changing employee skills and education requirements—minimum education requirements

SHRM Survey Findings: Changing Employee Skills and Education Requirements—Minimum Education Requirements

October 3, 2012

In collaboration with and commissioned by Achieve

2

• This is the first part of a series of SHRM/Achieve survey findings titled “Changing Employee Skills and Education Requirements.” These results look at the minimum education requirements for current, recently hired and future full-time equivalent (FTE) employees.

• The following nine industries were included in the sample. Overall results are reported first, followed by industry-specific results for the following industries:

Construction, mining, oil and gas

Federal government

Finance

Health

High-tech

Manufacturing

Professional services

State and local government

Nonprofessional services

Introduction

SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Minimum Education Requirements©SHRM 2012

3

• Are organizations projecting that future jobs will require even more skills, education and credentials? Yes, organizations across all industries are projecting that future jobs at all levels will require more skills, education and credentials/certifications.

• Where are middle-skill job requirements changing the most? The largest differences between current levels and future requirements in skilled labor and administrative/secretarial—key areas for mid-skilled jobs—were in manufacturing. Across industries, 31% of organizations forecast the need for postsecondary certificates or credentials for future skilled labor positions compared with 26% of organizations whose current workers in those jobs hold such qualifications.

• Where are the greatest changes in current levels and future education expectations for

administrative/ secretarial jobs? Industries across the board show a projected increase in educational requirements for administrative/secretarial positions. For these positions, organizations are forecasting a much higher need for job candidates with associate’s degrees: 21% for future workers compared with 12% with such degrees in the current workforce. The industries with the largest difference between current and future education requirements were manufacturing, nonprofessional services, federal government, health, and state and local government.

• Will there still be jobs that do not have minimum education requirements? Even lower-

skilled jobs are likely to have minimum education requirements, with 71% of organizations forecasting a requirement for a high school diploma and 7% expecting a specific post-secondary certificate/credential or an associate’s degree for such jobs.

Key Findings


4

• Will more professional jobs require advanced degrees? Overall, the answer is no, but it

depends on the industry. Organizations in most industries project future education requirements for salaried individual contributors and professional jobs to level off at the bachelor’s degree level (71%), with only 5% forecasting requirements for advanced degrees for these types of jobs. The federal government is slightly more likely than other industries to project a need for advanced degrees in these jobs (13%).

• What industries are forecasting increased demand for managers with advanced

degrees? Organizations are most likely to project an increased need for advanced degree holders in management jobs in the following industries: federal government (26%), health (20%), professional services (23%), and state and local government (17%).

• What about minimum educational requirements for executives (e.g. ,CEO, CFO, VP)—are

those expected to change? Yes, organizations across industries are projecting an increased need for advanced degree holders for their future executive positions (48% say they will have this requirement for future executives, compared with only 38% who report that current executive-level positions have advanced degree as a minimum education requirement).

Key Findings


5

What is your organization’s minimum education level for full-time equivalent employees? All Industries

Note: Percentages may not total 100% due to rounding. Respondents who answered "Not applicable, no jobs in this category" were excluded from this analysis. “Current” refers to current full-time equivalent employees; “Recent” refers to recently hired full-time equivalent employees; and “Future” refers to forecasted needs for future workforce (next 3-5 years).

No minimum education requirements

High school diploma or equivalent only

Specific postsecondary certificate/ credential(s)

only

Associate’s degree

Bachelor’s degree

Advanced degree (e.g., master's, MBA, Ph.D.,

M.D., J.D.)

28%

70%

1%

1%

0%

0%

25%

72%

1%

1%

1%

0%

23%

71%

4%

2%

1%

0%

Labor, low-skilled

Future (n = 2,911)Recent (n = 2,830)Current (n = 3,131)




only


Bachelor’s degree


M.D., J.D.)

8%

58%

26%

5%

2%

0%

7%

59%

26%

6%

3%

0%

6%

50%

31%

9%

3%

0%

Labor, skilled



6






only


Bachelor’s degree


M.D., J.D.)

3%

72%

8%

12%

5%

0%

2%

65%

9%

14%

9%

0%

2%

56%

11%

21%

9%

0%

Administrative/secretarial





only


Bachelor’s degree


M.D., J.D.)

