Recession Poll Finance 2011

1. SHRM Poll: The Ongoing Impact of theRecessionFinance Industry June 4, 2012

2. The Ongoing Impact of the Recession:Finance Introduction Key Findings Organizations Financial Health Hiring Recruiting Challenges Demographics Methodology SHRM Poll: The Ongoing Impact of the RecessionFinance Industry SHRM 2012 2

3. 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 finance 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. Health. Servicesprofessional. High-tech. SHRM Poll: The Ongoing Impact of the RecessionFinance Industry SHRM 2012 3

4. Key Findings: Organizations Financial HealthFinance What percentage of staff have organizations laid off since the U.S. and global recession began in December 2007? Nearly one-half (45%) of respondents from the finance industry indicated their organization had not laid off any staff in 2011. Thirty-eight percent had lost between 1% and 10% of their staff. These 2011 figures are similar to 2010, where 73% of finance industry respondents reported losing less than 10% of employees. How does organizations financial health compare to 12 months ago? The finance industrys organizational financial health is similar to what it was a year ago. In 2011, 57% of organizations from the finance industry were in a significant or mild decline, whereas in 2010 this number was 56%. The finance industry is more likely to be in a mild recovery compared with the federal government, state and local government, health, and high-tech industries. SHRM Poll: The Ongoing Impact of the RecessionFinance Industry SHRM 2012 4

5. Key Findings: HiringFinance Are organizations currently hiring? About three-quarters (74%) of respondents from the finance industry were hiring in 2011, an increase from 68% in 2010. The majority (77%) of those who were hiring were recruiting nonmanagement hourly employees, and two-thirds (67%) were hiring nonmanagement salaried employees. Just over one-half (55%) were hiring other management-level staff, and 19% were hiring executive or upper-management employees. Are organizations creating new positions or replacing jobs lost? Three out of five (60%) respondents in the finance industry indicated they were mainly hiring direct replacements of jobs lost, an increase from 37% in 2010. Fewer respondents in the finance industry indicated they were mainly hiring for completely new positions in 2011 (29%) than in 2010 (48%), while the remaining 10% in 2011 and 15% in 2010 were hiring for positions with new duties added to jobs lost since the recession began. SHRM Poll: The Ongoing Impact of the RecessionFinance Industry SHRM 2012 5

6. Key Findings: Recruiting ChallengesFinance Is recruiting for specific jobs difficult in the current labor market? Among the finance organizations that are currently hiring full-time staff, about one-half (49%) 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 finance industry are high-skilled technical (e.g., technicians and programmers) (88%), managers and executives (83%), sales representatives (77%), accounting and finance professionals (73%), and HR professionals (54%). SHRM Poll: The Ongoing Impact of the RecessionFinance Industry SHRM 2012 6

7. The Ongoing Impact of the Recession:Finance Organizations Financial Health SHRM Poll: The Ongoing Impact of the RecessionFinance Industry SHRM 2012 7

8. Thus far, what percentage of full-time jobs have been lost at yourorganization since the U.S. and global recession began in December2007? Finance Not applicabledid not lay off any 45% 2011 (n = 327) staff 2010 (n = 311) 21% 83% 1% to 5% of staff 17% 6% to 10% of staff 10% or less (2011 data) 83% *Less than 10% (2010 data) 73% 11% to 20% of staff (2011 data) 10% * 10% to 20% (2010 data) 21% 7% 21% to 50% of staff 5% 0% More than 50% of staff 1%Note: An asterisk (*) indicates 2010 data had different categories than 2011 data: Less than 10% of staff and 10% to 20% of staff. SHRM Poll: The Ongoing Impact of the RecessionFinance Industry SHRM 2012 8

