Special Report: The Demand for Skilled Talent
Special Report: The Demand for Skilled Talent Volume 6 | Q3 2013
A Tale of Two Job Markets: Why it’s difficult to find and recruit top talent The current employment situation can best be described as a tale of two job markets. High general unemployment is obscuring the fact that specialized talent is in short supply, leading to candidate shortages — especially in technology and finance. The persistent drumbeat about high unemployment does not apply to many of the professional-level jobs employers are trying to fill. The candidates they seek often already have secure jobs or are weighing multiple employment offers. As a result, firms must offer competitive salaries and move quickly to recruit top talent.
INSIDE: Spotlight on the Job Market for New Graduates on Page 4.
1
Special Report: The Demand for Skilled Talent
The Perfect Storm: A number of factors are contributing to a shortage of candidates with specialized skill sets. • More companies are hiring. There were 3.9 million job openings in June 2013, up from 3.8 million one year ago.1 About 2.1 million new jobs in professional, scientific and technical services will be added by 2020.2 • The global war for talent is intensifying. A projected shortfall of up to 18 million highly skilled workers will exist in advanced economies, including the United States, by 2020.3 • College grads are in short supply. The unemployment rate for college-degreed workers 25 and older is about half of the current unemployment rate.4 It is even lower in specialties like technology and accounting and finance. By 2020, the United States could have 1.5 million too few college-educated workers.5 • Recruiting challenges and skills gaps persist. Among businesses currently hiring full-time employees, 66% reported difficulties in recruiting for certain job openings, a 52% increase from 2011. The top four applied skills gaps among job applicants are critical thinking/problem solving (53%), professionalism/work ethic (46%), written communications (41%) and leadership (38%), according to human resources professionals.6
Job Openings and Labor Turnover Survey – June 2013, U.S. Bureau of Labor Statistics, August 6, 2013. Occupational Outlook Handbook, 2012-2013 Edition, Projections Overview, U.S. Bureau of Labor Statistics (as of July 29, 2013). 3 Talent Tensions Ahead: A CEO Briefing, McKinsey Global Institute, McKinsey & Co., November 2012. 4 Employment Situation Summary – July 2013, U.S. Bureau of Labor Statistics, August 2, 2013. 5 Preparing for a New Era of Knowledge Work, McKinsey Global Institute, McKinsey & Co., November 2012. 6 The Ongoing Impact of the Recession – Recruiting and Skill Gaps, Society for Human Resource Management, March 12, 2013. 1 2
2
Special Report: The Demand for Skilled Talent
Employee Confidence Is Building: More job opportunities have made professionals increasingly selective when evaluating employment offers. • Job seekers are more optimistic. Nearly 2.2 million workers voluntarily left their jobs in June 2013, a 16% increase compared to two years ago.7 (See chart on Page 4.) • Companies are concerned about finding and keeping workers. Human resources professionals consider talent acquisition and retention among their top three critical priorities, both current and future.8 • Hot areas of hiring are expected for the second half of the year. Employers are not only recruiting for revenue-related functions, such as sales and customer service, but also positions tied to mobile and cloud technology, big data, social media and financial regulation.9 • Salaries are increasing. U.S. starting salaries for professional occupations are projected to rise 3.7% in 2013. Technology salaries are expected to rise the most, by 5.3%.10 College graduates with engineering, computer science and business degrees can expect the most pay.11 • Employers are willing to pay more. 72% of employers plan to raise salaries for current workers in 2013, and 47% will offer higher starting salaries for new hires — up from 32% last year.12 7 8
Job Openings and Labor Turnover Survey – June 2013, U.S. Bureau of Labor Statistics, August 6, 2013. The State of Human Capital 2012: Why the Human Capital Function Still Has Far to Go, The Conference Board and McKinsey & Co., 2012.
