©SHRM 2015©SHRM 2015

MATT FERGUSONCEO, CAREERBUILDER@CBFOREMPLOYERSSHRM ANNUAL CONFERENCE & EXPOSITION 

WHAT CEOs THINK ABOUT 2015'S TOP WORKFORCE ISSUESJune 30, 2015

2:15 – 3:30 p.m.

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OVERVIEWLabor Market

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2007 2008 2009 2010 2011 2012 2013 2014 YTD 2015-500

-400

-300

-200

-100

0

100

200

300

95

-298

-424

88

174 186 194

260217

Job

Cre

atio

n (0

00s)

3 |

AVERAGE MONTHLY NON-FARM JOB CREATION

(Source: U.S. Bureau of Labor Statistics)

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CHURN RATE VS. TOTAL NON-FARM JOBS, 2003-2013

(Source: The Pulse of U.S. Hiring Activity, 2014 CareerBuilder & EMSI Report)

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 201350.0%

55.0%

60.0%

65.0%

70.0%

75.0%

80.0%

85.0%

90.0%

125,000,000

127,000,000

129,000,000

131,000,000

133,000,000

135,000,000

Churn Rate Jobs

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Nationwide survey conducted by Harris Poll on behalf of CareerBuilderParticipants: CEO or President of company, Chairman / Board Member, Partner / Principal, Owner

Companies with revenue of at least $50 million

CEO SURVEY

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ON WORKFORCE & RECRUITMENT CHALLENGES CEOs’ Views

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WHAT WORKFORCE CHALLENGES KEEP YOU UP AT NIGHT?

None of these

Other

Not enough diversity in the organization

Low morale

Potential layoffs due to automation, market conditions or other factors

The rate of voluntary turnover

Insufficient employee engagement

Pressure to raise wages

Being able to scale up globally

Change management

Development/training of teams and individuals needs to be more effective

Not enough good leaders within the organization

Managing costs associated with new legislation

The skills gap within our organization

14%

7%

11%

14%

16%

17%

18%

23%23%

25%

25%

32%32%

33%

7 |

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WAGE PRESSURE IN 2015:RAISES AT BOTH ENDS?

8 | Source: 2015 CareerBuilder Annual Forecast (Harris Poll)

IT, Sales, Engineering and Customer Service to see biggest increases for starting salaries.

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45% of employers expect to raise the minimum

wage within their organizations

53% of this group will raise it by $2 or more

on average

26% of employers expect

starting salaries to increase by 5% or more over the previous year

That’s almost 4 times higher than 2010 - 7%

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SKILLS GAP CONTINUES TO BE A MAJOR CONCERN

Nearly half of employers currently have open positions for which they can’t find qualified candidates37% of employers have positions that stay open 12 weeks or longer; 1 in 6 companies loses $25,000 or more per open position due to extended vacancies

Source: CareerBuilder’s June 2014 and November 2013 nationwide studies of employers conducted by Harris Poll

©SHRM 2015

SKILLS GAP CONTINUES TO BE A MAJOR CONCERN

10 |

Software Developers48,957

59,279

Total employment in 2014 Growth in jobs 2010-2014Annual job openings

2010-2014 Degree completion 2013Percentage of the

workforce ages 55+

Machinist 410,219 59,269 Up 17% 23,861 6,184 25%

Average Monthly Unique Job Postings vs. Average Monthly Hires: 2013-2014

Registered Nurses103,97

8

124,933

postings per month

postings per month

hires per month

hires per month

Source: Economic Modeling Specialists International, 2014

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My company has not been able to reach its full potential because we can’t find enough qualified candidates.

MAJORITY OF CEOs THINK SKILLS GAP HOLDS THEIR COMPANIES BACK

11 | ©SHRM 2015

8% 52% 32% 8%

Strongly agree Agree Disagree Strongly disagree

Agree 60% Disagree 40%

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WHAT ARE YOUR TOP RECRUITMENT CHALLENGES?

None of these

Other

We can't provide competitive compensation

Our employment brand is not known or not perceived positively

Our cost per hire is too high

We need a better strategy/process for recruiting in global markets

Our candidate experience is not as good as it could be

The recruitment process is not efficient - it takes too long to fill open positions

There aren't enough skilled candidates for the positions we need to fill

10%

3%

11%

17%

19%

23%

25%

30%

49%

12 |

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HOW WOULD YOU RATE THE RECRUITMENT EFFICIENCY OF YOUR HR TEAM?

Excellent, needs no im-provement

Good, but could use a little improvement

It's OK, we're getting by Bad, needs improvement Horrible, needs a lot of improvement

13%

65%

20%

2%0%

13 |

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My company has lost money due to an inefficient recruitment process.

INEFFICIENT RECRUITMENT HURTS BOTTOM LINE

14 | ©SHRM 2015

5.7% 42.0% 39.8% 12.5%

Strongly agree Agree Disagree Strongly disagree

Agree 48% Disagree 52%