1. SHRM Survey Findings: Workplace Practices Kathleen Kappy Lundquist, Ph.D. Mark Schmit, Ph.D., SHRM-SCP

2. SHRM/APTMetrics Poll: Workplace Practices  Response rate = 11%  Sample composed of 510 randomly selected HR professionals from SHRM’s membership who worked in organizations with greater than 2,500 employees.  Margin of error is +/- 4%  Survey fielded August 22 nd – September 12 th, 2011 Methodology For more poll findings, visit www.shrm.org/surveyswww.shrm.org/surveys Follow us on Twitter: http://twitter.com/SHRM_Researchhttp://twitter.com/SHRM_Research 2

3. Key Findings  How many organizations have a formal employee performance evaluation process? The vast majority (98%) of organizations reported that they had a formal employee performance evaluation process. Training for this process was required of people managers at nearly half (46%) of organizations, while the other nearly half (44%) provided voluntary training. Just under half (47%) of organizations required people managers to support all performance ratings with written behavioral examples.  Do organizations have a formal employee performance evaluation calibration or group review process? Over half (54%) of organizations reported having a formal calibration or group review process to ensure consistency across ratings/reviews, and of those, 61% reported that HR representatives were present and actively participated in all or a majority of these meetings.  Are organizations using competency models and quantitative performance metrics? The majority of organizations reported using both qualitative competency models and quantitative performance metrics, and many of these organizations indicated they had formally validated these measures.  Are diversity goals and policies tied to management incentive pay and business strategies? While over half (59%) of organizations reported they formally and specifically tie diversity policies and programs to business strategies, less than a quarter (22%) indicated that they tie incentive pay for management to the achievement of diversity goals.  How often and which groups/departments monitor compliance with policies related to certain HR processes? Organizations reported that they regularly conduct at least spot checks to monitor compliance with performance, compensation, promotion, and succession decisions. This monitoring was conducted most frequently by local/business unit HR and corporate HR.  Can employees appeal certain HR decisions through a formal process? Many organizations have appeals processes in place for HR decisions related to performance, compensation, promotion, and succession decisions. 3

4. Does your organization have a formal employee performance evaluation process? Note: n = 510. 4

5. Does your organization provide voluntary or mandatory training for the performance evaluation process? Note: n = 444-445. Percentages do not total 100% due to rounding. Only organizations with a formal employee performance evaluation process were asked this question. 5

6. Are people managers in your organization required to support their performance ratings with written behavioral examples as part of the formal performance evaluation process? Note: n = 481. Percentages do not total 100% due to rounding. HR professionals who answered “Don’t know” were excluded from this analysis. Only organizations with a formal employee performance evaluation process were asked this question. 6

7. In your organization, who has direct input (e.g., has direct input on the final evaluation) into the performance evaluation of the following types of employees? Note: Percentages do not total 100% due to multiple response options. Only organizations with a formal employee performance evaluation process were asked this question. 7

8. Does your organization’s performance evaluation process involve a formal calibration or group review process to ensure consistency across ratings/reviews within a group (e.g., unit, department, division)? Note: n = 463. HR professionals who answered “Don’t know” were excluded from this analysis. Only organizations with a formal employee performance evaluation process were asked this question. 8

9. Is an HR representative present in all or a majority of these formal calibration or group review meetings? Note: n = 249. Only organizations with a formal calibration or group review process were asked this question. 9

10. How often do employee ratings get changed in these formal calibration or group review meetings? Note: n = 242. Only organizations with a formal calibration or group review process were asked this question. 10

11. Which of the following statements reflect the most frequent reasons why changes are made to employee evaluations during the formal calibration or group review meetings? Note: n = 236. Percentages do not total 100% due to multiple response options. Only organizations who indicated that employee ratings were changed “Infrequently” or “Regularly” were asked this question. 11

12. Please answer the following questions about the use of the following performance management process: Competency models Note: Percentages may not total 100% due to rounding. HR professionals who answered “Don’t know” were excluded from this analysis. Only organizations with a formal employee performance evaluation process were asked this question. 12

13. Please answer the following questions about the use of the following performance management process : Quantitative Performance Metrics (e.g., units produced, sales, profit margin, etc.) Note: Percentages may not total 100% due to rounding. HR professionals who answered “Don’t know” were excluded from this analysis. Only organizations with a formal employee performance evaluation process were asked this question. 13

14. Does your organization tie incentive pay for management to the achievement of diversity goals? Note: n = 382. HR professionals who answered “Don’t know” or “Not applicable” were excluded from this analysis. 14

15. Does your organization formally and specifically tie diversity policies and programs to business strategies? Note: n = 381. HR professionals who answered “Don’t know” were excluded from this analysis. 15

16. Which open positions does your organization post internally? Note: n = 434. Percentages do not total 100% due to multiple response options. 16

17. For each group/department, please indicate to what extent your organization monitors compliance with policies related to the following HR processes using the following scale? Response options for this question: 0 = None, this group does not have this responsibility 1 = Minor/occasional/random checks (qualitative checks only); 2 = Regular/general spot checks (qualitative only); 3 = Regular/general spot checks (statistical only); 4 = Regular/general spot checks (qualitative and statistical); 5 = Frequent/comprehensive (qualitative and statistical analysis) 17

18. For each group/department, please indicate to what extent your organization monitors compliance with policies related to the following HR processes using the following scale? Note: Percentages do not total 100% due to multiple response options. HR professionals who answered “Not applicable” were excluded from this analysis. Only organizations with a formal employee performance evaluation process were asked this question. Mean is based on the following scale: 0=None, this group does not have this responsibility; 1=Minor/occasional/random checks (qualitative checks only); 2=Regular/general spot checks (qualitative only); 3=Regular/general spot checks (statistical only); 4=Regular/general spot checks (qualitative and statistical); 5=Frequent/comprehensive (qualitative and statistical analysis) 18

19. What HR decisions can an employee appeal through a formal process? Note: n = 305. Percentages do not total 100% due to multiple response options. HR professionals who answered “Don’t know” or “Not applicable” were excluded from this analysis. 19

20. Demographics: Organization Industry Note: n = 378. Percentages do not total 100% due to multiple response options. 20

21. Demographics: Organization Sector Note: n = 376. 21

22. Demographics: Organization Staff Size Note: n = 367. 22

23. Demographics: Other U.S.-based operations29% Multinational operations71% Single-unit company: A company in which the location and the company are one and the same. 3% Multi-unit company: A company that has more than one location. 97% Multi-unit headquarters determines HR policies and practices 38% Each work location determines HR policies and practices 1% A combination of both the work location and the multi-unit headquarters determine HR policies and practices 61% Is your organization a single-unit company or a multi-unit company? Are HR policies and practices determined by the multi-unit corporate headquarters, by each work location or both? Does your organization have U.S.- based operations (business units) only or does it operate multi-nationally? n = 385n = 387 n = 378 Corporate (company wide)41% Business unit/division39% Facility/location21% n = 377 HR department/function for which you responded throughout this survey? Note: Percentages may not total 100% due to rounding. 23