SHRM Poll: The Ongoing Impact of the Recession—Finance Industry June 4, 2012
Transcript
1. SHRM Poll: The Ongoing Impact of theRecessionFinance
Industry June 4, 2012
2. The Ongoing Impact of the Recession:Finance Introduction Key
Findings Organizations Financial Health Hiring Recruiting
Challenges Demographics Methodology SHRM Poll: The Ongoing Impact
of the RecessionFinance Industry SHRM 2012 2
3. Introduction Overall results have been released in three
different topic areas: Recruiting and skill gaps (released November
7, 2011). Overall financial health and hiring (released November
22, 2011). Global competition and hiring strategies (released
December 14, 2011). Industry-specific results are reported
separately for each of the eight industries included in the sample.
These findings cover the results for the finance industry. The
following industries were also included in the sample:
Construction, mining, oil and gas (released March 9, 2012).
Manufacturing (released April 4, 2012). Federal government
(released June 4, 2012). State and local government (released June
4, 2012). Finance. Health. Servicesprofessional. High-tech. SHRM
Poll: The Ongoing Impact of the RecessionFinance Industry SHRM 2012
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4. Key Findings: Organizations Financial HealthFinance What
percentage of staff have organizations laid off since the U.S. and
global recession began in December 2007? Nearly one-half (45%) of
respondents from the finance industry indicated their organization
had not laid off any staff in 2011. Thirty-eight percent had lost
between 1% and 10% of their staff. These 2011 figures are similar
to 2010, where 73% of finance industry respondents reported losing
less than 10% of employees. How does organizations financial health
compare to 12 months ago? The finance industrys organizational
financial health is similar to what it was a year ago. In 2011, 57%
of organizations from the finance industry were in a significant or
mild decline, whereas in 2010 this number was 56%. The finance
industry is more likely to be in a mild recovery compared with the
federal government, state and local government, health, and
high-tech industries. SHRM Poll: The Ongoing Impact of the
RecessionFinance Industry SHRM 2012 4
5. Key Findings: HiringFinance Are organizations currently
hiring? About three-quarters (74%) of respondents from the finance
industry were hiring in 2011, an increase from 68% in 2010. The
majority (77%) of those who were hiring were recruiting
nonmanagement hourly employees, and two-thirds (67%) were hiring
nonmanagement salaried employees. Just over one-half (55%) were
hiring other management-level staff, and 19% were hiring executive
or upper-management employees. Are organizations creating new
positions or replacing jobs lost? Three out of five (60%)
respondents in the finance industry indicated they were mainly
hiring direct replacements of jobs lost, an increase from 37% in
2010. Fewer respondents in the finance industry indicated they were
mainly hiring for completely new positions in 2011 (29%) than in
2010 (48%), while the remaining 10% in 2011 and 15% in 2010 were
hiring for positions with new duties added to jobs lost since the
recession began. SHRM Poll: The Ongoing Impact of the
RecessionFinance Industry SHRM 2012 5
6. Key Findings: Recruiting ChallengesFinance Is recruiting for
specific jobs difficult in the current labor market? Among the
finance organizations that are currently hiring full-time staff,
about one-half (49%) reported having difficulty recruiting for
specific open jobs. What types of jobs are the most difficult to
fill? The top five most difficult positions to fill for the finance
industry are high-skilled technical (e.g., technicians and
programmers) (88%), managers and executives (83%), sales
representatives (77%), accounting and finance professionals (73%),
and HR professionals (54%). SHRM Poll: The Ongoing Impact of the
RecessionFinance Industry SHRM 2012 6
7. The Ongoing Impact of the Recession:Finance Organizations
Financial Health SHRM Poll: The Ongoing Impact of the
RecessionFinance Industry SHRM 2012 7
8. Thus far, what percentage of full-time jobs have been lost
at yourorganization since the U.S. and global recession began in
December2007? Finance Not applicabledid not lay off any 45% 2011 (n
= 327) staff 2010 (n = 311) 21% 83% 1% to 5% of staff 17% 6% to 10%
of staff 10% or less (2011 data) 83% *Less than 10% (2010 data) 73%
11% to 20% of staff (2011 data) 10% * 10% to 20% (2010 data) 21% 7%
21% to 50% of staff 5% 0% More than 50% of staff 1%Note: An
asterisk (*) indicates 2010 data had different categories than 2011
data: Less than 10% of staff and 10% to 20% of staff. SHRM Poll:
The Ongoing Impact of the RecessionFinance Industry SHRM 2012
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9. Thus far, what percentage of full-time jobs have been lost
at yourorganization since the U.S. and global recession began in
December2007? FinanceComparisons by industryThe federal government
and the finance industry are more likely to have had no layoffs
compared with the construction, mining, oiland gas; manufacturing;
state and local government; professional services; and high-tech
industries. Construction, mining, oil and gas (20%) are more likely
to Manufacturing (21%) Federal government (50%) have had NO layoffs
State and local government (30%) Finance (45%) than...
