SHRM Poll: The Ongoing Impact of the Recession—Health Industry

1. SHRM Poll: The Ongoing Impact of the Recession—Health Industry August 28, 2012

2. The Ongoing Impact of the Recession:Health • Introduction • Key Findings • Organizations’ Financial Health • Hiring • Recruiting Challenges • Demographics • Methodology

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 health 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). • Services—professional (released July 31, 2012). • High-tech (released July 31, 2012).

4. Key Findings: Organizations’ Financial HealthHealth • What percentage of staff have organizations laid off since the U.S. and global recession began in December 2007? In 2011, one-third (33%) of respondents from the health industry indicated their organization had not laid off any staff since the recession began. More than one-half (53%) had lost between 1% and 10% of their staff. These 2011 figures are similar to 2010, when 83% of health industry respondents reported losing less than 10% of employees since the beginning of the recession. • How does organizations’ financial health compare to 12 months ago? The health industry’s organizational financial health has declined compared with what it was a year ago. In 2011, 46% of organizations from the health industry were in a significant or mild decline, whereas in 2010 this number was 34%. About one-quarter (27%) reported no change compared with one year ago in 2011, and the remaining quarter (27%) were in a significant or mild recovery.

5. Key Findings: HiringHealth • Are organizations currently hiring? A large majority (89%) of respondents from the health industry were hiring in 2011, compared with 84% in 2010. The majority (89%) of those who were hiring were recruiting nonmanagement hourly employees. Three out of five (60%) health organizations were hiring nonmanagement salaried employees, and 61% were hiring other management-level staff. Thirty-nine percent were hiring executive or upper-management employees. • Are organizations creating new positions or replacing jobs lost? Two-thirds (66%) of respondents in the health industry indicated they were mainly hiring direct replacements of jobs lost, an increase from 50% in 2010. Fewer respondents in the health industry indicated they were mainly hiring for completely new positions in 2011 (21%) than in 2010 (41%), while the remaining 13% in 2011 and 9% in 2010 were hiring for positions with new duties added to jobs lost since the recession began.

6. Key Findings: Recruiting ChallengesHealth • Is recruiting for specific jobs difficult in the current labor market? Among the health organizations that are currently hiring full-time staff, one-half (50%) 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 health industry are high-skilled medical (90%), high-skilled technical (e.g., technicians and programmers) (69%), managers and executives (69%), accounting and finance professionals (60%), and HR professionals (46%).

7. The Ongoing Impact of the Recession:Health Organizations’ Financial Health

8. 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? Health 86% 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.”

9. 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?Health

10. 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?Health Comparisons by industry The manufacturing industry is more likely to be in a significant recovery compared with the construction, mining, oil and gas; federal government; health; state and local governments; and professional services industries. The finance industry is more likely to be in a mild recovery compared with the federal government, health, state and local governments, and high-tech industries. • Note: Only statistically significant differences are shown.

11. 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?Health Comparisons by industry The health industry is more likely to be in a mild recovery compared with the federal government. The federal government is more likely to be in a significant decline compared with the construction, mining, oil and gas; finance; health; manufacturing; state and local governments; professional services; and high-tech industries. • Note: Only statistically significant differences are shown.

12. The Ongoing Impact of the Recession:Health Hiring

13. Is your organization currently hiring full-time staff?Health

14. Is your organization currently hiring full-time staff?Health Comparisons by industry The health industry is more likely to be currently hiring full-time staff compared with the construction, mining, oil and gas; federal government; and professional services industries. • Note: Only statistically significant differences are shown.

15. At what level(s) is your organization hiring?Health Note: n = 72. 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. At what level(s) is your organization hiring?Health Comparisons by industry 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. The federal government, professional services and high-tech industries are more likely to be hiring nonmanagement salaried employees compared with the health and manufacturing industries. • Note: Only statistically significant differences are shown.

