1. SHRM Poll – Which Discretionary HR Expenses Are Companies Cutting During Economically Challenging Times? October 21, 2008

2. ©SHRM 2008SHRM Poll October 21, 20082 Comparing your organization’s HR budget to that of 12 months ago, has your HR budget increased, stayed about the same, or decreased (with respect to discretionary spending)? n=452

3. ©SHRM 2008SHRM Poll October 21, 20083 In terms of discretionary spending, what are the areas where your organization has made or is most likely to make budget cuts? The last 12 months The next 12 months Morale and team building activities (including company picnics and holiday parties) 57%60% Recruitment (advertising, travel and reliance on paid recruiters)51%41% Professional development44%48% All staff training on general topics (not specifically related to company’s core business, e.g. anti-harassment, diversity training, etc.) 39%42% Refreshments/snacks (e.g. coffee) for employees36%33% HR related technology (e.g. time and attendance, payroll, recruitment, applicant tracking and total rewards systems) 23%29% Reduction in per diem allowance for travel and entertainment19%17% Spot awards16%20% Note: Only respondents whose organization’s HR budget decreased were included in this analysis. Respondents were asked to “select up to five areas where their organizations have made cuts.” Percentage does not total 100% as multiple response options were allowed. Continued n=171

4. ©SHRM 2008SHRM Poll October 21, 20084 In terms of discretionary spending, what are the areas where your organization has made or is most likely to make budget cuts? The last 12 months (n=171) The next 12 months (n=228) Volunteer and philanthropic activities (e.g. blood drives, community clean-up, canned food collection, etc.) 15%11% Fitness and stress management initiatives (including onsite gyms and fitness classes, off-site fitness center membership subsidies, massage, etc.) 13%15% Discretionary legal advice13%14% Tuition reimbursement11%16% Diversity recruitment initiatives (specifically related to increasing diversity of workforce) 10%12% Environmental initiatives, including recycling campaigns4%9% Paid time off (which includes sick, vacation and personal days all in one plan) 3%7% Transit and parking subsidies2%3% Other6% Note: Only respondents whose organization’s HR budget decreased were included in this analysis. Respondents were asked to “select up to five areas where their organizations have made cuts.” Percentage does not total 100% as multiple response options were allowed.

5. ©SHRM 2008SHRM Poll October 21, 20085 What effects if any, have cuts in HR discretionary spending made to the following? n=165 - 171 Note: Only respondents whose organization’s HR budget decreased in the last 12 months were included in this analysis.

6. ©SHRM 2008SHRM Poll October 21, 20086 Comparing your organization’s HR budget to that of 12 months ago (with respect to discretionary spending), which statement most accurately completes the following statement? Discretionary spending per employee at my organization has.. n= 367

7. ©SHRM 2008SHRM Poll October 21, 20087 Which statement most accurately describes HR’s involvement in determining discretionary HR spending at your organization? n = 370

8. ©SHRM 2008SHRM Poll October 21, 20088 Which one of the following most closely matches your HR title? n = 368

9. ©SHRM 2008SHRM Poll October 21, 20089 Organizational Size n = 364 Note: Percentages may not total 100% due to rounding.

10. ©SHRM 2008SHRM Poll October 21, 200810 Organizational Sector n = 366

11. ©SHRM 2008SHRM Poll October 21, 200811 SHRM Poll - Which Discretionary HR Expenses Are Companies Cutting During Economically Challenging Times? Response rate = 16% Sample comprised of 452 randomly selected HR professionals from SHRM’s membership. Margin of error is +/- 5%. Survey fielded the week of October 21, 2008 Methodology