Servicesprofessional (30%) High-tech (29%)The construction, mining,
oil and gas industry is more likely to have lost more than 50% of
staff compared with the federalgovernment; finance; manufacturing;
professional services; and high-tech industries. Federal government
(2%) is more likely to Finance (0%) Construction, mining, oil and
gas (10%) have lost more than 50% of staff Manufacturing (2%)
than... Servicesprofessional (2%) High-tech (3%)Note: Only
statistically significant differences are shown. SHRM Poll: The
Ongoing Impact of the RecessionFinance Industry SHRM 2012 9
10. In relation to the U.S. and global recession, would you say
yourorganizations overall financial health is declining or
recoveringcompared with 12 months ago?Finance 11% 2011 (n = 328) In
a significant recovery 11% 2010 (n = 309) 46% In a mild recovery
45% 25% No change compared with 12 months ago 22% 16% In a mild
decline 19% 3% In a significant decline 4%Note: Percentages do not
total 100% due to rounding. SHRM Poll: The Ongoing Impact of the
RecessionFinance Industry SHRM 2012 10
11. In relation to the U.S. and global recession, would you say
yourorganizations overall financial health is declining or
recoveringcompared with 12 months ago?FinanceComparisons by
industryThe finance industry is more likely to be in a significant
recovery compared with the federal government. is more likely to
Finance (11%) be in a significant recovery Federal government (2%)
than...The finance industry is more likely to be in a mild recovery
compared with the federal government, health, state and
localgovernment, and high-tech industries. Federal government (5%)
is more likely to Health (23%) Finance (46%) be in a mild recovery
State and local government (25%) than... High-tech (29%)The federal
government and state and local governments are more likely to be in
a significant decline compared with thefinance, manufacturing,
professional services, and high-tech industries. Finance (3%) are
more likely to Federal government (29%) Manufacturing (4%) be in a
significant decline State and local government (13%)
Servicesprofessional (5%) than... High-tech (4%)Note: Only
statistically significant differences are shown. SHRM Poll: The
Ongoing Impact of the RecessionFinance Industry SHRM 2012 11
12. The Ongoing Impact of the Recession:Finance Hiring SHRM
Poll: The Ongoing Impact of the RecessionFinance Industry SHRM 2012
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13. Is your organization currently hiring full-time
staff?Finance 74% Yes 68% 2011 (n = 329) 2010 (n = 305) 26% No 32%
SHRM Poll: The Ongoing Impact of the RecessionFinance Industry SHRM
2012 13
14. At what level(s) is your organization hiring?Finance
Nonmanagement hourly employees 77% Nonmanagement salaried employees
67% Other management (e.g., directors, managers) 55%
Executive/upper management (e.g., CEO, CFO) 19%Note: n = 244.
Percentages do not total 100% due to multiple response options.
Only respondents whose organizations were currently hiring
full-time staffwere asked this question. SHRM Poll: The Ongoing
Impact of the RecessionFinance Industry SHRM 2012 14
15. At what level(s) is your organization
hiring?FinanceComparisons by industryThe federal government and
health industries are more likely to be hiring executive/upper
management employees compared withthe construction, mining, oil and
gas; finance; manufacturing; professional services; and high-tech
industries. Construction, mining, oil and gas (15%) are more likely
to Finance (19%) Federal government (39%) be hiring executive/upper
Manufacturing (20%) Health (39%) management employees
Servicesprofessional (18%) than... High-tech (16%)The high-tech
industry is more likely to be hiring nonmanagement salaried
employees compared with the finance industry. is more likely to be
hiring nonmanagement salaried High-tech (72%) Finance (67%)
employees than...Note: Only statistically significant differences
are shown. SHRM Poll: The Ongoing Impact of the RecessionFinance
Industry SHRM 2012 15
16. At what level(s) is your organization hiring?
(Continued)FinanceComparisons by industryThe finance, health,
manufacturing, and state and local government industries are more
likely to be hiring nonmanagement hourlyemployees compared with the
federal government, professional services and high-tech industries.
