-quarter (22%) of organizations believe they are facing global competition for qualified applicants for jobs they are having difficulty filling, similar to 2011 (28%). The Ongoing Impact of the Recession—Federal Government Agencies ©SHRM 2013 9

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 it been thus far to find qualified individuals for those positions? Federal Government 4% Very easy 26% 42% Somewhat easy 40% 2013 (n = 52) 50% 2010 (n = 70) Somewhat difficult 33% 4% Very difficult 1% Note: 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. Data are not provided for 2011 due to the small sample size. The Ongoing Impact of the Recession—Federal Government Agencies ©SHRM 2013 10

In general, in the current labor market, is your organization having a difficult time recruiting for specific jobs that are open in your organization? Federal Government 2011 2012 Yes; 35% No; 50% Yes; 50% No; 65% n = 80 n = 153 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. The Ongoing Impact of the Recession—Federal Government Agencies ©SHRM 2013 11

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? 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. Comparisons by industry Federal government (50%) High-tech (82%) Manufacturing (79%) > Finance (66%) Health (65%) State or local government (52%) Construction, mining, oil and gas (74%) Professional services (70%) Finance (66%) Health (65%) > > Federal government (50%) State or local government (52%) Note: Only statistically significant differences are shown. The Ongoing Impact of the Recession—Federal Government Agencies ©SHRM 2013 12

What are the main reason(s) that your organization experiences difficulty in hiring qualified candidates for full-time, regular positions? Federal Government Candidates do not have the right skills for the job 44% Candidates do not have the needed credentials/certifications 40% Qualified candidates are not within our salary range or hourly range rate 37% Candidates do not have the right work experience 31% Competition from other employers Candidates do not have high enough levels of education/training Low number of applicants 29% 16% 15% Note: n = 75. 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. The Ongoing Impact of the Recession—Federal Government Agencies ©SHRM 2013 13

What are the main reason(s) that your organization experiences difficulty in hiring qualified candidates for full-time, regular positions? (continued) Federal Government Our organization does not provide relocation funds 15% Qualified candidates are not interested in moving to our local area 13% Qualified candidates are not able to move to our local area (due to mortgage or other issues) Candidates are overqualified 11% 4% Lack of interest in type of job 3% Local education/training system does not produce enough work-ready/qualified job candidates 3% Other 9% Note: n = 75. 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. The Ongoing Impact of the Recession—Federal Government Agencies ©SHRM 2013 14

Do you believe that your organization is facing global competition (i. e. , competition from other countries) for talent for hard-to-fill jobs? Federal Government 2011 2012 Yes; 22% Yes; 28% No; 72% No; 78% n = 25 n = 63 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. The Ongoing Impact of the Recession—Federal Government Agencies ©SHRM 2013 15

Do you believe that your organization is facing global competition (i. e. , competition from other countries) for talent for hard-to-fill jobs? 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 state or local governments to believe that they are facing global competition for talent for hard-to-fill jobs. Comparisons by industry Finance (5%) Health (6%) High-tech (33%) > Manufacturing (15%) Professional services (14%) State or local government (4%) Construction, mining, oil and gas (22%) Federal government (22%) Finance (5%) > Health (6%) State or local government (4%) Manufacturing (15%) > Professional services (14%) > Finance (5%) State or local government (4%) Note: Only statistically significant differences are shown. The Ongoing Impact of the Recession—Federal Government Agencies ©SHRM 2013 16

Recruiting Strategies The Ongoing Impact of the Recession—Federal Government Agencies ©SHRM 2013 17

Key Findings: Recruiting Strategies Federal Government • 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 (45%), offering more flexible work arrangements (39%), expanding training programs to help improve skills of new hires (37%), collaborating with educational institutions (35%), using social media to find passive job seekers (35%), expanding the search region (34%) and increasing retention efforts (34%). • Have organizations been hiring workers from outside the U. S. for jobs that have been difficult to fill? Sixteen percent of organizations have hired workers from outside the U. S. , and 3% are considering hiring workers from outside the U. S. These results are consistent with findings in 2011. • Have organizations been hiring U. S. veterans for jobs that have been difficult to fill? Most organizations (87%) reported hiring U. S. veterans, and 2% are considering or have plans to hire veterans in the next 12 months. These findings are similar to 2011 results. The Ongoing Impact of the Recession—Federal Government Agencies ©SHRM 2013 18

What strategies is your organization using to deal with recruiting challenges for full-time, regular positions? Federal Government Expanding advertising efforts Offering more flexible work arrangements Expanding training programs to help improve skills of new hires 45% 39% 37% Collaborating with educational institutions 35% Using social media to find passive job seekers 35% Expanding search region 34% Increasing retention efforts 34% Note: n = 71. 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. The Ongoing Impact of the Recession—Federal Government Agencies ©SHRM 2013 19

