Special Report: The Demand for Skilled Talent
Special Report: The Demand for Skilled Talent Volume 7 | Q4 2013
The Great Skills Divide: Supply and Demand for Specialized Professionals The current employment market is characterized as “the great skills divide.” Those with specialized skill sets are in high demand and short supply, while the opposite rings true for the general workforce. Specialization in the job market translates into lower unemployment – particularly in accounting and technology, where proficiency and experience in regulatory, compliance, mobile and big data are driving hiring. Professionals focused on keeping their skills current in the most marketable areas often have multiple career opportunities. As a result, companies need to move quickly to recruit top talent and offer competitive salaries to get them on board.
INSIDE: Spotlight on the Talent Exodus on Page 4.
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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 August 2013, up from 3.7 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 • Skills gaps and recruiting challenges are still highly prevalent. 66% of all U.S. businesses surveyed cited difficulty recruiting for specific job openings, compared to 52% in the previous year. More than half of human resources professionals across all industries reported challenges in recruiting for completely new positions or positions requiring different skill sets.6
Job Openings and Labor Turnover Survey – August 2013, U.S. Bureau of Labor Statistics, October 24, 2013. Occupational Outlook Handbook, 2012-2013 Edition, Projections Overview, U.S. Bureau of Labor Statistics (as of October 31, 2013). 3 Talent Tensions Ahead: A CEO Briefing, McKinsey Global Institute, McKinsey & Co., November 2012. 4 Employment Situation Summary – September 2013, U.S. Bureau of Labor Statistics, October 22, 2013. 5 Preparing for a New Era of Knowledge Work, McKinsey Global Institute, McKinsey & Co., November 2012. 6 The Ongoing Impact of the Recession – The Great Recession and the Workplace: Where Are We Six Years Later? Society for Human Resource Management, October 22, 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 2.4 million workers voluntarily left their jobs in August 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 2013. 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. Average U.S. starting salaries for professional occupations are projected to rise 3.7% in 2014. Technology salaries are expected to rise the most, by 5.6%.10 College graduates with engineering, computer science and business degrees can expect the most pay.11 • It pays to be a star performer. Raises for employees with the highest performance ratings outpaced average and below-average performers by more than 75%.12 7 8
Job Openings and Labor Turnover Survey – August 2013, U.S. Bureau of Labor Statistics, October 24, 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. 2014 Salary Guides from Robert Half (roberthalf.com/salary-guides).
11
12
Salary Survey, Executive Summary, National Association of Colleges and Employers (NACE), April 2013. Data Services Salary Budget Survey, Towers Watson, September 19, 2013.
Q3 2013 Unemployment Rates by Occupation, for Select Positions Finance and Accounting Chief executives (includes CFOs) 1.8% Financial analysts 2.5% Financial managers 2.6% Accountants and auditors 3.2% Bookkeeping, accounting and auditing clerks 3.3% Purchasing managers 5.0% Compliance officers 5.7%
Technology
Computer hardware engineers Computer network architects Chief executives (includes CIOs) Network and computer systems administrators Information security analysts Computer systems analysts Software developers, applications and systems software Computer programmers Database administrators Information systems managers
1.0% 1.7% 1.8% 1.8% 2.1% 2.3% 2.4% 2.9% 3.6% 4.0%
Source: Current Population Survey, conducted by the Bureau of Census for the U.S. Bureau of Labor Statistics, Data for Q3 2013.
Creative and Marketing Marketing specialists Public relations specialists Writers (including copywriters) Marketing managers Editors Designers Public relations managers
0.9% 2.8% 3.5% 3.1% 4.7% 5.0% 5.8%
Administrative, HR and Office Support Human resources workers 3.9% Administrative services managers 5.1% Human resources assistants 6.1% Administrative assistants 6.2% Legal Lawyers 2.5% Paralegals and legal assistants 5.2%
3
Special Report: The Demand for Skilled Talent
Workers Are More Willing to Quit Their Jobs: U.S. Employees Who Voluntarily Left Their Jobs (in thousands) 2,364P 2,260
2,342
2,286 2,233 2,185
2,152
2,151 2,148
2,036
2,106 2,020
1,995
2,126
2,093
2,080
2,205
2,140
2,139
2,099
2,079
2,009
Aug ’13
Jul ’13
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
1,976
1,964
1,928
Source: Job Openings and Labor Turnover Surveys (August 2011 - August 2013), U.S. Bureau of Labor Statistics. Figures are seasonally adjusted. P = preliminary.
Spotlight! The Talent Exodus Is Looming • Global firms will face mass migration. Retention is going to be one of the biggest issues organizations will face in the next five years. Global departures in 2018 will reach 192 million.13
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 more than 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.
• Turnover will spike. As growth builds and employment opportunities increase, worldwide employee turnover is set to accelerate in 2014, after broadly flat levels in recent years. In the near term, 161.7 million workers are expected to take flight in 2014, up 12.9% from 2012.14 • What’s driving U.S. turnover? In North America, average employee turnover rates over the next five years are predicted to reach 23%, driven by a recovering housing market, energy production and the demand for business services. Turnover will spike in 2014, and departures are expected to reach 36.7 million in 2018.15
Connect with us:
Preparing for Take Off, Hay Group survey, conducted in association with the Center for Economics and Business Research, June 5, 2013. Ibid. 15 Ibid. 13 14
© 2013 Robert Half International. An Equal Opportunity Employer. RH-1113
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The Great Skills Divide: Supply and Demand for Specialized Professionals The current employment market is characterized as “the great skills divide.” Those with specialized skill sets are in high demand and short supply, while the opposite rings true for the general workforce. Specialization in the job market translates into lower unemployment – particularly in accounting and technology, where proficiency and experience in regulatory, compliance, mobile and big data are driving hiring. Professionals focused on keeping their skills current in the most marketable areas often have multiple career opportunities. As a result, companies need to move quickly to recruit top talent and offer competitive salaries to get them on board.
