SHRM Survey Findings: Changing Employee Skills and Education Requirements—Minimum Education Requirements In collaboration with and commissioned by Achieve.

SHRM Survey Findings: Changing Employee Skills and Education Requirements—Minimum Education Requirements In collaboration with and commissioned by Achieve October 3, 2012

Introduction This is the first part of a series of SHRM/Achieve survey findings titled “Changing Employee Skills and Education Requirements.” These results look at the minimum education requirements for current, recently hired and future full-time equivalent (FTE) employees. 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—Minimum Education Requirements ©SHRM 2012

Key Findings Are organizations projecting that future jobs will require even more skills, education and credentials? Yes, organizations across all industries are projecting that future jobs at all levels will require more skills, education and credentials/certifications. Where are middle-skill job requirements changing the most? The largest differences between current levels and future requirements in skilled labor and administrative/secretarial—key areas for mid-skilled jobs—were in manufacturing. Across industries, 31% of organizations forecast the need for postsecondary certificates or credentials for future skilled labor positions compared with 26% of organizations whose current workers in those jobs hold such qualifications. Where are the greatest changes in current levels and future education expectations for administrative/ secretarial jobs? Industries across the board show a projected increase in educational requirements for administrative/secretarial positions. For these positions, organizations are forecasting a much higher need for job candidates with associate’s degrees: 21% for future workers compared with 12% with such degrees in the current workforce. The industries with the largest difference between current and future education requirements were manufacturing, nonprofessional services, federal government, health, and state and local government. Will there still be jobs that do not have minimum education requirements? Even lower-skilled jobs are likely to have minimum education requirements, with 71% of organizations forecasting a requirement for a high school diploma and 7% expecting a specific post-secondary certificate/credential or an associate’s degree for such jobs. SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Minimum Education Requirements ©SHRM 2012

Key Findings Will more professional jobs require advanced degrees? Overall, the answer is no, but it depends on the industry. Organizations in most industries project future education requirements for salaried individual contributors and professional jobs to level off at the bachelor’s degree level (71%), with only 5% forecasting requirements for advanced degrees for these types of jobs. The federal government is slightly more likely than other industries to project a need for advanced degrees in these jobs (13%). What industries are forecasting increased demand for managers with advanced degrees? Organizations are most likely to project an increased need for advanced degree holders in management jobs in the following industries: federal government (26%), health (20%), professional services (23%), and state and local government (17%). What about minimum educational requirements for executives (e.g. ,CEO, CFO, VP)—are those expected to change? Yes, organizations across industries are projecting an increased need for advanced degree holders for their future executive positions (48% say they will have this requirement for future executives, compared with only 38% who report that current executive-level positions have advanced degree as a minimum education requirement). SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Minimum Education Requirements ©SHRM 2012

What is your organization’s minimum education level for full-time equivalent employees? All Industries Note: Percentages may not total 100% due to rounding. Respondents who answered "Not applicable, no jobs in this category" were excluded from this analysis. “Current” refers to current full-time equivalent employees; “Recent” refers to recently hired full-time equivalent employees; and “Future” refers to forecasted needs for future workforce (next 3-5 years). SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Minimum Education Requirements ©SHRM 2012

What is your organization’s minimum education level for full-time equivalent employees? Construction, Mining, Oil and Gas Note: Percentages may not total 100% due to rounding. Respondents who answered "Not applicable, no jobs in this category" were excluded from this analysis. “Current” refers to current full-time equivalent employees; “Recent” refers to recently hired full-time equivalent employees; and “Future” refers to forecasted needs for future workforce (next 3-5 years). SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Minimum Education Requirements ©SHRM 2012

What is your organization’s minimum education level for full-time equivalent employees? Federal Government Note: Percentages may not total 100% due to rounding. Respondents who answered "Not applicable, no jobs in this category" were excluded from this analysis. “Current” refers to current full-time equivalent employees; “Recent” refers to recently hired full-time equivalent employees; and “Future” refers to forecasted needs for future workforce (next 3-5 years). SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Minimum Education Requirements ©SHRM 2012

What is your organization’s minimum education level for full-time equivalent employees? Finance
Note: Percentages may not total 100% due to rounding. Respondents who answered "Not applicable, no jobs in this category" were excluded from this analysis. “Current” refers to current full-time equivalent employees; “Recent” refers to recently hired full-time equivalent employees; and “Future” refers to forecasted needs for future workforce (next 3-5 years). SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Minimum Education Requirements ©SHRM 2012

What is your organization’s minimum education level for full-time equivalent employees? Health

What is your organization’s minimum education level for full-time equivalent employees? High-tech

What is your organization’s minimum education level for full-time equivalent employees? Manufacturing Note: Percentages may not total 100% due to rounding. Respondents who answered "Not applicable, no jobs in this category" were excluded from this analysis. “Current” refers to current full-time equivalent employees; “Recent” refers to recently hired full-time equivalent employees; and “Future” refers to forecasted needs for future workforce (next 3-5 years). SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Minimum Education Requirements ©SHRM 2012

What is your organization’s minimum education level for full-time equivalent employees? Non-professional Services Note: Percentages may not total 100% due to rounding. Respondents who answered "Not applicable, no jobs in this category" were excluded from this analysis. “Current” refers to current full-time equivalent employees; “Recent” refers to recently hired full-time equivalent employees; and “Future” refers to forecasted needs for future workforce (next 3-5 years). SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Minimum Education Requirements ©SHRM 2012

What is your organization’s minimum education level for full-time equivalent employees? Professional Services Note: Percentages may not total 100% due to rounding. Respondents who answered "Not applicable, no jobs in this category" were excluded from this analysis. “Current” refers to current full-time equivalent employees; “Recent” refers to recently hired full-time equivalent employees; and “Future” refers to forecasted needs for future workforce (next 3-5 years). SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Minimum Education Requirements ©SHRM 2012

What is your organization’s minimum education level for full-time equivalent employees? State/Local Government Note: Percentages may not total 100% due to rounding. Respondents who answered "Not applicable, no jobs in this category" were excluded from this analysis. “Current” refers to current full-time equivalent employees; “Recent” refers to recently hired full-time equivalent employees; and “Future” refers to forecasted needs for future workforce (next 3-5 years). SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Minimum Education Requirements ©SHRM 2012

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—Minimum Education Requirements ©SHRM 2012

SHRM Survey Findings: Changing Employee Skills and Education Requirements
About SHRM Research For more survey/poll findings, visit For more information about SHRM’s Customized Research Services, visit Follow us on SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Minimum Education Requirements ©SHRM 2012

SHRM Survey Findings: Changing Employee Skills and Education Requirements—Minimum Education Requirements In collaboration with and commissioned by Achieve.

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