the truth about the skills gap - webinar slides
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Presented by: Keith Hadley, Vice President, Employment Branding, CareerBuilderRob Sentz, Vice President, Marketing, EMSI
#skillsgapTHE TRUTH ABOUT THE SKILLS GAP 2014 CareerBuilder 2014 CareerBuilderRob SentzVice President, MarketingEMSI@desktopecon
Keith HadleyVice President, Employment BrandingCareerBuilder@keithhadley
OUR SPEAKERS1 |#skillsgap 2014 CareerBuilder1TODAYS IMPROVING ECONOMY?2 |20092010201120122013Gradually declining unemployment means an improving economy#skillsgap 2014 CareerBuilderGood news is unemployment is declining. Now many would argue that this is because many have given up the search, but it does point to a turn in the right direction as our economy slowly heals. During the recession recruiters and talent management professionals were bombarded with job applications when millions of people were looking for work. Now that the numbers decline, its becoming necessary to have a strategic plan to attract and retain talent in an improving economy.
Many recruiters are already feeling these pains
2EDUCATED AND OUT OF WORK3 |of people under 25 are unemployed or underemployed39%#skillsgap 2014 CareerBuilderCompetition for talent today, unemployment rates gradually decrease, but still high numbers of people are unemployed or underemployed especially new college grads where as many as 39 percent of people under 25 are unemployed or underemployed.
3EMPLOYERS CAN BE MORE SELECTIVE IN THEIR RECRUITMENT PROCESS BECAUSE OF UNEMPLOYMENT RATEs.TRUTH OR MYTH?4 |#skillsgap 2014 CareerBuilder 2014 CareerBuilder 5 |HOW MANY EMPLOYERS BELIEVE THEY CAN BE MORE SELECTIVE BECAUSE OF THE UNEMPLOYMENT RATE?EMPLOYERS SAY THEY HAVE DIFFICULTY FILLING JOBS
HAVE AN OPEN JOB FOR WHICH THEY CANNOT FIND QUALIFIED CANDIDATES.8 in 10 50%YET AND#skillsgap 2014 CareerBuilder8 in 10 employers claim they have difficulty filling job vacancies with more than half of employers saying they have an open job for which they cannot find qualified candidates.Despite this, 75% of employers feel they can afford to be selective in their recruitment process because of the high unemployment rate.
5COMPETITION IS STILL TOUGH6 |Source: McKinsey Global Institute U.S. Jobs survey, 2011. McKinsey Global Institute Analysis.COMPANIES REPORT THAT POSITIONS IN MANAGEMENT, ENGINEERING AND COMPUTER PROGRAMMING ARE THE MOST DIFFICULT TO FILLMANAGEMENTBUSINESS SUPPORT FUNTIONSSCIENCE/ENGINEERINGCOMPUTER PROGRAMMERS/ITSALES/MARKETINGCUSTOMER SERVICE STAFFCREATIVEADMINISTRATIVE SUPPORTLABORERS, MOVERS, DRIVERS PRODUCTION WORKERSMANUAL TRADESMEN25.426.417.817.4184.108.40.206.68.07.57.1WHICH POSITIONS ARE MOST DIFFICULT TO FILL?% OF RESPONDENTS (N=1,285)#skillsgap 2014 CareerBuilderRegardless of whether or not you feel you can be selective, the competition is still tightening. Especially in key positions like management, engineering and sales.6
DEMAND CONTINUES TO GROW IN STEM
7 |#skillsgap 2014 CareerBuilderSTEM continuously sees growth in job numbers since 2000 and while the demand grow, there is a shrinking or flat supply. Nave thinking about the high unemployment rate and the increasing competition for in demand fields coupled with the shrinking or flat supply of talent is directly leading us down the road of a dangerous Skills Gap.
So lets talk about truths vs. myths in this complex understanding of the skills gap and what you, as an employer can do to help close the skills gap.7Supply & demand screenshot8 |
#skillsgap 2014 CareerBuilderTHE SKILLS GAP ISNT A SKILLS GAP ITS A WAGE GAP.TRUTH OR MYTH?9 |#skillsgap 2014 CareerBuilder 2014 CareerBuilder 10 |WHAT DO EMPLOYERS AND JOB-SEEKERS BELIEVE IS THE MAIN CAUSE OF THE SKILLS GAP?OF EMPLOYERS SAY ITS DUE TO LACK OF SKILLS55%OF JOB-SEEKERS SAY ITS DUE TO EDUCATION GAPS#skillsgap 2014 CareerBuilderWAGE AND JOB CHANGESAccommodation and Food ServicesAdministration and Support and Waste Management and Remediation ServicesAgriculture, Forestry, Fishing and HuntingConstructionEducational Services (Private)Finance and Insurance20%10%0%% Difference10%-5%5%0%% Difference10%5%0%% Difference-10%-20%10%0%% Difference40%20%0%% Difference10%15%5%% Difference2002200420062008YEAR2010201211 |#skillsgap 2014 CareerBuilderBOTH DO AGREE WAGE IS A PROBLEM12 |#skillsgap 2014 CareerBuilderSociety is failingCareerPreparationCompetitive CompensationJob Training 13 |#skillsgap 2014 CareerBuilderIF I TRAIN SOMEONE, THEY WILL LEAVE US.TRUTH OR MYTH?14 |#skillsgap 2014 CareerBuilder 2014 CareerBuilder 15 |WHAT PERCENTAGE OF EMPLOYEES SAY THEY ARE MORE LIKELY TO STAY AT A COMPANY THAT TRAINS THEM?92%THE SAME PERCENTAGE SAY THEY WILL ALSO BE MORE LOYAL TO THAT COMPANY.#skillsgap 2014 CareerBuilderTHE REAL SKILLS GAP16 |24% feel gaps in job training are a leading cause for the skills gap60% of job-seekers believe necessary skills will be learned on the job49% of employers believe job-specific skills are scarce#skillsgap 2014 CareerBuilderDEVELOPING THE RIGHT SKILLS: CISCO17 |
