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The Workforce’s Billion Dollar Problem: Unskilled Workers

April 13th, 2017 Comments off
skills gap

We’ve all heard of the skills gap by now: Companies have lots of open positions but can’t find enough workers with the skills they need. But did you know these unfilled positions come at a high cost? According to a new CareerBuilder survey, nearly 60 percent of U.S. employers (56 percent) have job openings that stay vacant for 12 weeks or longer. The average cost HR managers say they incur for having extended job vacancies is more than $800,000 annually.

According to the survey, 68 percent of employers who said they were increasing their number of full-time, permanent employees in the first quarter (Jan.1-March 31, 2017) currently have open positions for which they cannot find qualified candidates. This is consistent across company sizes with larger companies – which tend to have more job openings in general:

  • 1-50 employees: 49 percent
  • 51-250 employees: 74 percent
  • 251-500 employees: 72 percent
  • 501+ employees: 71 percent

 

More Than Money is Being Lost

Two in 3 employers (67 percent) say they are concerned about the growing skills gap, and with good reason. More than half (55 percent) say they have seen a negative impact on their business due to extended job vacancies with a sizable proportion of these employers pointing to productivity issues, an increase in voluntary turnover and revenue loss:

  • Productivity loss: 45 percent
  • Higher employee turnover: 40 percent
  • Lower morale: 39 percent
  • Lower quality work: 37 percent
  • Inability to grow business: 29 percent
  • Revenue loss: 26 percent

 

What You Can Do

Bridging the skills gap can have an exponentially positive impact on workers, businesses and the greater community. The most sustainable and thriving communities are those with good jobs. That’s why businesses should take an active role in cultivating the talents of today’s and tomorrow’s generations of workers – and these three steps can make an impact.

Start early: The skills gap in the U.S. is in large part an information gap — many young people are unaware of jobs that are in high-demand, pay well and are aligned with what they’re passionate about. Businesses need to do a better job of informing students of fast-growing fields, so they can discover career options that not only provide job security, but pay well. Get in front of students at an early age.

To this end, CareerBuilder and our economists at Economic Modeling Specialists Intl. (EMSI) created Find Your Calling, a free website to help students discover career and education options based on data from more than 100 employment resources. Visitors on the website start with a simple, interactive personality test for careers. The student is then presented with careers that match their interests with details ranging from job growth projections, salary ranges and businesses that are hiring to college programs they can apply to today.

Create the perfect candidate: Businesses should also invest in reskilling the current workforce to create the perfect hire, instead of waiting for one to come along. The good news is half of U.S. companies are already taking action. Fifty-four percent said they have trained workers who have no experience in their industry or field and hired them. Forty-six percent of employers have hired a low-skill worker and trained him/her for a higher-skill job within the last two years.

To help with this, last year Capella Learning Solutions and CareerBuilder launched an initiative called RightSkill, which enables workers to upskill and reskill for in-demand jobs within 60 days or less. The program, which is currently free for candidates, teaches competencies online based on real-time data and guidance from employers.

Join forces with educators: Partnerships between universities, corporate training organizations and corporations isn’t new. Companies like IBM have been teaming up with universities since the early days of computer science education more than 70 years ago. But, as the debate over the skills gap accelerates, collaborations between educational facilities and businesses should become more sophisticated and evolve to meet shifting economic, marketplace and educational needs. As the next-generation partnerships are anointed, you can help guide the formation of curriculum so the workforce of the future can keep up with rapid technological changes.

Find out how to use workforce analytics to build your talent strategy

38 Percent of Employers Have Increased Educational Requirements

March 20th, 2017 Comments off
educational requirements

Have you been thinking about increasing the educational requirements needed for jobs at your company?

If your answer is yes, you’re joined by over a third of today’s employers. According to a new CareerBuilder survey, 38 percent of hiring managers have increased educational requirements over the last five years. Thirty-three percent are hiring more workers with master’s degrees for positions that had been primarily held by those with four-year degrees, and 41 percent are hiring employees with college degrees for positions that had been primarily held by those with high-school degrees.

Why Raise Requirements?
Of the 2,605 hiring and human resource managers surveyed, those who increased educational requirements have noticed a positive effect across the board, in many critical areas:

  • Higher quality work: 61 percent
  • Productivity: 51 percent
  • Communication: 45 percent
  • Innovation/idea generation: 41 percent
  • Employee retention: 33 percent
  • Revenue: 26 percent
  • Customer loyalty: 24 percent

 

What Does This Mean For You?
Unsure about whether you should help your workforce reach these increased education requirements? About half of employers (51 percent) plan to provide more online, competency-based learning opportunities to their employees in 2017. Forty-one percent of employers are sending current employees back to school to get advanced degrees – with 14 percent fully funding the degree, and 22 percent funding it partially.

Investing in your employees’ education means investing in your business. Providing training to upskill current employees and helping employees go back to school to get their degree or certification can help improve your company’s bottom line.

Learn about inexpensive ways to fund employee training and education here.