What strategies is your organization using to deal with recruiting challenges for full-time, regular positions? (continued) Federal Government Training existing employees to take on the hard-to-fill positions 31% Providing monetary incentives to candidates (e. g. , signing bonus) 27% Improving compensation/benefits package Offering new job perks Other None; we have not changed our recruiting strategy 14% 6% 4% 8% Note: n = 71. 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. The Ongoing Impact of the Recession—Federal Government Agencies ©SHRM 2013 20

Has your organization hired any workers from outside the United States in an attempt to staff key jobs that have been difficult to fill? Federal Government 2012 (n = 67) 81% 2011 (n = 25) 80% 20% 16% 3% Yes No 0% No, but we are considering it 0% 0% No, but we have plans to do so in the next 12 months 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. The Ongoing Impact of the Recession—Federal Government Agencies ©SHRM 2013 21

Has your organization hired any workers from outside the United States in an attempt to staff key jobs that have been difficult to fill? 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 state or local governments to have hired workers from outside the U. S. in an attempt to recruit for hard-to-fill jobs. Comparisons by industry Construction, mining, oil and gas (26%) Federal government (16%) Finance (16%) High-tech (50%) > Health (29%) Manufacturing (24%) Professional services (24%) State or local government (11%) Construction, mining, oil and gas (26%) Health (29%) Manufacturing (24%) > State or local government (11%) Professional services (24%) Note: Only statistically significant differences are shown. The Ongoing Impact of the Recession—Federal Government Agencies ©SHRM 2013 22

Has your organization hired any U. S. veterans in an attempt to staff key jobs that have been difficult to fill? Federal Government 2012 (n = 69) 2011 (n = 25) 96% 87% 10% Yes 4% No 1% 0% No, but we are considering it 1% 0% No, but we have plans to do so in the next 12 months Note: Percentages may not equal 100% due to rounding. 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. The Ongoing Impact of the Recession—Federal Government Agencies ©SHRM 2013 23

Has your organization hired any U. S. veterans in an attempt to staff key jobs that have been difficult to fill? 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, hightech 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. Comparisons by industry Finance (40%) Health (57%) Federal government (87%) > High-tech (47%) Manufacturing (60%) Professional services (43%) Construction, mining, oil and gas (70%) State or local government (71%) Manufacturing (60%) Finance (40%) > High-tech (47%) Professional services (43%) > Finance (40%) Professional services (43%) Note: Only statistically significant differences are shown. The Ongoing Impact of the Recession—Federal Government Agencies ©SHRM 2013 24

Demographics The Ongoing Impact of the Recession—Federal Government Agencies ©SHRM 2013 25

Demographics: Organization Staff Size Federal Government 1 to 99 employees 100 to 499 employees 500 to 2, 499 employees 2, 500 to 24, 999 employees 25, 000 or more employees 11% 21% 19% 26% 23% n = 209 The Ongoing Impact of the Recession—Federal Government Agencies ©SHRM 2013 26

Other Demographics Federal Government Does your organization have U. S. based operations (business units) only, or does it operate multinationally? U. S. -based operations only 60% Multinational operations 40% n = 221 Single-unit organization: An organization in which the location and the organization are one and the same. 20% Multi-unit organization: An organization that has more than one location. 80% n = 222 What is the HR department/function for which you responded throughout this survey? Corporate (companywide) 47% Business unit/division 32% Facility/location 21% n = 182 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? Multi-unit headquarters determines HR policies and practices. 39% 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. 58% n = 181 The Ongoing Impact of the Recession—Federal Government Agencies ©SHRM 2013 27

SHRM Survey Findings: The Ongoing Impact of the Recession—Federal Government Agencies Survey Methodology • Response rate = 8% • 234 randomly selected HR professionals from the federal government 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 The Ongoing Impact of the Recession—Federal Government Agencies ©SHRM 2013 28

About SHRM Research • 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 Project leader: Tanya Mulvey, survey research analyst, SHRM Research Project contributors: Alexander Alonso, Ph. D. , SPHR, vice president, SHRM Research Evren Esen, manager, Survey Research Center, SHRM Research Kenya Newby, coordinator, research programs, SHRM Research Copy editor: Katya Scanlan, SHRM Knowledge Center The Ongoing Impact of the Recession—Federal Government Agencies ©SHRM 2013 29

About SHRM 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. The Ongoing Impact of the Recession—Federal Government Agencies ©SHRM 2013 30