1. SHRM Survey Findings: The Ongoing Impact of the Recession—High-Tech Industry September 25, 2013

2. These are the High-Tech industry survey findings about the ongoing impact of the U.S. and global recession, which began in 2007. This is the third year that SHRM has conducted this study, and data are reported for 2010 and 2011 where possible. The results are reported in the following sections:  Skill gaps.  Recruiting challenges.  Recruiting strategies. Industry-specific results will be reported separately for each of the following industries:  Construction, mining, oil and gas.  Federal government.  Finance.  Health.  Manufacturing.  Professional services.  State and local government. Overall and California results can be found on our website at www.shrm.org/surveys. www.shrm.org/surveys The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 20132 Introduction

3. The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 20133 Skill Gaps

4. What basic skills/knowledge gaps do job applicants typically have? The most common basic skills/knowledge gaps are writing in English (41%), mathematics (34%), science (25%), technical (25%) and English language (spoken) (24%). What applied skill gaps do job applicants typically have? The top five applied skill gaps are information technology application (53%), critical thinking/problem solving (45%), written communications (30%), leadership (28%) and oral communication (28%). What types of jobs are the most difficult to fill? The top five most difficult positions to fill are engineers (94%), high-skilled technical (94%), scientists (91%), managers and executives (76%), and sales representatives (67%). The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 20134 Key Findings: Skill Gaps High-Tech Industry

5. In general, what basic skills/knowledge gaps do job applicants have in your industry? High-Tech Industry 5 Note: Percentages do not total 100% due to multiple response options. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question. The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2013

6. In general, what applied skill gaps do job applicants have in your industry? High-Tech Industry 6 Note: Percentages do not total 100% due to multiple response options. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question. The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2013

7. Organizations having difficulty filling specific job categories for full-time, regular positions: High-Tech Industry 7 Note: This figure represents “Somewhat difficult” and “Very difficult” responses. “Not applicable” responses were excluded from this analysis. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question. *Data are not provided where the sample size is less than 20. The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2013

8. 8 Recruiting Challenges

9. Is it difficult to recruit for positions requiring new and different skill sets? Three-quarters (75%) of organizations reported that it is somewhat or very difficult to recruit for completely new positions or positions with new duties added that required new and different skill sets. This is similar to what was reported in 2011 (73%) and an increase from 47% in 2010. Is recruiting for specific jobs difficult in the current labor market? The majority (82%) of organizations currently hiring full-time staff indicated that they were having a difficult time recruiting for specific job openings, an increase from 71% in 2011. Why are organizations experiencing difficulty hiring qualified candidates? About one-half of organizations indicated that candidates did not have the right skills for the job (49%) and cited competition from other employers (48%). One-third reported that candidates did not have the right work experience (34%) and that qualified candidates were not within their salary range or hourly range rate (34%). Are organizations facing global competition for applicants for hard-to- fill jobs? One-third (33%) of organizations believe they are facing global competition for qualified applicants for jobs they are having difficulty filling. The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 20139 Key Findings: Recruiting Challenges High-Tech Industry

10. For the new full-time, regular positions being created by your organization that require new and different skill sets, how easy or difficult do you think it will be or has been thus far to find qualified individuals for those positions? High-Tech Industry The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 201310 Note: Percentages may not total 100% due to rounding. Only respondents whose organizations were hiring full-time staff for positions with “new duties added to jobs lost” or “completely new positions” that required either “a mixture of new skills and the same types of skills” or “completely new and different skills” were asked this question.

11. For the new full-time, regular positions being created by your organization that require new and different skill sets, how easy or difficult do you think it will be or has been thus far to find qualified individuals for those positions? The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 201311 Note: Only statistically significant differences are shown. Comparisons by industry Health (54%)> Construction, mining, oil and gas (27%) High-tech (23%) Manufacturing (20%) Professional services (28%) State or local government (40%)>Manufacturing (20%) The health industry is more likely than the construction, mining, oil and gas; high- tech; manufacturing; and professional services industries to indicate it will be or has been somewhat easy to find qualified individuals for new full-time positions. State or local governments are more likely than the manufacturing industry to indicate it will be or has been somewhat easy to find qualified individuals for new full-time positions. Comparisons by industry Manufacturing (63%)>Health (40%) The manufacturing industry is more likely than the health industry to indicate it will be or has been somewhat difficult to find qualified individuals for new full-time positions.

