state of the economy and employment survey results
DESCRIPTION
Adecco surveyed over 500 senior executives to determine how they felt the skills gap was affecting businesses and the economy. For example, the majority of executives felt that the lack of soft skills, such as interpersonal relations, and not the lack of technical skills were more detrimental to growing America's businesses. To learn more, read our survey insights now.TRANSCRIPT
State of the Economy and Employment
September 16, 2013
SURVEY BACKGROUND
Slide 2
Methodology & Background
• Adecco Group North America’s survey of senior executives (VP and above) gathered insights into the current state of the economy and employment situation.
• Telephone survey of 500 senior executives*• Fielded by Braun Research• Conducted August 15-23, 2013
• Differences between various demographics groups were also explored:• Gender• Generation • Geographic Region• Company Size• Company Revenue• Industry
• Survey results have a margin of error +/-4.4% for this sample size.
Slide 3
*Defined senior executives as having a title of VP or above
Key Findings
America’s skills gap is not just about technical skills
• An overwhelming majority of senior executives (92 percent) feel that there is a gap in the U.S. workforce skills.
• Surprisingly, the majority of the gap is not technical (22 percent), leadership (14 percent) or computer skills (12 percent) that the U.S. workforce is lacking today – senior executives feel the gap is in the soft skills (44 percent) such as communication, critical thinking, creativity and collaboration.
• However when it comes to computer skills specifically, Gen X senior executives (21 percent -- more than any other generation of senior executives surveyed) feels this is where the gap in skills most affects the U.S. workforce.
• Thirty percent of senior executives overall feel the skills gap most affects the manufacturing industry.
• Other industries noted for having a gap include technology (21 percent) and professional and business services (19 percent).
Slide 4
Key Findings
The skills gap is a threat to businesses, but not a direct threat to the economy
• Of senior executives who believe there is a U.S. skills gap, most (64 percent) feel the greatest threat to U.S. businesses is investment going to companies abroad instead of staying in U.S.
• Nearly half (45 percent) of senior executives believe businesses are missing out on growth opportunities as a result of the skills gap in the U.S and about one-third (34 percent) feel R&D / product development is suffering as a result of the U.S. skills gap.
• Only 30 percent of senior executives who believe there’s a skills gap in the U.S. workforce feel company profits are suffering as a result.
• Yet, as dire as the need is for skilled workers in the U.S., only slightly more than one in 10 (13 percent) senior executives feel a lack of skilled workers is a top threat to the U.S. economy.
• Senior executives cited federal spending (24 percent), global competition (22 percent) and high unemployment (20 percent) as what they feel to be the greatest threats to the U.S. economy.
• However there were some discrepancies on what the greatest threats to the U.S. economy were when it came to generation and geographic region:
• Gen X senior executives (33 percent) are more likely than Boomer senior executives (14 percent) to feel that high unemployment is the greatest threat to the U.S. economy.
• And senior executives in the Northeast (29 percent) are more likely than those in the West (8 percent) and South (6 percent) to think that a lack of skilled workers to fill jobs is the greatest threat to the U.S. economy.
Slide 5
Key Findings
Senior executives believe the skills gap has less to do with complacency on the part of American workers and more to do with the U.S. education system and costs associated with in-house training programs
• More than half (59 percent) of senior executives do not feel colleges / universities in the U.S. offer curriculums that prepare graduates with the skills needed for today’s workforce.
• Less than one-quarter (23 percent) of senior executives feel the skills gap is the result of a lack of interest from job seekers in pursuing careers in sectors / fields affected by the skills gap.
• Among those senior executives who believe there is a U.S. workforce skills gap, the vast majority (89 percent) thinks that corporate apprenticeship or training programs could help alleviate the skills gap in the U.S. workforce.
• Among senior executives who believe there is a skills gap in the U.S. workforce, 42 percent feel the greatest barrier to creating in-house training programs is the cost of development.
• Fewer than one-in-five (17 percent) senior executives believe a lack of employee participation is a barrier to creating in-house training programs.
Labor costs in the U.S. stifling growth and employment
• Six in 10 (61 percent) senior executives feel that the top challenge facing foreign companies expanding to the U.S. is the high cost of labor in the U.S.
• Secondary to this issue are U.S. healthcare costs (37 percent), U.S. labor regulations (36 percent), lack of skilled workers in the U.S. (33 percent) and U.S. union demands (32 percent).
Slide 6
MAIN FINDINGSAmerica’s skills gap is not just about technical skills
Slide 7
The U.S. Skills Gap is not defined as a lack of Technical, Leadership or Computer skills...
Q1) Which of the following do you feel BEST defines the "gap" in the U.S. workforce skills gap? (N=500)
Slide 8
The majority of senior executives (92 percent) feel that there is a gap in the U.S. workforce skills.
Which of the following do you feel BEST defines the "gap" in the U.S. workforce skills gap?
