1. SHRM Survey Findings: The Ongoing Impact of the Recession—Health Industry September 25, 2013

2. These are the Health industry survey findings about the ongoing impact of the U.S. and global recession, which began in 2007. This is the third year that SHRM has conducted this study, and data are reported for 2010 and 2011 where possible. The results are reported in the following sections:  Skill gaps.  Recruiting challenges.  Recruiting strategies. Industry-specific results will be reported separately for each of the following industries:  Construction, mining, oil and gas.  Federal government.  Finance.  High-tech.  Manufacturing.  Professional services.  State and local government. Overall and California results can be found on our website at www.shrm.org/surveys. www.shrm.org/surveys The Ongoing Impact of the Recession—Health Industry ©SHRM 20132 Introduction

3. The Ongoing Impact of the Recession—Health Industry ©SHRM 20133 Skill Gaps

4. What basic skills/knowledge gaps do job applicants typically have? The most common basic skills/knowledge gaps are writing in English (53%), English language (spoken) (36%) and reading comprehension (34%). What applied skill gaps do job applicants typically have? The top five applied skill gaps are professionalism/work ethic (60%), critical thinking/problem solving (59%), teamwork/collaboration (40%) written communications (39%), and leadership (37%). What types of jobs are the most difficult to fill? The top five most difficult positions to fill are scientists (89%), high-skilled medical (82%), managers and executives (73%), high-skilled technical (e.g., technicians and programmers) (72%), and engineers (63%). The Ongoing Impact of the Recession—Health Industry ©SHRM 20134 Key Findings: Skill Gaps Health Industry

5. In general, what basic skills/knowledge gaps do job applicants have in your industry? Health Industry 5 Note: Percentages do not total 100% due to multiple response options. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question. The Ongoing Impact of the Recession—Health Industry ©SHRM 2013

6. In general, what applied skill gaps do job applicants have in your industry? Health Industry 6 Note: Percentages do not total 100% due to multiple response options. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question. The Ongoing Impact of the Recession—Health Industry ©SHRM 2013

7. Organizations having difficulty filling specific job categories for full-time, regular positions: Health Industry 7 Note: This figure 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 certain types of jobs were asked this question. *Data are not provided where the sample size is less than 20. The Ongoing Impact of the Recession—Health Industry ©SHRM 2013

8. Organizations having difficulty filling specific job categories for full-time, regular positions (continued): Health Industry 8 Note: This figure 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 certain types of jobs were asked this question. *Data are not provided where the sample size is less than 20. The Ongoing Impact of the Recession—Health Industry ©SHRM 2013

9. 9 Recruiting Challenges

10. Is it difficult to recruit for positions requiring new and different skill sets? Just under one-half (45%) of organizations reported that it is somewhat or very difficult to recruit for completely new positions or positions with new duties added that required new and different skill sets. Is recruiting for specific jobs difficult in the current labor market? Two-thirds (65%) of organizations currently hiring full-time staff indicated that they are having a difficult time recruiting for specific job openings, an increase from 50% in 2011. Why are organizations experiencing difficulty hiring qualified candidates? Thirty-nine percent of organizations cited competition from other employers. Thirty-eight percent said that qualified candidates were not within their salary range or hourly range rate. More than one- third indicated that candidates do not have the right skills for the job (36%) or that they have a low number of applicants (34%). Are organizations facing global competition for applicants for hard-to- fill jobs? Only six percent of organizations believe they are facing global competition for qualified applicants for jobs they are having difficulty filling, a decrease from 27% in 2011. The Ongoing Impact of the Recession—Health Industry ©SHRM 201310 Key Findings: Recruiting Challenges Health Industry

11. For the new full-time, regular positions being created by your organization that require new and different skill sets, how easy or difficult do you think it will be or has been thus far to find qualified individuals for those positions? Health Industry The Ongoing Impact of the Recession—Health Industry ©SHRM 201311 Note: Only respondents whose organizations were hiring full-time staff for positions with “new duties added to jobs lost” or “completely new positions” that required either “a mixture of new skills and the same types of skills” or “completely new and different skills” were asked this question. Data are not provided for 2011 due to the small sample size.

12. For the new full-time, regular positions being created by your organization that require new and different skill sets, how easy or difficult do you think it will be or has been thus far to find qualified individuals for those positions? The Ongoing Impact of the Recession—Health Industry ©SHRM 201312 Note: Only statistically significant differences are shown. Comparisons by industry Health (54%)> Construction, mining, oil and gas (27%) High-tech (23%) Manufacturing (20%) Professional services (28%) State or local government (40%)>Manufacturing (20%) The health industry is more likely than the construction, mining, oil and gas; high- tech; manufacturing; and professional services industries to indicate it will be or has been somewhat easy to find qualified individuals for new full-time positions. State or local governments are more likely than the manufacturing industry to indicate it will be or has been somewhat easy to find qualified individuals for new full-time positions. Comparisons by industry Manufacturing (63%)>Health (40%) The manufacturing industry is more likely than the health industry to indicate it will be or has been somewhat difficult to find qualified individuals for new full-time positions.

