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2013 U.S. Job Forecast Points to a Better, But Still Cautious Hiring Environment
ST. LOUIS, MO, (SLFP.com), December 30, 2012 - 2013 is expected to usher in more jobs, but U.S. employers will continue to play it safe, according to CareerBuilder's annual hiring forecast. Twenty-six percent of hiring managers plan to add full-time, permanent employees in the New Year, up three percentage points over 2012. The study also points to heightened competition for high skill labor and improved compensation trends.
The nationwide survey was conducted by Harris Interactive from November 1 to November 30, 2012 and included more than 2,600 hiring managers and human resource professionals and more than 3,900 workers across industries and company sizes.
Full-time, Permanent Hiring
While the number of employers who are adding headcount is trending up from 2012, so is the number planning to reduce staffs - reflecting a mix of optimism and caution that has been characteristic of this recovery. Twenty-six percent of employers expect to hire full-time, permanent employees in 2013, up from 23 percent last year. Nine percent plan to decrease headcount, up from 7 percent last year. Fifty-five percent anticipate no change in their staff levels while 11 percent are unsure.
The top two positions companies plan to hire for in the New Year - Sales and Information Technology - are also where employers expect to see the biggest salary increases.
Temporary and Contract Hiring
More companies are turning to staffing and recruiting companies and temporary workers to help meet increased market demands. Forty percent of employers plan to hire temporary and contract workers in 2013, up from 36 percent last year. Among these employers, 42 percent plan to transition some temporary workers into full-time, permanent employees over the next 12 months.
Small Business Hiring
Fifteen percent of small businesses (500 or fewer employees) reported they plan to take out new lines of credit in 2013. While small businesses are showing more confidence in their hiring intentions, there are still concerns over financial stability and market demand. Plans to hire increased at least three percentage points across small business segments while plans to downsize trended up the same amount.
50 or fewer employees - 19 percent plan to add full-time, permanent staff in 2013, up from 16 percent in 2012; 6 percent plan to reduce headcount, up from 3 percent last year.
250 or fewer employees - 24 percent plan to add full-time, permanent staff in 2013, up from 20 percent in 2012; 7 percent plan to reduce headcount, up from 4 percent last year.
500 or fewer employees - 24 percent plan to add full-time permanent staff in 2013, up from 21 percent in 2012; 7 percent plan to reduce headcount, up from 4 percent last year.
Hiring By Region
Similar to previous forecasts, the West and the South house the most employers planning to recruit new employees over the next 12 months.
West - 28 percent plan to add full-time, permanent staff in 2013, up from 24 percent in 2012; 9 percent plan to reduce headcount, the same as last year.
South - 27 percent plan to add full-time, permanent staff in 2013, up from 23 percent in 2012; 9 percent plan to reduce headcount, up from 7 percent last year.
Midwest - 24 percent plan to add full-time, permanent staff in 2013, up slightly from 23 percent in 2012; 10 percent plan to reduce headcount, up from 6 percent last year.
Northeast - 23 percent plan to add full-time, permanent staff in 2013, up from 21 percent in 2012; 10 percent plan to reduce headcount, up from 8 percent last year.
Navigating the Skills Gap in 2013
There is an increasing number of areas where demand for skilled positions is growing much faster than the supply. As companies work to remedy the situation and get qualified talent in the door, workers should be on the lookout for three trends in the New Year:
Employers Scouting Talent at Other Organizations
Employers may come knocking, solicited or not. Nearly one-in-five workers (19 percent) reported they have been approached to work for another company in the last year when they didn't apply for a position with that organization. Sales workers were the most likely to report being courted at 33 percent, followed by 31 percent of Professional & Business Services workers and 26 percent of Information Technology workers.
More Employers Willing to Increase Compensation
In an effort to retain and attract top talent for skilled positions, employers expect to provide higher compensation for both current staff and prospective employees. Seventy-two percent of employers plan to increase compensation for existing employees - up from 62 percent last year - while 47 percent will offer higher starting salaries for new employees - up significantly from 32 percent last year. Most increases will be 3 percent or less.
Employers Creating the Right Candidate Instead of Waiting for One
Employers are taking measures to "re-skill" workers themselves. Thirty-nine percent plan to train people who don't have experience in their particular industry or field and hire them for positions within their organizations, up from 38 percent last year.
Diverse Workforce Doesn't Have to be Intimidating for Employers
ST. LOUIS, MO, (SLFP.com), December 26, 2012 - As a New Year approaches, Carol Glazer, President of the National Organization on Disability (NOD), is challenging our nation's Fortune 500 CEOs to consider an entirely new approach to their New Year's resolutions: Hire more people with disabilities in 2013. Now celebrating its 30th anniversary, NOD promotes the full participation of America's 56 million people with disabilities in all aspects of life.
"New Year's resolutions are largely personal aspirations, often tied to our health or our family," said Glazer. "I wonder if we might be more successful in keeping our pledges if they were bigger than ourselves. So this year, I'm challenging our Fortune 500 CEOs to resolve to hire more people with disabilities. It's a commitment to the diversity in our country. But more importantly to your CFO, it will boost your bottom line."
Glazer notes that America is facing an impending workforce crisis as Baby Boomers age and retire. By 2030, roughly 20 percent of the U.S. population will be aged 65 and older, and America will need millions of new workers to take the place of retirees in the workforce. Yet, according to the latest NOD/Kessler Foundation Survey of Americans with Disabilities, 80 percent of people with disabilities are not working.
"Companies across the country have begun to realize that hiring talented candidates with disabilities is good for business," added Meg O'Connell, NOD's Vice President, Corporate Programs. "A diverse workforce is a strong workforce. And the disability market, which includes customers with disabilities and their spheres of influence, represents $1 trillion in disposable income worldwide. In this country specifically, people with disabilities control $247 billion in disposable income and represent a consumer population equal to the size of the U.S. Hispanic market. People with disabilities are an untapped talent resource, and one that businesses should prioritize in 2013."
Glazer says for most employers, taking the first steps can be intimidating. But there are three things CEOs can do today to empower their human resources manager to get started:
Check to see if your corporate materials - such as website, career pages and recruiting materials - discuss disability as a diversity group.
Ask your recruiters if they have relationships with disability organizations to source talent. If they don't, have them get started.
Set hiring targets for persons with disabilities just as you do for other diversity groups.
NOD's innovative Bridges to Business program has a proven track record of helping C-Suite executives successfully launch diversity programs. NOD helps employers to effectively recruit, hire, train, and retain jobseekers with disabilities. Bridges to Business also assists agencies that provide job training and placement services to jobseekers with disabilities in working more effectively with businesses.
"America's Fortune 500 CEOs - frankly, all CEOs - are in a position to do something truly meaningful in 2013," added Glazer. "And it's not based in altruism, but rather good business sense. Consider it a New Year's resolution worth keeping."
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