9 10
2013 U.S. Midyear Job Forecast, CareerBuilder, July 11, 2013. 2013 Salary Guides from Robert Half (roberthalf.com/salary-guides)
Salary Survey, Executive Summary, National Association of Colleges and Employers (NACE), April 2013. 12 2013 U.S. Job Forecast, CareerBuilder, December 27, 2012. 11
Q2 2013 Unemployment Rates by Occupation, for Select Positions Finance and Accounting Chief executives (includes CFOs) 1.9% Budget analysts 2.1% Financial analysts 2.9% Compliance officers 3.9% Accountants and auditors 4.0% Purchasing managers 4.0% Financial managers 4.6% Bookkeeping, accounting and auditing clerks 5.8%
Technology
Network and computer systems administrators Software developers, applications and systems software Chief executives (includes CIOs) Computer network architects Computer and information systems managers Computer programmers Information security analysts Database administrators Computer support specialists
1.1% 1.8% 1.9% 2.2% 3.4% 4.6% 5.1% 5.4% 5.6%
Source: Current Population Survey, conducted by the Bureau of Census for the U.S. Bureau of Labor Statistics, Data for Q2 2013.
Creative and Marketing Public relations specialists Web developers Advertising managers Marketing managers Editors Writers (includes copywriters) Marketing specialists Designers Public relations managers
1.5% 1.8% 3.1% 3.7% 5.1% 5.2% 5.5% 6.1% 6.4%
Administrative and Office Support Administrative services managers 6.0% Administrative assistants 6.1% Human resources assistants 6.1% Legal Lawyers 1.6% Paralegals and legal assistants 4.1%
3
Special Report: The Demand for Skilled Talent
Workers Are More Willing to Quit Their Jobs: Employees Who Voluntarily Left Their Jobs (in thousands) 2,260
2,286 2,233 2,185
2,152
2,151
2,140
2,139
2,148 2,036
2,106 2,020
1,956
2,093
2,080
1,995
2,160P
2,126
2,099
2,079
2,009
1,976
1,964 1,928
Jun ‘13
May ‘13
Apr ‘13
Mar ‘13
Feb ‘13
Jan ‘13
Dec ‘12
Nov ‘12
Oct ‘12
Sep ‘12
Aug ‘12
Jul ‘12
Jun ‘12
May ‘12
Apr ‘12
Mar ‘12
Feb ‘12
Jan ‘12
Dec ‘11
Nov ‘11
Oct ‘11
Sep ‘11
Aug ‘11
Jul ‘11
Jun ‘11
1,863
Source: Job Openings and Labor Turnover Surveys (June 2011 - June 2013), U.S. Bureau of Labor Statistics. Figures are seasonally adjusted. P = preliminary.
Spotlight! The Job Market for New Graduates • College majors in demand: Business and technical majors are the most sought after by companies looking to hire in 2013.13 More than one-third (35%) of CIOs interviewed said they plan to hire new information technology graduates in 2013.14 • But grads lack these skills: Nearly one half (49%) of employers believe college grads are lacking the knowledge and basic skill of writing in English (grammar, spelling, etc.), and 18% believe they fall short in math and computation skills. Organizations also believe new college grads don’t have the skills that more experienced workers possess, such as professionalism and work ethic, business acumen, written communication, relationship building and leadership.15
Robert Half Can Help We specialize in identifying hard-tofind candidates and matching them with appropriate jobs. Our staffing professionals are well-connected within the industries we serve and are able to draw from a large pool of highly skilled and experienced candidates. We also conduct frequent research so we can provide our clients with the most up-to-date information on salary and employment trends. With more than 345 specialized staffing locations worldwide and 65 years of recruiting experience, Robert Half is well-positioned to help you with any of your staffing and recruitment needs.
Contact us today at roberthalf.com, or call 1.800.803.8367.
