SHRM Survey Findings: The Ongoing Impact of
the Recession—Manufacturing Industry
September 25, 2013
Introduction
• These are the Manufacturing industry survey findings about the ongoing
impact of the U.S. and global recession, which began in 2007. This is
the third year that SHRM has conducted this study, and data are reported
for 2010 and 2011 where possible. The results are reported in the
following sections:
» Skill gaps.
» Recruiting challenges.
» Recruiting strategies.
• Industry-specific results will be reported separately for each of the
following industries:
» Construction, mining, oil and gas.
» Federal government.
» Finance.
» Health.
» High-tech.
» Professional services.
» State and local government.
The Ongoing
Impact
the Recession—Manufacturing
Industry
• Overall and California results
can
be offound
on our website
at
www.shrm.org/surveys.
©SHRM 2013
2
Skill Gaps
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Key Findings: Skill Gaps
Manufacturing Industry
• What basic skills/knowledge gaps do job applicants typically have? The
most common basic skills/knowledge gaps are mathematics (57%), writing
in English (46%), reading comprehension (41%) and English language
(spoken) (34%).
• What applied skill gaps do job applicants typically have? The top five
applied skill gaps are critical thinking/problem solving (59%),
professionalism/work ethic (41%), leadership (37%),
teamwork/collaboration (35%) and written communication (31%).
• What types of jobs are the most difficult to fill? The top five most
difficult positions to fill are scientists (92%), engineers (88%), highskilled technical (87%), skilled trades (82%), and managers and
executives (80%).
The Ongoing Impact of the Recession—Manufacturing Industry ©SHRM 2013
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In general, what basic skills/knowledge gaps do job
applicants have in your industry?
Manufacturing Industry
57%
60%
Mathematics (computation)
Writing in English (grammar, spelling,
etc.)
46%
40%
41%
40%
Reading comprehension (in English)
34%
31%
English language (spoken)
20%
19%
Science
Technical (computer, engineering,
mechanical, etc.)
Foreign languages
13%
10%
5%
9%
Government/economics
2%
2%
History/geography
1%
1%
Humanities/arts
1%
1%
Other
2012 (n =
325)
2011 (n =
140)
6%
8%
Note: Percentages do not total 100% due to multiple response options. Only respondents whose organizations were
having a difficult time recruiting for certain types of jobs were asked this question.
The Ongoing Impact of the Recession—Manufacturing Industry ©SHRM 2013
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In general, what applied skill gaps do job applicants
have in your industry?
Manufacturing Industry
59%
59%
Critical thinking/problem solving
Professionalism/work ethic
41%
39%
Leadership
37%
42%
35%
Teamwork/collaboration
31%
Written communications
Information technology application
22%
26%
Lifelong learning/self-direction
20%
25%
19%
Creativity/innovation
Ethics/social responsibility
16%
Diversity
15%
15%
Other
39%
28%
33%
Oral communications
45%
2012 (n = 342)
2011 (n = 155)
30%
23%
5%
7%
Note: Percentages do not total 100% due to multiple response options. Only respondents whose organizations were
having a difficult time recruiting for certain types of jobs were asked this question.
The Ongoing Impact of the Recession—Manufacturing Industry ©SHRM 2013
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How easy or difficult has it been to fill the
following job categories for
full-time, regular
positions?
Manufacturing Industry
92%
Scientists
(2012 n = 52, 2011 n = 28)
72%
Engineers
(2012 n = 209, 2011 n = 127)
88%
High-skilled technical (e.g., technicians,
programmers)
(2012 n = 182, 2011 n = 102)
87%
88%
89%
Skilled trades (e.g., electricians,
carpenters)
(2012 n = 205, 2011 n = 129)
82%
83%
2011
80%
Managers and executives
(2012 n = 194, 2011 n = 126)
80%
67%
Sales representatives
(2012 n = 141, 2011 n = 90)
HR professionals
(2012 n = 132, 2011 n = 73)
2012
74%
52%
64%
Note: This figure represents “Somewhat difficult” and “Very difficult” responses. “Not applicable” responses were
excluded from this analysis. Only respondents whose organizations were having a difficult time recruiting for
certain types of jobs were asked this question. Data are not provided where the sample size is less than 20.
