1. SHRM Poll: The Ongoing Impact of the Recession—Health Industry August 28, 2012

2. SHRM Poll: The Ongoing Impact of the Recession—Health Industry ©SHRM 2012 The Ongoing Impact of the Recession: Health  Introduction  Key Findings  Organizations’ Financial Health  Hiring  Recruiting Challenges  Demographics  Methodology 2

3. SHRM Poll: The Ongoing Impact of the Recession—Health Industry ©SHRM 2012 Introduction  Overall results have been released in three different topic areas:  Recruiting and skill gaps (released November 7, 2011).  Overall financial health and hiring (released November 22, 2011).  Global competition and hiring strategies (released December 14, 2011).  Industry-specific results are reported separately for each of the eight industries included in the sample. These findings cover the results for the health industry. The following industries were also included in the sample:  Construction, mining, oil and gas (released March 9, 2012).  Manufacturing (released April 4, 2012).  Federal government (released June 4, 2012).  State and local government (released June 4, 2012).  Finance (released June 4, 2012).  Services—professional (released July 31, 2012).  High-tech (released July 31, 2012). 3

4. SHRM Poll: The Ongoing Impact of the Recession—Health Industry ©SHRM 2012 Key Findings: Organizations’ Financial Health Health  What percentage of staff have organizations laid off since the U.S. and global recession began in December 2007? In 2011, one-third (33%) of respondents from the health industry indicated their organization had not laid off any staff since the recession began. More than one-half (53%) had lost between 1% and 10% of their staff. These 2011 figures are similar to 2010, when 83% of health industry respondents reported losing less than 10% of employees since the beginning of the recession.  How does organizations’ financial health compare to 12 months ago? The health industry’s organizational financial health has declined compared with what it was a year ago. In 2011, 46% of organizations from the health industry were in a significant or mild decline, whereas in 2010 this number was 34%. About one- quarter (27%) reported no change compared with one year ago in 2011, and the remaining quarter (27%) were in a significant or mild recovery. 4

5. SHRM Poll: The Ongoing Impact of the Recession—Health Industry ©SHRM 2012 Key Findings: Hiring Health  Are organizations currently hiring? A large majority (89%) of respondents from the health industry were hiring in 2011, compared with 84% in 2010. The majority (89%) of those who were hiring were recruiting nonmanagement hourly employees. Three out of five (60%) health organizations were hiring nonmanagement salaried employees, and 61% were hiring other management-level staff. Thirty-nine percent were hiring executive or upper-management employees.  Are organizations creating new positions or replacing jobs lost? Two-thirds (66%) of respondents in the health industry indicated they were mainly hiring direct replacements of jobs lost, an increase from 50% in 2010. Fewer respondents in the health industry indicated they were mainly hiring for completely new positions in 2011 (21%) than in 2010 (41%), while the remaining 13% in 2011 and 9% in 2010 were hiring for positions with new duties added to jobs lost since the recession began. 5

6. SHRM Poll: The Ongoing Impact of the Recession—Health Industry ©SHRM 2012 Key Findings: Recruiting Challenges Health  Is recruiting for specific jobs difficult in the current labor market? Among the health organizations that are currently hiring full-time staff, one-half (50%) reported having difficulty recruiting for specific open jobs.  What types of jobs are the most difficult to fill? The top five most difficult positions to fill for the health industry are high-skilled medical (90%), high-skilled technical (e.g., technicians and programmers) (69%), managers and executives (69%), accounting and finance professionals (60%), and HR professionals (46%). 6

7. SHRM Poll: The Ongoing Impact of the Recession—Health Industry ©SHRM 2012 7 Organizations’ Financial Health The Ongoing Impact of the Recession: Health

8. SHRM Poll: The Ongoing Impact of the Recession—Health Industry ©SHRM 2012 Thus far, what percentage of full-time jobs have been lost at your organization since the U.S. and global recession began in December 2007? Health 8 Note: Percentages may not total 100% due to rounding. An asterisk (*) indicates 2010 data had different categories than 2011 data: “Less than 10% of staff” and “10% to 20% of staff.” 86%

9. SHRM Poll: The Ongoing Impact of the Recession—Health Industry ©SHRM 2012 In relation to the U.S. and global recession, would you say your organization's overall financial health is declining or recovering compared with 12 months ago? Health 9

10. SHRM Poll: The Ongoing Impact of the Recession—Health Industry ©SHRM 2012 In relation to the U.S. and global recession, would you say your organization's overall financial health is declining or recovering compared with 12 months ago? Health 10 Manufacturing (19%) …is more likely to be in a significant recovery than... Construction, mining, oil and gas (9%) Federal government (2%) Health (4%) State and local government (1%) Services—professional (10%) Comparisons by industry The manufacturing industry is more likely to be in a significant recovery compared with the construction, mining, oil and gas; federal government; health; state and local governments; and professional services industries. Note: Only statistically significant differences are shown. The finance industry is more likely to be in a mild recovery compared with the federal government, health, state and local governments, and high-tech industries. Finance (46%) …is more likely to be in a mild recovery than... Federal government (5%) Health (23%) State and local government (25%) High-tech (29%)

