1. SHRM Survey Findings: 2014 Economic Conditions—Overall Financial Health and Hiring October 30, 2014

2. This is Part 1 of a series of SHRM survey results about the state of jobs and skills in the current economic condition, which relates to a SHRM survey series about the ongoing impact of the U.S. and global recession from 2007 to 2012. Overall results will be reported separately in three different topic areas:  Overall financial health and hiring.  Recruiting and skills gaps.  Global competition and hiring strategies. Overall results for 2013 will also be reported separately for California.California Industry-specific results for the nine industries that were included in the sample will also be reported for each question throughout the report. The nine industries are:  Accommodation and food services, retail/wholesale trade.  Construction, mining, quarrying, and oil and gas extraction.  Educational services.  Finance, insurance, real estate and rental and leasing.  Government agencies.  Health care and social assistance.  High-tech.  Manufacturing.  Professional, scientific, and technical services. Economic Conditions—Overall Financial Health and Hiring ©SHRM 20142 Introduction

3. How is the overall financial health of organizations? The majority (80%) of organizations reported their financial health as being “excellent” or “good.” When asked about the change in overall financial health compared to 12 months ago, more than one-half (57%) of organizations reported having significant or mild improvement, an increase from 51% in 2012 and 42% in 2011.  Larger organizations (with 25,000 or more employees) reported better overall financial health compared to smaller organizations (with 1 to 24,999 employees).  More than two-fifths (44%) of organizations in the accommodation and food services, retail/wholesale trade industry; and the finance, insurance, real estates and rental and leasing industry reported excellent overall financial health, whereas less than one-fifths (17%) of organizations in the educational services industry and government agencies reported excellent overall financial health. What percentage of regular full-time staff have organizations lost in the last 12 months? Close to one-third (31%) of organizations had not lost any staff in the past year, and two-fifths (40%) reported having lost up to 5% of employees.  Smaller organizations were more likely to have no staff losses compared with larger organizations.  All industries fared better than the high-tech industry (15%) in terms of losing no employees in the last 12 months. Economic Conditions—Overall Financial Health and Hiring ©SHRM 20143 Key Findings

4. Regardless of the status of their current financial health, what actions have organizations taken as a result of financial challenges in the last 12 months? About one-quarter of organizations have implemented budget cuts (27%) and laid off employees (25%). However, two-fifths (40%) of organizations reported they have taken no cost-saving measures in the past year.  Organizations in the educational services and government agencies industries were more likely to have implemented budget cuts in the past year (37% and 35%, respectively). Regardless of the status of their current financial health, what actions have organizations taken as a result of financial stability or growth in the last 12 months? Two-fifths (39%) of organizations have increased salaries, and one-third (33%) have provided bonuses in the past year. One-third (32%) of organizations have taken no actions that would increase costs to the organization.  The professional, scientific and technical services industry was more likely than other industries to have increased salaries (47%) or provided bonuses (48%) in the past year. Economic Conditions—Overall Financial Health and Hiring ©SHRM 20144 Key Findings (continued)

5. Have organizations been hiring? The majority (96%) of organizations hired full- time regular employees, and two-thirds (67%) hired part-time regular employees in the past 12 months. More than one-half of organizations also hired contract/temporary positions (62% for full-time, 52% for part-time, respectively).  The high-tech industry had the highest percentage of organizations hiring for full-time contract/temporary positions (82%), and the educational services industry was the highest for hiring part-time contract/temporary positions (73%).  When making decisions to hire full-time regular positions, maintaining normal business operations was reported as the most important factor (79% reported extremely/very important), followed by organizational growth (68%) and changes in business strategy (55%). For which full-time job categories are organizations hiring? Administrative support staff (60%), accounting and finance professionals (53%), managers and executives (49%), IT/computer specialists (42%), and HR professionals (38%) are among the top full-time job categories organizations have hired in the last 12 months. Economic Conditions—Overall Financial Health and Hiring ©SHRM 20145 Key Findings (continued)

6. Are organizations creating new positions or replacing jobs lost? Of those organizations hiring, the majority (82%) has hired direct replacements of jobs lost, whereas 61% hired for completely new positions and 42% for replacements with new duties.  Larger organizations were more likely than smaller organizations to have hired direct replacements or replacements with new duties in the last 12 months.  Organizations in the high-tech industry and the professional, scientific and technical services industry were more likely to have hired completely new positions in the last 12 months.  When asked about changes in the types of positions hired, two-thirds (66%) of organizations indicated that hiring for completely new full-time regular positions has increased in the last 12 months.  Smaller organizations (with 1 to 499 employees) were more likely than larger organizations (with 500 or more employees) to report increased hiring for completely new positions. Economic Conditions—Overall Financial Health and Hiring ©SHRM 20146 Key Findings (continued)