The Ongoing Impact of the Recession—Manufacturing Industry ©SHRM 2013
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How easy or difficult has it been to fill the
following job categories for
full-time, regular
positions? (continued)
Manufacturing Industry
51%
Drivers
(2012 n = 57, 2011 n = 37)
38%
Accounting and finance professionals
(2012 n = 170, 2011 n = 97)
45%
Production operators
(2012 n = 230, 2011 n = 140)
45%
50%
56%
38%
Hourly laborers
(2012 n = 221, 2011 n = 139)
39%
2011
34%
Customer service representatives
(2012 n = 128, 2011 n = 87)
Administrative support staff
(2012 n = 189, 2011 n = 113)
2012
28%
17%
17%
Note: This figure represents “Somewhat difficult” and “Very difficult” responses. “Not applicable” responses were
excluded from this analysis. Only respondents whose organizations were having a difficult time recruiting for
certain types of jobs were asked this question. Data are not provided where the sample size is less than 20.
The Ongoing Impact of the Recession—Manufacturing Industry ©SHRM 2013
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Recruiting Challenges
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Key Findings: Recruiting Challenges
Manufacturing Industry
• Is it difficult to recruit for positions requiring new and different
skill sets? More than three-quarters (78%) of organizations reported
that it is somewhat or very difficult to recruit for completely new
positions or positions with new duties added that required new and
different skill sets. This is similar to what was reported in 2011 (72%)
and an increase from 43% in 2010.
• Is recruiting for specific jobs difficult in the current labor market?
The majority (79%) of organizations currently hiring full-time staff
indicated that they were having a difficult time recruiting for specific
job openings, an increase from 68% in 2011.
• Why are organizations experiencing difficulty hiring qualified
candidates? About one-half of organizations indicated that candidates
did not have the right skills (54%) or the right work experience (46%)
for the job. Twenty-eight percent reported that qualified candidates
were not within their salary range or hourly range rate, and one-quarter
of organizations cited competition from other employers (24%) and a low
number of applicants (24%).
• Are organizations facing global competition for applicants for hard-tofill jobs? Fifteen percent of organizations believe they are facing
global competition for qualified applicants for jobs they are having
10
The Ongoing
Impact
of the
Industry ©SHRM 2013
difficulty filling, a decrease
from
27%
inRecession—Manufacturing
2011.
created by your organization that require new and
different skill sets, how easy or difficult do you
think it will be or has been thus far to find
qualified individuals for those positions?
Manufacturing Industry
2%
Very easy
3%
13%
20%
Somewhat easy
24%
2012 (n =
133)
2011 (n = 98)
44%
63%
Somewhat difficult
63%
40%
15%
Very difficult
9%
3%
Note: Percentages may not total 100% due to rounding. Only respondents whose organizations were hiring full-time
staff for positions with “new duties added to jobs lost” or “completely new positions” that required either “a
mixture of new skills and the same types of skills” or “completely new and different skills” were asked this
question.
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For the new full-time, regular positions being created
by your organization that require new and different
skill sets, how easy or difficult do you think it will
be or has been thus far to find qualified individuals
for those positions?
Comparisons by industry
• The health industry is more likely than the construction, mining, oil and gas; hightech; manufacturing; and professional services industries to indicate it will be or has
been somewhat easy to find qualified individuals for new full-time positions.
• State or local governments are more likely than the manufacturing industry to indicate
it will be or has been somewhat easy to find qualified individuals for new full-time
positions.
Comparisons by industry
Construction, mining, oil and gas (27%)
Health (54%)
>
High-tech (23%)
Manufacturing (20%)
Professional services (28%)
State or local government (40%)
>
Manufacturing (20%)
• The manufacturing industry is more likely than the health industry to indicate it will
be or has been somewhat difficult to find qualified individuals for new full-time
positions.
Comparisons by industry
Manufacturing (63%)
>
Health (40%)
Note: Only statistically significant differences are shown.
The Ongoing Impact of the Recession—Manufacturing Industry ©SHRM 2013
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In general, in the current labor market, is your
organization having a difficult time recruiting for
specific jobs that are open in your organization?
Manufacturing Industry
2011
2012
No, 21%
No, 32%
Yes, 68%
n = 253
Yes, 79%
n = 346
Note: Respondents who answered “don’t know” were excluded from this analysis. Only respondents whose
organizations were currently hiring full-time staff were asked this question.