It’s Not Too Late: Sign Up to Host #FindYourCallingDay Event

March 2nd, 2017 Comments off
#FindYourCallingDay event

When thinking about their future, students look to parents, teachers and advisers for guidance and inspiration.

That’s why we’re asking for your help during Find Your Calling Month, a special time when students across the U.S. come together and use the Find Your Calling assessment to discover careers they love and plan the necessary education.

Host a #FindYourCallingDay Event
Here’s how you can help: Host a #FindYourCallingDay event any day this month at your place of business, your children’s school or another similar location.

During the one- to two-hour event, you’ll speak with students about the importance of discovering the careers they love through programs like Find Your Calling. Then, you’ll invite students to take the Find Your Calling questionnaire, explore relevant careers and identify schools with programs that align with their interests.

Read about how one host made an impact during his #FindYourCallingDay event

Sound Complicated? It’s Not!
Hosting a #FindYourCallingDay gathering is super easy – we promise. Once you sign up, you’ll receive a link to a free training webinar, along with all of the promotional materials you’ll need to prep for, promote and execute a successful event.

Learn more or simply sign up now to host a #FindYourCallingDay event in your area.

Help Narrow the Skills Gap: Host a #FindYourCallingDay This March

February 3rd, 2017 Comments off
#findyourcallingday

Companies are struggling to find workers to fill in-demand positions. Students are struggling to determine their best career options. How can both employers and students work together to narrow the skills gap while helping the future generation find meaningful careers?

The answer is through the second annual Find Your Calling Month created by CareerBuilder and Emsi, a special month when students across the U.S. come together and use the Find Your Calling assessment to discover careers they love and plan the necessary education.

How Do I Get Involved?

In order for Find Your Calling Month to be a success, we are asking you to host a #FindYourCallingDay event in March at your place of business, your children’s school, or another similar location.

During the one- to two- hour event, you’ll speak with students about the importance of discovering the careers they love through programs like Find Your Calling. Then, you’ll invite students to take the Find Your Calling questionnaire, explore relevant careers and identify schools with programs that align with their interests.

What Do I Do Next?

Learn more or simply sign up now to host a #FindYourCallingDay event in your area. We’ll supply you with everything you need to execute the event, from presentations to fliers to videos.

With your help, we can change the futures of our future generation.

63% Employers Are Concerned About the Growing U.S. Skills Gap

March 7th, 2016 Comments off

Nearly two-thirds (63 percent) of employers reported that they are concerned about the growing skills gap in the U.S.  And with good reason: A new analysis of college degree completions vs. job demand from CareerBuilder and Emsi shows that the next generation of workers won’t be able to fill the void.

According to a national Harris Poll survey of more than 2,300 employers, commissioned by CareerBuilder, half (49 percent) of employers have experienced a negative impact on their business due to extended job vacancies:

  • 25 percent reported a loss in revenue.
  • 43 percent pointing to lower productivity.

 

Skills Gap: Demand Outweighing Supply

To illustrate the current scope and potential effects of an already debilitating talent deficit, data experts at CareerBuilder and Emsi looked at a sample of college programs that aren’t producing enough grads to keep pace with labor market demand. While the programs highlighted in the study have grown at least 10 percent from 2009-2014 and had at least 10,000 completions in 2014, according to CareerBuilder’s Q2 2015 nationwide survey, they’re still undersupplying candidates for occupations that already see big gaps between the number of jobs posted and the number of hires companies make each month.

For example, 157,591 people graduated with degrees in computer and information sciences in 2014, a number that increased 41 percent since 2009. While the growth is encouraging, it’s not enough. On average, from Jan. 2015 to Jan. 2016, 689,685 computer and information technology jobs were posted each month in the U.S. However, the average number of hires was only 209,035 – leaving a gap of 480,650 positions.

While this is a critical issue in STEM-related fields (science, technology, engineering and math), it extends to other areas as well. The analysis shows notable gaps for human resources management, economics, legal assistant/paralegal and graphic design, among others. Check out the chart for the full list. 

 

The Skills Gap, The Information Gap — and Find Your Calling

As it turns out, nearly half (47 percent) of employers believe the skills gap is actually an information gap, meaning people are not aware of the jobs that are available and growing, according to a 2015 Harris Poll survey. Looking at it from the student’s perspective, nearly 1 in 4 high school seniors (24 percent) said they have no idea what career they want to pursue.

In response to these issues, late last year, CareerBuilder worked with Emsi to launch a powerful website called FindYourCalling.com. This website puts data science and helpful insights behind the process of choosing a career. Visitors to the site start with a simple, interactive personality test for careers. Find out more about Find Your Calling here.

 

This analysis utilized Emsi’s extensive labor market database, which pulls from more than 100 national and state employment resources. Find out more about how Emsi’s data can help your business find the right candidates.

CareerBuilder Partners with PGA to Help Students Find Their Calling

January 21st, 2016 Comments off
Find_Your_Calling_Day

Nearly 15 million people in our country want to work but can’t find jobs. Yet, at the same time, around half of employers say they have job vacancies but can’t find qualified candidates to fill them. This huge disconnect is often referred to as the skills gap, but in truth, the skills gap is in large part an “information gap.”