7. Have any of the full-time regular positions required new skills? Of those organizations hiring, about one-half (48%) indicated that new skills were required for full-time regular positions they have hired in the last 12 months.  Close to three-quarters (72%) of organizations in the high-tech industry reported requiring new skills for full-time regular positions they have hired.  Top reasons that those positions require new skills were growth of organization (56%), changing technology (51%) and organizations were developing or offering new products. Is it difficult to find qualified individuals for full-time regular positions requiring new skills? Two-thirds (66%) of organizations reported it was somewhat or very difficult to recruit for full-time regular positions that require new skills in the last 12 months, a slight increase from 63% in 2012 and 2011.  The high-tech industry reported the highest percentage (77%) of difficulty in finding qualified individuals for full-time regular positions that require new skills. Economic Conditions—Overall Financial Health and Hiring ©SHRM 20147 Key Findings (continued)

8. After a lengthy recession that saw the loss of more than eight million jobs, the U.S. economy is clearly in recovery, albeit in a tempered period of growth. Four-fifths of respondents to this survey reported that their organization is either in “excellent” or “good” financial health, an extremely positive indicator for the economy’s current expansion. Despite improved conditions, many employers and sectors of the economy are still struggling. Certain industries, such as high-tech, are seeing increased demand for their services, but others—particularly government entities— c ontinue to face budget deficits. And although hiring has improved in the U.S. labor market overall, some employers have still been forced to cut staff to make ends meet. One quarter of respondents to this survey laid off workers in response to financial difficulties during the past 12 months. Despite recent job gains, millions of positions are still going unfilled and, consequently, impeding the growth of some employers. In July 2014, there were 4.7 million job openings in the United States, up nearly 800,000 from the beginning of 2014, according to federal data. With millions of people seeking work, it is clear that many jobs are not being filled due to a skills mismatch between job seekers and open positions. Two-thirds of respondents to this survey indicated that they were having difficulty hiring for their full-time openings. Economic Conditions—Overall Financial Health and Hiring ©SHRM 20148 What Do These Findings Mean for the HR Profession?

9. Organizations’ Overall Financial Health Economic Conditions—Overall Financial Health and Hiring ©SHRM 20149 Note: Respondents who answered "don't know" were excluded from this analysis. Percentages may not equal 100% due to rounding.

10. Organizations’ Overall Financial Health— Excellent Economic Conditions—Overall Financial Health and Hiring ©SHRM 201410 Note: Only statistically significant differences are shown. Comparison by organization staff size Organizations with 25,000 or more employees were more likely than organizations with 1 to 24,999 employees to rate their current overall financial health as “excellent.”

11. Organizations’ Change in Overall Financial Health Compared to 12 Months Ago (All Industries) Economic Conditions—Overall Financial Health and Hiring ©SHRM 201411 Note: Respondents who answered "don't know" were excluded from this analysis. Percentages may not equal 100% due to rounding.

12. Organizations’ Change in Overall Financial Health Compared to 12 Months Ago (by Industry) Economic Conditions—Overall Financial Health and Hiring ©SHRM 201412 Note: Respondents who answered "don't know" were excluded from this analysis. Percentages may not equal 100% due to rounding. Significant Improvement Mild Improvement No Change Mild Decline Significant Decline All industries (n = 3,140)13%44%22%17%4% Finance, insurance, real estate and rental and leasing (n = 288) 20%47%19%10%3% Accommodation and food services, retail/wholesale trade (n = 309) 17%53%19%10%1% Construction, mining, quarrying, and oil and gas extraction (n = 318) 16%47%16%17%4% Manufacturing (n = 388)15%47%21%15%2% High-tech (n = 150)15%47%15%19%4% Professional, scientific, and technical services (n = 434) 14%43%20%17%6% Health care and social assistance (n = 324) 12%33%21%26%7% Educational services (n = 346) 6%37%35%19%3% Government agencies (n = 500) 6%44%30%16%5%

13. Organizations’ Loss of Regular Full-Time Workforce in the Last 12 Months due to Layoffs, Attrition, Restructuring, etc. (All Industries) Economic Conditions—Overall Financial Health and Hiring ©SHRM 201413 Note: Respondents who answered "don't know" were excluded from this analysis. Percentages may not equal 100% due to rounding.

14. Organizations’ Loss of Regular Full-Time Workforce in the Last 12 Months due to Layoffs, Attrition, Restructuring, etc. (All Industries) Economic Conditions—Overall Financial Health and Hiring ©SHRM 201414 Note: Only statistically significant differences are shown. Comparison by organization staff size Organizations with 1 to 99 employees were more likely than organizations with 100 or more employees to have encountered 0% staff loss in the last 12 months. Organizations with 100 to 2,499 employees were more likely than organizations with 2,500 or more employees to have encountered 0% staff loss in the last 12 months.