The Ongoing Impact of the Recession—Manufacturing Industry ©SHRM 2013
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In general, in the current labor market, are you
having a difficult time recruiting for certain types
of full-time, regular positions that are open in your
organization?
Comparisons by industry
• Although there is recruiting difficulty across all industries, certain industries are
experiencing more difficulty than others.
• The high-tech and manufacturing industries are more likely than the federal government,
finance, health and state or local government industries to be having difficulty
recruiting for certain types of full-time, regular positions.
• The construction, mining, oil, and gas and professional services industries are more
likely than the federal government and state or local governments to be having difficulty
recruiting for certain types of full-time, regular positions.
•The finance and health industriesComparisons
are more likely
than state or local governments to be
by industry
having difficulty recruiting for certain types of full-time, regular positions.
Federal government (50%)
High-tech (82%)
>
Manufacturing (79%)
Finance (66%)
Health (65%)
State or local government (52%)
Construction, mining, oil and gas (74%)
Professional services (70%)
Finance (66%)
Health (65%)
>
>
Federal government (50%)
State or local government (52%)
State or local government (52%)
Note: Only statistically significant differences are shown.
The Ongoing Impact of the Recession—Manufacturing Industry ©SHRM 2013
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What are the main reason(s) that your organization
experiences difficulty in hiring qualified candidates
for full-time, regular positions?
Manufacturing Industry
Candidates do not have the right
skills for the job
54%
Candidates do not have the right
work experience
46%
Qualified candidates are not within
our salary range or hourly range
rate
28%
Competition from other employers
24%
Low number of applicants
24%
Candidates do not have the needed
credentials/certifications
18%
Qualified candidates are not
interested in moving to our local
area
18%
Note: n = 268. Percentages do not total 100% due to multiple response options. Respondents who answered “don’t
know” were excluded from this analysis. Only respondents whose organizations were having a difficult time
recruiting for certain types of jobs were asked this question.
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What are the main reason(s) that your organization
experiences difficulty in hiring qualified candidates
for full-time, regular positions? (continued)
Manufacturing Industry
Candidates do not have high enough
levels of education/training
16%
Local education/training system does
not produce enough workready/qualified job candidates
12%
Lack of interest in type of job
8%
Candidates are overqualified
6%
Qualified candidates are not able to
move to our local area (due to
mortgage or other issues)
6%
Our organization does not provide
relocation funds
Other
3%
6%
Note: n = 268. Percentages do not total 100% due to multiple response options. Respondents who answered “don’t
know” were excluded from this analysis. Only respondents whose organizations were having a difficult time
recruiting for certain types of jobs were asked this question.
The Ongoing Impact of the Recession—Manufacturing Industry ©SHRM 2013
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Do you believe that your organization is facing global
competition (i.e., competition from other countries)
for talent for hard-to-fill jobs?
Manufacturing Industry
2011
2012
Yes, 15%
Yes, 27%
No, 73%
No, 85%
n = 148
n = 240
Note: Respondents who answered “don’t know” were excluded from this analysis. Only respondents whose
organizations were having a difficult time recruiting for certain types of jobs were asked this question.
The Ongoing Impact of the Recession—Manufacturing Industry ©SHRM 2013
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Do you believe that your organization is facing global
competition (i.e., competition from other countries)
for talent for hard-to-fill jobs?
Comparisons by industry
• Organizations in the high-tech industry are more likely than those in the finance, health,
manufacturing, professional services and state or local government industries to believe that they
are facing global competition for talent for hard-to-fill jobs.
• Organizations in the construction, mining, oil, and gas and federal government industries are more
likely than those in the finance, health and state or local government industries to believe that
they are facing global competition for talent for hard-to-fill jobs.
• Organizations in the manufacturing industry are more likely than those in the finance and state or
local government industries to believe that they are facing global competition for talent for hardto-fill jobs.
Comparisons by industry
• Organizations in the professional services industry are more likely than those in state or local
governments to believe that they are facing global competition for talent
for hard-to-fill
jobs.
