The Demand for Skilled Talent - Twin Cities Human Resource ...
Special Report: The Demand for Skilled Talent Volume 5 | Q2 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 Jobs with Staying Power 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 February 2013, the highest number of job openings since May 2008.1 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 collegedegreed workers 25 and older is 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 HR professionals.6
Job Openings and Labor Turnover Survey – February 2013, U.S. Bureau of Labor Statistics, April 9, 2013. Occupational Outlook Handbook, 2012-2013 Edition, Projections Overview, U.S. Bureau of Labor Statistics (as of April 15, 2013). 3 Talent Tensions Ahead: A CEO Briefing, McKinsey Global Institute, McKinsey & Co., November 2012. 4 Employment Situation Summary – March 2013, U.S. Bureau of Labor Statistics, April 5, 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
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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. Almost 2.3 million professionals voluntarily left their jobs in February 2013, a nearly 19% 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 • Employers are scouting talent at other organizations. 19% of workers said they have been approached to work for another company in the last year when they didn’t apply for a position. Among those, professional and business services workers (31%) and IT workers (26%) were some of the most likely to be pursued.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 Computer engineering was the highest paying major for new college graduates in 2012.11 • 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 – February 2013, U.S. Bureau of Labor Statistics, April 9, 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. Job Forecast, CareerBuilder, December 27, 2012. 2013 Salary Guides from Robert Half (rhi.com/SalaryGuides).
January 2013 Salary Survey, National Association of Colleges and Employers (NACE). 12 2013 U.S. Job Forecast, CareerBuilder, December 27, 2012. 11
Q1 2013 Unemployment Rates by Occupation, for Select Positions Finance and Accounting Chief executives (includes CFOs) 1.6% Compliance officers 3.1% Accountants and auditors 4.0% Bookkeeping, accounting and auditing clerks 4.3% Financial managers 5.0%
Technology Chief executives (includes CIOs) Computer network architects Software developers, applications and systems software Database administrators Network and computer systems administrators Computer and information systems managers Computer systems analysts Computer support specialists
1.6% 1.7% 2.2% 2.8% 3.1% 3.5% 3.7% 5.7%
Source: Current Population Survey, conducted by the Bureau of Census for the U.S. Bureau of Labor Statistics, Data for Q1 2013.
Creative and Marketing Advertising managers Web developers Public relations specialists Writers (including copywriters) Marketing specialists Marketing managers Public relations managers Designers
0.3% 1.0% 2.1% 3.0% 4.0% 5.0% 5.3% 6.9%
Administrative and Office Support Administrative services managers 4.2% Administrative assistants 6.0% Legal Lawyers 1.8% Paralegals and legal assistants 5.8%
3
Special Report: The Demand for Skilled Talent
Workers Are More Willing to Quit Their Jobs: Professionals Who Voluntarily Left Their Jobs (in thousands) 2,260
2,152
2,151
2,140
2,139
2,148 2,036 1,943
1,956
2,106 2,020
1,956
2,079
2,009 1,976
1,964 1,928
1,906
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
May ‘11
Apr ‘11
Mar ‘11
Jun ‘11
1,863
1,864 Feb ‘11
1,995
2,126
2,093
2,080
2,260P
Source: Job Openings and Labor Turnover Surveys (Feb. 2011 - Feb. 2013), U.S. Bureau of Labor Statistics. Figures are seasonally adjusted. P = preliminary.
Spotlight! Jobs With Staying Power • Occupations in science, technology, engineering and mathematics (STEM) are expected to grow by 17% from 2008 to 2018, compared to 9.8% growth for non-STEM occupations. STEM workers command higher wages, earning 26% more than their non-STEM counterparts.13 • Driven by growing demand for sophisticated computer network and mobile technologies, employment in computer systems design and related services is expected to increase by 47% by 2020. Computer and information technology occupations are projected to grow by 22%. Employment in management, scientific and technical consulting services is anticipated to expand by 58%.14 13 14
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 350 specialized staffing locations worldwide and more than 60 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:
roberthalf.com • 1.800.803.8367
STEM: Good Jobs Now and for the Future, U.S. Department of Commerce, Economics and Statistics Administration, July 2011. Occupational Outlook Handbook, 2012-2013 Edition, Projections Overview, U.S. Bureau of Labor Statistics (as of April 15, 2013).