11. SHRM Poll: The Ongoing Impact of the Recession—Health Industry ©SHRM 2012 In relation to the U.S. and global recession, would you say your organization's overall financial health is declining or recovering compared with 12 months ago? Health 11 Comparisons by industry The federal government is more likely to be in a significant decline compared with the construction, mining, oil and gas; finance; health; manufacturing; state and local governments; professional services; and high-tech industries. Federal government (29%) …is more likely to be in a significant decline than... Construction, mining, oil and gas (7%) Finance (3%) Health (10%) Manufacturing (4%) State and local government (13%) Services—professional (5%) High-tech (4%) Note: Only statistically significant differences are shown. The health industry is more likely to be in a mild recovery compared with the federal government. Health (23%) …is more likely to be in a mild recovery than... Federal government (5%)

12. SHRM Poll: The Ongoing Impact of the Recession—Health Industry ©SHRM 2012 12 Hiring The Ongoing Impact of the Recession: Health

13. SHRM Poll: The Ongoing Impact of the Recession—Health Industry ©SHRM 2012 13 Is your organization currently hiring full-time staff? Health

14. SHRM Poll: The Ongoing Impact of the Recession—Health Industry ©SHRM 2012 Is your organization currently hiring full-time staff? Health 14 Comparisons by industry Note: Only statistically significant differences are shown. The health industry is more likely to be currently hiring full-time staff compared with the construction, mining, oil and gas; federal government; and professional services industries. Health (89%) …is more likely to be currently hiring full-time staff than... Construction, mining, oil and gas (66%) Federal government (68%) Services—professional (71%)

15. SHRM Poll: The Ongoing Impact of the Recession—Health Industry ©SHRM 2012 At what level(s) is your organization hiring? Health 15 Note: n = 72. Percentages do not total 100% due to multiple response options. Only respondents whose organizations were currently hiring full-time staff were asked this question.

16. SHRM Poll: The Ongoing Impact of the Recession—Health Industry ©SHRM 2012 At what level(s) is your organization hiring? Health 16 Comparisons by industry The federal government, professional services and high-tech industries are more likely to be hiring nonmanagement salaried employees compared with the health and manufacturing industries. Federal government (83%) Services—professional (78%) High-tech (91%) …are more likely to be hiring nonmanagement salaried employees than... Health (60%) Manufacturing (64%) The federal government and health industries are more likely to be hiring executive/upper management employees compared with the construction, mining, oil and gas; finance; manufacturing; professional services; and high-tech industries. Federal government (39%) Health (39%) …are more likely to be hiring executive/upper management employees than... Construction, mining, oil and gas (15%) Finance (19%) Manufacturing (20%) Services—professional (18%) High-tech (16%) Note: Only statistically significant differences are shown.

17. SHRM Poll: The Ongoing Impact of the Recession—Health Industry ©SHRM 2012 At what level(s) is your organization hiring? (Continued) Health 17 Comparisons by industry The finance, health, manufacturing, and state and local government industries are more likely to be hiring nonmanagement hourly employees compared with the federal government, professional services and high-tech industries. Finance (77%) Health (89%) Manufacturing (84%) State and local government (80%) …are more likely to be hiring nonmanagement hourly employees than... Federal government (53%) Services—professional (60%) High-tech (51%) Note: Only statistically significant differences are shown.

18. SHRM Poll: The Ongoing Impact of the Recession—Health Industry ©SHRM 2012 18 Which of the following best describes the nature of full-time positions your organization is currently hiring? Health Note: Only respondents whose organizations were currently hiring full-time staff were asked this question.

19. SHRM Poll: The Ongoing Impact of the Recession—Health Industry ©SHRM 2012 Which of the following best describes the nature of full-time positions your organization is currently hiring? Health 19 Health (66%) …is more likely to be hiring direct replacements of jobs lost since the recession began than... High-tech (39%) Comparisons by industry The health industry is more likely to be hiring direct replacements of jobs lost since the recession began compared with the high- tech industry. The high-tech industry is more likely to be hiring for completely new positions compared with federal government, finance, health, and state and local government industries. High-tech (46%) …is more likely to be hiring for completely new positions than... Federal government (21%) Finance (29%) Health (21%) State and local government (12%) Note: Only statistically significant differences are shown.

20. SHRM Poll: The Ongoing Impact of the Recession—Health Industry ©SHRM 2012 20 Recruiting Challenges The Ongoing Impact of the Recession: Health

21. SHRM Poll: The Ongoing Impact of the Recession—Health Industry ©SHRM 2012 21 In general, in the current labor market, is your organization having a difficult time recruiting for specific jobs that are open in your organization? Health Note: n = 66. 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.