15. Organizations’ Loss of Regular Full-Time Workforce in the Last 12 Months due to Layoffs, Attrition, Restructuring, etc. (by Industry) Economic Conditions—Overall Financial Health and Hiring ©SHRM 201415 Note: Respondents who answered "don't know" were excluded from this analysis. Percentages may not equal 100% due to rounding. 0% of Staff 1% to 5% of Staff 6% to 10% of Staff 11% to 20% of Staff 21% to 50% of Staff More Than 50% of Staff All industries (n = 3,141)31%40%16%9%4%1% Accommodation and food services, retail/wholesale trade (n = 302) 33%39%12%9%6%1% Construction, mining, quarrying, and oil and gas extraction (n = 322) 22%38%22%13%4%1% Educational services (n = 337) 34%47%11%5%2%1% Finance, insurance, real estate and rental and leasing (n = 284) 33%38%15%9%4%1% Government agencies (n = 505) 35%39%15%9%1%<1% Health care and social assistance (n = 321) 31%48%11%6%4%1% High-tech (n = 150)15%37%27%16%5%1% Manufacturing (n = 392)32%42%14%8%4%1% Professional, scientific, and technical services (n = 440) 31% 19%11%7%1%

16. Actions Organizations Have Taken as a Result of Financial Challenges in the Last 12 Months (All Industries) Economic Conditions—Overall Financial Health and Hiring ©SHRM 201416 Note: n = 3,211. Respondents who answered "don't know" were excluded from this analysis. Percentages do not equal 100% due to multiple response options.

17. Actions Organizations Have Taken as a Result of Financial Challenges in the Last 12 Months (All Industries) Economic Conditions—Overall Financial Health and Hiring ©SHRM 201417 Note: Only statistically significant differences are shown. Comparison by organization staff size Organizations with 1 to 499 employees were more likely than organizations with 500 or more employees to have taken NO actions as a result of financial challenges. Organizations with 500 to 2,499 employees were more likely than organizations with 2,500 or more employees to have taken NO actions as a result of financial challenges.

18. Actions Organizations Have Taken as a Result of Financial Challenges in the Last 12 Months (by Industry) Economic Conditions—Overall Financial Health and Hiring ©SHRM 201418 Note: Respondents who answered "don't know" were excluded from this analysis. Percentages do not equal 100% due to multiple response options. None Implemente d Budget Cuts Laid Off Employees Had a Hiring Freeze Eliminate d or Reduced Overtime Frozen/Reduce d Salaries, Raises or Bonuses Cut Temporar y Staff All industries (n = 3,211) 40%27%25%19%16%15%13% Accommodation and food services, retail/wholesale trade (n = 318) 44%21%16%15%21%8%12% Construction, mining, quarrying, and oil and gas extraction (n = 324) 43%20%37%19%11% 14% Educational services (n = 345) 31%37%22%17%13%18%12% Finance, insurance, real estate and rental and leasing (n = 290) 53%20%21%11%9% Government agencies (n = 520) 33%35%13%24%17%27%13% Health care and social assistance (n = 337) 30%33%29%20%29%19%14% High-tech (n = 152) 40%28%38%32%11% 19% Manufacturing (n = 396) 44%22%28%21%20%8%19% Professional, scientific, and technical services (n = 438) 45%23%31%17%8%13%12%

19. Actions Organizations Have Taken as a Result of Financial Challenges in the Last 12 Months (by Industry, continued) Economic Conditions—Overall Financial Health and Hiring ©SHRM 201419 Note: Respondents who answered "don't know" were excluded from this analysis. Percentages do not equal 100% due to multiple response options. Reduced Benefits or Increased Employee Contributio n Reduced Employee Hours Offered Early Retirement or Retirement Incentive Furloughed Employees Because of the Government Shutdown Furloughed Employees, Unrelated to the Government Shutdown Other Cuts All industries (n = 3,211)11% 6%4%3%4% Accommodation and food services, retail/wholesale trade (n = 318) 9%22%2%1% 4% Construction, mining, quarrying, and oil and gas extraction (n = 324) 9% 6%3%5%3% Educational services (n = 345) 12%13%12%3%4% Finance, insurance, real estate and rental and leasing (n = 290) 11%3% 0%<1%3% Government agencies (n = 520) 11%7%11%9%5% Health care and social assistance (n = 337) 16%24%5%1%2%4% High-tech (n = 152)8%6% 3%5%2% Manufacturing (n = 396)9%7%5%1%4% Professional, scientific, and technical services (n = 438) 14%7%4%8%4%

20. Actions Organizations Have Taken as a Result of Financial Stability or Growth in the Last 12 Months (All Industries) Economic Conditions—Overall Financial Health and Hiring ©SHRM 201420 Note: n = 3,095. Respondents who answered "don't know" were excluded from this analysis. Percentages do not equal 100% due to multiple response options.