1%

8%

8%

14%

65%

4%

1%

7%

7%

13%

67%

5%

1%

5%

6%

12%

71%

5%

Salaried individual contributor/ professional



7






only


Bachelor’s degree


M.D., J.D.)

1%

9%

3%

5%

72%

9%

1%

7%

2%

5%

71%

13%

1%

5%

2%

5%

72%

15%

Management





only


Bachelor’s degree


M.D., J.D.)

1%

4%

1%

1%

55%

38%

1%

3%

1%

1%

52%

42%

1%

2%

1%

2%

46%

48%

Executive (e.g., CEO, CFO, VP)



8

What is your organization’s minimum education level for full-time equivalent employees? Construction, Mining, Oil and Gas





only


Bachelor’s degree


M.D., J.D.)

46%

52%

2%

0%

0%

0%

42%

56%

2%

0%

0%

0%

38%

56%

4%

1%

1%

0%

Labor, low-skilled

Future (n = 375)

Recent (n = 363)

Current (n = 387)




only


Bachelor’s degree


M.D., J.D.)

19%

50%

27%

3%

1%

0%

19%

51%

25%

4%

2%

0%

17%

44%

32%

5%

2%

0%

Labor, skilled

Future (n = 398)

Recent (n = 387)

Current (n = 415)


9






only


Bachelor’s degree


M.D., J.D.)

5%

74%

9%

9%

3%

0%

5%

67%

10%

13%

5%

1%

4%

58%

13%

18%

7%

0%


Future (n = 414)

Recent (n = 400)

Current (n = 437)




only


Bachelor’s degree


M.D., J.D.)

1%

9%

8%

12%

67%

2%

1%

8%

6%

11%

71%

2%

1%

6%

5%

13%

74%

2%


Future (n = 394)

Recent (n = 379)

Current (n = 420)


10






only


Bachelor’s degree


M.D., J.D.)

2%

10%

6%

9%

69%

4%

1%

10%

4%

9%

70%

6%

1%

5%

3%

7%

75%

8%

Management

Future (n = 409)

Recent (n = 382)

Current (n = 439)




only


Bachelor’s degree


M.D., J.D.)

1%

4%

3%

3%

65%

24%

1%

4%

3%

3%

64%

26%

0%

2%

2%

4%

60%

31%


Future (n = 381)

Recent (n = 348)

Current (n = 424)


11

What is your organization’s minimum education level for full-time equivalent employees? Federal Government





only


Bachelor’s degree


M.D., J.D.)

27%

70%

0%

1%

1%

0%

24%

71%

1%

2%

1%

0%

21%

70%

4%

4%

1%

0%

Labor, low-skilled

Future (n = 179)

Recent (n = 178)

Current (n = 207)




only


Bachelor’s degree


M.D., J.D.)

11%

52%

28%

5%

3%

0%

8%

54%

26%

7%

6%

0%

6%

52%

27%

7%

7%

0%

Labor, skilled

Future (n = 187)

Recent (n = 183)

Current (n = 210)


12






only


Bachelor’s degree


M.D., J.D.)

10%

66%

8%

11%

5%

0%

8%

61%

7%

15%

10%

0%

6%

52%

8%

22%

10%

1%


Future (n = 229)

Recent (n = 223)

Current (n = 262)




only


Bachelor’s degree


M.D., J.D.)

4%

8%

7%

9%

64%

7%

3%

7%

7%

9%

65%

10%

2%

4%

7%

10%

64%

13%


Future (n = 231)

Recent (n = 229)

Current (n = 254)


13






only


Bachelor’s degree


M.D., J.D.)

7%

14%

3%

3%

57%

16%

5%

11%

2%

3%

56%

24%

4%

9%

3%

3%

55%

26%

Management

Future (n = 235)

Recent (n = 226)

Current (n = 265)




only


Bachelor’s degree


M.D., J.D.)

6%

8%

2%

0%

38%

47%

5%

6%

1%

0%

37%

50%

4%

4%

2%

2%

34%

55%


Future (n = 220)

Recent (n = 208)

Current (n = 253)


14

What is your organization’s minimum education level for full-time equivalent employees? Finance





only


Bachelor’s degree


M.D., J.D.)