INSIDE: Spotlight on the Talent Exodus 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 August 2013, up from 3.7 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 • Skills gaps and recruiting challenges are still highly prevalent. 66% of all U.S. businesses surveyed cited difficulty recruiting for specific job openings, compared to 52% in the previous year. More than half of human resources professionals across all industries reported challenges in recruiting for completely new positions or positions requiring different skill sets.6
Job Openings and Labor Turnover Survey – August 2013, U.S. Bureau of Labor Statistics, October 24, 2013. Occupational Outlook Handbook, 2012-2013 Edition, Projections Overview, U.S. Bureau of Labor Statistics (as of October 31, 2013). 3 Talent Tensions Ahead: A CEO Briefing, McKinsey Global Institute, McKinsey & Co., November 2012. 4 Employment Situation Summary – September 2013, U.S. Bureau of Labor Statistics, October 22, 2013. 5 Preparing for a New Era of Knowledge Work, McKinsey Global Institute, McKinsey & Co., November 2012. 6 The Ongoing Impact of the Recession – The Great Recession and the Workplace: Where Are We Six Years Later? Society for Human Resource Management, October 22, 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 2.4 million workers voluntarily left their jobs in August 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 2013. 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. Average U.S. starting salaries for professional occupations are projected to rise 3.7% in 2014. Technology salaries are expected to rise the most, by 5.6%.10 College graduates with engineering, computer science and business degrees can expect the most pay.11 • It pays to be a star performer. Raises for employees with the highest performance ratings outpaced average and below-average performers by more than 75%.12 7 8
Job Openings and Labor Turnover Survey – August 2013, U.S. Bureau of Labor Statistics, October 24, 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. 2014 Salary Guides from Robert Half (roberthalf.com/salary-guides).
11
12
Salary Survey, Executive Summary, National Association of Colleges and Employers (NACE), April 2013. Data Services Salary Budget Survey, Towers Watson, September 19, 2013.
Q3 2013 Unemployment Rates by Occupation, for Select Positions Finance and Accounting Chief executives (includes CFOs) 1.8% Financial analysts 2.5% Financial managers 2.6% Accountants and auditors 3.2% Bookkeeping, accounting and auditing clerks 3.3% Purchasing managers 5.0% Compliance officers 5.7%
Technology
Computer hardware engineers Computer network architects Chief executives (includes CIOs) Network and computer systems administrators Information security analysts Computer systems analysts Software developers, applications and systems software Computer programmers Database administrators Information systems managers
1.0% 1.7% 1.8% 1.8% 2.1% 2.3% 2.4% 2.9% 3.6% 4.0%
Source: Current Population Survey, conducted by the Bureau of Census for the U.S. Bureau of Labor Statistics, Data for Q3 2013.
Creative and Marketing Marketing specialists Public relations specialists Writers (including copywriters) Marketing managers Editors Designers Public relations managers
0.9% 2.8% 3.5% 3.1% 4.7% 5.0% 5.8%
Administrative, HR and Office Support Human resources workers 3.9% Administrative services managers 5.1% Human resources assistants 6.1% Administrative assistants 6.2% Legal Lawyers 2.5% Paralegals and legal assistants 5.2%
3
Special Report: The Demand for Skilled Talent
Workers Are More Willing to Quit Their Jobs: U.S. Employees Who Voluntarily Left Their Jobs (in thousands) 2,364P 2,260
2,342
2,286 2,233 2,185
2,152
2,151 2,148
2,036
2,106 2,020
1,995
2,126
2,093
2,080
2,205
2,140
2,139
2,099
2,079
2,009
Aug ’13
Jul ’13
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
1,976
1,964
1,928
Source: Job Openings and Labor Turnover Surveys (August 2011 - August 2013), U.S. Bureau of Labor Statistics. Figures are seasonally adjusted. P = preliminary.
Spotlight! The Talent Exodus Is Looming • Global firms will face mass migration. Retention is going to be one of the biggest issues organizations will face in the next five years. Global departures in 2018 will reach 192 million.13
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 more than 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.
• Turnover will spike. As growth builds and employment opportunities increase, worldwide employee turnover is set to accelerate in 2014, after broadly flat levels in recent years. In the near term, 161.7 million workers are expected to take flight in 2014, up 12.9% from 2012.14 • What’s driving U.S. turnover? In North America, average employee turnover rates over the next five years are predicted to reach 23%, driven by a recovering housing market, energy production and the demand for business services. Turnover will spike in 2014, and departures are expected to reach 36.7 million in 2018.15
Connect with us:
Preparing for Take Off, Hay Group survey, conducted in association with the Center for Economics and Business Research, June 5, 2013. Ibid. 15 Ibid. 13 14
© 2013 Robert Half International. An Equal Opportunity Employer. RH-1113
4
