SHRM Survey Findings: Changing Employee Skills and Education Requirements—Education Levels of Today’s Workforce In collaboration with and commissioned by Achieve October 3, 2012

Introduction This is the second part of a series of SHRM/Achieve survey findings titled “Changing Employee Skills and Education Requirements.” These results look at the education levels of today’s workforce. The following nine industries were included in the sample. Overall results are reported first, followed by industry-specific results for the following industries: Construction, mining, oil and gas Federal government Finance Health High-tech Manufacturing Professional services State and local government Nonprofessional services SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Education Levels of Today’s Workforce ©SHRM 2012

Key Findings Are jobs being filled by people with more educational qualifications than are actually required by their positions? To some extent, yes. Overall, organizations across all industries report that most jobs are held by individuals with educational credentials closely matched to those required by the job. Slightly more individuals possess additional educational credentials than what is needed for jobs with no minimum education requirements, as well as for jobs requiring an advanced degree.   What industries have the highest percentage of advanced degree holders? Professional services (20%), the federal government (16%), high-tech (15%) and health (13%) industries have the greatest percentage of employees who hold advanced degrees (e.g., master’s, MBA, Ph.D., M.D., J.D.). Did most industries have job openings in 2011? Yes, almost all organizations—96% overall—said they had job openings in 2011. The top industries hiring were health (99%), finance (97%) and high-tech (97%). Were there industries that had jobs available in 2011 with no minimum education requirements? A few industries do still offer a few jobs with no minimum education requirements: nonprofessional services (21%), construction, mining, oil and gas (19%), and manufacturing (12%). However, in all other industries, fewer than 10% of job openings in 2011 had no minimum educational requirements (see slide 15). How often are newly hired employees’ educational credentials actually higher than the minimum education listed in the job announcement? Across industries, more than one-half (53%) say this occurs at least some of the time for jobs that require a minimum of a high school diploma, and 30% say this happens most of the time. Industries that are most likely to say that most or all of the time newly hired employees’ educational credentials are actually higher than the minimum education listed in the job announcement were high-tech (48%), professional services (46%) and the federal government (41%). SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Education Levels of Today’s Workforce ©SHRM 2012

What percentage of your organization’s positions that are currently filled require the following education credentials? What percentage of your organization’s current full-time equivalent employees (FTEs) actually possess these educational credentials? All Industries Note: Percentages may not total 100% due to rounding. SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Education Levels of Today’s Workforce ©SHRM 2012

What percentage of your organization’s positions that are currently filled require the following education credentials? What percentage of your organization’s current full-time equivalent employees (FTEs) actually possess these educational credentials? Construction, Mining, Oil and Gas Note: Percentages do not total 100% due to rounding. SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Education Levels of Today’s Workforce ©SHRM 2012

What percentage of your organization’s positions that are currently filled require the following education credentials? What percentage of your organization’s current full-time equivalent employees (FTEs) actually possess these educational credentials? Federal Government SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Education Levels of Today’s Workforce ©SHRM 2012

What percentage of your organization’s positions that are currently filled require the following education credentials? What percentage of your organization’s current full-time equivalent employees (FTEs) actually possess these educational credentials? Finance Note: Percentages do not total 100% due to rounding. SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Education Levels of Today’s Workforce ©SHRM 2012

What percentage of your organization’s positions that are currently filled require the following education credentials? What percentage of your organization’s current full-time equivalent employees (FTEs) actually possess these educational credentials? Health Note: Percentages do not total 100% due to rounding. SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Education Levels of Today’s Workforce ©SHRM 2012

What percentage of your organization’s positions that are currently filled require the following education credentials? What percentage of your organization’s current full-time equivalent employees (FTEs) actually possess these educational credentials? High-tech Note: Percentages do not total 100% due to rounding. SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Education Levels of Today’s Workforce ©SHRM 2012