17. At what level(s) is your organization hiring? (Continued)Health Comparisons by industry The finance, health, manufacturing, and state and local government industries are more likely to be hiring nonmanagement hourly employees compared with the federal government, professional services and high-tech industries. • Note: Only statistically significant differences are shown.

18. Which of the following best describes the nature of full-time positions your organization is currently hiring?Health Note: Only respondents whose organizations were currently hiring full-time staff were asked this question.

19. Which of the following best describes the nature of full-time positions your organization is currently hiring?Health Comparisons by industry The health industry is 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 federal government, finance, health, and state and local government industries. • Note: Only statistically significant differences are shown.

20. The Ongoing Impact of the Recession:Health Recruiting Challenges

21. 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 Note: n = 66. 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.

22. 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?Health Note: n = 30. Respondents who answered “Don’t know” were excluded from this analysis. Only respondents whose organizations were having a difficult time recruiting for specific types of jobs were asked this question.

23. Has your organization hired any workers from outside the U.S. in an attempt to fill key jobs that have been difficult to fill?Health Note: n = 32. Respondents who answered “Don’t know” were excluded from this analysis. Only respondents whose organizations were having a difficult time recruiting for specific types of jobs were asked this question.

24. Has your organization hired any U.S. veterans in an attempt to fill key jobs that have been difficult to fill?Health Note: n = 24. Respondents who answered “Don’t know” were excluded from this analysis. Only respondents whose organizations were having a difficult time recruiting for specific types of jobs were asked this question.

25. Has your organization hired any U.S. veterans in an attempt to fill key jobs that have been difficult to fill?Health Comparisons by industry 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 governments; professional services; and high-tech industries. The health industry is more likely to have hired U.S. veterans in an attempt to recruit for hard-to-fill jobs compared with the finance industry. • Note: Only statistically significant differences are shown.

26. In general, what basic skills/knowledge gaps do job applicants have in your industry?Health Note: n = 28. Percentages do not total 100% due to multiple response options. Only respondents whose organizations were having a difficult time recruiting for specific types of jobs were asked this question.

27. In general, what applied skill gaps do job applicants have in your industry?Health Note: n = 30. 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.

28. Specific Job Categories for Which Organizations Have Difficulty RecruitingHealth 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 types of jobs were asked this question. No statistics are provided where the n is less than 20; therefore, the job categories of “production operators” (n = 2), “drivers” (n = 10), “skilled trades” (n = 18), “sales representatives” (n = 5), “engineers” (n = 5) and “scientists” (n = 3) were excluded from this analysis.

29. The Ongoing Impact of the Recession:Health Demographics

30. Demographics: Organization SectorHealth n = 77

31. Demographics: Organization Staff SizeHealth n = 74

32. Demographics: OtherHealth • Is your organization a single-unit organization or a multi-unit organization? • Does your organization have U.S.-based operations (business units) only or does it operate multinationally? n = 76 n = 79 • For multi-unit organizations, are HR policies and practices determined by the multi-unit headquarters, by each work location or both? • What is the HR department/function for which you responded throughout this survey? Note: n = 46. Percentages do not total 100% due to rounding. n = 46

33. SHRM Poll: The Ongoing Impact of the Recession:Health Methodology • Response rate = 5% • Sample composed of 81 randomly selected HR professionals from the health industry in SHRM’s membership • With small sample sizes, the response of one participant can affect the overall results considerably; this issue should be noted when making interpretations of the data, particularly when interpreting small percentage differences. • Survey fielded August 18-September 2, 2011 For more poll findings, visit www.shrm.org/surveys Follow us on Twitter: http://twitter.com/SHRM_Research Project leader:Tanya A. Mulvey, survey research analyst, SHRM Research Project contributors: Mark Schmit, Ph.D., SPHR, vice president, SHRM Research Evren Esen, manager, SHRM Research Copy editor: Katya Scanlan, SHRM Knowledge Center