13. In general, in the current labor market, is your organization having a difficult time recruiting for specific jobs that are open in your organization? Health Industry 13 Note: 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. The Ongoing Impact of the Recession—Health Industry ©SHRM 2013 n = 66n = 358

14. In general, in the current labor market, are you having a difficult time recruiting for certain types of full-time, regular positions that are open in your organization? The Ongoing Impact of the Recession—Health Industry ©SHRM 201314 Note: Only statistically significant differences are shown. Comparisons by industry High-tech (82%) Manufacturing (79%) > Federal government (50%) Finance (66%) Health (65%) State or local government (52%) Construction, mining, oil and gas (74%) Professional services (70%) > Federal government (50%) State or local government (52%) Finance (66%) Health (65%) >State or local government (52%) Comparisons by industry Although there is recruiting difficulty across all industries, certain industries are experiencing more difficulty than others. The high-tech and manufacturing industries are more likely than the federal government, finance, health and state or local government industries to be having difficulty recruiting for certain types of full-time, regular positions. The construction, mining, oil, and gas and professional services industries are more likely than the federal government and state or local governments to be having difficulty recruiting for certain types of full-time, regular positions. The finance and health industries are more likely than state or local governments to be having difficulty recruiting for certain types of full-time, regular positions.

15. What are the main reason(s) that your organization experiences difficulty in hiring qualified candidates for full-time, regular positions? Health Industry The Ongoing Impact of the Recession—Health Industry ©SHRM 201315 Note: n = 222. Percentages do not total 100% due to multiple response options. Respondents who answered “don’t know” were excluded from this analysis. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question.

16. What are the main reason(s) that your organization experiences difficulty in hiring qualified candidates for full-time, regular positions? (continued) Health Industry The Ongoing Impact of the Recession—Health Industry ©SHRM 201316 Note: n = 222. Percentages do not total 100% due to multiple response options. Respondents who answered “don’t know” were excluded from this analysis. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question.

17. Do you believe that your organization is facing global competition (i.e., competition from other countries) for talent for hard-to-fill jobs? Health Industry 17 Note: Respondents who answered “don’t know” were excluded from this analysis. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question. The Ongoing Impact of the Recession—Health Industry ©SHRM 2013 n = 30n = 210

18. Do you believe that your organization is facing global competition (i.e., competition from other countries) for talent for hard-to-fill jobs? The Ongoing Impact of the Recession—Health Industry ©SHRM 201318 Note: Only statistically significant differences are shown. Comparisons by industry High-tech (33%)> Finance (5%) Health (6%) Manufacturing (15%) Professional services (14%) State or local government (4%) Construction, mining, oil and gas (22%) Federal government (22%) > Finance (5%) Health (6%) State or local government (4%) Manufacturing (15%)> Finance (5%) State or local government (4%) Professional services (14%)>State or local government (4%) Comparisons by industry Organizations in the high-tech industry are more likely than those in the finance, health, manufacturing, professional services and state or local government industries to believe that they are facing global competition for talent for hard-to-fill jobs. Organizations in the construction, mining, oil, and gas and federal government industries are more likely than those in the finance, health and state or local government industries to believe that they are facing global competition for talent for hard-to-fill jobs. Organizations in the manufacturing industry are more likely than those in the finance and state or local government industries to believe that they are facing global competition for talent for hard- to-fill jobs. Organizations in the professional services industry are more likely than those in state or local governments to believe that they are facing global competition for talent for hard-to-fill jobs.

19. The Ongoing Impact of the Recession—Health Industry ©SHRM 201319 Recruiting Strategies

20. What strategies is your organization using to deal with recruiting challenges for full-time, regular positions? The most common strategies reported by organizations are expanding advertising efforts (55%), using social media to find passive job seekers (50%), collaborating with educational institutions (48%), increasing retention efforts (43%) and expanding search region (32%). Have organizations been hiring workers from outside the U.S. for jobs that have been difficult to fill? Twenty-nine percent of organizations have hired workers from outside the U.S., and 1% are considering hiring workers from outside the U.S. Have organizations been hiring U.S. veterans for jobs that have been difficult to fill? More than one-half (57%) of organizations reported hiring U.S. veterans, an increase from 42% in 2011. Another 19% are considering or have plans to hire veterans in the next 12 months, an increase from 8% in 2011. The Ongoing Impact of the Recession—Health Industry ©SHRM 201320 Key Findings: Recruiting Strategies Health Industry

21. What strategies is your organization using to deal with recruiting challenges for full-time, regular positions? Health Industry The Ongoing Impact of the Recession—Health Industry ©SHRM 201321 Note: n = 224. Percentages do not total 100% due to multiple response options. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question.

22. What strategies is your organization using to deal with recruiting challenges for full-time, regular positions? (continued) Health Industry The Ongoing Impact of the Recession—Health Industry ©SHRM 201322 Note: n = 224. Percentages do not total 100% due to multiple response options. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question.

