1. SHRM Survey Findings: Changing Employee Skills and Education Requirements—Changes in the Workforce October 3, 2012 In collaboration with and commissioned by Achieve

2. This is the fifth part of a series of SHRM/Achieve survey findings titled “Changing Employee Skills and Education Requirements.” These results look at changes in the workforce. The following nine industries were included in the sample. Overall results are reported first, followed by industry-specific results for the following industries:  Construction, mining, oil and gas  Federal government  Finance  Health  High-tech  Manufacturing  Nonprofessional services  Professional services  State and local government Introduction 2 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Changes in the Workforce ©SHRM 2012

3. How are organizations different now than they were 10 years ago? Overall, organizations cite several key changes. The most commonly chosen differences across all industries are increased staff size 53%), increased number of jobs with specific technical requirements (51%), higher education level requirements for most jobs (46%), increased employee diversity (45%) and fewer entry-level jobs (31%). What industries were most likely to report that higher education levels are required today in their industries compared with a decade ago? Health (54%), manufacturing (52%), state/local government (48%) and federal government (46%) were most likely to report higher education requirements today than those needed 10 years ago. What industries were most likely to report that they have more jobs with specific skills requirements today compared with a decade ago? High-tech (73%), manufacturing (56%), construction, mining, oil and gas (56%), state/local government (53%) and health (51%) were most likely to report an increase in the number of jobs with specific technical requirements today compared with 10 years ago. What changes do organizations predict will affect them in the next three to five years? The changes organizations are most likely to forecast are an increased number of jobs with specific technical requirements (60%), increased staff size (55%), higher education level requirements for most jobs (50%), increased employee diversity (49%) and more jobs related to science, technology, engineering and math (31%). What industries are most likely to predict a need for higher education levels for most jobs? Manufacturing (59%), health (56%), high-tech (51%), state/local government (51%) and professional services (49%) were most likely to predict a need for higher education levels for most jobs in three to five years compared with today. What industries are most likely to predict more jobs with specific technical requirements? High-tech (79%), manufacturing (71%) and construction, mining, oil and gas (69%) were most likely to predict that there will be more jobs with specific technical requirements in their industry in three to five years compared with today. Key Findings 3 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Changes in the Workforce ©SHRM 2012

4. What education levels do organizations believe will experience the greatest increase in demand over the next three to give years? Organizations across industries are most likely to report an increased need for bachelor’s degree holders (55%), advance degree (e.g., master’s, MBA, Ph.D., M.D., J.D.) holders (41%) and specific postsecondary certificates/credentials (32%). What industries were most likely to report an increase in the need for employees holding the following education credentials? – Advanced degrees: High-tech (56%), health (51%) and professional services (49%) were most likely to predict an increased need for employees with advanced degrees. – Bachelor’s degrees: Health (62%), manufacturing (58%), construction, mining, oil and gas (57%), finance (57%) and high-tech (56%) were most likely to predict an increased need for employees with bachelor’s degrees. – Associate’s degrees: Manufacturing (36%), state/local government (31%) and health (29%) were most likely to predict an increased need for employees with associate’s degrees. – Specific postsecondary certificates/credentials: Health (40%), manufacturing (39%) and construction, mining, oil and gas (36%) were most likely to predict an increased need for employees with specific postsecondary certificates/credentials. – High school diplomas: Manufacturing (26%), construction, mining, oil and gas (24%) and nonprofessional services (24%) were most likely to predict an increased need for employees with at least a high school diploma. Key Findings 4 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Changes in the Workforce ©SHRM 2012

5. All Industries (n = 3,135) Construction, Mining, Oil and Gas (n = 311) Federal Government (n = 173) Finance (n = 336) Health (n = 415) High-tech (n = 289) Manufac- turing (n = 382) Non- professional Services (n = 224) Professional Services (n = 472) State/Local Government (n = 533) Increased staff size 53%58%39%63%65%58%45%51%56%40% More jobs with specific technical requirements 51%56%43%40%51%73%56%31%49%53% Higher education level required for most jobs 46%39%46%44%54%43%52%33%44%48% Increased employee diversity 45%41%47%45% 44% 49%47% Fewer entry- level jobs 31%22%41%25%28%42%31%17%37%31% Decreased staff size 29%24%44%21% 18%36%30%25%45% Think about your organization’s workforce today compared with 10 years ago. What are the differences? 5 Note: Percentages do not total 100% due to multiple response options. SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Changes in the Workforce ©SHRM 2012