21. Actions Organizations Have Taken as a Result of Financial Stability or Growth in the Last 12 Months(by Industry) Economic Conditions—Overall Financial Health and Hiring ©SHRM 201421 Note: Respondents who answered "don't know" were excluded from this analysis. Percentages do not equal 100% due to multiple response options. None Increased Salaries Provided Bonuses Filled Positions That Were Lost Improved Benefits Package Increased Budgets All industries (n = 3,095)32%39%33%23%11%10% Accommodation and food services, retail/wholesale trade (n = 305) 34%38%39%20%16%14% Construction, mining, quarrying, and oil and gas extraction (n = 323) 30%36%42%27%13%11% Educational services (n = 337) 39%38%13%21%8%9% Finance, insurance, real estate and rental and leasing (n = 283) 29%41%46%19%15%11% Government agencies (n = 489) 33%36%9%27%4%8% Health care and social assistance (n = 321) 40%33%26%15%9%7% High-tech (n = 147)28%43% 33%13%15% Manufacturing (n = 383)28%44%43%23%10%9% Professional, scientific, and technical services (n = 423) 26%47%48%24%13%12%

22. Actions Organizations Have Taken as a Result of Financial Stability or Growth in the Last 12 Months(by Industry, continued) Economic Conditions—Overall Financial Health and Hiring ©SHRM 201422 Note: Respondents who answered "don't know" were excluded from this analysis. Percentages do not equal 100% due to multiple response options. Allowed for Increased Employee Hours Ended Hiring Freeze Ended Furlough Provided Back-Pay for Furloughed Employees Other Improvement s All industries (n = 3,095)10%9%3%1%3% Accommodation and food services, retail/wholesale trade (n = 305) 14%10%<1%0%2% Construction, mining, quarrying, and oil and gas extraction (n = 323) 13%8%2%<1%2% Educational services (n = 337) 4%10%3%1% Finance, insurance, real estate and rental and leasing (n = 283) 7%6%0% 3% Government agencies (n = 489) 5%9% 4%2% Health care and social assistance (n = 321) 8% <1%0%2% High-tech (n = 147)8%13%5%1%5% Manufacturing (n = 383)17%9%1%0%3% Professional, scientific, and technical services (n = 423) 10%6%5%1%6%

23. Organizations Hiring Full- and Part-Time Regular Staff in the Last 12 Months Economic Conditions—Overall Financial Health and Hiring ©SHRM 201423 Note: Respondents who answered "don't know" were excluded from this analysis.

24. Organizations Hiring Full- and Part-Time Contract/Temporary Staff in the Last 12 Months Economic Conditions—Overall Financial Health and Hiring ©SHRM 201424 Note: Respondents who answered "don't know" were excluded from this analysis.

25. Importance of Factors in Organizations’ Decision to Hire for Full-Time Regular Positions (All Industries) Economic Conditions—Overall Financial Health and Hiring ©SHRM 201425 Note: n = 2,873 - 3,055. Respondents who answered "don't know" were excluded from this analysis. Only respondents whose organizations were hiring full-time staff were asked this question. Percentages may not equal 100% due to rounding.

26. Importance of “Maintaining Normal Business Operations” in Organizations’ Decision to Hire for Full-Time Regular Positions (by Industry) Economic Conditions—Overall Financial Health and Hiring ©SHRM 201426 Note: Respondents who answered “don't know” were excluded from this analysis. Only respondents whose organizations were hiring full-time staff were asked this question. Percentages for “not very important” and “not important at all” were combined. Percentages may not equal 100% due to rounding.

27. Importance of “Organizational Growth” in Organizations’ Decision to Hire for Full-Time Regular Positions (by Industry) Economic Conditions—Overall Financial Health and Hiring ©SHRM 201427 Note: Respondents who answered "don't know" were excluded from this analysis. Only respondents whose organizations were hiring full-time staff were asked this question. Percentages may not equal 100% due to rounding.

28. Importance of “Changes in Business Strategy” in Organizations’ Decision to Hire for Full-Time Regular Positions (by Industry) Economic Conditions—Overall Financial Health and Hiring ©SHRM 201428 Note: Respondents who answered "don't know" were excluded from this analysis. Only respondents whose organizations were hiring full-time staff were asked this question. Percentages may not equal 100% due to rounding.

