SHRM Recession Poll 2011

SHRM Poll: The Ongoing Impact of the
Recession—Overall Financial Health
and Hiring
November 22, 2011

Introduction

 This is part one of a series of SHRM poll results about the ongoing impact of the
recession. Overall results will be reported separately in three different topic areas:
 Recruiting and skill gaps.
 Overall financial health and hiring.
 Global competition and hiring strategies.

 Industry-specific results will be reported separately for each of the eight industries
that were included in the sample:
 Construction, oil, mining and gas.
 Federal government.
 Finance.
 Health.
 Manufacturing.
 State and local government.
 Services—professional.
 High-tech.

SHRM Poll: The Ongoing Impact of the Recession—Overall Financial Health and Hiring ©SHRM 2011
2

Key Findings

 What percentage of staff have organizations laid off since the U.S. and global
recession began in December 2007? Overall, 77% of organizations indicated they
had lost 10% of employees or less in 2011, whereas in 2010 65% of organizations
reported losing less than 10% of employees.

 How does organizations’ financial health compare to where it was 12 months ago?
Results in 2011 were very similar to 2010 results. Two-thirds of organizations
reported either no change (24% in 2011, 25% in 2010) or experiencing a mild to
significant recovery (42% in 2011 and 2010), while one-third were in a mild (26% in
2011, 24% in 2010) or significant decline (8% in 2011, 9% in 2011).

3

Key Findings

 Are organizations currently hiring? Nearly three out of four organizations (73%)
were currently hiring full-time permanent staff. Larger organizations (500 to 24,999
employees) were more likely to be hiring compared with smaller organizations (1 to
499 employees).

 For what type of positions are organizations hiring? Most hiring is at
nonmanagement levels (72% for hourly and 71% for salaried positions), and more
than one-half (54%) of organizations are hiring for management positions such as
directors and managers. About one out of five organizations (22%) is hiring at the
executive/upper management level.

4

Key Findings

 Are organizations creating new positions or replacing jobs lost? In 2011, more
organizations (58%) are mainly hiring direct replacements of jobs lost than they
were in 2010 (41%), while fewer organizations (30%) are hiring for completely new
positions in 2011 than they were in 2010 (47%). The proportion of organizations
that are adding new duties to the jobs lost has remained unchanged at 12%. The
smallest organizations (1 to 99 employees) are more likely to be hiring for
completely new positions than are larger organizations (100 or more employees).

 Do completely new positions require new and different skill sets compared with
the skills required for the jobs lost since the recession began? More than one-half
(57%) of organizations require a mixture of new skills and the same type of skills for
new positions, whereas 15% require completely new and different skill sets and
28% require approximately the same types of skills as those required before the
recession. When these positions required at least some new skills, 63% of
organizations reported difficulty recruiting, especially among small organizations (1
to 99 employees).

5

Thus far, what percentage of full-time permanent jobs have been lost at
your organization since the U.S. and global recession began in
December 2007?

31% 2011 (n=2,273)
Not applicable—did not lay off any staff
2010 (n=2,342)
28%
1% to 5% of staff

18%
6% to 10% of staff

10% or less (2011 data) 77%
*Less than 10% (2010 data) 65%

11% to 20% of staff (2011 data) 12%
* 10% to 20% (2010 data) 22%

9%
21% to 50% of staff
11%

3%
More than 50% of staff
2%

Note: Percentages may not total 100% due to rounding. *2010 data had different categories than 2011 data: “Less than 10% of staff” and “10% to 20% of
staff”.
6

December 2007?

Comparisons by industry

The federal government and the finance industry are more likely to have had no layoffs than the construction, mining, oil and
gas, manufacturing, state and local government, professional services, and high-tech industries.

Construction, mining, oil and gas (20%)
…are more likely to Manufacturing (21%)
Federal government (46%)
have had NO layoffs State and local government (31%)
Finance (45%)
than... Services—professional (30%)
High-tech (29%)

The construction, mining, oil and gas industry is more likely to have lost more than 50% of staff than the federal
government, finance, manufacturing, and professional services industries.

…is more likely to
Finance (0%)
Construction, mining, oil and gas (10%) have lost more than 50% of staff
Manufacturing (2%)
than...
Services—professional (2%)

7

December 2007?

Comparisons by organization staff size
Smaller organizations (1 to 499 employees) are more likely than larger organizations (500 to 24,999 employees) to have had NO
layoffs.

Smaller organizations Larger organizations Differences based on organization staff size

1 to 99 employees (37%) 500 to 2,499 employees (24%)
Smaller organizations > larger organizations
100 to 499 employees (34%) 2,500 to 24,999 employees (25%)

Smaller organizations (1 to 99 employees) are more likely than larger organizations (100 to 24,999 employees) to have laid off more
than 50% of staff.