Many young people are unaware of jobs that are in high demand, pay well and are aligned with their passions. Nearly 1 in 4 high school seniors say they have no idea what career they want to pursue. Of those who do know, 23 percent chose their career paths based on what they saw on TV.

Ideally, students would make their career decisions based upon information like what skill sets are most in-demand, which avenues of study are likely to lead to high paying potential careers, and which potential careers best fit their own unique personalities.

This “ideal” may not be as far from reality as we think.

As the title sponsor of the 2016 CareerBuilder Challenge PGA Tour event, we’re working to narrow the information gap through a partnership with local schools in the Coachella Valley and around the country. The goal of this partnership is to help students – and their parents – discover ideal career and education options based on their interests and personalities.

To achieve this goal, CareerBuilder worked with our economists at EMSI to launch FindYourCalling.com.

FindYourCalling.com is a free site that provides easy-to-use, real-time labor market data for any occupation based on data from 100 employment resources. Visitors to the site start with a simple, interactive personality test for careers. Based on those answers, students are presented with top careers that match their interests and are given detailed information on everything from job growth projections, salary ranges and businesses that are hiring, to college majors and programs they can apply to today.

By making better-informed career decisions early on, the workforce of tomorrow will be more capable of not only meeting employers’ demand for talent, but of fulfilling their own passions as well.

Learn more about Find Your Calling and how you can get involved at FindYourCalling.com.

41 Percent of Workers Wish They Had More Guidance When Choosing Their Career

October 5th, 2015 Comments off
Talent Factor

One of HR’s biggest topics of debate has been the skills gap and how to adapt recruiting strategies in response to those disparities between talent and vacant roles. But recruiters aren’t the only frustrated party trying to overcome this employment hurdle. A nationwide CareerBuilder study* found that 41 percent of workers wish they had more guidance when choosing their career.

“The skills gap in our country is in large part an ‘information gap’ – many young people are unaware of jobs that are in high-demand, pay well, and are aligned with what they’re passionate about,” says Matt Ferguson, CEO of CareerBuilder and co-author of “The Talent Equation.” To answer that challenge, CareerBuilder and economists at its subsidiary Economic Modeling Specialists Intl. (EMSI) created www.findyourcalling.com to offer career insights based on an individual’s answers and skills.  Ferguson adds, “Find Your Calling is our way to help solve the youth unemployment problem in the U.S. and replace guesswork with eye-opening data needed to choose the right career.”

What does this mean for you?
Empowering job seekers who are struggling with the skills gap can be as simple as pointing them to quality resources like career assessment interviews or tests to see where their true talents lie.

For instance, with the website “Find Your Calling,” based on answers for a simple, interactive personality test, the student is presented with top careers that match their interests, which he or she can explore by diving further into associated career options. Find Your Calling offers details about each specific occupation, including average salary and market demand, as well as an overview of the required education, including associated majors and schools that specialize in the field. Students can mold their career path by coming back to the site as many times as desired.

 Visit www.findyourcalling.com to check it out for yourself, and share as a resource for students and job seekers in need of career assessments and resources.

*CareerBuilder’s “The Shocking Truth About the Skills Gap” report, 2014

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Have You Found Your Calling?

October 1st, 2015 Comments off
education, school, knowledge and people concept - happy smiling african american student girl in bachelor cap with books sitting at table and dreaming over green chalk board background

When – and how — did you know what career you wanted?

If you have trouble answering those questions, you’re in good company. And if you’re a parent whose son or daughter is struggling with finding the right career path, you may unsure what guidance to offer beyond the old adage, “Do what you love.”

For how often it’s thrown around, “Do what you love” is actually pretty difficult advice to follow for most people. In fact, according to a CareerBuilder survey, 41 percent of workers wish they had more guidance when choosing their career. That trend is likely to continue; a separate CareerBuilder survey found that 24 percent of high school seniors have no idea what career they want to pursue.

A New Way to Help Students Choose a Career

That’s why CareerBuilder and EMSI are launching Find Your Calling, a free national website with everything young people – and their parents – need to know about choosing a career. Find Your Calling starts with a student’s interests and personality and pairs that with career data from over 100 employment resources to find the student’s best career options.

Of course, there are plenty of other things to take into consideration when choosing a major – and Find Your Calling covers those too. Students and their parents can use the easy-to-use interactive site to view real-time labor market data for each individual career – from salary ranges, job growth projections and businesses hiring to related college programs.

Putting the right people in the right job is what CareerBuilder’s all about, and Find Your Calling is designed to help start this process earlier by putting students on the path to the right career. When students have the opportunity to make their decisions based both on their own personal goals and aspirations as well as larger industry trends, we move closer to having a workforce that’s not only well-prepared to enter the workforce, but genuinely enthusiastic about it.

So now, when your son or daughter asks you for career advice, you’ll not only be able to offer your own advice, but also help them understand that the best decisions often require the best information.

Check out Find Your Calling and give it a try yourself — you may just be surprised what you find out.