6. All Industries (n = 3,135) Construction, Mining, Oil and Gas (n = 311) Federal Government (n = 173) Finance (n = 336) Health (n = 415) High- tech (n = 289) Manufac- turing (n = 382) Non- professional Services (n = 224) Professional Services (n = 472) State/Local Government (n = 533) More jobs related to science, technology, engineering and math 26%30%25%14%20%58%36%10%28%19% More jobs that are service- oriented 23%19%15%33%37%20%8%40%22%20% Greater reliance on temporary or contingent workers 21%18%21%15%14%21%38%22%17%20% More entry- level jobs 18%20%8%26%18%12%21%26%15%14% Lower education level required for most jobs 1% 2%1% Other 3%1%5%4%6%2% 6% Not sure 8%9% 6% 10%8%9%10%5% Think about your organization’s workforce today compared with 10 years ago. What are the differences? (continued) 6 Note: Percentages do not total 100% due to multiple response options. SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Changes in the Workforce ©SHRM 2012

7. Think about your organization’s workforce in the next three to five years. Compared with today, what are the differences? 7 Note: Percentages do not total 100% due to multiple response options. SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Changes in the Workforce ©SHRM 2012

8. Think about your organization’s workforce in the next three to five years. Compared with today what are the differences? (continued) 8 Note: Percentages do not total 100% due to multiple response options. SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Changes in the Workforce ©SHRM 2012

9. Do you anticipate that your organization’s needs for employees at the following education levels will increase, stay the same or decrease over the next three to five years? All Industries Note: Percentages may not total 100% due to rounding. 9 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Changes in the Workforce ©SHRM 2012

10. Do you anticipate that your organization’s needs for employees at the following education levels will increase, stay the same or decrease over the next three to five years? Construction, Mining, Oil and Gas Note: Percentages may not total 100% due to rounding. 10 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Changes in the Workforce ©SHRM 2012

11. Do you anticipate that your organization’s needs for employees at the following education levels will increase, stay the same or decrease over the next three to five years? Federal Government Note: Percentages may not total 100% due to rounding. 11 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Changes in the Workforce ©SHRM 2012

12. Do you anticipate that your organization’s needs for employees at the following education levels will increase, stay the same or decrease over the next three to five years? Finance Note: Percentages may not total 100% due to rounding. 12 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Changes in the Workforce ©SHRM 2012

13. Do you anticipate that your organization’s needs for employees at the following education levels will increase, stay the same or decrease over the next three to five years? Health Note: Percentages may not total 100% due to rounding. 13 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Changes in the Workforce ©SHRM 2012

14. Do you anticipate that your organization’s needs for employees at the following education levels will increase, stay the same or decrease over the next three to five years? High-tech Note: Percentages may not total 100% due to rounding. 14 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Changes in the Workforce ©SHRM 2012

15. Do you anticipate that your organization’s needs for employees at the following education levels will increase, stay the same or decrease over the next three to five years? Manufacturing Note: Percentages may not total 100% due to rounding. 15 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Changes in the Workforce ©SHRM 2012

16. Do you anticipate that your organization’s needs for employees at the following education levels will increase, stay the same or decrease over the next three to five years? Nonprofessional Services Note: Percentages may not total 100% due to rounding. 16 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Changes in the Workforce ©SHRM 2012

17. Do you anticipate that your organization’s needs for employees at the following education levels will increase, stay the same or decrease over the next three to five years? Professional Services Note: Percentages may not total 100% due to rounding. 17 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Changes in the Workforce ©SHRM 2012

18. Do you anticipate that your organization’s needs for employees at the following education levels will increase, stay the same or decrease over the next three to five years? State/Local Government Note: Percentages may not total 100% due to rounding. 18 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Changes in the Workforce ©SHRM 2012

19. Survey Methodology SHRM Survey Findings: Changing Employee Skills and Education Requirements In collaboration with and commissioned by Achieve Response rate = 18% 4,695 HR professional respondents from a randomly selected sample of nine different industries in SHRM’s membership  Construction, mining, oil and gas = 491  Federal government = 356  Finance = 530  Health = 526  High-tech = 447 Margin of error +/-1% Survey fielded March 28-April 30, 2012  Manufacturing = 526  Nonprofessional services = 479  Professional services = 492  State and local government = 848 19 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Changes in the Workforce ©SHRM 2012

20. SHRM Survey Findings: Changing Employee Skills and Education Requirements For more survey/poll findings, visit www.shrm.org/surveyswww.shrm.org/surveys For more information about SHRM’s Customized Research Services, visit www.shrm.org/customizedresearch www.shrm.org/customizedresearch Follow us on Twitter @SHRM_Research@SHRM_Research About SHRM Research 20 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Changes in the Workforce ©SHRM 2012