100 to 499 employees (2%)
1 to 99 employees (6%) 500 to 2,499 employees (1%) Smaller organizations > larger organizations
2,500 to 24,999 employees (1%)

8

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?

9% 2011 (n=2,277)
In a significant recovery
7% 2010 (n=2,333)

33%
In a mild recovery
35%

24%
No change compared with 12 months ago
25%

26%
In a mild decline
24%

8%
In a significant decline
9%

9

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?


The construction, mining, oil and gas, finance, manufacturing, services—professional, and high-tech industries are more likely to be
in a significant recovery than the federal government and state and local governments.

Finance (11%) …are more likely to
Manufacturing (19%) be in a significant recovery
State and local government (1%)
Services—professional (11%) than...
High-tech (14%)

The finance industry is more likely to be in a mild recovery than the federal government, health, state and local government, and
high-tech industries.

Health (23%)
Finance (46%) be in a mild recovery
than...
High-tech (29%)

10

Is your organization currently hiring full-time permanent staff?

No, 27%

Yes, 73%

Note: n = 2,286.

11

Is your organization currently hiring full-time permanent staff?

The health industry is more likely to be currently hiring full-time staff than the construction, mining, oil and gas, federal
government, and professional services industries.

…is more likely to Construction, mining, oil and gas (66%)
Health (88%) be currently hiring full-time staff Federal government (66%)

The high-tech industry is more likely to be currently hiring full-time staff than the construction, mining, oil and gas, and federal
government industries.

High-tech (80%) be currently hiring full-time staff
than...

Larger organizations (500 to 24,999 employees) are more likely than smaller organizations (1 to 499 employees) to be currently
hiring full-time staff.


Larger organizations > smaller organizations

12

At what level(s) is your organization hiring?

Nonmanagement hourly employees 72%

Nonmanagement salaried employees 71%

Other management (e.g., directors, managers) 54%

Executive/upper management (e.g., CEO, CFO) 22%

Note: n = 1,660. Percentages do not total 100% because respondents were able to select multiple response options. Only respondents whose organizations
were currently hiring full-time staff were asked this question.
13

At what level(s) is your organization hiring?

The health industry is more likely to be hiring executive/upper management employees than the construction, mining, oil and
gas, finance, manufacturing, professional services, and high-tech industries.

Finance (20%)
be hiring executive/upper
Health (40%) Manufacturing (20%)
management staff
than...
High-tech (16%)

The high tech industry is more likely to be hiring nonmanagement salaried employees than the construction, mining, oil and
gas, federal government, finance, health, manufacturing, state and local government, and professional services industries.

Finance (68%)
be hiring nonmanagement salaried
High-tech (91%) Health (60%)
employees
Manufacturing (64%)
than...

14

At what level(s) is your organization hiring? (continued)


The finance, health, manufacturing, and state and local government industries are more likely to be hiring nonmanagement hourly
employees than the federal government, professional services and high-tech industries.

Finance (77%) …are more likely to
Health (90%) be hiring non-management hourly
Manufacturing (85%) employees
High-tech (51%)
State and local government (79%) than...


Larger organizations (500 to 24,999 employees) are more likely than smaller organizations (1 to 499 employees) to be hiring
executive/upper management staff.


Larger organizations > smaller organizations

15

At what level(s) is your organization hiring? (continued)

Larger organizations (500 to 25,000 or more employees) are more likely than smaller organizations (1 to 499 employees) to be hiring
other management-level employees (e.g., directors, managers).


500 to 2,499 employees (61%)
2,500 to 24,999 employees (70%) Larger organizations > smaller organizations
25,000 or more employees (71%)

Larger organizations (2,500 to 24,999 employees) are more likely than smaller organizations (1 to 2,499 employees) to be hiring
nonmanagement salaried employees.


100 to 499 employees (66%) 2,500 to 24,999 employees (85%) Larger organizations > smaller organizations
500 to 2,499 employees (74%)

16

Which of the following best describes, in general, the nature of full-time
positions your organization is currently hiring?

30%
Completely new positions
47%

12%
New duties added to jobs lost (e.g., due to 2011 (n=1,640)
layoffs, attrition) since the recession began 2010 (n=1,378)
12%

58%
Direct replacements of jobs lost (e.g., due to
layoffs, attrition) since the recession began
41%

Note: Only respondents whose organizations were currently hiring full-time staff were asked this question.

17


The state and local governments are more likely to be hiring direct replacements of jobs lost since the recession began than the
construction, mining, oil and gas, federal government, finance, manufacturing, professional services, and high-tech industries.

…are more likely to Federal government (63%)
be hiring direct replacements of jobs Finance (60%)
State and local governments (80%)
lost since the recession began Manufacturing (54%)
High-tech (39%)

The high-tech industry is more likely to be hiring for completely new positions than the federal government, finance, health, and
state and local government industries.