Finance
(5%)
Health (6%)
High-tech (33%)
>
Manufacturing (15%)
Professional services (14%)
State or local government (4%)
Construction, mining, oil and gas (22%)
Federal government (22%)
Finance (5%)
>
Health (6%)
State or local government (4%)
Manufacturing (15%)
>
Professional services (14%)
>
Finance (5%)
State or local government (4%)
State or local government (4%)
Note: Only statistically significant differences are shown.
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Recruiting Strategies
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Key Findings: Recruiting Strategies
Manufacturing Industry
• What strategies is your organization using to deal with recruiting
challenges for full-time, regular positions? The most common strategies
reported by organizations are expanding advertising efforts (49%),
collaborating with educational institutions (48%), using social media to
find passive job seekers (43%), expanding the search region (41%) and
training existing employees to take on the hard-to-fill positions (37%).
• Have organizations been hiring workers from outside the U.S. for jobs
that have been difficult to fill? Twenty-four percent of organizations
have hired workers from outside the U.S. Another 9% are considering or
have plans to hire workers from outside the U.S. This is similar to
findings in 2011.
• Have organizations been hiring U.S. veterans for jobs that have been
difficult to fill? Three out of five (60%) organizations reported hiring
U.S. veterans, an increase from 44% in 2011. Another 16% are considering
or have plans to hire veterans in the next 12 months.
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What strategies is your organization using to deal
with recruiting challenges for full-time, regular
positions?
Manufacturing Industry
Expanding advertising efforts
49%
Collaborating with educational
institutions
48%
Using social media to find passive
job seekers
43%
Expanding search region
41%
Training existing employees to take
on the hard-to-fill positions
37%
Increasing retention efforts
23%
Providing monetary incentives to
candidates (e.g., signing bonus)
23%
Note: n = 268. Percentages do not total 100% due to multiple response options. Only respondents whose
organizations were having a difficult time recruiting for certain types of jobs were asked this question.
The Ongoing Impact of the Recession—Manufacturing Industry ©SHRM 2013
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What strategies is your organization using to deal
with recruiting challenges for full-time, regular
positions? (continued)
Manufacturing Industry
Expanding training programs to help
improve skills of new hires
22%
Improving compensation/benefits
package
19%
Offering more flexible work
arrangements
14%
Offering new job perks
3%
Other
4%
None; we have not changed our
recruiting strategy
9%
Note: n = 268. Percentages do not total 100% due to multiple response options. Only respondents whose
organizations were having a difficult time recruiting for certain types of jobs were asked this question.
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Has your organization hired any workers from outside
the United States in an attempt to staff key jobs
that have been difficult to fill?
Manufacturing Industry
2012 (n = 255)
2011 (n = 166)
75%
67%
24%
20%
9%
Yes
No
4%
No, but we are
considering it
< 1%
1%
No, but we have
plans to do so in
the next 12
months
Note: Percentages may not equal 100% due to rounding. Respondents who answered “don’t know” were excluded from
this analysis. Only respondents whose organizations were having a difficult time recruiting for certain types of
jobs were asked this question.
The Ongoing Impact of the Recession—Manufacturing Industry ©SHRM 2013
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Has your organization hired any workers from outside
the United States in an attempt to staff key jobs that
have been difficult to fill?
Comparisons by industry
• The high-tech industry is more likely than the construction, mining, oil and gas;
federal government; finance; health; manufacturing; professional services; and state or
local government industries to have hired workers from outside the U.S. in an attempt to
recruit for hard-to-fill jobs.
• The construction, mining, oil and gas; health; manufacturing; and professional services
industries are more likely than state or local governments to have hired workers from
Comparisons by industry
outside the U.S. in an attempt to recruit for hard-to-fill jobs.
Construction, mining, oil and gas (26%)
Federal government (16%)
Finance (16%)
High-tech (50%)
>
Health (29%)
Manufacturing (24%)
Professional services (24%)
State or local government (11%)
Construction, mining, oil and gas (26%)
Health (29%)
>
Manufacturing (24%)
State or local government (11%)
Professional services (24%)
Note: Only statistically significant differences are shown.
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Has your organization hired any U.S. veterans in an
attempt to staff key jobs that have been difficult to
fill?