What percentage of your organization’s positions that are currently filled require the following education credentials? What percentage of your organization’s current full-time equivalent employees (FTEs) actually possess these educational credentials? Manufacturing SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Education Levels of Today’s Workforce ©SHRM 2012

What percentage of your organization’s positions that are currently filled require the following education credentials? What percentage of your organization’s current full-time equivalent employees (FTEs) actually possess these educational credentials? Nonprofessional Services Note: Percentages do not total 100% due to rounding. SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Education Levels of Today’s Workforce ©SHRM 2012

What percentage of your organization’s positions that are currently filled require the following education credentials? What percentage of your organization’s current full-time equivalent employees (FTEs) actually possess these educational credentials? Professional Services SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Education Levels of Today’s Workforce ©SHRM 2012

What percentage of your organization’s positions that are currently filled require the following education credentials? What percentage of your organization’s current full-time equivalent employees (FTEs) actually possess these educational credentials? State/Local Government Note: Percentages do not total 100% due to rounding. SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Education Levels of Today’s Workforce ©SHRM 2012

Did your organization have any job openings in 2011? Note: Percentages represent respondents who answered “yes”. SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Education Levels of Today’s Workforce ©SHRM 2012

Of your organization’s job openings in 2011, what percentage of the positions: All Industries (n = 3,525) Construction, Mining, Oil and Gas (n = 360) Federal Government (n = 205) Finance (n = 380) Health (n = 456) High-tech (n = 335) Manufac-turing (n = 435) Non-professional Services (n = 254) Professional Services (n = 525) State/Local Government (n = 575) Had no minimum education requirements? 8% 19% 7% 3% 12% 21% 5% Required a high school diploma or equivalent only? 36% 33% 30% 52% 15% 47% 44% 45% Required a specific postsecondary certificate/ credential(s) only? 10% 9% 4% 6% Required an associate’s degree? 13% Required a bachelor’s degree? 31% 35% 34% 27% 65% 29% 22% 51% Required an advanced degree (e.g., master’s, Ph.D., M.D., JD.)? 2% Note: Percentages may not total 100% due to rounding. Only respondents whose organizations had job openings in 2011 were asked this question. SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Education Levels of Today’s Workforce ©SHRM 2012

For current job openings that require a minimum of a high school diploma or equivalent, how often are the newly hired employees’ educational credentials actually higher than the minimum education listed in the job announcement? Note: Percentages may not total 100% due to rounding. Respondents who answered “Not sure” or “Not applicable” were excluded from this analysis. Industries are sorted in descending order by the “Most of the time” response option. SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Education Levels of Today’s Workforce ©SHRM 2012

Of those newly hired employees who had higher than a high school diploma or equivalent, what percentage have had the following education credentials? Note: Percentages may not total 100% due to rounding. Industries are sorted in descending order by the “Specific postsecondary certificate/credential(s) only” response option. SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Education Levels of Today’s Workforce ©SHRM 2012

Changing Employee Skills and Education Requirements SHRM Survey Findings: Changing Employee Skills and Education Requirements In collaboration with and commissioned by Achieve Survey Methodology Response rate = 18% 4,695 HR professional respondents from a randomly selected sample of nine different industries in SHRM’s membership Construction, mining, oil and gas = 491 Federal government = 356 Finance = 530 Health = 526 High-tech = 447 Margin of error +/-1% Survey fielded March 28-April 30, 2012 Manufacturing = 526 Professional services = 492 State and local government = 848 Non-professional services = 479 SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Education Levels of Today’s Workforce ©SHRM 2012

Changing Employee Skills and Education Requirements SHRM Survey Findings: Changing Employee Skills and Education Requirements About SHRM Research For more survey/poll findings, visit www.shrm.org/surveys For more information about SHRM’s Customized Research Services, visit www.shrm.org/customizedresearch Follow us on Twitter @SHRM_Research SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Education Levels of Today’s Workforce ©SHRM 2012