23. Has your organization hired any workers from outside the United States in an attempt to staff key jobs that have been difficult to fill? Health Industry 23 Note: Respondents who answered “don’t know” were excluded from this analysis. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question. The Ongoing Impact of the Recession—Health Industry ©SHRM 2013

24. Has your organization hired any workers from outside the United States in an attempt to staff key jobs that have been difficult to fill? The Ongoing Impact of the Recession—Health Industry ©SHRM 201324 Note: Only statistically significant differences are shown. Comparisons by industry High-tech (50%)> Construction, mining, oil and gas (26%) Federal government (16%) Finance (16%) Health (29%) Manufacturing (24%) Professional services (24%) State or local government (11%) Construction, mining, oil and gas (26%) Health (29%) Manufacturing (24%) Professional services (24%) >State or local government (11%) Comparisons by industry The high-tech industry is more likely than the construction, mining, oil and gas; federal government; finance; health; manufacturing; professional services; and state or local government industries to have hired workers from outside the U.S. in an attempt to recruit for hard-to-fill jobs. The construction, mining, oil and gas; health; manufacturing; and professional services industries are more likely than state or local governments to have hired workers from outside the U.S. in an attempt to recruit for hard-to-fill jobs.

25. Has your organization hired any U.S. veterans in an attempt to staff key jobs that have been difficult to fill? Health Industry 25 Note: n = 178. Respondents who answered “don’t know” were excluded from this analysis. Only respondents whose organizations were having a difficult time recruiting for certain types of jobs were asked this question. Data are not provided for 2011 due to the sample size. The Ongoing Impact of the Recession—Health Industry ©SHRM 2013

26. Has your organization hired any U.S. veterans in an attempt to staff key jobs that have been difficult to fill? The Ongoing Impact of the Recession—Health Industry ©SHRM 201326 Note: Only statistically significant differences are shown. Comparisons by industry Federal government (87%)> Finance (40%) Health (57%) High-tech (47%) Manufacturing (60%) Professional services (43%) Construction, mining, oil and gas (70%) State or local government (71%) > Finance (40%) High-tech (47%) Professional services (43%) Manufacturing (60%)> Finance (40%) Professional services (43%) Comparisons by industry The federal government is more likely than the finance, health, high-tech, manufacturing and professional services industries to have hired U.S. veterans in an attempt to recruit for hard-to-fill jobs. The construction, mining, oil, and gas and state or local government industries are more likely than the finance, high-tech and professional services industries to have hired U.S. veterans in an attempt to recruit for hard-to-fill jobs. The manufacturing industry is more likely than the finance and professional services industries to have hired U.S. veterans in an attempt to recruit for hard-to-fill jobs.

27. The Ongoing Impact of the Recession—Health Industry ©SHRM 201327 Demographics

28. Demographics: Organization Sector Health Industry The Ongoing Impact of the Recession—Health Industry ©SHRM 201328 n = 425

29. Demographics: Organization Staff Size Health Industry The Ongoing Impact of the Recession—Health Industry ©SHRM 201329 n = 412

30. n = 429 Other Demographics Health Industry The Ongoing Impact of the Recession—Health Industry ©SHRM 201330 U.S.-based operations only 94% Multinational operations 6% Single-unit organization: An organization in which the location and the organization are one and the same 32% Multi-unit organization: An organization that has more than one location 68% Multi-unit headquarters determines HR policies and practices 49% Each work location determines HR policies and practices 2% A combination of both the work location and the multi-unit headquarters determines HR policies and practices 49% 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 = 428 n = 294 Corporate (companywide) 69% Business unit/division15% Facility/location16% n = 295 What is the HR department/function for which you responded throughout this survey?

31. Response rate = 16% 449 randomly selected HR professionals from the health industry in SHRM’s membership participated in this survey. 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 28-September 14, 2012 The Ongoing Impact of the Recession—Health Industry ©SHRM 201331 SHRM Survey Findings: The Ongoing Impact of the Recession—Health Industry Survey Methodology

32. For more survey/poll findings, visit www.shrm.org/surveyswww.shrm.org/surveys For more information about SHRM’s Customized Research Services, visit www.shrm.org/customizedresearchwww.shrm.org/customizedresearch Follow us on Twitter @SHRM_Research@SHRM_Research The Ongoing Impact of the Recession—Health Industry ©SHRM 201332 About SHRM Research Project leader: Tanya Mulvey, researcher, talent management & workforce skills, SHRM Research Project contributors: Alexander Alonso, Ph.D., SPHR, vice president, SHRM Research Evren Esen, manager, Survey Research Center, SHRM Research Yan Dong, Intern, SHRM Research Copy editor: Katya Scanlan, SHRM Knowledge Center

33. The Society for Human Resource Management (SHRM) is the world’s largest association devoted to human resource management. Representing more than 250,000 members in over 140 countries, the Society serves the needs of HR professionals and advances the interests of the HR profession. Founded in 1948, SHRM has more than 575 affiliated chapters within the United States and subsidiary offices in China and India. The Ongoing Impact of the Recession—Health Industry ©SHRM 201333 About SHRM