29. Importance of “Improved Economy” in Organizations’ Decision to Hire for Full-Time Regular Positions (by Industry) Economic Conditions—Overall Financial Health and Hiring ©SHRM 201429 Note: Respondents who answered "don't know" were excluded from this analysis. Only respondents whose organizations were hiring full-time staff were asked this question. Percentages may not equal 100% due to rounding.

30. Types of Full-Time Regular Positions That Organizations Hired in the Last 12 Months Economic Conditions—Overall Financial Health and Hiring ©SHRM 201430 Note: Respondents who answered "don't know" were excluded from this analysis. Only respondents whose organizations were hiring full-time staff were asked this question. Percentages do not equal 100% due to multiple response options.

31. Types of Full-Time Regular Positions That Organizations Hired in the Last 12 Months Economic Conditions—Overall Financial Health and Hiring ©SHRM 201431 Note: Only statistically significant differences are shown. Comparison by organization staff size Organizations with 100 or more employees were more likely than organizations with 1 to 99 employees to have hired replacements in the last 12 months. Organizations with 500 to 24,999 employees were more likely than organizations with 1 to 499 employees to have hired replacements but with new duties in the last 12 months.

32. Change in Hiring Types for Full-Time Regular Positions in the Last 12 Months (All Industries) Economic Conditions—Overall Financial Health and Hiring ©SHRM 201432 Note: Respondents who answered "don't know" were excluded from this analysis. Only respondents whose organizations were hiring full-time staff were asked this question.

33. Increased Hiring for Completely New Full- Time Regular Positions in the Last 12 Months (All Industries) Economic Conditions—Overall Financial Health and Hiring ©SHRM 201433 Note: Only statistically significant differences are shown. Comparison by organization staff size Organizations with 1 to 499 employees were more likely than organizations with 500 or more employees to report increased hiring for completely new full-time regular positions in the last 12 months.

34. Change in Hiring Types for Full-Time Regular Positions in the Last 12 Months (by Industry) Economic Conditions—Overall Financial Health and Hiring ©SHRM 201434 Note: Respondents who answered "don't know" were excluded from this analysis. Only respondents whose organizations were hiring full-time staff were asked this question. Replacements Replacements, but with New Duties Completely New Positions Increase d Stayed the Same Decrease d Increase d Stayed the Same Decrease d Increase d Stayed the same Decrease d All industries (n = 1,114 - 2,254) 25%62%13%45%49%6%66%26%8% Accommodation and food services, retail/wholesale trade (n = 96 - 222) 23%64%12%47% 6%66%28%6% Construction, mining, quarrying, and oil and gas extraction (n = 109 - 229) 31%55%14%48% 5%79%16%5% Educational services (n = 151 - 258) 18%69%13%45%50%5%54%36%9% Finance, insurance, real estate and rental and leasing (n = 100 - 196) 24%66%10%48% 4%74%23%4% Government agencies (n = 176 - 380) 27%58%15%49%44%6%65%26%8% Health care and social assistance (n = 119 - 252) 22%63%15%42%50%8%56%25%19% High-tech (n = 82 - 105)26%58%16%34%54%12%63%24%13% Manufacturing (n = 140 - 276)25%64%11%44%51%5%66%27%6% Professional, scientific, and technical services (n = 120 - 282) 28%61%11%41%48%11%66%24%9%

35. Organizations Requiring New Skills for Full- Time Regular Positions Hired in the Last 12 Months Economic Conditions—Overall Financial Health and Hiring ©SHRM 201435 Note: Respondents who answered “don't know” were excluded from this analysis. Only respondents whose organizations were hiring full-time staff were asked this question.

36. Reasons That Those Positions Require New Skills (All Industries) Economic Conditions—Overall Financial Health and Hiring ©SHRM 201436 Note: n = 1,221. Respondents who answered “don't know” were excluded from this analysis. Percentages do not equal 100% due to multiple response options. Only respondents whose organizations were hiring full-time positions that required new skills were asked this question.

37. Reasons That Those Positions Require New Skills—Changing Technology (All Industries) Economic Conditions—Overall Financial Health and Hiring ©SHRM 201437 Note: Only statistically significant differences are shown. Comparison by organization staff size Organizations with 500 to 2,499 employees were more likely than organizations with 1 to 99 employees to indicate that changing technology is one of the main reasons positions require new skills. Organizations with 2,500 or more employees were more likely than organizations with 1 to 499 employees to indicate that changing technology is one of the main reasons positions require new skills.