Finance (77%) are more likely to Federal government (53%) Health
(89%) be hiring nonmanagement hourly Servicesprofessional (60%)
Manufacturing (84%) employees High-tech (51%) State and local
government (80%) than... Note: Only statistically significant
differences are shown. SHRM Poll: The Ongoing Impact of the
RecessionFinance Industry SHRM 2012 16
17. Which of the following best describes the nature of
full-time positionsyour organization is currently hiring?Finance
29% Completely new positions 48% 10% New duties added to jobs lost
(e.g., due to 2011 (n = 240) layoffs, attrition) since the
recession began 2010 (n = 198) 15% 60% Direct replacements of jobs
lost (e.g., due to layoffs, attrition) since the recession began
37%Note: Percentages may not total 100% due to rounding. Only
respondents whose organizations were currently hiring full-time
staff were asked this question. SHRM Poll: The Ongoing Impact of
the RecessionFinance Industry SHRM 2012 17
18. Which of the following best describes the nature of
full-time positionsyour organization is currently
hiring?FinanceComparisons by industryThe finance industry is more
likely to be hiring direct replacements of jobs lost since the
recession began compared with the high-tech industry. is more
likely to be hiring direct replacements of jobs Finance (60%)
High-tech (39%) lost since the recession began than...The finance
industry is more likely to be hiring for completely new positions
compared with state and local governments. is more likely to be
hiring for completely new Finance (29%) State and local government
(12%) positions than...Note: Only statistically significant
differences are shown. SHRM Poll: The Ongoing Impact of the
RecessionFinance Industry SHRM 2012 18
19. Compared with the skills required for jobs lost since the
recession began, do these completely new positions require any of
the following skills? Finance A mixture of new skills and the same
60% types of skills Approximately the same types of 27% skills
Completely new and different skills 13%Note: n = 70. Only
respondents whose organizations were hiring full-time staff for
completely new positions were asked this question. SHRM Poll: The
Ongoing Impact of the RecessionFinance Industry SHRM 2012 19
20. The Ongoing Impact of the Recession:Finance Recruiting
Challenges SHRM Poll: The Ongoing Impact of the RecessionFinance
Industry SHRM 2012 20
21. If the new jobs being created by your organization require
new and different skill sets, how easy do you think it will beor
has been thus farto find qualified individuals for those positions?
Finance 5% Very easy 2011 (n = 77) 14% 2010 (n = 112) 39% Somewhat
easy 51% 52% Somewhat difficult 30% 4% Very difficult 5%Note: Only
respondents whose organizations were hiring full-time staff for
positions with new duties added to jobs lost or completely new
positions (seeslide 17) that required either a mixture of new
skills and the same types of skills or completely new and different
skills (see slide 19) were asked thisquestion. SHRM Poll: The
Ongoing Impact of the RecessionFinance Industry SHRM 2012 21
22. In general, in the current labor market, is your
organization having a difficult time recruiting for specific jobs
that are open in your organization? Finance Yes, 49% No, 51%Note: n
= 234. Respondents who answered Dont know were excluded from this
analysis. Only respondents whose organizations were currently
hiring full-time staff were asked this question. SHRM Poll: The
Ongoing Impact of the RecessionFinance Industry SHRM 2012 22
23. In general, in the current labor market, is your
organization having adifficult time recruiting for specific jobs
that are open in yourorganization?FinanceComparisons by industryThe
construction, mining, oil and gas; finance; manufacturing;
professional services; and high-tech industries are more likely to
behaving difficulty recruiting for specific jobs compared with the
state and local governments. Construction, mining, oil and gas
(51%) are more likely to Finance (49%) be having difficulty
recruiting for Manufacturing (68%) specific jobs that are open in
their State and local government (34%) Servicesprofessional (57%)
organization High-tech (71%) than...The manufacturing and high-tech
industries are more likely to be having difficulty recruiting for
specific jobs compared with theconstruction, mining, oil and gas;
federal government; finance; and state and local government
industries. are more likely to Construction, mining, oil and gas
(51%) be having difficulty recruiting for Manufacturing (68%)
Federal government (35%) specific jobs that are open in their
High-tech (71%) Finance (49%) organization State and local
government (34%) than... Note: Only statistically significant
differences are shown. SHRM Poll: The Ongoing Impact of the
RecessionFinance Industry SHRM 2012 23
24. Do you believe that your organization is facing global
competition (i.e., competition from other countries) for jobs that
your organization is having difficulty filling? Finance Yes, 8% No,
92%Note: n = 100. Respondents who answered Dont know were excluded
from this analysis. Only respondents whose organizations were
having a difficulttime recruiting for certain types of jobs were
asked this question. SHRM Poll: The Ongoing Impact of the
RecessionFinance Industry SHRM 2012 24
25. Do you believe that your organization is facing global
competition(i.e., competition from other countries) for jobs that
your organizationis having difficulty filling?FinanceComparisons by
industryThe construction, mining, oil and gas; manufacturing; and
high-tech industries are more likely to believe that their
organization isfacing global competition compared with the finance
industry. are more likely to Construction, mining, oil and gas
(34%) believe that their organization is Manufacturing (27%)
Finance (8%) facing global competition High-tech (42%) than...
