SHRM Survey Findings: The Ongoing Impact of the Recession—Construction, Mining, Oil and Gas Industry September 25, 2013

These are the construction, oil, mining and gas industry survey findings about the ongoing impact of the U.S. and global recession, which began in 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:  Federal government.  Finance.  Health.  High-tech.  Manufacturing.  Professional services.  State and local government. Overall and California results can be found on our website at The Ongoing Impact of the Recession—Construction, Mining, Oil and Gas Industry ©SHRM Introduction

The Ongoing Impact of the Recession—Construction, Mining, Oil and Gas Industry ©SHRM Skill Gaps

What basic skills/knowledge gaps do job applicants typically have? The most common basic skills/knowledge gaps are writing in English (55%), mathematics (40%), reading comprehension (35%) and English language (spoken) (33%). What applied skill gaps do job applicants typically have? The top five applied skill gaps are critical thinking/problem solving (48%), leadership (42%), professionalism/work ethic (41%), written communications (38%), and oral communications (34%). What types of jobs are the most difficult to fill? The top five most difficult positions to fill are highly skilled positions: engineers (87%), high-skilled technical (e.g., technicians and programmers) (87%), managers and executives (85%), skilled trades (e.g., electricians, carpenters) (79%), and sales representatives (74%). The Ongoing Impact of the Recession—Construction, Mining, Oil and Gas Industry ©SHRM Key Findings: Skill Gaps Construction, Mining, Oil and Gas Industry

In general, what basic skills/knowledge gaps do job applicants have in your industry? Construction, Mining, Oil and Gas Industry 5 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—Construction, Mining, Oil and Gas Industry ©SHRM 2013

In general, what applied skill gaps do job applicants have in your industry? Construction, Mining, Oil and Gas Industry 6 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—Construction, Mining, Oil and Gas Industry ©SHRM 2013

Organizations having difficulty filling specific job categories for full-time regular positions: Construction, Mining, Oil and Gas Industry 7 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—Construction, Mining, Oil and Gas Industry ©SHRM 2013

Organizations having difficulty filling specific job categories for full-time regular positions (continued): Construction, Mining, Oil and Gas Industry 8 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—Construction, Mining, Oil and Gas Industry ©SHRM 2013

9 Recruiting Challenges

Is it difficult to recruit for positions requiring new and different skill sets? About two-thirds (67%) of organizations reported it was 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 an increase from 58% in 2011 and 47% in Is recruiting for specific jobs difficult in the current labor market? Nearly three-quarters (74%) of organizations currently hiring full-time staff indicated that they are having a difficult time recruiting for specific job openings, an increase from 51% in Why are organizations experiencing difficulty hiring qualified candidates? About one-half (52%) of organizations indicated that candidates do not have the right skills for the job, and 44% said candidates do not have the right work experience. Two in five organizations (40%) cited competition from other employers, and one- quarter (26%) reported that a low number of applicants were creating difficulty in hiring. Are organizations facing global competition for applicants for hard-to- fill jobs? Twenty-two percent of organizations believe they are facing global competition for qualified applicants for jobs they are having difficulty filling, which has decreased from 34% in The Ongoing Impact of the Recession—Construction, Mining, Oil and Gas Industry ©SHRM Key Findings: Recruiting Challenges Construction, Mining, Oil and Gas Industry

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? Construction, Mining, Oil and Gas Industry The Ongoing Impact of the Recession—Construction, Mining, Oil and Gas Industry ©SHRM 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.

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? The Ongoing Impact of the Recession—Construction, Mining, Oil and Gas Industry ©SHRM Note: Only statistically significant differences are shown. Comparisons by industry Health (54%)> Construction, mining, oil and gas (27%) High-tech (23%) Manufacturing (20%) Professional services (28%) State or local government (40%)>Manufacturing (20%) The health industry is more likely than the construction, mining, oil and gas; high- tech; 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 Manufacturing (63%)>Health (40%) 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.

In general, in the current labor market, is your organization having a difficult time recruiting for specific jobs that are open in your organization? Construction, Mining, Oil and Gas Industry 13 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—Construction, Mining, Oil and Gas Industry ©SHRM 2013 n = 195n = 231

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? The Ongoing Impact of the Recession—Construction, Mining, Oil and Gas Industry ©SHRM Note: Only statistically significant differences are shown. Comparisons by industry High-tech (82%) Manufacturing (79%) > Federal government (50%) Finance (66%) Health (65%) State or local government (52%) Construction, mining, oil and gas (74%) Professional services (70%) > Federal government (50%) State or local government (52%) Finance (66%) Health (65%) >State or local government (52%) 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 industries are more likely than state or local governments to be having difficulty recruiting for certain types of full-time, regular positions.

What are the main reason(s) that your organization experiences difficulty in hiring qualified candidates for full-time regular positions? Construction, Mining, Oil and Gas Industry The Ongoing Impact of the Recession—Construction, Mining, Oil and Gas Industry ©SHRM Note: n = 167. 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.

What are the main reason(s) that your organization experiences difficulty in hiring qualified candidates for full-time regular positions? (continued) Construction, Mining, Oil and Gas Industry The Ongoing Impact of the Recession—Construction, Mining, Oil and Gas Industry ©SHRM Note: n = 167. 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.

Do you believe that your organization is facing global competition (i.e., competition from other countries) for talent for hard-to-fill jobs? Construction, Mining, Oil and Gas Industry 17 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—Construction, Mining, Oil and Gas Industry ©SHRM 2013 n = 90n = 152

Do you believe that your organization is facing global competition (i.e., competition from other countries) for talent for hard-to-fill jobs? The Ongoing Impact of the Recession—Construction, Mining, Oil and Gas Industry ©SHRM Note: Only statistically significant differences are shown. Comparisons by industry High-tech (33%)> Finance (5%) Health (6%) 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%)> Finance (5%) State or local government (4%) Professional services (14%)>State or local government (4%) 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 hard-to-fill jobs. Organizations in the professional services industry are more likely than those in the state or local government to believe that they are s facing global competition for talent for hard-to-fill jobs.