38. Reasons That Those Positions Require New Skills (by Industry) Economic Conditions—Overall Financial Health and Hiring ©SHRM 201438 Note: Respondents who answered “don't know” were excluded from this analysis. Percentages do not equal 100% due to multiple response options. Only respondents whose organizations were hiring full-time positions that required new skills were asked this question. Growth of Organizatio n Changing Technolog y Developin g or Offering New Products/ Services Expanding Business into New Markets Reorgan ization Merger or Acquisit ion Replacing Temporary Workers, Part-time Employees, Contractors or Freelancers with Full-Time Positions Other All industries (n = 1,221) 56%51%44%39%33%10%9%7% Accommodation and food services, retail/wholesale trade (n = 102) 61%51%49%45%26%15%10%5% Construction, mining, quarrying, and oil and gas extraction (n = 110) 65%37%32%46%25%14%5%6% Educational services (n = 137) 45%53%40%31%38%1%9%12% Finance, insurance, real estate and rental and leasing (n = 116) 64%47% 41%33%12%9%11% Government agencies (n = 171) 33%57%28%11%54%4%16%9% Health care and social assistance (n = 118) 53%50%43%29%32%8%3%12% High-tech (n = 90)70%59%63%61%28%18%6%3% Manufacturing (n = 174)60%52%48% 25%10%9%4% Professional, scientific, and technical services (n = 162) 63%49%50%49%30%12%5%4%

39. Level of Difficulty to Find Qualified Individuals for Full-time Regular Positions That Require New Skills in the Last 12 Months (All Industries) Economic Conditions—Overall Financial Health and Hiring ©SHRM 201439 Note: Respondents who answered "don't know" were excluded from this analysis. Percentages may not equal 100% due to rounding.

40. Level of Difficulty to Find Qualified Individuals for Full-time Regular Positions That Require New Skills in the Last 12 Months (by Industry) Economic Conditions—Overall Financial Health and Hiring ©SHRM 201440 Note: Respondents who answered “don't know” were excluded from this analysis. Only respondents whose organizations were hiring full-time positions that required new skills were asked this question. Percentages may not equal 100% due to rounding.

41. Types of Full-Time Job Categories Organizations Hired in the Last 12 Months (All Industries) Economic Conditions—Overall Financial Health and Hiring ©SHRM 201441 Note: n = 3,023. Respondents who answered “don't know” were excluded from this analysis. Percentages do not equal 100% due to multiple response options. Only respondents whose organizations were hiring full-time staff were asked this question.

42. Types of Full-Time Job Categories Organizations Hired in the Last 12 Months (All Industries, continued) Economic Conditions—Overall Financial Health and Hiring ©SHRM 201442 Note: n = 3,023. Respondents who answered “don't know” were excluded from this analysis. Percentages do not equal 100% due to multiple response options. Only respondents whose organizations were hiring full-time staff were asked this question.

43. Types of Full-time Job Categories Organizations Hired in the Last 12 Months (by Industry) Economic Conditions—Overall Financial Health and Hiring ©SHRM 201443 Note: Respondents who answered “don't know” were excluded from this analysis. Percentages do not equal 100% due to multiple response options. Only respondents whose organizations were hiring full-time staff were asked this question. Administrat ive Support Staff Accounting and Finance Professiona ls Managers and Executives IT/Computer Specialists HR Professiona ls Customer Service Representativ es Hourly Laborer s All industries (n = 3,023) 60%53%49%42%38%31%30% Accommodation and food services, retail/wholesale trade (n = 294) 55%54%57%33%39%52%37% Construction, mining, quarrying, and oil and gas extraction (n = 312) 59%58%47%27%36%10%49% Educational services (n = 330) 79%50%47%45% 16%29% Finance, insurance, real estate and rental and leasing (n = 276) 64%68%55%44%36%55%8% Government agencies (n = 484) 68%56%50%51%37%36% Health care and social assistance (n = 323) 64%44%50%41%39%33%20% High-tech (n = 150)49%57% 71%43%34%14% Manufacturing (n = 376)41%46%47%27%31%27%56% Professional, scientific, and technical services (n = 398) 58%48%40%52%38%24%8%

44. Types of Full-time Job Categories Organizations Hired in the Last 12 Months (by Industry, continued) Economic Conditions—Overall Financial Health and Hiring ©SHRM 201444 Note: Respondents who answered “don't know” were excluded from this analysis. Percentages do not equal 100% due to multiple response options. Only respondents whose organizations were hiring full-time staff were asked this question. Engineers Skilled Trades Sales Representativ es Hourly Service Workers High- Skilled Technicians High- Skilled Medical Productio n Operators All industries (n = 3,023) 25%24%22%15% 14%13% Accommodation and food services, retail/wholesale trade (n = 294) 9%16%45%52%5%4%10% Construction, mining, quarrying, and oil and gas extraction (n = 312) 51%56%19%0%13%1%18% Educational services (n = 330) 6%30%6%25%10%14%2% Finance, insurance, real estate and rental and leasing (n = 276) 3%9%39%11%5%7%2% Government agencies (n = 484) 21%32%2%11%18%15%4% Health care and social assistance (n = 323) 2%12%10%33%37%74%2% High-tech (n = 150)63%9%51%2%24%3%16% Manufacturing (n = 376)56%39%32%2%11%2%59% Professional, scientific, and technical services (n = 398) 28%6%25%3%12%4%6%

