1. SHRM Survey Findings: Changing Employee Skills and Education Requirements—Education and Career Advancement October 3, 2012 In collaboration with and commissioned by Achieve

2. This is the third part of a series of SHRM/Achieve survey findings titled “Changing Employee Skills and Education Requirements.” These results look at education and career advancement. 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  Professional services  State and local government  Nonprofessional services Introduction 2 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Education and Career Advancement ©SHRM 2012

3. Are employees with only a high school diploma or equivalent able to advance their careers? Yes, in many cases they can advance. Overall, 87% of organizations reported that employees with a high school diplomas or equivalent are eligible for promotion at least some of the time, with 23% saying that these employees are “always” eligible for promotion. What are the most common career pathways available for employees with only a high school diploma or equivalent and with no further education, postsecondary certification or credentials? Promotions up to an hourly supervisor/team lead position (43%) and one-step promotions (39%) are the most common career paths available for such employees across all organizations. However, 38% of organizations said that the opportunities for such employees were “endless,” depending on the aptitude and work ethic of the employee. What are the industries in which employees with only a high school diploma or equivalent are most likely to be able to advance in their careers? Manufacturing (57%), health (50%) and state/local government (48%) were most likely to offer such employees promotions up to hourly supervisor/team lead positions. However, nonprofessional services (53%), high-tech (51%) and finance (51%) were most likely to say that the possibilities were endless for such employees with the right aptitude and work ethic. Key Findings 3 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Education and Career Advancement ©SHRM 2012

4. Overall across industries, what type of additional training do employees at various job levels need in order to advance in a career pathway? – Labor, low-skilled: Job-specific training (56%), followed by technical training, including math and science training (21%), and remedial education (20%). – Labor, skilled: Job-specific training (61%), followed by other professional development (31%) and technical training, including math and science training (30%). – Administrative/secretarial: Job-specific training (69%), followed by other professional development (58%) and technical training, including math and science training (15%). – Salaried individual contributor/professional: Other professional development (76%), followed by job-specific training (58%) and technical training, including math and science training (15%). – Management: Other professional development (81%), followed by job-specific training (50%) and technical training, including math and science training (10%). – Executive: Other professional development (63%), followed by job-specific training (31%). Only a small number (7%) said technical training would be needed for this group. Key Findings 4 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Education and Career Advancement ©SHRM 2012

5. Overall across industries, what type of additional education do employees at various job levels need in order to advance in a career pathway? – Labor, low-skilled: Attainment of postsecondary certification/credentials (30%), an associate’s degree (13%) and a bachelor’s degree or above (8%). – Labor, skilled: Attainment of postsecondary certification/credentials (30%), an associate’s degree (20%) and a bachelor’s degree or above (15%). – Administrative/secretarial: Attainment of a bachelor’s degree or above (30%), an associate’s degree (27%) and postsecondary certification/credentials (19%). – Salaried individual contributor/professional: Attainment of a bachelor’s degree or above (51%) followed by postsecondary certification/credentials (13%) and an associate’s degree (8%) – Management: Attainment of a bachelor’s degree or above (51%), distantly followed by postsecondary certification/credentials (9%) and an associate’s degree (5%). – Executive: Attainment of a bachelor’s degree or above (39%). Beyond that, there were few additional education requirements for this group (only 5% said attainment of postsecondary certification/credentials would be needed). Key Findings 5 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Education and Career Advancement ©SHRM 2012

6. Note: Percentages may not total 100% due to rounding. Respondents who answered “Not sure” were excluded from this analysis. Industries are sorted in descending order by the sum of the “Always” and “Most of the time” response options. Are employees that are hired with a high school diploma or equivalent—with no further education, postsecondary certification or credentials—eligible for promotions OR career advancement at your organization? 6 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Education and Career Advancement ©SHRM 2012

7. All Industries (n = 3,451) Construction, Mining, Oil and Gas (n = 368) Federal Government (n = 193) Finance (n = 369) Health (n = 444) High- Tech (n = 306) Manufacturing (n = 429) Non- professional Services (n = 256) Professional Services (n = 500) State/Local Government (n = 586) Promotions up to an hourly supervisor/team lead position 43%45%38%34%50%29%57%43%34%48% One-step promotions 39%32%44%34%46%38%45%35%37%42% Endless, depends on person's aptitude and work ethic 38%49%41%51%23%51%31%53%34%26% Lateral moves 38%30%41%33%47%38%39%36%34%40% Promotions up to a management level, but not typically beyond a frontline manager level 25%29%28%27%19%18%30%29%17%30% Other 4% 8%4% 5%4%2%6%4% Generally, at your organization, what are the career pathways available for employees with only a high school diploma or equivalent with no further education, postsecondary certification or credentials? 7 Note: Percentages may not total 100% due to multiple response options. Only respondents who indicated that employees with a high school diploma or equivalent were eligible for promotions or career advancement were asked this question. SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Education and Career Advancement ©SHRM 2012