12. In general, in the current labor market, is your organization having a difficult time recruiting for specific jobs that are open in your organization? High-Tech Industry 12 Note: Respondents who answered “don’t know” were excluded from this analysis. Only respondents whose organizations were currently hiring full-time staff were asked this question. The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2013 n = 178n = 201

13. In general, in the current labor market, are you having a difficult time recruiting for certain types of full-time, regular positions that are open in your organization? The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 201313 Note: Only statistically significant differences are shown. Comparisons by industry High-tech (82%) Manufacturing (79%) > Federal government (50%) Finance (66%) Health (65%) State or local government (52%) Construction, mining, oil and gas (74%) Professional services (70%) > Federal government (50%) State or local government (52%) Finance (66%) Health (65%) >State or local government (52%) Comparisons by industry Although there is recruiting difficulty across all industries, certain industries are experiencing more difficulty than others. The high-tech and manufacturing industries are more likely than the federal government, finance, health and state or local government industries to be having difficulty recruiting for certain types of full-time, regular positions. The construction, mining, oil, and gas and professional services industries are more likely than the federal government and state or local governments to be having difficulty recruiting for certain types of full-time, regular positions. The finance and health industries are more likely than state or local governments to be having difficulty recruiting for certain types of full-time, regular positions.

14. What are the main reason(s) that your organization experiences difficulty in hiring qualified candidates for full-time, regular positions? High-Tech Industry The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 201314 Note: n = 163. Percentages do not total 100% due to multiple response options. Respondents who answered “don’t know” were excluded from this analysis. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question.

15. What are the main reason(s) that your organization experiences difficulty in hiring qualified candidates for full-time, regular positions? (continued) High- Tech Industry The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 201315 Note: n = 163. Percentages do not total 100% due to multiple response options. Respondents who answered “don’t know” were excluded from this analysis. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question.

16. Do you believe that your organization is facing global competition (i.e., competition from other countries) for talent for hard-to-fill jobs? High-Tech Industry 16 Note: Respondents who answered “don’t know” were excluded from this analysis. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question. The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2013 n = 106n = 145

17. Do you believe that your organization is facing global competition (i.e., competition from other countries) for talent for hard-to-fill jobs? The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 201317 Note: Only statistically significant differences are shown. Comparisons by industry High-tech (33%)> Finance (5%) Health (6%) Manufacturing (15%) Professional services (14%) State or local government (4%) Construction, mining, oil and gas (22%) Federal government (22%) > Finance (5%) Health (6%) State or local government (4%) Manufacturing (15%)> Finance (5%) State or local government (4%) Professional services (14%)>State or local government (4%) Comparisons by industry Organizations in the high-tech industry are more likely than those in the finance, health, manufacturing, professional services and state or local government industries to believe that they are facing global competition for talent for hard-to-fill jobs. Organizations in the construction, mining, oil, and gas and federal government industries are more likely than those in the finance, health and state or local government industries to believe that they are facing global competition for talent for hard-to-fill jobs. Organizations in the manufacturing industry are more likely than those in the finance and state or local government industries to believe that they are facing global competition for talent for hard- to-fill jobs. Organizations in the professional services industry are more likely than those in state or local governments to believe that they are facing global competition for talent for hard-to-fill jobs.

18. The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 201318 Recruiting Strategies

19. What strategies is your organization using to deal with recruiting challenges for full-time, regular positions? The most common strategies reported by organizations are using social media to find passive job seekers (68%), expanding the search region (48%), expanding advertising efforts (45%), providing monetary incentives to candidates (41%), collaborating with educational institutions (40%) and increasing retention efforts (40%). Have organizations been hiring workers from outside the U.S. for jobs that have been difficult to fill? One-half (50%) of organizations have hired workers from outside the U.S. Another 9% are considering or have plans to hire workers from outside the U.S. This is consistent with findings in 2011. Have organizations been hiring U.S. veterans for jobs that have been difficult to fill? Close to one-half (47%) of organizations reported hiring U.S. veterans, an increase from 34% in 2011. Another 20% are considering or have plans to hire veterans in the next 12 months, similar to findings in 2011 (15%). The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 201319 Key Findings: Recruiting Strategies High-Tech Industry

20. What strategies is your organization using to deal with recruiting challenges for full-time, regular positions? High-Tech Industry The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 201320 Note: n = 161. Percentages do not total 100% due to multiple response options. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question.

21. What strategies is your organization using to deal with recruiting challenges for full-time, regular positions? (continued) High-Tech Industry The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 201321 Note: n = 161. Percentages do not total 100% due to multiple response options. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question.

