1. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry July 31, 2012

2. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 The Ongoing Impact of the Recession: High-Tech  Introduction  Key Findings  Organizations’ Financial Health  Hiring  Recruiting Challenges  Demographics  Methodology 2

3. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 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 high-tech 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).  Professional services (released July 31, 2012).  Health. 3

4. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 Key Findings: Organizations’ Financial Health High-Tech  What percentage of staff have organizations laid off since the U.S. and global recession began in December 2007? In 2011, 29% of organizations from the high- tech industry indicated they had not laid off any staff since the recession began. Forty-six percent had lost between 1% and 10% of their staff. In total for 2011, three-quarters (75%) of organizations in the high-tech industry laid off 0% to 10% of staff, an improvement compared with 2010 when fewer organizations (59%) reported losing less than 10% of employees since the recession began in December 2007.  How does the financial health of organizations compare to 12 months ago? The high-tech industry’s organizational financial health has declined compared with a year ago. In 2011, 30% of organizations from the high-tech industry were in a significant or mild decline, an increase from 18% in 2010. At the same time there has been a 20-point decrease for organizations reporting a mild recovery from 49% in 2010 to 29% in 2011. 4

5. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 Key Findings: Hiring High-Tech  Are organizations currently hiring? Eighty percent of organizations in the high-tech industry were hiring full-time staff in 2011, similar to 2010 (75%). They are more likely to be hiring compared with the construction, mining, oil and gas industry. Of those who were hiring in the high-tech industry, the majority (91%) hired nonmanagement salaried employees. About one-half (51% and 47% respectively) hired nonmanagment hourly employees and other management-level staff. Sixteen percent reported they were hiring executive or upper-management employees.  Are organizations creating new positions or replacing jobs lost? Fewer organizations in the high-tech industry indicated they mainly hired for completely new positions in 2011 (46%) than in 2010 (60%), whereas there has been an increase in hiring direct replacements of jobs lost from 25% in 2010 to 39% in 2011. The remaining 15% for both 2011 and 2010 hired for positions with new duties added to jobs lost since the recession began. The high-tech industry is more likely to be hiring for completely new positions compared with the federal government, state and local government, finance and health industries. 5

6. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 Key Findings: Recruiting Challenges High-Tech  Is it difficult to find qualified individuals for new jobs that require new and different skill sets? Nearly three-quarters (73%) of organizations in the high-tech industry found it somewhat or very difficult to recruit qualified candidates for these positions, an increase from 47% in 2010.  Is recruiting for specific jobs difficult in the current labor market? Among the high- tech industry organizations that are currently hiring full-time staff, 71% 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 high-tech industry are engineers (95%), high-skilled technical (e.g., technicians and programmers) (88%), sales representatives (79%), managers and executives (78%), and customer service representatives (47%). 6

7. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 7 Organizations’ Financial Health The Ongoing Impact of the Recession: High-Tech

8. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 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? High-Tech 8 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.” 75%

9. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 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? High-Tech 9 Federal government (50%) Finance (45%)... are more likely to have had NO layoffs than... Construction, mining, oil and gas (20%) Manufacturing (21%) State and local government (30%) Services—professional (30%) High-tech (29%) Comparisons by Industry The federal government and the finance industry are more likely to have had no layoffs compared with the construction, mining, oil and gas; manufacturing; state and local government; professional services; and high-tech industries. The construction, mining, oil and gas industry is more likely to have lost more than 50% of staff compared with the federal government; finance; manufacturing; professional services; and high-tech industries. Construction, mining, oil and gas (10%)... is more likely to have lost more than 50% of staff than... Federal government (2%) Finance (0%) Manufacturing (2%) Services—professional (2%) High-tech (3%) Note: Only statistically significant differences are shown.

10. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 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? High-Tech 10

11. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 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? High-Tech 11 High-tech (14%)... is more likely to be in a significant recovery than... Federal government (2%) State and local government (1%) Comparisons by Industry The high-tech industry is more likely to be in a significant recovery compared with the federal government and state and local governments. The federal government and state and local governments are more likely to be in a significant decline compared with the finance, manufacturing, professional services, and high-tech industries. Federal government (29%) State and local government (13%)... are more likely to be in a significant decline than... Finance (3%) Manufacturing (4%) Services—professional (5%) High-tech (4%) Note: Only statistically significant differences are shown. The finance industry is more likely to be in a mild recovery compared with the federal government, health, state and local government, and high-tech industries. Finance (46%)... is more likely to be in a mild recovery than... Federal government (5%) Health (23%) State and local government (25%) High-tech (29%)

12. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 12 Hiring The Ongoing Impact of the Recession: High-Tech

13. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 13 Is your organization currently hiring full-time staff? High-Tech

14. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 Is your organization currently hiring full-time staff? High-Tech 14 High-tech (80%)... is more likely to be currently hiring full-time staff than... Construction, mining, oil and gas (66%) Comparisons by Industry The high-tech industry is more likely to be currently hiring full-time staff compared with the construction, mining, oil and gas industry. Note: Only statistically significant differences are shown.

15. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 At what level(s) is your organization hiring? High-Tech 15 Note: n = 186. Percentages do not total 100% due to multiple response options. Only respondents whose organizations were currently hiring full-time staff were asked this question.

16. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 At what level(s) is your organization hiring? High-Tech 16 Comparisons by Industry The high-tech industry is more likely to be hiring nonmanagement salaried employees compared with the construction, mining, oil and gas; finance; health; manufacturing; state and local government; and professional services industries. High-tech (91%)... is more likely to be hiring nonmanagement salaried employees than... Construction, mining, oil and gas (70%) Finance (67%) Health (60%) Manufacturing (64%) State and local government (66%) Services—professional (78%) 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. Federal government (39%) Health (39%)... are more likely to be hiring executive/upper- management employees than... Construction, mining, oil and gas (15%) Finance (19%) Manufacturing (20%) Services—professional (18%) High-tech (16%) Note: Only statistically significant differences are shown.

17. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 At what level(s) is your organization hiring? (continued) High-Tech 17 Comparisons by Industry The construction, mining, oil and gas; finance; health; manufacturing; and state and local government industries are more likely to be hiring nonmanagement hourly employees compared with the federal government and high-tech industry. Construction, mining, oil and gas (72%) Finance (77%) Health (89%) Manufacturing (84%) State and local government (80%)... are more likely to be hiring nonmanagement hourly employees than... Federal government (53%) High-tech (51%) Note: Only statistically significant differences are shown.

18. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 18 Which of the following best describes the nature of full-time positions your organization is currently hiring? High-Tech Note: Only respondents whose organizations were currently hiring full-time staff were asked this question.

19. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 Which of the following best describes the nature of full-time positions your organization is currently hiring? High-Tech 19 Federal government (69%) Finance (60%) Health (66%) Manufacturing (54%) State and local government (80%)... are more likely to be hiring direct replacements of jobs lost since the recession began than... High-tech (39%) Comparisons by Industry The federal government, finance, health, manufacturing, and state and local government industries are more likely to be hiring direct replacements of jobs lost since the recession began compared with the high-tech industry. The high-tech industry is more likely to be hiring for completely new positions compared with the federal government, finance, health, and state and local government industries. High-tech (46%)... is more likely to be hiring for completely new positions than... Federal government (21%) Finance (29%) Health (21%) State and local government (12%) Note: Only statistically significant differences are shown.

20. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 20 Compared with the skills required for jobs lost since the recession began, do these completely new positions require any of the following skills? High-Tech Note: n = 83. Only respondents whose organizations were hiring full-time staff for “completely new positions” were asked this question.

21. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 21 Recruiting Challenges The Ongoing Impact of the Recession: High-Tech

22. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 22 If the new jobs being created by your organization require new and different skill sets, how easy do you think it will be—or has been thus far—to find qualified individuals for those positions? High-Tech Note: Percentages may not total 100% due to rounding. Only respondents whose organizations were hiring full-time staff for positions with “new duties added to jobs lost” or “completely new positions” (see slide 18) that required either “a mixture of new skills and the same types of skills” or “completely new and different skills” (see slide 20) were asked this question.

23. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 If the new jobs being created by your organization require new and different skill sets, how easy do you think it will be—or has been thus far—to find qualified individuals for those positions? High-Tech 23 Comparisons by Industry The high-tech industry is more likely to find it very difficult to find qualified individuals for new jobs with new and different skill sets compared with the construction, mining, oil and gas industry. High-tech (13%)... is more likely to find it very difficult to find qualified individuals for new jobs with new and different skill sets than... Construction, mining, oil and gas (1%) Note: Only statistically significant differences are shown.

24. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 24 In general, in the current labor market, is your organization having a difficult time recruiting for specific jobs that are open in your organization? High-Tech Note: n = 178. 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.

25. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 In general, in the current labor market, is your organization having a difficult time recruiting for specific jobs that are open in your organization? High-Tech 25 Manufacturing (68%) High-tech (71%)... are more likely to be having difficulty recruiting for specific jobs that are open in their organization than... Construction, mining, oil and gas (51%) Federal government (35%) Finance (49%) State and local government (34%) Comparisons by Industry The manufacturing and high-tech industries are more likely to be having difficulty recruiting for specific jobs compared with the construction, mining, oil and gas; federal government; finance; and state and local government industries. Note: Only statistically significant differences are shown.

26. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 26 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? High-Tech Note: n = 106. Respondents who answered “Don’t know” were excluded from this analysis. Only respondents whose organizations were having a difficult time recruiting for specific jobs were asked this question.

27. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 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? High-Tech 27 Comparisons by Industry Note: Only statistically significant differences are shown. The high-tech industry is more likely to believe that their organization is facing global competition compared with the finance, state and local government, and professional services industries. High-tech (42%)... is more likely to believe that their organization is facing global competition than... Finance (8%) State and local government (4%) Services—professional (21%)

28. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 Has your organization hired any workers from outside the U.S. in an attempt to fill key jobs that have been difficult to fill? High-Tech 28 Note: n = 119. Percentages do not total 100% due to rounding. Respondents who answered “Don’t know” were excluded from this analysis. Only respondents whose organizations were having a difficult time recruiting for specific jobs were asked this question.

29. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 Has your organization hired any workers from outside the U.S. in an attempt to fill key jobs that have been difficult to fill? High-Tech 29 High-tech (50%)... is more likely to have hired workers from outside the U.S. than... Finance (5%) Manufacturing (20%) State and local government (11%) Services—professional (25%) Comparisons by Industry The high-tech industry is more likely to have hired workers from outside the U.S. in an attempt to recruit for hard-to-fill jobs compared with the finance, manufacturing, state and local government, and professional services industries. Note: Only statistically significant differences are shown.

30. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 Has your organization hired any U.S. veterans in an attempt to fill key jobs that have been difficult to fill? High-Tech 30 Note: n = 102. Respondents who answered “Don’t know” were excluded from this analysis. Only respondents whose organizations were having a difficult time recruiting for specific jobs were asked this question.

31. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 Has your organization hired any U.S. veterans in an attempt to fill key jobs that have been difficult to fill? High-Tech 31 Construction, mining, oil and gas (50%) Federal government (96%) Health (42%) Manufacturing (44%) State and local government (37%) Services—professional (38%) High-tech (34%)... are more likely to have hired U.S. veterans than... Finance (13%) Comparisons by Industry The construction, mining, oil and gas; federal government; health; manufacturing; state and local government; professional services; and high-tech industries are more likely to have hired U.S. veterans in an attempt to recruit for hard-to-fill jobs compared with those from the finance industry. Note: Only statistically significant differences are shown.

32. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 Has your organization hired any U.S. veterans in an attempt to fill key jobs that have been difficult to fill? (continued) High-Tech 32 Comparisons by Industry Note: Only statistically significant differences are shown. 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 government; professional services; and high-tech industries. Federal government (96%)... is more likely to have hired U.S. veterans than... Construction, mining, oil and gas (50%) Finance (13%) Health (42%) Manufacturing (44%) State and local government (37%) Services—professional (38%) High-tech (34%)

33. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 In general, what basic skills/knowledge gaps do job applicants have in your industry? High-Tech 33 Note: n = 82. Percentages do not total 100% due to multiple response options. Only respondents whose organizations were having a difficult time recruiting for specific jobs were asked this question.

34. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 In general, what applied skill gaps do job applicants have in your industry? High-Tech 34 Note: n = 111. Percentages do not total 100% due to multiple response options. Only respondents whose organizations were having a difficult time recruiting for specific jobs were asked this question.

35. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 Specific Job Categories in Which Organizations Have Difficulty Recruiting High-Tech 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 jobs were asked this question. No statistics are provided where the n is less than 20; therefore, the job categories of “drivers” (n = 5), “skilled trades” (n = 15), “high-skilled medical” (n = 7) and “scientists” (n = 16) were excluded from this analysis. 35

36. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 36 Demographics The Ongoing Impact of the Recession: High-Tech

37. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 Demographics: Organization Sector High-Tech 37 Note: n = 226. Percentages do not total 100% due to rounding.

38. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 Demographics: Organization Staff Size High-Tech 38 n = 221

39. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 Demographics: Other High-Tech 39 U.S.-based operations only47% Multinational operations53% Single-unit organization: An organization in which the location and the organization are one and the same. 36% Multi-unit organization: An organization that has more than one location. 64% Multi-unit headquarters determines HR policies and practices. 44% Each work location determines HR policies and practices. 6% A combination of both the work location and the multi-unit headquarters determines HR policies and practices. 50% Is your organization a single-unit organization or a multi-unit organization? For multi-unit organizations, are HR policies and practices determined by the multi-unit headquarters, by each work location or by both? Does your organization have U.S.- based operations (business units) only, or does it operate multinationally? n = 225 n = 226 n = 165 Corporate (companywide)67% Business unit/division23% Facility/location9% Note: n = 166. Percentages do not total 100% due to rounding. What is the HR department/function for which you responded throughout this survey?

40. SHRM Poll: The Ongoing Impact of the Recession—High-Tech Industry ©SHRM 2012 SHRM Poll: The Ongoing Impact of the Recession: High-Tech  Response rate = 8%.  Sample composed of 235 randomly selected HR professionals from the professional service industry in SHRM’s membership.  With small sample sizes, the response of one participant can affect the overall results considerably; this should be noted when making interpretations of the data, particularly when interpreting small percentage differences.  Survey fielded August 18 to September 2, 2011. 40 Methodology Project leader: Tanya A. Mulvey, survey research analyst, SHRM Research Project contributors: Mark Schmit, Ph.D., SPHR, vice president, SHRM Research Evren Esen, manager, Survey Research Center, SHRM Research Copy editor: Katya Scanlan, SHRM Knowledge Center For more poll findings, visit www.shrm.org/surveyswww.shrm.org/surveys Follow us on Twitter: http://twitter.com/SHRM_Researchhttp://twitter.com/SHRM_Research For more poll findings, visit www.shrm.org/surveyswww.shrm.org/surveys Follow us on Twitter: http://twitter.com/SHRM_Researchhttp://twitter.com/SHRM_Research