9. Thus far, what percentage of full-time jobs have been lost at yourorganization since the U.S. and global recession began in December2007? FinanceComparisons by industryThe federal government and the finance industry are more likely to have had no layoffs compared with the construction, mining, oiland gas; manufacturing; state and local government; professional services; and high-tech industries. Construction, mining, oil and gas (20%) are more likely to Manufacturing (21%) Federal government (50%) have had NO layoffs State and local government (30%) Finance (45%) than... Servicesprofessional (30%) High-tech (29%)The construction, mining, oil and gas industry is more likely to have lost more than 50% of staff compared with the federalgovernment; finance; manufacturing; professional services; and high-tech industries. Federal government (2%) is more likely to Finance (0%) Construction, mining, oil and gas (10%) have lost more than 50% of staff Manufacturing (2%) than... Servicesprofessional (2%) High-tech (3%)Note: Only statistically significant differences are shown. SHRM Poll: The Ongoing Impact of the RecessionFinance Industry SHRM 2012 9

10. In relation to the U.S. and global recession, would you say yourorganizations overall financial health is declining or recoveringcompared with 12 months ago?Finance 11% 2011 (n = 328) In a significant recovery 11% 2010 (n = 309) 46% In a mild recovery 45% 25% No change compared with 12 months ago 22% 16% In a mild decline 19% 3% In a significant decline 4%Note: Percentages do not total 100% due to rounding. SHRM Poll: The Ongoing Impact of the RecessionFinance Industry SHRM 2012 10

11. In relation to the U.S. and global recession, would you say yourorganizations overall financial health is declining or recoveringcompared with 12 months ago?FinanceComparisons by industryThe finance industry is more likely to be in a significant recovery compared with the federal government. is more likely to Finance (11%) be in a significant recovery Federal government (2%) than...The finance industry is more likely to be in a mild recovery compared with the federal government, health, state and localgovernment, and high-tech industries. Federal government (5%) is more likely to Health (23%) Finance (46%) be in a mild recovery State and local government (25%) than... High-tech (29%)The federal government and state and local governments are more likely to be in a significant decline compared with thefinance, manufacturing, professional services, and high-tech industries. Finance (3%) are more likely to Federal government (29%) Manufacturing (4%) be in a significant decline State and local government (13%) Servicesprofessional (5%) than... High-tech (4%)Note: Only statistically significant differences are shown. SHRM Poll: The Ongoing Impact of the RecessionFinance Industry SHRM 2012 11

12. The Ongoing Impact of the Recession:Finance Hiring SHRM Poll: The Ongoing Impact of the RecessionFinance Industry SHRM 2012 12

13. Is your organization currently hiring full-time staff?Finance 74% Yes 68% 2011 (n = 329) 2010 (n = 305) 26% No 32% SHRM Poll: The Ongoing Impact of the RecessionFinance Industry SHRM 2012 13

14. At what level(s) is your organization hiring?Finance Nonmanagement hourly employees 77% Nonmanagement salaried employees 67% Other management (e.g., directors, managers) 55% Executive/upper management (e.g., CEO, CFO) 19%Note: n = 244. Percentages do not total 100% due to multiple response options. Only respondents whose organizations were currently hiring full-time staffwere asked this question. SHRM Poll: The Ongoing Impact of the RecessionFinance Industry SHRM 2012 14

15. At what level(s) is your organization hiring?FinanceComparisons by industryThe federal government and health industries are more likely to be hiring executive/upper management employees compared withthe construction, mining, oil and gas; finance; manufacturing; professional services; and high-tech industries. Construction, mining, oil and gas (15%) are more likely to Finance (19%) Federal government (39%) be hiring executive/upper Manufacturing (20%) Health (39%) management employees Servicesprofessional (18%) than... High-tech (16%)The high-tech industry is more likely to be hiring nonmanagement salaried employees compared with the finance industry. is more likely to be hiring nonmanagement salaried High-tech (72%) Finance (67%) employees than...Note: Only statistically significant differences are shown. SHRM Poll: The Ongoing Impact of the RecessionFinance Industry SHRM 2012 15