Surprisingly, the majority of the gap is not technical (22 percent), leadership (14 percent) or computer skills (12 percent) that senior execs feel the U.S.
workforce is lacking today – senior executives feel the largest gap is in the soft skills (44 percent)
such as communication, critical thinking, creativity and collaboration.
When it comes to computer skills specifically, Gen X senior executives (21 percent – more than any other generation of senior executives
surveyed) feel this best defines the U.S. workforce skills gap.
Manufacturing industry hit hardest by skills gap
Slide 9
Q3) Which of the following industries do you feel is MOST affected by the skills gap in the U.S. workforce? (N=460)
Nearly one-third (30 percent) of senior executives overall feel the skills gap most affects the manufacturing industry.
Manufacturing
30%Technology
21%Professional / Business
Services
19%Engineering
12%
Other industries noted for having a gap include technology (21 percent), and professional and business services (19 percent).
Which of the following industries do you feel is MOST affected by the skills gap in the U.S. workforce?
Healthcare Services
11%
Construction
4%Finance
2%Leisure /
Hospitality
2%
MAIN FINDINGS
The skills gap is a threat to businesses, but not a direct threat to the economy
Slide 10
Fear of investment going abroad as a result of the U.S. skills gap
Slide 11
Q2) Which of the following, if any, is a threat to U.S. business as a result of the skills gap in the U.S. workforce? (select all that apply) (N=469)
Which of the following, if any, is a threat to U.S. business as a result of the skills gap in the U.S. workforce?
Only 30 percent of senior executives who believe there’s a skills gap in the U.S. workforce
feel company profits are suffering as a result.
Of senior executives who believe there is a U.S. skills gap, most (64 percent) feel the greatest threat to U.S. businesses is investment going to companies abroad instead of staying in U.S.
Federal spending is seen as the greatest threat to the U.S. economy
Slide 12
As dire as the need is for skilled workers in the U.S., only slightly more than one in 10 (13 percent) senior executives feel a lack of skilled workers is a top threat to the U.S.
economy.
Q9) Which of the following do you think is currently the GREATEST threat to the U.S. economy? (N=500)
Which of the following, do you think is currently the GREATEST threat to the U.S. economy?
Senior executives in the Northeast (29 percent) are more likely than those in the West (8 percent) and South (6 percent) to think that a lack of skilled workers to fill jobs is the
greatest threat to the U.S. economy.
Gen X senior executives (33 percent) are more likely than Boomer senior executives (14
percent) to feel that high unemployment is the greatest threat to the U.S. economy.
MAIN FINDINGS
Senior executives believe the skills gap has less to do with complacency on the part of American workers and more to do with the U.S. education system and costs associated with in-house training programs
Slide 13
The U.S. education system is at the heart of the skills gap
Slide 14
It isn’t lack of interest or lack of on-the-job training opportunities that contribute most to the skills gap – it’s a lack of education and preparation, which senior executives blame on the
U.S. education system.
Q4) Which of the following do you feel is the GREATEST contributing factor to the skills gap in the U.S. workforce? (N=-474)Q8) Do you believe colleges / universities in the U.S. offer curriculums that prepare graduates with the skills needed for today’s workforce? (N=500)
Do you believe colleges /universities in the U.S. offer curriculums that prepare graduates with the
skills needed for today’s workforce?
Less than one-quarter (23 percent) of senior executives who think there is a skills gap feel the greatest contributing factor to the skills gap is a lack of interest from job seekers in pursuing careers in sectors /
fields affected by the skills gap. Over half (54 percent) blame the U.S. education
system.
Many feel training could alleviate the skills gap, but cost is a barrier
Slide 15
Q5) Which of the following is the BIGGEST barrier to creating in-house training programs that could help address the skills gap in the U.S. workforce? (N=469)Q6) Do you think corporate apprenticeship/ training programs (i.e., one-on-one shadowing, cross training) could help alleviate the skills gap in the U.S. workforce? (N=482)
Among those senior executives who believe there is a U.S. workforce skills gap, the vast majority (89 percent) think that
corporate apprenticeship or training programs could help alleviate the skills gap in the U.S. workforce – just 11 percent do not agree.
Cost of creating these programs, however, is a barrier.
The cost of developing training programs
42%
Which of the following is the BIGGEST barrier to creating in-house training programs that could help address the skills gap in the U.S. workforce?
Executive team doesn’t think it’s a priority or is
needed
30%
Lack of interest from employees participating
in training programs
18%
Not enough personnel to conduct training
programs
10%
MAIN FINDINGSLabor costs in the U.S. are stifling growth and employment
Slide 16
Senior executives feel companies abroad are challenged by the high cost of labor in the U.S. when looking to expand their business here
Slide 17
Q7) Which of the following, if any, do you think is a challenge foreign companies face when expanding locations into the U.S.? (select all that apply) (N=500)
Six in 10 (61 percent) senior executives feel that the top challenge facing foreign companies expanding to the U.S. is the high cost of labor in the U.S.
Which of the following, if any, do you think is a challenge foreign companies face when expanding locations into the U.S.?
State of the Economy and Employment
September 16, 2013