Note: Only statistically significant differences are shown. SHRM
Poll: The Ongoing Impact of the RecessionFinance Industry SHRM 2012
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26. Has your organization hired any workers from outside the
U.S. in anattempt to fill key jobs that have been difficult to
fill?Finance No 92% Yes 5% No, but we are 3% considering it No, but
we have plans to do so in 1% the next 12 monthsNote: n = 107.
Percentages do not total 100% due to rounding. Respondents who
answered Dont know were excluded from this analysis. Only
respondentswhose organizations were having a difficult time
recruiting for certain types of jobs were asked this question. SHRM
Poll: The Ongoing Impact of the RecessionFinance Industry SHRM 2012
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27. Has your organization hired any workers from outside the
U.S. in anattempt to fill key jobs that have been difficult to
fill?FinanceComparisons by industryThe construction, mining, oil
and gas; manufacturing; professional services; and high-tech
industries are more likely to have hiredworkers from outside the
U.S. in an attempt to recruit for hard-to-fill jobs compared with
the finance industry. Construction, mining, oil and gas (31%) are
more likely to Manufacturing (20%) have hired workers from Finance
(5%) Servicesprofessional (25%) outside the U.S. High-tech (50%)
than... Note: Only statistically significant differences are shown.
SHRM Poll: The Ongoing Impact of the RecessionFinance Industry SHRM
2012 27
28. Has your organization hired any U.S. veterans in an attempt
to fill keyjobs that have been difficult to fill?Finance No 66% No,
but we are 19% considering it Yes 13% No, but we have plans to do
so in the 2% next 12 monthsNote: n = 91. Respondents who answered
Dont know were excluded from this analysis. Only respondents whose
organizations were having a difficult timerecruiting for certain
types of jobs were asked this question. SHRM Poll: The Ongoing
Impact of the RecessionFinance Industry SHRM 2012 28
29. Has your organization hired any U.S. veterans in an attempt
to fill keyjobs that have been difficult to fill?FinanceComparisons
by industryThe construction, mining, oil and gas; federal
government; health; manufacturing; state and local government;
professional services;and high-tech industries are more likely to
have hired U.S. veterans in an attempt to recruit for hard-to-fill
jobs compared withthose from the finance industry. Construction,
mining, oil and gas (50%) Federal government (96%) Health (42%) are
more likely to Manufacturing (44%) have hired U.S. veterans Finance
(13%) State and local government (37%) than... Servicesprofessional
(38%) High tech (34%) Note: Only statistically significant
differences are shown. SHRM Poll: The Ongoing Impact of the
RecessionFinance Industry SHRM 2012 29
30. In general, what basic skills/knowledge gaps do job
applicants have inyour industry?Finance Writing in English
(grammar, spelling, etc.) 66% Mathematics (computation) 47% Reading
comprehension (in English) 38% English language (spoken) 36%
Science 6% Government/economics 5% Foreign languages 2%
History/geography 0% Humanities/arts 0% Technical (computer,
engineering, mechanical, etc.) 0% Other 9%Note: n = 87. Percentages
do not total 100% due to multiple response options. Only
respondents whose organizations were having a difficult time
recruitingfor certain types of jobs were asked this question. SHRM
Poll: The Ongoing Impact of the RecessionFinance Industry SHRM 2012
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31. In general, what applied skill gaps do job applicants have
in yourindustry?Finance Written communications 61% Critical
thinking/problem solving 59% Professionalism/work ethic 54% Oral
communications 45% Leadership 40% Teamwork/collaboration 36%
Information technology application 30% Lifelong