© 2013 Robert Half International. An Equal Opportunity Employer. RH-0413
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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 Jobs with Staying Power 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 February 2013, the highest number of job openings since May 2008.1 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 collegedegreed workers 25 and older is 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 HR professionals.6
Job Openings and Labor Turnover Survey – February 2013, U.S. Bureau of Labor Statistics, April 9, 2013. Occupational Outlook Handbook, 2012-2013 Edition, Projections Overview, U.S. Bureau of Labor Statistics (as of April 15, 2013). 3 Talent Tensions Ahead: A CEO Briefing, McKinsey Global Institute, McKinsey & Co., November 2012. 4 Employment Situation Summary – March 2013, U.S. Bureau of Labor Statistics, April 5, 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. Almost 2.3 million professionals voluntarily left their jobs in February 2013, a nearly 19% 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 • Employers are scouting talent at other organizations. 19% of workers said they have been approached to work for another company in the last year when they didn’t apply for a position. Among those, professional and business services workers (31%) and IT workers (26%) were some of the most likely to be pursued.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 Computer engineering was the highest paying major for new college graduates in 2012.11 • 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 – February 2013, U.S. Bureau of Labor Statistics, April 9, 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. Job Forecast, CareerBuilder, December 27, 2012. 2013 Salary Guides from Robert Half (rhi.com/SalaryGuides).
January 2013 Salary Survey, National Association of Colleges and Employers (NACE). 12 2013 U.S. Job Forecast, CareerBuilder, December 27, 2012. 11
Q1 2013 Unemployment Rates by Occupation, for Select Positions Finance and Accounting Chief executives (includes CFOs) 1.6% Compliance officers 3.1% Accountants and auditors 4.0% Bookkeeping, accounting and auditing clerks 4.3% Financial managers 5.0%
Technology Chief executives (includes CIOs) Computer network architects Software developers, applications and systems software Database administrators Network and computer systems administrators Computer and information systems managers Computer systems analysts Computer support specialists
1.6% 1.7% 2.2% 2.8% 3.1% 3.5% 3.7% 5.7%
Source: Current Population Survey, conducted by the Bureau of Census for the U.S. Bureau of Labor Statistics, Data for Q1 2013.
Creative and Marketing Advertising managers Web developers Public relations specialists Writers (including copywriters) Marketing specialists Marketing managers Public relations managers Designers
0.3% 1.0% 2.1% 3.0% 4.0% 5.0% 5.3% 6.9%
Administrative and Office Support Administrative services managers 4.2% Administrative assistants 6.0% Legal Lawyers 1.8% Paralegals and legal assistants 5.8%
3
Special Report: The Demand for Skilled Talent
Workers Are More Willing to Quit Their Jobs: Professionals Who Voluntarily Left Their Jobs (in thousands) 2,260
2,152
2,151
2,140
2,139
2,148 2,036 1,943
1,956
2,106 2,020
1,956
2,079
2,009 1,976
1,964 1,928
1,906
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
May ‘11
Apr ‘11
Mar ‘11
Jun ‘11
1,863
1,864 Feb ‘11
1,995
2,126
2,093
2,080
2,260P
Source: Job Openings and Labor Turnover Surveys (Feb. 2011 - Feb. 2013), U.S. Bureau of Labor Statistics. Figures are seasonally adjusted. P = preliminary.
Spotlight! Jobs With Staying Power • Occupations in science, technology, engineering and mathematics (STEM) are expected to grow by 17% from 2008 to 2018, compared to 9.8% growth for non-STEM occupations. STEM workers command higher wages, earning 26% more than their non-STEM counterparts.13 • Driven by growing demand for sophisticated computer network and mobile technologies, employment in computer systems design and related services is expected to increase by 47% by 2020. Computer and information technology occupations are projected to grow by 22%. Employment in management, scientific and technical consulting services is anticipated to expand by 58%.14 13 14
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 350 specialized staffing locations worldwide and more than 60 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:
roberthalf.com • 1.800.803.8367
STEM: Good Jobs Now and for the Future, U.S. Department of Commerce, Economics and Statistics Administration, July 2011. Occupational Outlook Handbook, 2012-2013 Edition, Projections Overview, U.S. Bureau of Labor Statistics (as of April 15, 2013).
© 2013 Robert Half International. An Equal Opportunity Employer. RH-0413
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