45. Types of Full-time Job Categories Organizations Hired in the Last 12 Months (by Industry, continued) Economic Conditions—Overall Financial Health and Hiring ©SHRM 201445 Note: Respondents who answered “don't know” were excluded from this analysis. Percentages do not equal 100% due to multiple response options. Only respondents whose organizations were hiring full-time staff were asked this question. Drivers Educator s Community and Social Service Workers Lawyers, Judges and Legal Support Workers Protective Service Workers ScientistsOther All industries (n = 3,023) 13%12% 10%8%7%5% Accommodation and food services, retail/wholesale trade (n = 294) 28%2%1%5%1% 2% Construction, mining, quarrying, and oil and gas extraction (n = 312) 17%0% 6%2%6% Educational services (n = 330) 12%83%22%5%12%9%4% Finance, insurance, real estate and rental and leasing (n = 276) 1%0%2%12%0% 6% Government agencies (n = 484) 19%12%27%17%35%6% Health care and social assistance (n = 323) 14%9%46%4%6%2%5% High-tech (n = 150)3% 1%17%1%15%0% Manufacturing (n = 376)10%0% 5%1%10%4% Professional, scientific, and technical services (n = 398) 3%1% 17%1%16%10%

46. Economic Conditions—Overall Financial Health and Hiring ©SHRM 201446 Demographics

47. Demographics: Organization Industry Economic Conditions—Overall Financial Health and Hiring ©SHRM 201447 Note: n = 3,335. Percentages do not equal 100% due to rounding. Percentage Accommodation and food services, retail/wholesale trade10% Construction, mining, quarrying, and oil and gas extraction10% Educational services11% Finance, insurance, real estate and rental and leasing9% Government agencies16% Health care and social assistance10% High-tech5% Manufacturing12% Professional, scientific, and technical services14% Other industry3%

48. Demographics: Organization Sector (All Industries) Economic Conditions—Overall Financial Health and Hiring ©SHRM 201448 n = 3,335

49. Demographics: Organization Sector (by Industry) Economic Conditions—Overall Financial Health and Hiring ©SHRM 201449 Note: Percentages may not equal 100% due to rounding. Privately Owned For-Profit Government Publicly Owned For-Profit Nonprofit All industries (n = 3,335)45%20% 15% Accommodation and food services, retail/wholesale trade (n = 330) 63%0%36%2% Construction, mining, quarrying, and oil and gas extraction (n = 336) 71%0%28%1% Educational services (n = 367)9%39%4%48% Finance, insurance, real estate and rental and leasing (n = 307) 56%0%24%19% Government agencies (n = 537)0%100%0% Health care and social assistance (n = 349) 32%0%9%59% High-tech (n = 156)54%0%44%2% Manufacturing (n = 404)63%0%36%1% Professional, scientific, and technical services (n = 458) 76%0%19%5% Other industry (n = 91)57%0%22%21%

50. Demographics: Region (All Industries) Economic Conditions—Overall Financial Health and Hiring ©SHRM 201450 n = 3,022

51. Demographics: Region (by Industry) Economic Conditions—Overall Financial Health and Hiring ©SHRM 201451 Note: Percentages may not equal 100% due to rounding. SouthWestMidwestNortheast All industries (n = 3,022)39%23%22%16% Accommodation and food services, retail/wholesale trade (n = 287) 37%29%20%14% Construction, mining, quarrying, and oil and gas extraction (n = 304) 44%25%18%13% Educational services (n = 330)36%18%26%20% Finance, insurance, real estate and rental and leasing (n = 279) 33%19%25%23% Government agencies (n = 494)48%24%21%6% Health care and social assistance (n = 323) 37%22%23%18% High-tech (n = 142)30%36%12%23% Manufacturing (n = 365)36%16%33%16% Professional, scientific, and technical services (n = 418) 42%24%17% Other industry (n = 80)39%23%16%23%

52. Demographics: Organization Staff Size (All Industries) Economic Conditions—Overall Financial Health and Hiring ©SHRM 201452 Note: n = 2,945. Percentages do not equal 100% due to rounding.