Connect with us:
Most In-Demand College Majors and Entry-Level Jobs With the Most Growth, CareerBuilder, May 2, 2013. Workforce 101: More Than One-Third of CIOs Plan to Hire New IT Graduates, Robert Half Technology, July 11, 2013. 15 Hiring 2013 College Graduates, Society for Human Resource Management, June 11, 2013. 13 14
© 2013 Robert Half International. An Equal Opportunity Employer. RH-1013
4
A Tale of Two Job Markets: Why it’s difficult to find and recruit top talent The current employment situation can best be described as a tale of two job markets. High general unemployment is obscuring the fact that specialized talent is in short supply, leading to candidate shortages — especially in technology and finance. The persistent drumbeat about high unemployment does not apply to many of the professional-level jobs employers are trying to fill. The candidates they seek often already have secure jobs or are weighing multiple employment offers. As a result, firms must offer competitive salaries and move quickly to recruit top talent.
INSIDE: Spotlight on the Job Market for New Graduates on Page 4.
1
Special Report: The Demand for Skilled Talent
The Perfect Storm: A number of factors are contributing to a shortage of candidates with specialized skill sets. • More companies are hiring. There were 3.9 million job openings in June 2013, up from 3.8 million one year ago.1 About 2.1 million new jobs in professional, scientific and technical services will be added by 2020.2 • The global war for talent is intensifying. A projected shortfall of up to 18 million highly skilled workers will exist in advanced economies, including the United States, by 2020.3 • College grads are in short supply. The unemployment rate for college-degreed workers 25 and older is about half of the current unemployment rate.4 It is even lower in specialties like technology and accounting and finance. By 2020, the United States could have 1.5 million too few college-educated workers.5 • Recruiting challenges and skills gaps persist. Among businesses currently hiring full-time employees, 66% reported difficulties in recruiting for certain job openings, a 52% increase from 2011. The top four applied skills gaps among job applicants are critical thinking/problem solving (53%), professionalism/work ethic (46%), written communications (41%) and leadership (38%), according to human resources professionals.6
Job Openings and Labor Turnover Survey – June 2013, U.S. Bureau of Labor Statistics, August 6, 2013. Occupational Outlook Handbook, 2012-2013 Edition, Projections Overview, U.S. Bureau of Labor Statistics (as of July 29, 2013). 3 Talent Tensions Ahead: A CEO Briefing, McKinsey Global Institute, McKinsey & Co., November 2012. 4 Employment Situation Summary – July 2013, U.S. Bureau of Labor Statistics, August 2, 2013. 5 Preparing for a New Era of Knowledge Work, McKinsey Global Institute, McKinsey & Co., November 2012. 6 The Ongoing Impact of the Recession – Recruiting and Skill Gaps, Society for Human Resource Management, March 12, 2013. 1 2
2
Special Report: The Demand for Skilled Talent
Employee Confidence Is Building: More job opportunities have made professionals increasingly selective when evaluating employment offers. • Job seekers are more optimistic. Nearly 2.2 million workers voluntarily left their jobs in June 2013, a 16% increase compared to two years ago.7 (See chart on Page 4.) • Companies are concerned about finding and keeping workers. Human resources professionals consider talent acquisition and retention among their top three critical priorities, both current and future.8 • Hot areas of hiring are expected for the second half of the year. Employers are not only recruiting for revenue-related functions, such as sales and customer service, but also positions tied to mobile and cloud technology, big data, social media and financial regulation.9 • Salaries are increasing. U.S. starting salaries for professional occupations are projected to rise 3.7% in 2013. Technology salaries are expected to rise the most, by 5.3%.10 College graduates with engineering, computer science and business degrees can expect the most pay.11 • Employers are willing to pay more. 72% of employers plan to raise salaries for current workers in 2013, and 47% will offer higher starting salaries for new hires — up from 32% last year.12 7 8
Job Openings and Labor Turnover Survey – June 2013, U.S. Bureau of Labor Statistics, August 6, 2013. The State of Human Capital 2012: Why the Human Capital Function Still Has Far to Go, The Conference Board and McKinsey & Co., 2012.
