1. SHRM Poll October 30, 2008 SHRM Poll – Layoffs in light of 2008 challenges to the U.S. economy October 30, 2008

2. ©SHRM 2008SHRM Poll October 30, 20082 The Impact of 2008 U. S. Economy on Businesses

3. ©SHRM 2008SHRM Poll October 30, 20083 Within the past 12 months, what steps, if any, has your organization taken to cut costs related to staffing? Attrition72% Hiring freeze48% Did not renew contracts with existing contract/temporary/contingent workers21% Encouraged employees to use vacation time18% Reduced employee work hours17% Hired more contract/temporary/contingent workers12% Retraining of employees for new positions in organization10% Reduction in employee benefits offerings10% Organization wide workweek reductions9% Shut down business for short periods at a time7% Offered early retirement to employees6% Offered job sharing5% Salary reductions5% Salary freeze3% Reduced/eliminated overtime3% Other4% Note: Percentages do not total 100% as multiple response options were allowed.

4. ©SHRM 2008SHRM Poll October 30, 20084 Within the past 12 months, what steps, if any, has your organization taken to cut costs related to staffing? Overall (n = 433) Differences Based on Organization Staff Size Differences Based on Organization Sector Attrition72%Large > small Public owned organization >nonprofit, privately owned organization, government agency Hiring freeze48%-- Privately owned organization >nonprofit organization Did not renew contracts with existing contractors/temporary/contingent workers 21%Large > small, medium Public owned organization >privately owned organization Encouraged employees to use vacation time 18% -- Privately owned organization >nonprofit organization

5. ©SHRM 2008SHRM Poll October 30, 20085 Within the past six months, which of the following do you consider to be the MAJOR factors negatively impacting the financial stability of your organization? Decreased demand for products/services64% Volatility in world financial markets38% Health care costs34% Fluctuations in the value of the U.S. dollar28% Organizational restructuring24% Loss of government contracts or other contracts20% Increased domestic competition18% Global competition12% Reduction in ability to secure credit for business13% Corporate mergers/acquisitions11% Difficulty attracting investors8% Pension liabilities7% Reduction in federal/state funding7% Fuel cost3% Housing market3% Other5% Note: Respondents who answered “Not applicable” were excluded from this analysis. Respondents were asked to “select their top three major factors.” Percentages do not total 100% as multiple response options were allowed.

6. ©SHRM 2008SHRM Poll October 30, 20086 Within the past six months, which of the following do you consider to be the MAJOR factors negatively impacting the financial stability of your organization? Overall (n = 393) Differences Based on Organization Sector Differences Based on Organization Region Decreased demand for products/services 64% Public owned organization >nonprofit organization, government agency Privately owned organization >nonprofit organization, government agency -- Volatility in world financial market 38% Public owned organization >government agency Privately owned organization >government agency -- Health care costs34% Nonprofit organization>privately owned, public owned organization -- Loss of government contract or other contracts 20% Nonprofit organization>privately owned, public owned organization South>West Global competition12% Public owned organization >nonprofit organization Privately owned organization >nonprofit organization --

7. ©SHRM 2008SHRM Poll October 30, 20087 Due to the current financial challenges to the U.S. economy has the time your organization’s HR role/function devotes to the following areas increased, stayed the same or decreased now compared with six months ago? n = 520-533

8. ©SHRM 2008SHRM Poll October 30, 20088 Due to the current financial challenges to the U.S. economy has the time your organization’s HR role/function devotes to the following areas increased now compared with six months ago? OverallDifferences Based on Organization Size Differences Based on Organization Sector Differences Based on Organization Region Time spent on budgetary issues 55% Large>small, medium -- Time spent with employees who have concerns about their retirement funds 50%-- Privately owned organization> public owned organization Nonprofit organization>public owned organization -- Time spent assisting management with layoffs decisions 35% Large>small, medium -- Time spent restructuring employee benefit plans 27%Small>large Privately owned organization> public owned organization Northeast>South

9. ©SHRM 2008SHRM Poll October 30, 20089 Layoffs

10. ©SHRM 2008SHRM Poll October 30, 200810 How likely is it that your organization will lay off employees within the next 12 months? n =474

11. ©SHRM 2008SHRM Poll October 30, 200811 How likely is it that your organization will lay off employees within the next 12 months? Overall (n = 474) Differences Based on Organization Staff Size Differences Based on Organization Sector Differences Based on Region Very likely 25%-- Public owned organization >nonprofit organization -- Somewhat likely 35%-- Northeast, South and West > Midwest Not at all likely 40% Small, medium > large --

12. ©SHRM 2008SHRM Poll October 30, 200812 Has your organization laid off any employees in the past 12 months? n = 621 Differences Based on Organization Staff Size Differences Based on Organization Sector 48%Large > small Public owned organization >government agency, nonprofit organization Privately owned organization> government agency Percentage of organizations that have laid off employees

13. ©SHRM 2008SHRM Poll October 30, 200813 At what job level did most of the layoffs occur or will they be most likely to occur? Note: Only respondents whose organization had laid off or were likely (very or somewhat) to layoff employees were included in the analysis.

14. ©SHRM 2008SHRM Poll October 30, 200814 At what job level did most of the layoffs occur? Overall (n = 271) Differences Based on Organization Staff Size Differences Based on Organization Sector Differences Based on Region Some positions from each level/various levels 41%Medium, large>small-- Northeast>South, Midwest and West Unskilled labor positions 16%-- Privately owned organization > Nonprofit organization, public owned organization Midwest>West Administrative/clerical positions 11%Small>large--

15. ©SHRM 2008SHRM Poll October 30, 200815 How was the most recent layoff at your organization communicated? Note: Only respondents whose organization had laid off employees in the past 12 months were included in the analysis. Percentages do not total 100% as multiple response options were allowed. n =270 -277

16. ©SHRM 2008SHRM Poll October 30, 200816 How much notice was given to laid off employees? n =270 Note: Only respondents whose organization had laid off employees in the past 12 months were included in the analysis. Percentages do not total 100% as multiple response options were allowed.