22. Has your organization hired any workers from outside the United States in an attempt to staff key jobs that have been difficult to fill? High-Tech Industry 22 Note: Percentages may not equal 100% due to rounding. Respondents who answered “don’t know” were excluded from this analysis. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question. The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2013

23. Has your organization hired any workers from outside the United States in an attempt to staff key jobs that have been difficult to fill? The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 201323 Note: Only statistically significant differences are shown. Comparisons by industry High-tech (50%)> Construction, mining, oil and gas (26%) Federal government (16%) Finance (16%) Health (29%) Manufacturing (24%) Professional services (24%) State or local government (11%) Construction, mining, oil and gas (26%) Health (29%) Manufacturing (24%) Professional services (24%) >State or local government (11%) Comparisons by industry The high-tech industry is more likely than the construction, mining, oil and gas; federal government; finance; health; manufacturing; professional services; and state or local government industries to have hired workers from outside the U.S. in an attempt to recruit for hard-to-fill jobs. The construction, mining, oil and gas; health; manufacturing; and professional services industries are more likely than state or local governments to have hired workers from outside the U.S. in an attempt to recruit for hard-to-fill jobs.

24. Has your organization hired any U.S. veterans in an attempt to staff key jobs that have been difficult to fill? High-Tech Industry 24 Note: Respondents who answered “don’t know” were excluded from this analysis. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question. The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2013

25. Has your organization hired any U.S. veterans in an attempt to staff key jobs that have been difficult to fill? The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 201325 Note: Only statistically significant differences are shown. Comparisons by industry Federal government (87%)> Finance (40%) Health (57%) High-tech (47%) Manufacturing (60%) Professional services (43%) Construction, mining, oil and gas (70%) State or local government (71%) > Finance (40%) High-tech (47%) Professional services (43%) Manufacturing (60%)> Finance (40%) Professional services (43%) Comparisons by industry The federal government is more likely than the finance, health, high-tech, manufacturing and professional services industries to have hired U.S. veterans in an attempt to recruit for hard-to-fill jobs. The construction, mining, oil, and gas and state or local government industries are more likely than the finance, high-tech and professional services industries to have hired U.S. veterans in an attempt to recruit for hard-to-fill jobs. The manufacturing industry is more likely than the finance and professional services industries to have hired U.S. veterans in an attempt to recruit for hard-to-fill jobs.

26. The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 201326 Demographics

27. Demographics: Organization Sector High-Tech Industry The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 201327 Note: n = 246. Percentages do not total 100% due to rounding.

28. Demographics: Organization Staff Size High-Tech Industry The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 201328 Note: n = 241. Percentages do not total 100% due to rounding.

29. n = 247 Other Demographics High-Tech Industry The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 201329 U.S.-based operations only 48% Multinational operations 52% Single-unit organization: An organization in which the location and the organization are one and the same 33% Multi-unit organization: An organization that has more than one location 67% Multi-unit headquarters determines HR policies and practices 46% Each work location determines HR policies and practices 5% A combination of both the work location and the multi-unit headquarters determines HR policies and practices 49% Is your organization a single-unit organization or a multi-unit organization? For multi-unit organizations, are HR policies and practices determined by the multi-unit headquarters, by each work location or by both? Does your organization have U.S.-based operations (business units) only, or does it operate multinationally? n = 248 n = 186 Corporate (companywide) 72% Business unit/division21% Facility/location6% Note: n = 185. Percentages do not total 100% due to rounding. What is the HR department/function for which you responded throughout this survey?

30. Response rate = 9% 259 randomly selected HR professionals from the high-tech industry in SHRM’s membership participated in this survey. With small sample sizes, the response of one participant can affect the overall results considerably; this should be noted when making interpretations of the data, particularly when interpreting small percentage differences. Survey fielded August 28-September 14, 2012 The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 201330 SHRM Survey Findings: The Ongoing Impact of the Recession—High-Tech Industry Survey Methodology

31. 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/customizedresearchwww.shrm.org/customizedresearch Follow us on Twitter @SHRM_Research@SHRM_Research The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 201331 About SHRM Research Project leader: Tanya Mulvey, researcher, talent management & workforce skills, SHRM Research Project contributors: Alexander Alonso, Ph.D., SPHR, vice president, SHRM Research Evren Esen, manager, Survey Research Center, SHRM Research Yan Dong, Intern, SHRM Research Copy editor: Katya Scanlan, SHRM Knowledge Center

32. The Society for Human Resource Management (SHRM) is the world’s largest association devoted to human resource management. Representing more than 250,000 members in over 140 countries, the Society serves the needs of HR professionals and advances the interests of the HR profession. Founded in 1948, SHRM has more than 575 affiliated chapters within the United States and subsidiary offices in China and India. The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 201332 About SHRM