16. At what level(s) is your organization hiring? (Continued)FinanceComparisons by industryThe finance, health, manufacturing, and state and local government industries are more likely to be hiring nonmanagement hourlyemployees compared with the federal government, professional services and high-tech industries. Finance (77%) are more likely to Federal government (53%) Health (89%) be hiring nonmanagement hourly Servicesprofessional (60%) Manufacturing (84%) employees High-tech (51%) State and local government (80%) than... Note: Only statistically significant differences are shown. SHRM Poll: The Ongoing Impact of the RecessionFinance Industry SHRM 2012 16

17. Which of the following best describes the nature of full-time positionsyour organization is currently hiring?Finance 29% Completely new positions 48% 10% New duties added to jobs lost (e.g., due to 2011 (n = 240) layoffs, attrition) since the recession began 2010 (n = 198) 15% 60% Direct replacements of jobs lost (e.g., due to layoffs, attrition) since the recession began 37%Note: Percentages may not total 100% due to rounding. Only respondents whose organizations were currently hiring full-time staff were asked this question. SHRM Poll: The Ongoing Impact of the RecessionFinance Industry SHRM 2012 17

18. Which of the following best describes the nature of full-time positionsyour organization is currently hiring?FinanceComparisons by industryThe finance industry is more likely to be hiring direct replacements of jobs lost since the recession began compared with the high-tech industry. is more likely to be hiring direct replacements of jobs Finance (60%) High-tech (39%) lost since the recession began than...The finance industry is more likely to be hiring for completely new positions compared with state and local governments. is more likely to be hiring for completely new Finance (29%) State and local government (12%) positions than...Note: Only statistically significant differences are shown. SHRM Poll: The Ongoing Impact of the RecessionFinance Industry SHRM 2012 18

19. Compared with the skills required for jobs lost since the recession began, do these completely new positions require any of the following skills? Finance A mixture of new skills and the same 60% types of skills Approximately the same types of 27% skills Completely new and different skills 13%Note: n = 70. Only respondents whose organizations were hiring full-time staff for completely new positions were asked this question. SHRM Poll: The Ongoing Impact of the RecessionFinance Industry SHRM 2012 19

20. The Ongoing Impact of the Recession:Finance Recruiting Challenges SHRM Poll: The Ongoing Impact of the RecessionFinance Industry SHRM 2012 20

21. If the new jobs being created by your organization require new and different skill sets, how easy do you think it will beor has been thus farto find qualified individuals for those positions? Finance 5% Very easy 2011 (n = 77) 14% 2010 (n = 112) 39% Somewhat easy 51% 52% Somewhat difficult 30% 4% Very difficult 5%Note: Only respondents whose organizations were hiring full-time staff for positions with new duties added to jobs lost or completely new positions (seeslide 17) that required either a mixture of new skills and the same types of skills or completely new and different skills (see slide 19) were asked thisquestion. SHRM Poll: The Ongoing Impact of the RecessionFinance Industry SHRM 2012 21

22. In general, in the current labor market, is your organization having a difficult time recruiting for specific jobs that are open in your organization? Finance Yes, 49% No, 51%Note: n = 234. Respondents who answered Dont know were excluded from this analysis. Only respondents whose organizations were currently hiring full-time staff were asked this question. SHRM Poll: The Ongoing Impact of the RecessionFinance Industry SHRM 2012 22

23. In general, in the current labor market, is your organization having adifficult time recruiting for specific jobs that are open in yourorganization?FinanceComparisons by industryThe construction, mining, oil and gas; finance; manufacturing; professional services; and high-tech industries are more likely to behaving difficulty recruiting for specific jobs compared with the state and local governments. Construction, mining, oil and gas (51%) are more likely to Finance (49%) be having difficulty recruiting for Manufacturing (68%) specific jobs that are open in their State and local government (34%) Servicesprofessional (57%) organization High-tech (71%) than...The manufacturing and high-tech industries are more likely to be having difficulty recruiting for specific jobs compared with theconstruction, mining, oil and gas; federal government; finance; and state and local government industries. are more likely to Construction, mining, oil and gas (51%) be having difficulty recruiting for Manufacturing (68%) Federal government (35%) specific jobs that are open in their High-tech (71%) Finance (49%) organization State and local government (34%) than... Note: Only statistically significant differences are shown. SHRM Poll: The Ongoing Impact of the RecessionFinance Industry SHRM 2012 23