20%

78%

1%

1%

0%

0%

15%

81%

1%

2%

1%

0%

20%

77%

2%

2%

0%

0%

Labor, low-skilled

Future (n = 189)

Recent (n = 178)

Current (n = 210)




only


Bachelor’s degree


M.D., J.D.)

9%

66%

17%

5%

3%

0%

6%

68%

16%

7%

4%

0%

8%

57%

22%

7%

5%

0%

Labor, skilled

Future (n = 178)

Recent (n = 169)

Current (n = 190)


15






only


Bachelor’s degree


M.D., J.D.)

4%

76%

4%

10%

5%

0%

2%

70%

6%

12%

10%

0%

3%

64%

7%

17%

10%

0%


Future (n = 425)

Recent (n = 416)

Current (n = 449)




only


Bachelor’s degree


M.D., J.D.)

1%

18%

5%

12%

60%

3%

0%

15%

5%

13%

63%

3%

1%

12%

5%

14%

65%

3%


Future (n = 403)

Recent (n = 385)

Current (n = 422)


16






only


Bachelor’s degree


M.D., J.D.)

1%

17%

3%

6%

68%

5%

0%

12%

2%

6%

69%

10%

1%

9%

1%

7%

73%

9%

Management

Future (n = 432)

Recent (n = 406)

Current (n = 453)




only


Bachelor’s degree


M.D., J.D.)

1%

8%

0%

1%

60%

31%

0%

5%

1%

1%

59%

34%

1%

4%

0%

1%

57%

36%


Future (n = 414)

Recent (n = 354)

Current (n = 449)


17

What is your organization’s minimum education level for full-time equivalent employees? Health





only


Bachelor’s degree


M.D., J.D.)

20%

78%

2%

0%

0%

0%

19%

78%

2%

1%

0%

0%

16%

79%

3%

1%

1%

0%

Labor, low-skilled

Future (n = 436)

Recent (n = 425)

Current (n = 460)




only


Bachelor’s degree


M.D., J.D.)

2%

59%

33%

4%

2%

0%

2%

60%

33%

4%

2%

0%

2%

51%

38%

7%

3%

0%

Labor, skilled

Future (n = 435)

Recent (n = 421)

Current (n = 448)


18






only


Bachelor’s degree


M.D., J.D.)

1%

77%

10%

10%

2%

0%

1%

71%

10%

13%

5%

0%

1%

59%

14%

20%

5%

1%


Future (n = 516)

Recent (n = 503)

Current (n = 537)




only


Bachelor’s degree


M.D., J.D.)

0%

1%

14%

32%

49%

4%

0%

2%

13%

30%

49%

5%

0%

1%

10%

22%

61%

6%


Future (n = 525)

Recent (n = 519)

Current (n = 536)


19






only


Bachelor’s degree


M.D., J.D.)

0%

4%

4%

7%

75%

10%

0%

4%

2%

8%

73%

14%

0%

2%

2%

4%

71%

20%

Management

Future (n = 523)

Recent (n = 500)

Current (n = 539)




only


Bachelor’s degree


M.D., J.D.)

0%

1%

1%

1%

38%

59%

0%

0%

1%

1%

34%

64%

0%

0%

0%

0%

29%

69%


Future (n = 508)

Recent (n = 451)

Current (n = 536)


20

What is your organization’s minimum education level for full-time equivalent employees? High-tech





only


Bachelor’s degree


M.D., J.D.)

21%

75%

2%

1%

1%

0%

18%

78%

3%

1%

2%

0%

15%

77%

4%

3%

1%

0%

Labor, low-skilled

Future (n = 170)

Recent (n = 160)

Current (n = 195)




only


Bachelor’s degree


M.D., J.D.)

6%

51%

20%

17%

7%

0%

4%

47%

22%

18%

8%

0%

4%

44%

25%

19%

8%

0%

Labor, skilled

Future (n = 222)

Recent (n = 219)

Current (n = 245)


21






only


Bachelor’s degree


M.D., J.D.)

3%

65%

5%

16%

10%

0%

2%

56%

7%

17%

18%

0%

2%

50%

7%

25%

17%

0%


Future (n = 362)

Recent (n = 322)

Current (n = 384)




only


Bachelor’s degree


M.D., J.D.)

2%

7%

5%

5%

79%

2%

1%

5%

4%

9%

77%

4%

2%

4%

3%

7%

81%

3%


Future (n = 380)

Recent (n = 376)

Current (n = 389)


22






only


Bachelor’s degree


M.D., J.D.)

