what ceos think about 2015’s top workforce issues
TRANSCRIPT
©SHRM 2015©SHRM 2015
MATT FERGUSONCEO, CAREERBUILDER@CBFOREMPLOYERS
SHRM 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 (
00
0s)
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 CareerBuilder
Participants: 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 candidates
37% 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
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SKILLS GAP CONTINUES TO BE A MAJOR CONCERN
10 |
Software Developers
48,957
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
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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
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5.7% 42.0% 39.8% 12.5%
Strongly agree Agree Disagree Strongly disagree
Agree 48% Disagree 52%
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HOW WOULD YOU RATE YOUR CANDIDATE EXPERIENCE?
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
16%
65%
16%
3%0%
15 |
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4 in 10 recruiters and HR managers have never tried to apply for one of their own positions.
6 in 10 job seekers say they’ve quit an online application mid-process due to how long or complex it was.
16 | Source: “How Candidate Experience is Transforming HR Technology,” which was conducted by Harris Poll on behalf of CareerBuilder, 2014 ©SHRM 2015
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WHAT ARE YOUR TOP RECRUITMENT TECHNOLOGY CHALLENGES?
None of these
Other
We're limited in terms of where we can post jobs globally
We can't accurately track and report on our sources of hire, so we're wasting time and money
Our recruitment technology is not mobile-responsive
Our recruitment technology doesn't provide real-time data on the best locations to recruit the candidates we need
We use several different sources to recruit candidates and can't coordinate to search across them
Our recruitment technology is not efficient - it takes too long to find and engage candidates
We can't automatically re-engage candidates who have shown interest in jobs in the past
Our recruitment technology is outdated or limits what we can do
25%
3%
16%
17%
17%
18%
22%
23%
26%
30%
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MOBILE JOB SEARCH IS TAKING OVER . . .TRAFFIC TO CAREERBUILDER.COM
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3-5%
2010
10%
2012
33%
2013
40%
2014
43% YTD
2015
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49%Don’t revisit or re-engage
with past candidates, leaving a pool of interested talent
untapped.
20%Don’t have a system that
enables them to remarket to candidates.
37%Don’t have the time to re-engage past candidates.
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A SIGNIFICANT NUMBER OF EMPLOYERS NEVER RECONNECT WITH PAST CANDIDATES
Source: CareerBuilder/Harris Poll Q2 2015 Employer Survey
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Job Boards
Talent Network
ATS
Career Site
Job Aggregators
Internal Surveys
RPO Referrals HRIS
Excel Spreadsheets
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& ADVICE TO HRCEOs’ EXPECTATIONS
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WHAT DO YOU EXPECT FROM YOUR HR LEADERS?
22 |
65%Foster culture of excellence.
64%Acquire talent in timely
manner, regardless of role or skill set
needed.
61%Keep CEO informed of important human capital issues within
the company and strategies
to address them.
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HOW IS HR EFFECTIVENESS MEASURED?
None of these
Other
Revenue performance (i.e., having the right people in place to grow at the rate we should be growing)
Effectiveness in succession planning
How we benchmark against the industry
Productivity (i.e., having the right people in place to reach desired productivity)
Rate of turnover (ability to hold on to top performers and intellectual capital)
Speed at which we fill positions
Ability to effectively manage compensation and benefits costs
Training and development programs (i.e., seeing improvements in employee performance)
Employee satisfaction
Quality of new hires based on performance and retention
7%
1%
23%
27%
31%
35%
40%
43%
45%
47%
53%
56%
23 |
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“Opinions expressed by HR carry a greater weight with senior management post-recession.”
GROWING INFLUENCE OF HR POST-RECESSION
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12.5% 52.3% 30.7% 4.5%
Strongly agree Agree Disagree Strongly disagree
Agree 65% Disagree 35%
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HOW CAN HR LEADERS DEVELOP BROADER INFLUENCE WITHIN THE ORGANIZATION?
I do not believe that HR leaders can have broader influence within the organization
Other
Obtain an MBA
Ask to be involved in more business decisions
Proactively work with other leaders to help solve business problems
Know what the company does, but also know how everything works
Show ways to increase efficiencies or cut costs by better using the organization's human capital
Provide me with actionable human capital data and other research to help devise strategies to meet larger business goals
8%
1%
15%
34%
51%
52%
57%
57%
25 |
HR leaders can have broader influence:92%
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HOW IMPORTANT IS IT FOR HR LEADERS TO . . .?
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35% 55% 9%1%
Essential/Important 90% Unimportant 10%
33% 55% 9% 3%
Absolutely essential Important Not very important Not at all important
Essential/Important 88% Unimportant 12%
Be proficient in workforce analytics
Be knowledgeable about new recruitment and HR strategies
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of hiring managers and recruiters rate their proficiency with workforce analytics as poor/fair.52%
of HR departments regularly use Big Data in recruitment strategies.14%
never do.50%
©SHRM 201527 | Source: Q2 2015 CareerBuilder/Harris Poll Employer Survey (2,200 HR/Hiring managers)
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WHY USE DATA?#1 Learn the Market
#2 Educate Internal Stakeholders
#3 Determine What Tactics Work/Don’t Work
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WHY USE DATA?#4 It Pays Dividends
65% of employers who use big data in recruitment said it lowered their cost per hire; 30% said by $500 or more.
66% of employers who use big data in recruitment said it reduced their time to hire; 38% said by two weeks or more. (Source: Q2 2015 CareerBuilder/Harris Poll Employer Survey)
Firms adopting data-driven decision making increase productivity 5-6%. (Source: The Talent Equation)
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