Manufacturing Industry
2012 (n = 239)
2011 (n = 146)
60%
44%
34%
24%
18%
12%
4%
Yes
No
No, but we are
considering it
4%
No, but we have
plans to do so
in the next 12
months
Note: Respondents who answered “don’t know” were excluded from this analysis. Only respondents whose
organizations were having a difficult time recruiting for certain types of jobs were asked this question.
The Ongoing Impact of the Recession—Manufacturing Industry ©SHRM 2013
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Has your organization hired any U.S. veterans in an
attempt to staff key jobs that have been difficult to
fill?
Comparisons by industry
• The federal government is more likely than the finance, health, high-tech,
manufacturing and professional services industries to have hired U.S. veterans in an
attempt to recruit for hard-to-fill jobs.
• The construction, mining, oil, and gas and state or local government industries are
more likely than the finance, high-tech and professional services industries to have
hired U.S. veterans in an attempt to recruit for hard-to-fill jobs.
• The manufacturing industry is more likely than the finance and professional services
Comparisons by industry
industries to have hired U.S. veterans in an attempt to recruit for hard-to-fill jobs.
Finance (40%)
Health (57%)
Federal government (87%)
>
High-tech (47%)
Manufacturing (60%)
Professional services (43%)
Construction, mining, oil and gas (70%)
State or local government (71%)
Manufacturing (60%)
Finance (40%)
>
High-tech (47%)
Professional services (43%)
>
Finance (40%)
Professional services (43%)
Note: Only statistically significant differences are shown.
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Demographics
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Demographics: Organization Sector
Manufacturing Industry
Privately owned for-profit
62%
Publicly owned for-profit
Nonprofit
Government
Other
35%
1%
< 1%
2%
Note: n = 437. Percentages do not total 100% due to rounding.
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Demographics: Organization Staff Size
Manufacturing Industry
1 to 99 employees
19%
100 to 499 employees
35%
500 to 2,499 employees
22%
2,500 to 24,999 employees
25,000 or more employees
17%
7%
n = 429
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Other Demographics
Manufacturing Industry
Does your organization have
U.S.-based operations (business
units) only, or does it operate
multinationally?
U.S.-based operations
45%
only
Multinational
operations
n = 442
55%
What is the HR
department/function for which
you responded throughout this
survey?
Corporate
49%
(companywide)
Business unit/division
18%
Facility/location
33%
n = 334
Is your organization a single-unit
organization or a multi-unit
organization?
Single-unit organization: An
organization in which the
30%
location and the organization
are one and the same.
Multi-unit organization: An
organization that has more
n = 446
than one location.
70%
For multi-unit organizations, are HR
policies and practices determined by the
multi-unit headquarters, by each work
location or by both?
Multi-unit headquarters
determines HR policies and
31%
practices.
Each work location determines HR
policies and practices.
A combination of both the work
location and the multi-unit
headquarters determines HR
policies
and practices.
n = 333
6%
63%
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SHRM Survey Findings: The Ongoing Impact
of the Recession—Manufacturing Industry
Survey Methodology
• Response rate = 17%
• 471 randomly selected HR professionals from the manufacturing industry
in SHRM’s membership participated in this survey.
• With small sample sizes, the response of one participant can affect the
overall results considerably; this should be noted when making
interpretations of the data, particularly when interpreting small
percentage differences.
• Survey fielded August 28-September 14, 2012
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About SHRM Research
•
For more survey/poll findings, visit www.shrm.org/surveys
•
For more information about SHRM’s Customized Research
Services, visit www.shrm.org/customizedresearch
•
Follow us on Twitter @SHRM_Research
Project leader:
Tanya Mulvey, researcher, talent management & workforce
skills, SHRM Research
Project contributors:
Alexander Alonso, Ph.D., SPHR, vice president, SHRM Research
Evren Esen, manager, Survey Research Center, SHRM Research
Yan Dong, Intern, SHRM Research
Copy editor:
Katya Scanlan, SHRM Knowledge Center
The Ongoing Impact of the Recession—Manufacturing Industry ©SHRM 2013
32
About SHRM
The Society for Human Resource Management (SHRM) is the world’s largest
association devoted to human resource management. Representing more than
250,000 members in over 140 countries, the Society serves the needs of HR
professionals and advances the interests of the HR profession. Founded in
1948, SHRM has more than 575 affiliated chapters within the United States
and subsidiary offices in China and India.
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