…is more likely to Federal government (27%)
be hiring for completely new Finance (29%)
High-tech (46%)
positions Health (21%)
than... State and local government (13%)

18


Larger organizations (500 to 24,999 employees) are more likely than smaller organizations (1 to 99 employees) to be hiring direct
replacements of positions lost since the recession began.


500 to 2,499 employees (60%)
1 to 99 employees (48%) Larger organizations > smaller organizations
2,500 to 24,999 employees (63%)

Smaller organizations (1 to 99 employees) are more likely than larger organizations (100 to 25,000 or more employees) to be hiring
for completely new positions.


500 to 2,499 employees (25%)
1 to 99 employees (43%) Smaller organizations > larger organizations
2,500 to 24,999 employees (24%)
25,000 or more employees (22%)

19

Compared with the skills required for jobs lost since the recession began,
do these completely new positions require any of the following skills?

Completely new and different skills 15%

A mixture of new skills and the same
57%
types of skills

Approximately the same types of
28%
skills

Note: n = 467. Only respondents whose organizations were hiring full-time staff for “completely new positions” were asked this question.

20

Compared with the skills required for jobs lost since the recession began,
do these completely new positions require any of the following skills?

Approximately the same types of skills for completely new positions
Smaller organizations (1 to 99 employees) are more likely than larger organizations (100 to 24,999 employees) to require
approximately the same types of skills for completely new positions.


1 to 99 employees (45%) 500 to 2,499 employees (17%) Smaller organizations > larger organizations
2,500 to 24,999 employees (22%)

A mixture of new skills and the same types of skills for completely new positions
Larger organizations (100 to 24,999 employees) are more likely than smaller organizations (1 to 99 employees) to require a mixture
of new skills and the same types of skills for completely new positions.


1 to 99 employees (40%) 500 to 2,499 employees (68%) Larger organizations > smaller organizations
2,500 to 24,999 employees (62%)

21

If the new jobs being created by your organization require new and
different skill sets, how easy or difficult do you think it will be or has it
been thus far to find qualified individuals for those positions?

5%
Very easy 2011 (n=528)
16%
2010 (n=749)

32%
Somewhat easy
45%

56%
Somewhat difficult
36%

7%
Very difficult
3%

Note: 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.

22

If the new jobs being created by your organization require new and
different skill sets, how easy or difficult do you think it will be or has it
been thus far to find qualified individuals for those positions?

Smaller organizations (1 to 99 employees) are more likely than larger organizations (500 to 24,999 employees) to report that it will
be or has been very difficult to find qualified individuals for jobs requiring new and different skill sets.


500 to 2,499 employees (3%)
1 to 99 employees (18%) Smaller organizations > larger organizations
2,500 to 24,999 employees (3%)

23

Demographics: Organization Industry

State and local government 20%

Manufacturing 16%

Finance 15%

Services--professional 14%

Construction, mining, oil and gas 14%

High-tech 10%

Federal government 8%

Health 4%

Note: n = 2,286. Percentages do not total 100% due to rounding.

24

Demographics: Organization Sector

Publicly owned for-profit organization 19%

Privately owned for-profit organization 47%

Nonprofit organization 8%

Government sector 24%

Other 2%

Note: n = 2,187.

25

Demographics: Organization Staff Size

31%
25%
23%
17%

4%

1 to 99 employees 100 to 499 employees 00 to 2,499 employees to 24,999 employees or more employees
5 2,500 25,000
Note: n = 2,161.

26

Demographics: Other

Does your organization have U.S.- Is your organization a single-unit company or a
based operations (business units) only multi-unit company?
or does it operate multi-nationally? Single-unit company: A company in which
the location and the company are one 38%
U.S.-based operations only 74% and the same.
Multi-unit company: A company that has
Multinational operations 26% 62%
more than one location.
n = 2,196. n = 2,226.

Are HR policies and practices determined by the
multi-unit corporate headquarters, by each work
HR department/function for which location or both?
you responded throughout this survey Multi-unit headquarters determines HR policies
52%
and practices
Corporate (company wide) 69%
Each work location determines HR policies and
Business unit/division 19% 3%
practices

Facility/location 12% A combination of both the work location and the
multi-unit headquarters determine HR policies 44%
n = 1,444.
and practices

n = 1,442.
Note: Percentages may not total 100% due to rounding.

27

SHRM Poll: The Ongoing Impact of the Recession

Methodology

 Response rate = 11%

 Sample composed of 2,286 randomly selected HR
professionals from eight different industries in SHRM’s
membership

 Margin of error +/- 2%

 Survey fielded August 18-September 2, 2011

For more poll findings, visit www.shrm.org/surveys
Follow us on Twitter: http://twitter.com/SHRM_Research

28

SHRM Recession Poll 2011

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