24. 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? Finance Yes, 8% No, 92%Note: n = 100. Respondents who answered Dont know were excluded from this analysis. Only respondents whose organizations were having a difficulttime recruiting for certain types of jobs were asked this question. SHRM Poll: The Ongoing Impact of the RecessionFinance Industry SHRM 2012 24

25. Do you believe that your organization is facing global competition(i.e., competition from other countries) for jobs that your organizationis having difficulty filling?FinanceComparisons by industryThe construction, mining, oil and gas; manufacturing; and high-tech industries are more likely to believe that their organization isfacing global competition compared with the finance industry. are more likely to Construction, mining, oil and gas (34%) believe that their organization is Manufacturing (27%) Finance (8%) facing global competition High-tech (42%) than... Note: Only statistically significant differences are shown. SHRM Poll: The Ongoing Impact of the RecessionFinance Industry SHRM 2012 25

26. Has your organization hired any workers from outside the U.S. in anattempt to fill key jobs that have been difficult to fill?Finance No 92% Yes 5% No, but we are 3% considering it No, but we have plans to do so in 1% the next 12 monthsNote: n = 107. Percentages do not total 100% due to rounding. Respondents who answered Dont know were excluded from this analysis. Only respondentswhose organizations were having a difficult time recruiting for certain types of jobs were asked this question. SHRM Poll: The Ongoing Impact of the RecessionFinance Industry SHRM 2012 26

27. Has your organization hired any workers from outside the U.S. in anattempt to fill key jobs that have been difficult to fill?FinanceComparisons by industryThe construction, mining, oil and gas; manufacturing; professional services; and high-tech industries are more likely to have hiredworkers from outside the U.S. in an attempt to recruit for hard-to-fill jobs compared with the finance industry. Construction, mining, oil and gas (31%) are more likely to Manufacturing (20%) have hired workers from Finance (5%) Servicesprofessional (25%) outside the U.S. High-tech (50%) than... Note: Only statistically significant differences are shown. SHRM Poll: The Ongoing Impact of the RecessionFinance Industry SHRM 2012 27

28. Has your organization hired any U.S. veterans in an attempt to fill keyjobs that have been difficult to fill?Finance No 66% No, but we are 19% considering it Yes 13% No, but we have plans to do so in the 2% next 12 monthsNote: n = 91. Respondents who answered Dont know were excluded from this analysis. Only respondents whose organizations were having a difficult timerecruiting for certain types of jobs were asked this question. SHRM Poll: The Ongoing Impact of the RecessionFinance Industry SHRM 2012 28

29. Has your organization hired any U.S. veterans in an attempt to fill keyjobs that have been difficult to fill?FinanceComparisons by industryThe 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 withthose from the finance industry. Construction, mining, oil and gas (50%) Federal government (96%) Health (42%) are more likely to Manufacturing (44%) have hired U.S. veterans Finance (13%) State and local government (37%) than... Servicesprofessional (38%) High tech (34%) Note: Only statistically significant differences are shown. SHRM Poll: The Ongoing Impact of the RecessionFinance Industry SHRM 2012 29

30. In general, what basic skills/knowledge gaps do job applicants have inyour industry?Finance Writing in English (grammar, spelling, etc.) 66% Mathematics (computation) 47% Reading comprehension (in English) 38% English language (spoken) 36% Science 6% Government/economics 5% Foreign languages 2% History/geography 0% Humanities/arts 0% Technical (computer, engineering, mechanical, etc.) 0% Other 9%Note: n = 87. Percentages do not total 100% due to multiple response options. Only respondents whose organizations were having a difficult time recruitingfor certain types of jobs were asked this question. SHRM Poll: The Ongoing Impact of the RecessionFinance Industry SHRM 2012 30