#skillsgap 2014 CareerBuilderTRAINING MEANS MORE APPLICANTS18 |73%#skillsgap 2014 CareerBuilderPEOPLE ARE DEMANDING JOBS. THAT MEANS WE CAN PAY THEM LESS.TRUTH OR MYTH?19 |#skillsgap 2014 CareerBuilder 2014 CareerBuilder20 | WHAT PERCENTAGE OF EMPLOYEES SAY THEY ARE PAYING PEOPLE LESSBECAUSE OF THE HIGH UNEMPLOYMENT RATE?35%#skillsgap 2014 CareerBuilderof professionals looking for a new job because of dissatisfaction with salaryUNSETTLED EMPLOYEES21 |30%#skillsgap 2014 CareerBuilderWAGE INCREASES DUE TO SHORTAGES22 |HealthcareITFinanceEngineering #skillsgap 2014 CareerBuilderWAGE INCREASES AS WAY OF RETENTION23 |SOURCE: http://www.huffingtonpost.com/2013/03/06/costco-ceo-minimum-wage-craig-jelinek_n_2818060.html
"Instead of minimizing wages, we know it's a lot more profitable in the long term to minimize employee turnover and maximize employee productivity, commitment and loyalty.-Costco CEO and President, Craig Jelinek#skillsgap 2014 CareerBuilder"An important reason for the success of Costcos business model is the attraction and retention of great employees," Jelinek added. "Instead of minimizing wages, we know it's a lot more profitable in the long term to minimize employee turnover and maximize employee productivity, commitment and loyalty. We support efforts to increase the federal minimum wage."23Everyone receives some form of career counseling or preparation in school.TRUTH OR MYTH?24 |#skillsgap 2014 CareerBuilder 2014 CareerBuilder 25 |WHAT PERCENTAGE OF EMPLOYEES SAY THEY RECEIVED SOME FORM OF COUNSELING ON CAREER PATHING?BECAUSE OF THE HIGH UNEMPLOYMENT RATE?25%MORE THAN 40% WISH THEY RECEIVED MORE GUIDANCE EARLIER.#skillsgap 2014 CareerBuilderBE ANYTHING, DO ANYTHING MENTALITY26 |#skillsgap 2014 CareerBuilderSOURCE: http://www.savingforcollege.com/tutorial101/the_real_cost_of_higher_education.phpHIGH COST OF EDUCATION27 |Public University(in-state)Private CollegeHalf and Half$38,300$92,200$129,700$312,000$74,700$179,800Enrolling 2013Enrolling 2031#skillsgap 2014 CareerBuilderInsert visual of:
61% say the expense of paying for additional schooling is the biggest barrier when it comes to getting further trainingBIGGEST BARRIER28 |say the expense of paying for additional schooling is the biggest barrier when it comes to getting further training61%#skillsgap 2014 CareerBuilder
PROFOUNDLY DISCONNECTED29 |
#skillsgap 2014 CareerBuilderVS.TRADE SCHOOLS VS. COLLEGE30 | #skillsgap 2014 CareerBuilderEDUCATIONS ROLE31 |WANTREALITYVS.#skillsgap 2014 CareerBuilderEDUCATIONAL DISCONNECT32 |of academia think they should talk to potential employers to teach skills employers value most96%Yet only 45% claim to do this#skillsgap 2014 CareerBuilder
RANDSTAD: INSPRING EXPERTS33 |
#skillsgap 2014 CareerBuilderRandstad: Empowering Employment by Inspiring Experts Recognizing the struggle companies were having finding candidates with specific skill sets, Randstad created a way to help both the clients it serves and future candidates by creating awareness around the skills gap. Understanding the power of video to tell a story, Randstad utilized the medium for it Inspiring Experts campaign. They wanted an interactive, engaging and modern way to educate others about careers with stable futures in growing industries and inspire others to pursue the skills needed for jobs in those fields. So they began creating videos featuring real people with careers in growing industries talking about what makes their jobs so great and the young people who are pursuing jobs in those fields. Today, Randstad has an extensive online video library with hundreds of thousands of viewers - and the interest is only growing. LEARN MORE 33You as an employer can do something about the skills gap. TRUTH OR MYTH?34 |#skillsgap 2014 CareerBuilder 2014 CareerBuilder 35 |HOW LONG DOES IT TAKE AN EDUCATIONAL INSTITUTION TO CHANGE CURRICULUM?MORE THAN A YEARYET 63% CLAIM THEY ARE ATTEMPTING TO CHANGE CURRICULUM BASED ON LOCAL DEMANDS
#skillsgap 2014 CareerBuilderEMPLOYERS TAKE A STANDEmployers coming together to bridge the Skills Gap%36 |#skillsgap 2014 CareerBuilderBECOME AN EMPOWERED EMPLOYER37 |Overcome fear of trainingChange perception on talentPartner withuniversities#skillsgap 2014 CareerBuilder
CONNECT WITH LOCAL UNIVERSITIES38 |
#skillsgap 2014 CareerBuilderFor instance,Monroe Community Collegein Rochester, N.Y., has taken steps to identify and combat skill mismatches through its Economic Development and Innovative Workforce Services Division. The college performed in-depth data analysis to discover many of Rochester-areas small manufacturing firms had a strong need for machinists. The research was part of an approach that emphasizes developing and strengthening pub