22. SHRM Poll: The Ongoing Impact of the Recession—Health Industry ©SHRM 2012 22 Do you believe that your organization is facing global competition (i.e., competition from other countries) for jobs that your organization is having difficulty filling? Health Note: n = 30. Respondents who answered “Don’t know” were excluded from this analysis. Only respondents whose organizations were having a difficult time recruiting for specific types of jobs were asked this question.

23. SHRM Poll: The Ongoing Impact of the Recession—Health Industry ©SHRM 2012 Has your organization hired any workers from outside the U.S. in an attempt to fill key jobs that have been difficult to fill? Health 23 Note: n = 32. Respondents who answered “Don’t know” were excluded from this analysis. Only respondents whose organizations were having a difficult time recruiting for specific types of jobs were asked this question.

24. SHRM Poll: The Ongoing Impact of the Recession—Health Industry ©SHRM 2012 Has your organization hired any U.S. veterans in an attempt to fill key jobs that have been difficult to fill? Health 24 Note: n = 24. Respondents who answered “Don’t know” were excluded from this analysis. Only respondents whose organizations were having a difficult time recruiting for specific types of jobs were asked this question.

25. SHRM Poll: The Ongoing Impact of the Recession—Health Industry ©SHRM 2012 Has your organization hired any U.S. veterans in an attempt to fill key jobs that have been difficult to fill? Health 25 Federal government (96%) …is more likely to have hired U.S. veterans than... Construction, mining, oil and gas (50%) Finance (13%) Health (42%) Manufacturing (44%) State and local government (37%) Services—professional (38%) High-tech (34%) Comparisons by industry The federal government is more likely to have hired U.S. veterans in an attempt to recruit for hard-to-fill jobs compared with the construction, mining, oil and gas; finance; health; manufacturing; state and local governments; professional services; and high-tech industries. Note: Only statistically significant differences are shown. The health industry is more likely to have hired U.S. veterans in an attempt to recruit for hard-to-fill jobs compared with the finance industry. Health (42%) …is more likely to have hired U.S. veterans than... Finance (13%)

26. SHRM Poll: The Ongoing Impact of the Recession—Health Industry ©SHRM 2012 In general, what basic skills/knowledge gaps do job applicants have in your industry? Health 26 Note: n = 28. Percentages do not total 100% due to multiple response options. Only respondents whose organizations were having a difficult time recruiting for specific types of jobs were asked this question.

27. SHRM Poll: The Ongoing Impact of the Recession—Health Industry ©SHRM 2012 In general, what applied skill gaps do job applicants have in your industry? Health 27 Note: n = 30. 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.

28. SHRM Poll: The Ongoing Impact of the Recession—Health Industry ©SHRM 2012 Specific Job Categories for Which Organizations Have Difficulty Recruiting Health Note: Chart 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 specific types of jobs were asked this question. No statistics are provided where the n is less than 20; therefore, the job categories of “production operators” (n = 2), “drivers” (n = 10), “skilled trades” (n = 18), “sales representatives” (n = 5), “engineers” (n = 5) and “scientists” (n = 3) were excluded from this analysis. 28

29. SHRM Poll: The Ongoing Impact of the Recession—Health Industry ©SHRM 2012 29 Demographics The Ongoing Impact of the Recession: Health

30. SHRM Poll: The Ongoing Impact of the Recession—Health Industry ©SHRM 2012 Demographics: Organization Sector Health 30 n = 77

31. SHRM Poll: The Ongoing Impact of the Recession—Health Industry ©SHRM 2012 Demographics: Organization Staff Size Health 31 n = 74

32. SHRM Poll: The Ongoing Impact of the Recession—Health Industry ©SHRM 2012 Demographics: Other Health 32 U.S.-based operations only87% Multinational operations13% Single-unit organization: An organization in which the location and the organization are one and the same 41% Multi-unit organization: An organization that has more than one location 59% Multi-unit headquarters determines HR policies and practices 39% Each work location determines HR policies and practices 4% A combination of both the work location and the multi-unit headquarters determine HR policies and practices 57% 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 both? Does your organization have U.S.- based operations (business units) only or does it operate multinationally? n = 76 n = 79 n = 46 Corporate (companywide)70% Business unit/division7% Facility/location24% Note: n = 46. Percentages do not total 100% due to rounding. What is the HR department/function for which you responded throughout this survey?

33. SHRM Poll: The Ongoing Impact of the Recession—Health Industry ©SHRM 2012 SHRM Poll: The Ongoing Impact of the Recession: Health  Response rate = 5%  Sample composed of 81 randomly selected HR professionals from the health industry in SHRM’s membership  With small sample sizes, the response of one participant can affect the overall results considerably; this issue should be noted when making interpretations of the data, particularly when interpreting small percentage differences.  Survey fielded August 18-September 2, 2011 33 Methodology Project leader: Tanya A. Mulvey, survey research analyst, SHRM Research Project contributors: Mark Schmit, Ph.D., SPHR, vice president, SHRM Research Evren Esen, manager, SHRM Research Copy editor: Katya Scanlan, SHRM Knowledge Center 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 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