learning/self-direction 23% Creativity/innovation 22% Ethics/social
responsibility 18% Diversity 11% Other 3%Note: n = 100. Percentages
do not total 100% due to multiple response options. Only
respondents whose organizations were having a difficult time
recruitingfor certain types of jobs were asked this question. SHRM
Poll: The Ongoing Impact of the RecessionFinance Industry SHRM 2012
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32. Specific Job Categories Organizations Have Difficulty
Recruiting Finance High-skilled technical (e.g., technicians,
programmers) (n = 65) 88% Managers and executives (n = 84) 83%
Sales representatives (n = 62) 77% Accounting and finance
professionals (n = 82) 73% HR professionals (n = 46) 54% Customer
service representatives (n = 84) 53% Administrative support staff
(n = 92) 41% Hourly laborers (n = 35) 26%Note: Chart represents
somewhat difficult and very difficult responses. Not applicable
responses were excluded from this analysis. Only respondentswhose
organizations were having a difficult time recruiting for certain
types of jobs were asked this question. No statistics are provided
where the n is less than20; therefore, the job categories of
production operators (n = 6), drivers (n = 3), skilled trades (n =
6), high-skilled medical (n = 3), engineers (n = 13)and scientists
(n = 5) were excluded from this analysis. SHRM Poll: The Ongoing
Impact of the RecessionFinance Industry SHRM 2012 32
33. The Ongoing Impact of the Recession:Finance Demographics
SHRM Poll: The Ongoing Impact of the RecessionFinance Industry SHRM
2012 33
34. Demographics: Organization SectorFinance Privately owned
for-profit 49% Nonprofit 25% Publicly owned for-profit 24% Other 2%
Government 0% n = 317 SHRM Poll: The Ongoing Impact of the
RecessionFinance Industry SHRM 2012 34
35. Demographics: Organization Staff SizeFinance 1 to 99
employees 32% 100 to 499 employees 39% 500 to 2,499 employees 16%
2,500 to 24,999 employees 9% 25,000 or more employees 4% n = 314
SHRM Poll: The Ongoing Impact of the RecessionFinance Industry SHRM
2012 35
36. Demographics: OtherFinanceDoes your organization have U.S.-
Is your organization a single-unit organizationbased operations
(business units) only or a multi-unit organization?or does it
operate multinationally? Single-unit organization: An organization
in which the location and the organization are 28% U.S.-based
operations only 84% one and the same Multinational operations 16%
Multi-unit organization: An organization 72% that has more than one
locationn = 317 n = 323 For multi-unit organizations, are HR
policies andWhat is the HR department/function practices determined
by the multi-unitfor which you responded throughout headquarters,
by each work location or both?this survey? Multi-unit headquarters
determines HR 72% policies and practices Corporate (companywide)
88% Each work location determines HR policies Business
unit/division 10% 0% and practices Facility/location 2% A
combination of both the work location and the multi-unit
headquarters determine 28% n = 235 HR policies and practices n =
234 SHRM Poll: The Ongoing Impact of the RecessionFinance Industry
SHRM 2012 36
37. SHRM Poll: The Ongoing Impact of the Recession: Finance
Methodology Response rate = 12% Sample composed of 329 randomly
selected HR professionals from the finance industry in SHRMs
membership Margin of error +/-5% Survey fielded August 18-September
2, 2011 For more poll findings, visit www.shrm.org/surveys Follow
us on Twitter: http://twitter.com/SHRM_ResearchProject leader:Tanya
A. Mulvey, survey research analyst, SHRM ResearchProject
contributors:Mark Schmit, Ph.D., SPHR, vice president, SHRM
ResearchEvren Esen, manager, SHRM ResearchCopy editor:Katya
Scanlan, SHRM Knowledge Center SHRM Poll: The Ongoing Impact of the
RecessionFinance Industry SHRM 2012 37