17. ©SHRM 2008SHRM Poll October 30, 200817 How much notice was given to laid off employees? Overall (n = 270) Differences Based on Organization Staff Size Differences Based on Organization Sector Termination was effective immediately 49% Medium > large Privately owned organization >Nonprofit organization, public owned organization Two weeks notice 17%-- Government agency >Nonprofit organization, privately owned organization Two months notice 13%-- Public owned organization >Nonprofit organization, privately owned organization

18. ©SHRM 2008SHRM Poll October 30, 200818 Regardless of whether your organization has had layoffs in the past 12 months or not, what types of assistance, if any, does your organization offer to employees who have been laid off? Note: Respondents who answered “No assistance” were excluded from this analysis. Percentages do not total 100% as multiple response options were allowed. n =433

19. ©SHRM 2008SHRM Poll October 30, 200819 Regardless of whether your organization has had layoffs in the past 12 months or not, what types of assistance, if any, does your organization offer to employees who have been laid off? Overall (n = 433) Differences Based on Organization Staff Size Differences Based on Organization Sector References 40%Small, medium > large Privately owned organization >nonprofit, public owned organization Outplacement 38%Large > small, medium Public owned organization >nonprofit, privately owned organization, government agency Priority consideration for reassignment to another job within the organization 33% Large > small, medium Public owned organization > privately owned organization Government agency>privately owned organization Career counseling 28% Large > small, medium Public owned organization > privately owned organization Government agency>privately owned organization Interview coaching 19% Large > small Government agency>privately owned organization Job search training 19% Large > medium Public owned organization > privately owned organization

20. ©SHRM 2008SHRM Poll October 30, 200820 SHRM Resources

21. ©SHRM 2008SHRM Poll October 30, 200821 SHRM online resources Layoff Aftermath http://www.shrm.org/hrmagazine/articles/1108/1108wells2.asp http://www.shrm.org/hrmagazine/articles/1108/1108wells2.asp MANAGING EMPLOYEES IN A DOWNSIZED ENVIRONMENT http://www.shrm.org/hrresources/whitepapers_published/CMS_000240.asp http://www.shrm.org/hrresources/whitepapers_published/CMS_000240.asp Managing a Downturn http://www.shrm.org/hrmagazine/articles/0508/0508wells.asp http://www.shrm.org/hrmagazine/articles/0508/0508wells.asp Depression Affects Women More than Men http://www.shrm.org/diversity/library_published/nonIC/CMS_025815.asp http://www.shrm.org/diversity/library_published/nonIC/CMS_025815.asp Chronic Illness Packs Punch; Depression Tops List http://www.shrm.org/hrnews_published/archives/CMS_023600.asp#P-8_0 http://www.shrm.org/hrnews_published/archives/CMS_023600.asp#P-8_0 Employer-Sponsored Depression Programs Work http://www.shrm.org/hrnews_published/archives/CMS_023318.asp http://www.shrm.org/hrnews_published/archives/CMS_023318.asp Study: Enhanced Depression Care Is Cost Effective for Employers http://www.shrm.org/rewards/library_published/benefits/nonIC/CMS_019573.asp http://www.shrm.org/rewards/library_published/benefits/nonIC/CMS_019573.asp Stress Management http://www.shrm.org/hrmagazine/articles/0906/0906tyler.asp http://www.shrm.org/hrmagazine/articles/0906/0906tyler.asp Cut the Stress http://www.shrm.org/hrmagazine/articles/0503/0503tyler.asp http://www.shrm.org/hrmagazine/articles/0503/0503tyler.asp Easing the Burden of Financial Stress in the Workplace http://www.shrm.org/rewards/library_published/benefits/nonIC/CMS_025703.asp http://www.shrm.org/rewards/library_published/benefits/nonIC/CMS_025703.asp Survey: Backup Care Reduces Stress http://www.shrm.org/rewards/library_published/benefits/nonIC/CMS_026190.asp http://www.shrm.org/rewards/library_published/benefits/nonIC/CMS_026190.asp Money and Work Spell S-T-R-E-S-S http://www.shrm.org/hrnews_published/archives/CMS_023624.asp#P-8_0 http://www.shrm.org/hrnews_published/archives/CMS_023624.asp#P-8_0 Countering High Costs of Stress and Depression http://www.shrm.org/rewards/library_published/benefits/nonIC/CMS_021695.asp http://www.shrm.org/rewards/library_published/benefits/nonIC/CMS_021695.asp

22. ©SHRM 2008SHRM Poll October 30, 200822 Respondent Demographics

23. ©SHRM 2008SHRM Poll October 30, 200823 Organizational Size n = 591

24. ©SHRM 2008SHRM Poll October 30, 200824 Organizational Sector n = 591

25. ©SHRM 2008SHRM Poll October 30, 200825 Region n = 490

26. ©SHRM 2008SHRM Poll October 30, 200826 SHRM Poll - Layoffs in light of 2008 challenges to the U.S. economy Response rate = 23% Sample comprised of 633 randomly selected HR professionals from SHRM’s membership. Margin of error is +/- 5%. Survey fielded the week of October 30, 2008 Methodology