Executive Advisory Board

OVERVIEW whereas in the Northeast, professional positions (70 percent) are

In August 2014, members of the JPMorgan Chase Executive Advisory the greatest challenge.
Board were asked to share their thoughts on the challenges of talent • The challenge of hiring for other types of positions has declined
acquisition and retention. The findings detailed below provide a slightly year over year.
snapshot of executives’ views on this topic.
Why does the position present you with the greatest hiring
challenge?
CHALLENGES OF TALENT ACQUISITION
Is talent acquisition a current challenge at your company? • Of those respondents who find professional positions as a challenge
for hiring, three-quarters cite unique skills needed, 45 percent say
compensation expectations are too high and 41 percent cite a lack
of applicants.
2013 80% Yes 20% No • A lack of applicants (56 percent) and unique skills needed
(50 percent) are the primary challenges for hiring technical/trade
positions.
• Overall, the work ethic of applicants stands out as the third most
2014 85% Yes 15% No frequently cited challenge. This is the top challenge for unskilled
labor positions (100 percent).

• Talent acquisition continues to be a challenge for organizations in

2014, with a slight increase of 5 percent year over year. IMPACTS OF SKILLS SHORTAGE AND TALENT LOSS
• Nearly all respondents (97 percent) from companies with annual What are the impacts of the skills shortage your company has
sales between $20-50 million cite talent acquisition as a current experienced?
challenge. 2013 2014
N/A
Overworked employees 58%
Which of the following positions presents the greatest challenge
36%
for hiring? 2013 2014 Unable to innovate
38%

Professional 31% Mixed forecasts 26%

(high education level/salaried) 36% (e.g. income, budgets, etc.) 31%

38%
27% Having to pay more for employees 31%
Technical/Trade
22%
34%
Service/product shortages 25%
24%
Management Team
21%
24%
Production delays 20%
Sales N/A 2013
15% 27%
Degrading quality standards 15%
2014
Unskilled Labor 11%
2013
11%
(low education level/wages) 4% 2014 Other 6%

Other 7%
2%
• Nearly three out of five respondents specify overworked employees
as the greatest impact to the skills shortage at their organization,
which surpassed the top reason in 2013, which was having to pay
• Of the respondents that find talent acquisition to be a challenge, more for employees.
over one-third find professional positions to present the greatest • Unable to innovate (38 percent) and missed forecasts (31 percent)
challenge, a slight year-over-year increase of 5 percent. both increased slightly year over year.
• However, regional differences stand out in the data. In the Midwest, • In the South, having to pay more for employees (43 percent) is the
technical/trade positions (31 percent) are the greatest challenge, primary impact of the skills shortage.
2 E X E C U T I V E A DV I S O RY B OA R D

Which of the following difficulties has your company experienced, TALENT RETENTION AND RECRUITING
related to talent loss? 2013 2014 How does your company promote employee retention?
2013 2014

Difficulty recruiting competant 59% Providing healthcare 80%

job applicants 62% 84%
Competitive benefits 76%
Loss of knowledge transfer from (e.g. 401k, retirement plans, child care, etc.) 82%
49%
experienced to less-experienced
54% Maintaining a positive company reputation 78%
employees 80%

36% Tuition reimbursement 35%

Cost of employee turnover 40%
40%
Flex work arrangements 37%
39%
24%
New employees’ low skill levels Career development program (e.g. career path 36%
26%
training, formal mentoring, rotational programs, etc.) 35%
27%
My company has not experienced any 20% 2013 Cash incentives
22% 2013
difficulties related to talent loss 15%
2014 Telecommuting 17%
14%
2014
Other 1% 11%
Other
2% 10%

None N/A
• Over 60 percent of respondents have experienced difficulty recruiting 3%

competent job applicants, as it relates to talent loss. • Providing healthcare (84 percent), competitive benefits (82 percent)
• Respondents in the South (67 percent) were more likely than those and maintaining a positive company reputation (80 percent) remain
in other regions to name loss of knowledge transfer from the top three most popular methods for retaining employees.
experienced to less-experienced employees. • Cash incentives and telecommuting were both down slightly year
over year.

IMPACT OF IMMIGRATION POLICIES How does your company recruit employees?

2013 2014
Have immigration policies impacted your organization’s ability to 69%
Internal recruiting 77%
hire and/or retain talent?
Utilizing employees for referrals 69%
of quality job candidates 72%
External recruiting 43%
(job fairs, college recruiting) 56%

Search firms 57%

56%
Yes Social networks
(e.g. LinkedIn, Facebook, Twitter)
47%
52%
18% Internet job boards 56%
51%

Company websites 39%

43%

Print advertising 31%

37%
N/A
No Temp agencies
35%
N/A
82% Interns
32% 2013
Professional associations N/A
32%
2014
Networking events N/A
16%

Other 5%
0%

• Over three-quarters of respondents recruit employees internally.

• The use of external recruiting has increased significantly year over
• 18 percent of respondents feel immigration policies have impacted
year, from 43 percent to 56 percent.
their organization’s ability to hire and/or retain talent.
• Among those that cite the impact of immigration policies, many
referenced the difficulty of obtaining H-1B visas or the complex What tactic or strategy has your company found to be most
and lengthy process of visas, green cards and citizenship for successful in talent acquisition and retention efforts?
qualified talent. • The most frequently mentioned tactic or strategy is using referrals
• For organizations that are impacted by immigration policies, (41 percent).
professional (41 percent) and technical/trade positions (29 percent) • A positive company culture was named by 12 percent of respondents
are the most difficult jobs to fill. as an employee-retention strategy.

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