1%

5%

2%

2%

80%

11%

1%

2%

1%

3%

76%

17%

2%

2%

1%

3%

77%

14%

Management

Future (n = 376)

Recent (n = 357)

Current (n = 398)




only


Bachelor’s degree


M.D., J.D.)

2%

2%

1%

1%

63%

32%

1%

2%

1%

1%

55%

40%

2%

2%

1%

2%

52%

42%


Future (n = 359)

Recent (n = 312)

Current (n = 393)


23

What is your organization’s minimum education level for full-time equivalent employees? Manufacturing





only


Bachelor’s degree


M.D., J.D.)

26%

73%

1%

0%

0%

0%

22%

76%

1%

0%

0%

0%

18%

78%

3%

1%

0%

0%

Labor, low-skilled

Future (n = 460)

Recent (n = 455)

Current (n = 482)




only


Bachelor’s degree


M.D., J.D.)

7%

58%

28%

6%

0%

0%

5%

57%

29%

7%

2%

0%

5%

47%

35%

11%

2%

0%

Labor, skilled

Future (n = 466)

Recent (n = 461)

Current (n = 494)


24






only


Bachelor’s degree


M.D., J.D.)

2%

74%

7%

14%

3%

0%

1%

63%

11%

17%

8%

0%

2%

53%

12%

25%

8%

0%


Future (n = 464)

Recent (n = 434)

Current (n = 498)




only


Bachelor’s degree


M.D., J.D.)

0%

9%

5%

15%

70%

0%

0%

7%

7%

12%

73%

1%

0%

4%

5%

11%

77%

2%


Future (n = 467)

Recent (n = 453)

Current (n = 497)


25






only


Bachelor’s degree


M.D., J.D.)

1%

9%

4%

8%

73%

6%

1%

6%

3%

7%

74%

9%

1%

4%

3%

5%

75%

13%

Management

Future (n = 468)

Recent (n = 443)

Current (n = 501)




only


Bachelor’s degree


M.D., J.D.)

0%

4%

1%

2%

59%

34%

1%

3%

2%

2%

55%

38%

1%

2%

2%

1%

49%

46%


Future (n = 418)

Recent (n = 371)

Current (n = 476)


26

What is your organization’s minimum education level for full-time equivalent employees? Non-professional Services





only


Bachelor’s degree


M.D., J.D.)

48%

50%

1%

0%

1%

0%

46%

52%

1%

0%

0%

0%

42%

54%

2%

1%

0%

0%

Labor, low-skilled

Future (n = 256)

Recent (n = 254)

Current (n = 274)




only


Bachelor’s degree


M.D., J.D.)

11%

59%

25%

2%

2%

0%

9%

64%

21%

4%

3%

0%

9%

54%

28%

7%

2%

0%

Labor, skilled

Future (n = 235)

Recent (n = 225)

Current (n = 244)


27






only


Bachelor’s degree


M.D., J.D.)

3%

72%

8%

12%

4%

0%

2%

67%

9%

15%

7%

0%

1%

53%

14%

21%

11%

0%


Future (n = 290)

Recent (n = 277)

Current (n = 315)




only


Bachelor’s degree


M.D., J.D.)

1%

17%

12%

16%

53%

0%

2%

15%

10%

14%

58%

2%

2%

13%

8%

13%

62%

2%


Future (n = 264)

Recent (n = 247)

Current (n = 276)


28






only


Bachelor’s degree


M.D., J.D.)

2%

17%

4%

8%

65%

4%

1%

15%

4%

7%

69%

5%

1%

13%

3%

5%

72%

6%

Management

Future (n = 302)

Recent (n = 288)

Current (n = 323)




only


Bachelor’s degree


M.D., J.D.)

1%

8%

3%

2%

59%

28%

1%

7%

3%

2%

62%

26%

1%

5%

2%

3%

51%

38%


Future (n = 276)

Recent (n = 243)

Current (n = 303)


29

What is your organization’s minimum education level for full-time equivalent employees? Professional Services





only


Bachelor’s degree


M.D., J.D.)