9 10
2013 U.S. Midyear Job Forecast, CareerBuilder, July 11, 2013. 2013 Salary Guides from Robert Half (roberthalf.com/salary-guides)
Salary Survey, Executive Summary, National Association of Colleges and Employers (NACE), April 2013. 12 2013 U.S. Job Forecast, CareerBuilder, December 27, 2012. 11
Q2 2013 Unemployment Rates by Occupation, for Select Positions Finance and Accounting Chief executives (includes CFOs) 1.9% Budget analysts 2.1% Financial analysts 2.9% Compliance officers 3.9% Accountants and auditors 4.0% Purchasing managers 4.0% Financial managers 4.6% Bookkeeping, accounting and auditing clerks 5.8%
Technology
Network and computer systems administrators Software developers, applications and systems software Chief executives (includes CIOs) Computer network architects Computer and information systems managers Computer programmers Information security analysts Database administrators Computer support specialists
1.1% 1.8% 1.9% 2.2% 3.4% 4.6% 5.1% 5.4% 5.6%
Source: Current Population Survey, conducted by the Bureau of Census for the U.S. Bureau of Labor Statistics, Data for Q2 2013.
Creative and Marketing Public relations specialists Web developers Advertising managers Marketing managers Editors Writers (includes copywriters) Marketing specialists Designers Public relations managers
1.5% 1.8% 3.1% 3.7% 5.1% 5.2% 5.5% 6.1% 6.4%
Administrative and Office Support Administrative services managers 6.0% Administrative assistants 6.1% Human resources assistants 6.1% Legal Lawyers 1.6% Paralegals and legal assistants 4.1%
3
Special Report: The Demand for Skilled Talent
Workers Are More Willing to Quit Their Jobs: Employees Who Voluntarily Left Their Jobs (in thousands) 2,260
2,286 2,233 2,185
2,152
2,151
2,140
2,139
2,148 2,036
2,106 2,020
1,956
2,093
2,080
1,995
2,160P
2,126
2,099
2,079
2,009
1,976
1,964 1,928
Jun ‘13
May ‘13
Apr ‘13
Mar ‘13
Feb ‘13
Jan ‘13
Dec ‘12
Nov ‘12
Oct ‘12
Sep ‘12
Aug ‘12
Jul ‘12
Jun ‘12
May ‘12
Apr ‘12
Mar ‘12
Feb ‘12
Jan ‘12
Dec ‘11
Nov ‘11
Oct ‘11
Sep ‘11
Aug ‘11
Jul ‘11
Jun ‘11
1,863
Source: Job Openings and Labor Turnover Surveys (June 2011 - June 2013), U.S. Bureau of Labor Statistics. Figures are seasonally adjusted. P = preliminary.
Spotlight! The Job Market for New Graduates • College majors in demand: Business and technical majors are the most sought after by companies looking to hire in 2013.13 More than one-third (35%) of CIOs interviewed said they plan to hire new information technology graduates in 2013.14 • But grads lack these skills: Nearly one half (49%) of employers believe college grads are lacking the knowledge and basic skill of writing in English (grammar, spelling, etc.), and 18% believe they fall short in math and computation skills. Organizations also believe new college grads don’t have the skills that more experienced workers possess, such as professionalism and work ethic, business acumen, written communication, relationship building and leadership.15
Robert Half Can Help We specialize in identifying hard-tofind candidates and matching them with appropriate jobs. Our staffing professionals are well-connected within the industries we serve and are able to draw from a large pool of highly skilled and experienced candidates. We also conduct frequent research so we can provide our clients with the most up-to-date information on salary and employment trends. With more than 345 specialized staffing locations worldwide and 65 years of recruiting experience, Robert Half is well-positioned to help you with any of your staffing and recruitment needs.
Contact us today at roberthalf.com, or call 1.800.803.8367.
Connect with us:
Most In-Demand College Majors and Entry-Level Jobs With the Most Growth, CareerBuilder, May 2, 2013. Workforce 101: More Than One-Third of CIOs Plan to Hire New IT Graduates, Robert Half Technology, July 11, 2013. 15 Hiring 2013 College Graduates, Society for Human Resource Management, June 11, 2013. 13 14
© 2013 Robert Half International. An Equal Opportunity Employer. RH-1013
4
