The Ongoing Impact of the Recession—Health Industry

SHRM Poll: The Ongoing Impact of the
Recession—Health Industry

August 28, 2012

The Ongoing Impact of the Recession:
Health

Introduction
Key Findings
Organizations’ Financial Health
Hiring
Recruiting Challenges
Demographics
Methodology

SHRM Poll: The Ongoing Impact of the Recession—Health Industry ©SHRM 2012
2

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

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

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

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

Health

Organizations’ Financial Health

7

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

Not applicable—did not lay off any 33% 2011 (n = 80)
staff 2010 (n = 143)
40% 86%
1% to 5% of staff

13%
6% to 10% of staff

10% or less (2011 data) 86%
*Less than 10% (2010 data) 83%

11% to 20% of staff (2011 data) 9%
* 10% to 20% (2010 data) 13%

6%
21% to 50% of staff
4%

0%
More than 50% of staff
0%

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.”
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?
Health

4% 2011 (n = 81)
In a significant recovery
8% 2010 (n = 143)

23%
In a mild recovery
36%

27%
No change compared with 12 months ago
22%

36%
In a mild decline
27%

10%
In a significant decline
7%

9

Health
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.

Construction, mining, oil and gas (9%)
…is more likely to Federal government (2%)
Manufacturing (19%) be in a significant recovery Health (4%)
than... State and local government (1%)
Services—professional (10%)

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.

Federal government (5%)
…is more likely to
Health (23%)
Finance (46%) be in a mild recovery
State and local government (25%)
than...
High-tech (29%)

Note: Only statistically significant differences are shown.
10

Health

The health industry is more likely to be in a mild recovery compared with the federal government.

Health (23%) be in a mild recovery Federal government (5%)
than...

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.

Finance (3%)
…is more likely to Health (10%)
Federal government (29%) be in a significant decline Manufacturing (4%)
High-tech (4%)

11

Health

Hiring

12

Is your organization currently hiring full-time staff?
Health

89%
Yes
84%

2011 (n = 81)
2010 (n = 142)

11%
No
16%

13

Is your organization currently hiring full-time staff?
Health


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.

…is more likely to Construction, mining, oil and gas (66%)
Health (89%) be currently hiring full-time staff Federal government (68%)
than... Services—professional (71%)

14

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

Nonmanagement hourly employees 89%

Other management (e.g., directors, managers) 61%

Nonmanagement salaried employees 60%

Executive/upper management (e.g., CEO, CFO) 39%

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.
15

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


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.

…are more likely to
Finance (19%)
Federal government (39%) be hiring executive/upper
Manufacturing (20%)
Health (39%) management employees
than...
High-tech (16%)

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.

…are more likely to
be hiring nonmanagement salaried Health (60%)
employees Manufacturing (64%)
High-tech (91%)
than...


16

At what level(s) is your organization hiring? (Continued)
Health


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%) …are more likely to
Health (89%) be hiring nonmanagement hourly
Manufacturing (84%) employees
High-tech (51%)
State and local government (80%) than...


17

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

21%
Completely new positions
41%

13%
New duties added to jobs lost (e.g., due to 2011 (n = 71)
layoffs, attrition) since the recession began 2010 (n = 114)
9%

66%
Direct replacements of jobs lost (e.g., due to
layoffs, attrition) since the recession began
50%

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

18

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


The health industry is more likely to be hiring direct replacements of jobs lost since the recession began compared with the high-
tech industry.

be hiring direct replacements of jobs
Health (66%) High-tech (39%)
lost since the recession began
than...

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.

…is more likely to Federal government (21%)
be hiring for completely new Finance (29%)
High-tech (46%)
positions Health (21%)


19

Health

Recruiting Challenges

20

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

Yes, 50%
No, 50%

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.
21

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

Yes, 27%

No, 73%

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.
22

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

No 78%

Yes 22%

No, but we are
0%
considering it

No, but we have
plans to do so in
0%
the next 12
months


23

Has your organization hired any U.S. veterans in an attempt to fill key
jobs that have been difficult to fill?
Health

No 50%

Yes 42%

No, but we are
8%
considering it

No, but we have
plans to do so in the 0%
next 12 months


24

Has your organization hired any U.S. veterans in an attempt to fill key
jobs that have been difficult to fill?
Health

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.

Finance (13%)
…is more likely to Health (42%)
Federal government (96%) have hired U.S. veterans Manufacturing (44%)
High-tech (34%)

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%) have hired U.S. veterans Finance (13%)
than...


25

In general, what basic skills/knowledge gaps do job applicants have in
your industry?
Health

Writing in English (grammar, spelling, etc.) 57%

Reading comprehension (in English) 39%

English language (spoken) 32%

Mathematics (computation) 29%

Science 21%

Foreign languages 14%

Government/economics 11%

Technical (computer, engineering, mechanical, etc.) 7%

Humanities/arts 4%

History/geography 0%

Other 14%

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.
26

In general, what applied skill gaps do job applicants have in your
industry?
Health

Professionalism/work ethic 73%
Critical thinking/problem solving 70%
Information technology application 57%
Oral communications 57%
Teamwork/collaboration 57%
Written communications 47%
Leadership 43%
Ethics/social responsibility 37%
Creativity/innovation 23%
Diversity 23%
Lifelong learning/self-direction 20%
Other 7%

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.
27

Specific Job Categories for Which Organizations Have Difficulty Recruiting
Health

High-skilled medical (n = 28) 90%

High-skilled technical (e.g., technicians, programmers) (n = 26) 69%

Managers and executives (n = 32) 69%

Accounting and finance professionals (n = 25) 60%

HR professionals (n = 24) 46%

Hourly laborers (n = 22) 27%

Customer service representatives (n = 20) 20%

Administrative support staff (n = 30) 17%

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

Health

Demographics

29

Demographics: Organization Sector
Health

Nonprofit 70%

Privately owned for-profit 21%

Publicly owned for-profit 9%

Government 0%

Other 0%

n = 77

30

Demographics: Organization Staff Size
Health

1 to 99 employees 9%

100 to 499 employees 20%

500 to 2,499 employees 26%

2,500 to 24,999 employees 45%

25,000 or more employees 0%

n = 74

31

Demographics: Other
Health

Does your organization have U.S.- Is your organization a single-unit organization
based operations (business units) only or a multi-unit organization?
or does it operate multinationally? Single-unit organization: An organization in
which the location and the organization are 41%
U.S.-based operations only 87% one and the same

Multinational operations 13% Multi-unit organization: An organization
59%
that has more than one location
n = 76
n = 79

For multi-unit organizations, are HR policies and
What is the HR department/function practices determined by the multi-unit
for which you responded throughout headquarters, by each work location or both?
this survey?
Multi-unit headquarters determines HR
39%
policies and practices
Corporate (companywide) 70%
Each work location determines HR policies
Business unit/division 7% 4%
and practices

Facility/location 24% A combination of both the work location
and the multi-unit headquarters determine 57%
Note: n = 46. Percentages do not total 100% due to
rounding.
HR policies and practices

n = 46

32

SHRM Poll: The Ongoing Impact of the Recession:
Health

Methodology
 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

For more poll findings, visit www.shrm.org/surveys
Follow us on Twitter: http://twitter.com/SHRM_Research
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
33

The Ongoing Impact of the Recession—Health Industry

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