8. For each of the employee categories below, what type of additional training do employees at your organization need in order to advance in a career pathway? All Industries Note: Percentages do not total 100% due to multiple response options. 8 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Education and Career Advancement ©SHRM 2012

9. For each of the employee categories below, what type of additional training do employees at your organization need in order to advance in a career pathway? Construction, Mining, Oil and Gas Note: Percentages do not total 100% due to multiple response options. 9 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Education and Career Advancement ©SHRM 2012

10. For each of the employee categories below, what type of additional training do employees at your organization need in order to advance in a career pathway? Federal Government Note: Percentages do not total 100% due to multiple response options. 10 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Education and Career Advancement ©SHRM 2012

11. For each of the employee categories below, what type of additional training do employees at your organization need in order to advance in a career pathway? Finance Note: Percentages do not total 100% due to multiple response options. 11 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Education and Career Advancement ©SHRM 2012

12. For each of the employee categories below, what type of additional training do employees at your organization need in order to advance in a career pathway? Health Note: Percentages do not total 100% due to multiple response options. 12 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Education and Career Advancement ©SHRM 2012

13. For each of the employee categories below, what type of additional training do employees at your organization need in order to advance in a career pathway? High-tech Note: Percentages do not total 100% due to multiple response options. 13 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Education and Career Advancement ©SHRM 2012

14. For each of the employee categories below, what type of additional training do employees at your organization need in order to advance in a career pathway? Manufacturing Note: Percentages do not total 100% due to multiple response options. 14 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Education and Career Advancement ©SHRM 2012

15. For each of the employee categories below, what type of additional training do employees at your organization need in order to advance in a career pathway? Nonprofessional Services Note: Percentages do not total 100% due to multiple response options. 15 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Education and Career Advancement ©SHRM 2012

16. For each of the employee categories below, what type of additional training do employees at your organization need in order to advance in a career pathway? Professional Services Note: Percentages do not total 100% due to multiple response options. 16 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Education and Career Advancement ©SHRM 2012

17. For each of the employee categories below, what type of additional training do employees at your organization need in order to advance in a career pathway? State/Local Government Note: Percentages do not total 100% due to multiple response options. 17 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Education and Career Advancement ©SHRM 2012

18. For each of the employee categories below, what type of additional education do employees at your organization need in order to advance in a career pathway? All Industries Note: Percentages do not total 100% due to multiple response options. 18 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Education and Career Advancement ©SHRM 2012

19. For each of the employee categories below, what type of additional education do employees at your organization need in order to advance in a career pathway? Construction, Mining, Oil and Gas Note: Percentages do not total 100% due to multiple response options. 19 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Education and Career Advancement ©SHRM 2012

20. For each of the employee categories below, what type of additional education do employees at your organization need in order to advance in a career pathway? Federal Government Note: Percentages do not total 100% due to multiple response options. 20 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Education and Career Advancement ©SHRM 2012

21. For each of the employee categories below, what type of additional education do employees at your organization need in order to advance in a career pathway? Finance Note: Percentages do not total 100% due to multiple response options. 21 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Education and Career Advancement ©SHRM 2012

22. For each of the employee categories below, what type of additional education do employees at your organization need in order to advance in a career pathway? Health Note: Percentages do not total 100% due to multiple response options. 22 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Education and Career Advancement ©SHRM 2012

23. For each of the employee categories below, what type of additional education do employees at your organization need in order to advance in a career pathway? High-tech Note: Percentages do not total 100% due to multiple response options. 23 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Education and Career Advancement ©SHRM 2012

24. For each of the employee categories below, what type of additional education do employees at your organization need in order to advance in a career pathway? Manufacturing Note: Percentages do not total 100% due to multiple response options. 24 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Education and Career Advancement ©SHRM 2012

25. For each of the employee categories below, what type of additional education do employees at your organization need in order to advance in a career pathway? Nonprofessional Services Note: Percentages do not total 100% due to multiple response options. 25 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Education and Career Advancement ©SHRM 2012

26. For each of the employee categories below, what type of additional education do employees at your organization need in order to advance in a career pathway? Professional Services Note: Percentages do not total 100% due to multiple response options. 26 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Education and Career Advancement ©SHRM 2012

27. For each of the employee categories below, what type of additional education do employees at your organization need in order to advance in a career pathway? State/Local Government Note: Percentages do not total 100% due to multiple response options. 27 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Education and Career Advancement ©SHRM 2012

28. Survey Methodology SHRM Survey Findings: Changing Employee Skills and Education Requirements—Education and Career Advancement 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  Professional services = 492  State and local government = 848  Nonprofessional services = 479 28 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Education and Career Advancement ©SHRM 2012

29. 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 29 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Education and Career Advancement ©SHRM 2012