The Ongoing Impact of the Recession—Construction, Mining, Oil and Gas Industry ©SHRM Recruiting Strategies

What strategies is your organization using to deal with recruiting challenges for full-time regular positions? The most common strategies that organizations reported are expanding advertising efforts (48%), collaborating with educational institutions (37%), using social media to find passive job seekers (37%), expanding the search region (34%) and training existing employees to take on the hard-to-fill positions (33%). Have organizations been hiring workers from outside the U.S. for jobs that have been difficult to fill? About one-quarter (26%) of organizations have hired workers from outside the U.S. Another 3% are considering hiring workers from outside the U.S. Have organizations been hiring U.S. veterans for jobs that have been difficult to fill? Seventy percent of organizations reported hiring U.S. veterans, an increase from 50% in Fifteen percent are either considering or have plans to hire veterans in the next 12 months. The Ongoing Impact of the Recession—Construction, Mining, Oil and Gas Industry ©SHRM Key Findings: Recruiting Strategies Construction, Mining, Oil and Gas Industry

What strategies is your organization using to deal with recruiting challenges for full-time regular positions? Construction, Mining, Oil and Gas Industry The Ongoing Impact of the Recession—Construction, Mining, Oil and Gas Industry ©SHRM Note: n = 163. 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.

What strategies is your organization using to deal with recruiting challenges for full-time regular positions? (continued) Construction, Mining, Oil and Gas Industry The Ongoing Impact of the Recession—Construction, Mining, Oil and Gas Industry ©SHRM Note: n = 163. 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.

Has your organization hired any workers from outside the United States in an attempt to staff key jobs that have been difficult to fill? Construction, Mining, Oil and Gas Industry 23 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—Construction, Mining, Oil and Gas Industry ©SHRM 2013

Has your organization hired any workers from outside the United States in an attempt to staff key jobs that have been difficult to fill? The Ongoing Impact of the Recession—Construction, Mining, Oil and Gas Industry ©SHRM Note: Only statistically significant differences are shown. Comparisons by industry High-tech (50%)> Construction, mining, oil and gas (26%) Federal government (16%) Finance (16%) Health (29%) Manufacturing (24%) Professional services (24%) State or local government (11%) Construction, mining, oil and gas (26%) Health (29%) Manufacturing (24%) Professional services (24%) >State or local government (11%) 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 the state or local government to have hired workers from outside the U.S. in an attempt to recruit for hard-to-fill jobs.

Has your organization hired any U.S. veterans in an attempt to staff key jobs that have been difficult to fill? Construction, Mining, Oil and Gas Industry 25 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—Construction, Mining, Oil and Gas Industry ©SHRM 2013

Has your organization hired any U.S. veterans in an attempt to staff key jobs that have been difficult to fill? The Ongoing Impact of the Recession—Construction, Mining, Oil and Gas Industry ©SHRM Note: Only statistically significant differences are shown. Comparisons by industry Federal government (87%)> Finance (40%) Health (57%) High-tech (47%) Manufacturing (60%) Professional services (43%) Construction, mining, oil and gas (70%) State or local government (71%) > Finance (40%) High-tech (47%) Professional services (43%) Manufacturing (60%)> Finance (40%) Professional services (43%) 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 industries to have hired U.S. veterans in an attempt to recruit for hard-to-fill jobs.

The Ongoing Impact of the Recession—Construction, Mining, Oil and Gas Industry ©SHRM Demographics

Demographics: Organization Sector Construction, Mining, Oil and Gas Industry The Ongoing Impact of the Recession—Construction, Mining, Oil and Gas Industry ©SHRM n = 315

Demographics: Organization Staff Size Construction, Mining, Oil and Gas Industry The Ongoing Impact of the Recession—Construction, Mining, Oil and Gas Industry ©SHRM n = 304

n = 314 Other Demographics Construction, Mining, Oil and Gas Industry The Ongoing Impact of the Recession—Construction, Mining, Oil and Gas Industry ©SHRM U.S.-based operations only 71% Multinational operations 29% Single-unit organization: An organization in which the location and the organization are one and the same 26% Multi-unit organization: An organization that has more than one location 74% Multi-unit headquarters determines HR policies and practices 51% Each work location determines HR policies and practices 2% A combination of both the work location and the multi-unit headquarters determines HR policies and practices 47% Is your organization a single-unit organization or a multi-unit organization? For multi-unit organizations, are HR policies and practices determined by the multi-unit headquarters, by each work location or by both? Does your organization have U.S.-based operations (business units) only, or does it operate multinationally? n = 316 n = 239 Corporate (companywide) 74% Business unit/division19% Facility/location8% Note: n = 239. Percentages do not total 100% due to rounding. What is the HR department/function for which you responded throughout this survey?

Response rate = 12% 333 randomly selected HR professionals from the construction, mining, oil and gas 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 The Ongoing Impact of the Recession—Construction, Mining, Oil and Gas Industry ©SHRM SHRM Survey Findings: The Ongoing Impact of the Recession—Construction, Mining, Oil and Gas Industry Survey Methodology

For more survey/poll findings, visit For more information about SHRM’s Customized Research Services, visit Follow us on Twitter The Ongoing Impact of the Recession—Construction, Mining, Oil and Gas Industry ©SHRM About 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

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. The Ongoing Impact of the Recession—Construction, Mining, Oil and Gas Industry ©SHRM About SHRM