31. In general, what applied skill gaps do job applicants have in yourindustry?Finance Written communications 61% Critical thinking/problem solving 59% Professionalism/work ethic 54% Oral communications 45% Leadership 40% Teamwork/collaboration 36% Information technology application 30% Lifelong learning/self-direction 23% Creativity/innovation 22% Ethics/social responsibility 18% Diversity 11% Other 3%Note: n = 100. Percentages do not total 100% due to multiple response options. Only respondents whose organizations were having a difficult time recruitingfor certain types of jobs were asked this question. SHRM Poll: The Ongoing Impact of the RecessionFinance Industry SHRM 2012 31

32. Specific Job Categories Organizations Have Difficulty Recruiting Finance High-skilled technical (e.g., technicians, programmers) (n = 65) 88% Managers and executives (n = 84) 83% Sales representatives (n = 62) 77% Accounting and finance professionals (n = 82) 73% HR professionals (n = 46) 54% Customer service representatives (n = 84) 53% Administrative support staff (n = 92) 41% Hourly laborers (n = 35) 26%Note: Chart represents somewhat difficult and very difficult responses. Not applicable responses were excluded from this analysis. Only respondentswhose organizations were having a difficult time recruiting for certain types of jobs were asked this question. No statistics are provided where the n is less than20; therefore, the job categories of production operators (n = 6), drivers (n = 3), skilled trades (n = 6), high-skilled medical (n = 3), engineers (n = 13)and scientists (n = 5) were excluded from this analysis. SHRM Poll: The Ongoing Impact of the RecessionFinance Industry SHRM 2012 32

33. The Ongoing Impact of the Recession:Finance Demographics SHRM Poll: The Ongoing Impact of the RecessionFinance Industry SHRM 2012 33

34. Demographics: Organization SectorFinance Privately owned for-profit 49% Nonprofit 25% Publicly owned for-profit 24% Other 2% Government 0% n = 317 SHRM Poll: The Ongoing Impact of the RecessionFinance Industry SHRM 2012 34

35. Demographics: Organization Staff SizeFinance 1 to 99 employees 32% 100 to 499 employees 39% 500 to 2,499 employees 16% 2,500 to 24,999 employees 9% 25,000 or more employees 4% n = 314 SHRM Poll: The Ongoing Impact of the RecessionFinance Industry SHRM 2012 35

36. Demographics: OtherFinanceDoes your organization have U.S.- Is your organization a single-unit organizationbased operations (business units) only or a multi-unit organization?or does it operate multinationally? Single-unit organization: An organization in which the location and the organization are 28% U.S.-based operations only 84% one and the same Multinational operations 16% Multi-unit organization: An organization 72% that has more than one locationn = 317 n = 323 For multi-unit organizations, are HR policies andWhat is the HR department/function practices determined by the multi-unitfor which you responded throughout headquarters, by each work location or both?this survey? Multi-unit headquarters determines HR 72% policies and practices Corporate (companywide) 88% Each work location determines HR policies Business unit/division 10% 0% and practices Facility/location 2% A combination of both the work location and the multi-unit headquarters determine 28% n = 235 HR policies and practices n = 234 SHRM Poll: The Ongoing Impact of the RecessionFinance Industry SHRM 2012 36

37. SHRM Poll: The Ongoing Impact of the Recession: Finance Methodology Response rate = 12% Sample composed of 329 randomly selected HR professionals from the finance industry in SHRMs membership Margin of error +/-5% Survey fielded August 18-September 2, 2011 For more poll findings, visit www.shrm.org/surveys Follow us on Twitter: http://twitter.com/SHRM_ResearchProject leader:Tanya A. Mulvey, survey research analyst, SHRM ResearchProject contributors:Mark Schmit, Ph.D., SPHR, vice president, SHRM ResearchEvren Esen, manager, SHRM ResearchCopy editor:Katya Scanlan, SHRM Knowledge Center SHRM Poll: The Ongoing Impact of the RecessionFinance Industry SHRM 2012 37