53. Demographics: Organization Staff Size (by Industry) Economic Conditions—Overall Financial Health and Hiring ©SHRM 201453 Note: Percentages may not equal 100% due to rounding. 1 to 99 Employees 100 to 499 Employees 500 to 2,499 Employees 2,500 to 24,999 Employees 25,000 or More Employees All industries (n = 2,945)21%31%22%20%7% Accommodation and food services, retail/wholesale trade (n = 278) 14%27%17%19%24% Construction, mining, quarrying, and oil and gas extraction (n = 301) 23%33%20% 3% Educational services (n = 318) 10%29%32%25%3% Finance, insurance, real estate and rental and leasing (n = 279) 29%31%20%14%6% Government agencies (n = 470) 13%32%30%21%4% Health care and social assistance (n = 314) 15%29%23%24%9% High-tech (n = 143)27% 16%21%9% Manufacturing (n = 355)17%32%22%23%6% Professional, scientific, and technical services (n = 409) 40%32%11%13%5% Other industry (n = 78)23%36%17% 8%

54. n = 3,092 Demographics: Other (All Industries) Economic Conditions—Overall Financial Health and Hiring ©SHRM 201454 U.S.-based operations only 71% Multinational operations 29% Single-unit organization: An organization in which the location and the organization are one and the same. 31% Multi-unit organization: An organization that has more than one location. 69% Multi-unit headquarters determines HR policies and practices 48% Each work location determines HR policies and practices 3% 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 = 3,116 n = 2,223

55. 55 SHRM Survey Findings Response rate = 13% 3,335 HR professionals participated in this survey from a randomly selected sample of SHRM’s membership from nine different industries:  Accommodation and food services, retail/wholesale trade.  Construction, mining, quarrying, and oil and gas extraction.  Educational services.  Finance, insurance, real estate and rental and leasing.  Government agencies.  Health care and social assistance.  High-tech.  Manufacturing.  Professional, scientific, and technical services. Margin of error +/-2% Survey fielded December 16, 2013 - January 16, 2014 Survey Methodology Economic Conditions—Overall Financial Health and Hiring ©SHRM 2014

56. SHRM Leading Indicators of National Employment (LINE)  http://www.shrm.org/research/monthlyemploymentindices/line/pages/defa ult.aspx http://www.shrm.org/research/monthlyemploymentindices/line/pages/defa ult.aspx SHRM Jobs Outlook Survey (JOS)  http://www.shrm.org/research/monthlyemploymentindices/lmo/pages/defau lt.aspx http://www.shrm.org/research/monthlyemploymentindices/lmo/pages/defau lt.aspx SHRM Metro Economic Outlooks  http://www.shrm.org/research/monthlyemploymentindices/pages/metroecon omicoutlooks.aspx http://www.shrm.org/research/monthlyemploymentindices/pages/metroecon omicoutlooks.aspx SHRM’s Workforce Readiness Resource Page  http://www.shrm.org/hrdisciplines/staffingmanagement/articles/pages/w orkforcereadiness.aspx http://www.shrm.org/hrdisciplines/staffingmanagement/articles/pages/w orkforcereadiness.aspx SHRM Foundation: What’s Next: Future Global Trends Affecting Your Organization, Evolution of Work and the Worker  http://www.shrm.org/about/foundation/shapingthefuture/documents/2- 14%20theme%201%20paper-final%20for%20web.pdf http://www.shrm.org/about/foundation/shapingthefuture/documents/2- 14%20theme%201%20paper-final%20for%20web.pdf Economic Conditions—Overall Financial Health and Hiring ©SHRM 201456 Additional SHRM Resources

57. For more survey/poll findings, visit shrm.org/surveysshrm.org/surveys For more information about SHRM’s Customized Research Services, visit shrm.org/customizedresearchshrm.org/customizedresearch Follow us on Twitter @SHRM_Research@SHRM_Research Economic Conditions—Overall Financial Health and Hiring ©SHRM 2014 57 About SHRM Research Project lead: Tanya Mulvey, researcher, SHRM Research Project contributors: Alexander Alonso, Ph.D., SPHR, vice president, SHRM Research Evren Esen, director, Survey Programs, SHRM Research Yan Dong, Survey Research Center, SHRM Research Christina Lee, researcher, SHRM Research Qikun Niu, intern, SHRM Research Jennifer Schramm, manager, Workplace Trends and Forecasting, SHRM Research Joseph Coombs, senior analyst, Workforce Trends, SHRM Research Copy editor: Katya Scanlan, SHRM Knowledge Center

58. Founded in 1948, the Society for Human Resource Management (SHRM) is the world’s largest HR membership organization devoted to human resource management. Representing more than 275,000 members in over 160 countries, the Society is the leading provider of resources to serve the needs of HR professionals and advance the professional practice of human resource management. SHRM has more than 575 affiliated chapters within the United States and subsidiary offices in China, India and United Arab Emirates. Visit us at shrm.org.shrm.org Economic Conditions—Overall Financial Health and Hiring ©SHRM 201458 About SHRM