18%

77%

2%

2%

1%

0%

16%

80%

3%

0%

1%

0%

13%

78%

4%

4%

1%

0%

Labor, low-skilled

Future (n = 273)

Recent (n = 256)

Current (n = 298)




only


Bachelor’s degree


M.D., J.D.)

5%

55%

25%

8%

6%

0%

4%

54%

27%

7%

8%

0%

4%

49%

27%

12%

8%

0%

Labor, skilled

Future (n = 312)

Recent (n = 287)

Current (n = 318)


30






only


Bachelor’s degree


M.D., J.D.)

4%

67%

6%

15%

9%

0%

2%

58%

7%

17%

17%

0%

3%

53%

9%

21%

14%

0%


Future (n = 550)

Recent (n = 521)

Current (n = 587)




only


Bachelor’s degree


M.D., J.D.)

1%

6%

7%

6%

72%

9%

0%

4%

5%

6%

75%

10%

0%

2%

5%

6%

77%

10%


Future (n = 562)

Recent (n = 550)

Current (n = 586)


31






only


Bachelor’s degree


M.D., J.D.)

1%

6%

2%

2%

76%

13%

1%

4%

2%

2%

73%

19%

1%

2%

1%

2%

71%

23%

Management

Future (n = 559)

Recent (n = 513)

Current (n = 600)




only


Bachelor’s degree


M.D., J.D.)

1%

2%

1%

1%

56%

40%

1%

1%

1%

1%

55%

42%

0%

1%

1%

0%

47%

50%


Future (n = 524)

Recent (n = 453)

Current (n = 577)


32

What is your organization’s minimum education level for full-time equivalent employees? State/Local Government





only


Bachelor’s degree


M.D., J.D.)

25%

74%

0%

0%

0%

0%

23%

75%

1%

1%

0%

0%

23%

71%

5%

1%

0%

0%

Labor, low-skilled

Future (n = 573)

Recent (n = 561)

Current (n = 618)




only


Bachelor’s degree


M.D., J.D.)

4%

66%

26%

3%

0%

0%

4%

68%

25%

3%

1%

0%

3%

57%

33%

6%

1%

0%

Labor, skilled

Future (n = 603)

Recent (n = 587)

Current (n = 641)


33






only


Bachelor’s degree


M.D., J.D.)

2%

76%

10%

10%

2%

0%

1%

70%

10%

13%

5%

0%

2%

58%

13%

22%

5%

0%


Future (n = 687)

Recent (n = 659)

Current (n = 731)




only


Bachelor’s degree


M.D., J.D.)

0%

7%

8%

12%

68%

4%

0%

5%

8%

13%

69%

6%

0%

4%

6%

13%

72%

5%


Future (n = 669)

Recent (n = 640)

Current (n = 703)


34






only


Bachelor’s degree


M.D., J.D.)

1%

8%

2%

5%

75%

9%

0%

5%

1%

5%

73%

14%

1%

4%

1%

4%

73%

17%

Management

Future (n = 686)

Recent (n = 649)

Current (n = 739)




only


Bachelor’s degree


M.D., J.D.)

2%

3%

1%

1%

52%

41%

1%

2%

1%

2%

50%

45%

1%

2%

0%

2%

43%

52%


Future (n = 636)

Recent (n = 572)

Current (n = 696)


Survey Methodology

SHRM Survey Findings: Changing Employee Skills and Education Requirements

In collaboration with and commissioned by Achieve

• Response rate = 18%

• 4,695 HR professional respondents from a randomly selected sample of nine different industries in SHRM’s membership

Construction, mining, oil and gas = 491

Federal government = 356

Finance = 530

Health = 526

High-tech = 447

• Margin of error +/-1%

• Survey fielded March 28-April 30, 2012

Manufacturing = 526

Professional services = 492

State and local government = 848

Non-professional services = 479

35

SHRM/Achieve Survey: Changing Employee Skills and Education Requirements—Minimum Education Requirements ©SHRM 2012

36

SHRM Survey Findings: Changing Employee Skills and Education Requirements

• For more survey/poll findings, visit www.shrm.org/surveys

• For more information about SHRM’s Customized Research Services, visit www.shrm.org/customizedresearch

• Follow us on Twitter @SHRM_Research

About SHRM Research


http://www.shrm.org/surveys

http://www.shrm.org/customizedresearch

http://twitter.com/SHRM_Research