Strategy

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The Future of HR Preliminary Results

Member-driven benchmarking reports

Preliminary Results

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Preliminary Results

Preliminary Results

Table of Contents
Survey Responses ........................................................................................................................................ 3 Approximately how many full-time-equivalent employees (FTEs, exempt, and non-exempt) are part of the HR function?* ............................................................................................................................... 4 What is the background of the current head of HR?* .......................................................................... 4 To what extent do each of the following describe how your organization operates?.......................... 6 To what extent is each of the following strategic initiatives present in your organization?................ 6 For each of the following HR roles, please estimate the percentage of time your HR function spends performing these roles. .............................................................................................................. 7 Which of the following best describes the relationship between the Human Resource function and the business strategy of your organization? .......................................................................................... 7 With respect to strategy, to what extent does the HR function ......................................................... 8 To what extent does each of the following describe the way your HR organization currently operates? ................................................................................................................................................. 8 How has the amount of attention to the following HR activities in your organization changed over the past 5-7 years as a proportion of overall Human Resource activity and emphasis? ................... 9 Have any of the activities listed below been partially or completely outsourced? ........................... 10 Do you have a multiple-process HR outsourcing (HRBPO) contract?................................................ 11 Overall how satisfied are you with your HRBPO (Human Resources Business Process Outsourcing) relationship? ......................................................................................................................................... 12 In general, how effective do you think the following approaches to HR outsourcing are? .............. 12 To what extent do you consider your HRIS to .................................................................................. 13 Does your organization currently ...................................................................................................... 14 What describes the way you measure the following HR programs and activities? (Select all that apply) ..................................................................................................................................................... 15 How effective are the information, measurement, and analysis systems of your organization when it comes to the following? .................................................................................................................... 16 To what extent are these statements true about your organization? ............................................... 17 To what extent do business leaders understand and use sound principles when making decisions about .................................................................................................................................................. 18 To what extent does your corporations Board call on HR for help with the following? ................... 18 How satisfied are you with the skills and knowledge of your organizations current HR / managerial staff in each of these areas? ............................................................................................................... 19 What percentage of your company-wide professional / managerial HR staff possesses the necessary skill set for success in todays business environment? ................................................... 20 On a scale of 1 to 10, how well is the HR organization meeting needs in the following areas? ..... 21

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On a scale of 1 to 10, how important is it that the HR organization does well in the following areas?.................................................................................................................................................... 21 How has the recession affected the following in your organization? ................................................ 22 Demographics ........................................................................................................................................... 23 Primary industry*.................................................................................................................................. 23 Size of workforce throughout the world* ............................................................................................ 24 Geographic structure* ......................................................................................................................... 24 Job level* .............................................................................................................................................. 25 Department/function* ......................................................................................................................... 25 Please indicate your organization's performance in the following areas:* ...................................... 26 Generally speaking, how would you gauge your organizations performance? ................................ 26 Organization type .................................................................................................................................. 27 Location of company headquarters..................................................................................................... 28 *Indicates that an answer was required to proceed with the survey.

2010 Institute for Corporate Productivity (i4cp). Use of all results, analysis and findings require explicit permission from i4cp.

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Survey Responses
Approximately how many employees are in your organization?*
Results 1 - 24 employees 25 - 49 employees 50 - 99 employees 100 - 249 employees 250 - 499 employees 500 - 999 employees 1,000 - 4,999 employees 5,000 - 9,999 employees 10,000 - 19,999 employees 20,000 - 49,999 employees 50,000 - 99,999 employees More than 100,000 employees n=807 All Respondents 11.8% 3.7% 4.7% 10.3% 8.2% 10.4% 21.4% 8.9% 5.8% 6.8% 3.8% 4.1%

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Approximately how many full-time-equivalent employees (FTEs, exempt, and non-exempt) are part of the HR function?*
NOTE: The respondents were asked to provide a number that includes both centralized and decentralized staff. All Respondents 38.8% 22.8% 10.1% 9.1% 6.9% 5.6% 5.0% 1.8% n=800

Results Less than 10 employees 10 - 49 employees 50 - 99 employees 100 - 249 employees 250 - 499 employees 500 - 999 employees 1,000 - 4,999 employees More than 5,000 employees

What is the background of the current head of HR?*

Results Human Resource Management Other (please specify)
Academic Accountancy Accounting Accounting followed by hr training Accounting, cpa Administaff Administration Administrative Administrative assistant Aeronautical engineering Attorney B.a. and hr mangement dipoloma B.e. ,mba Benefits Business Business administration

All Respondents 73.1% 26.9%

Business administration Business development Business management Business mgt Ceo Chemical engineering Chemistry Clerical College leaver

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Communications Comp/benefits + accounting Compensation Consultant Controlling Cpa Credit management Currently vacant position Customer service Don't know Economics degree Engineering Engineering & operations mgmt Engineering and also doing qc Entrepreneur Estate management Exec mgmt Experience with company Field worker Finance Finance & administsration Finance / audit Finance and administration Finance and hr management Finance/hr Financial Financial operations Financial services Friend of president General administration General administrative General business General business management General management General management and hr management General mgmt Gm takes hr head position Government/military Head of business unit Health care admnistration Higher ed Hr and operations Hr and ops Hr and project management Hr and technology Hr business partner Hr certificate programs Hr is contracted outparttime to a consultant Hr management and chrp Hr management and org development

Hr, od, training, marketing, pr, it Hr, operations, business owner Hr/sales/operations Human resources director Human resources, accounting, admin I/o psychology I/o psychology Instituational business Insurance Interim - ceo. Former head internal promote from other function (real estate) Investor services & operations It It is our executive committee and we all have different backgrounds Labor relations -mill div Labor relations, attorney Law Law and operations Lawyer Lawyer with hr experience Lawyer, line manager then hr Leadership & operations Learning & development Learning and oe Legal Legal (erisa and labor law), consulting and hr management Legal and hr Legal and human resources Line executive Long tenured senior executive M/a Ma (sociology) mba-org development Management Management consulting Marketing Marketing / operations Marketing and financial services management Master's industrial relations Mba Mental health Natural science Od Od & hr Operation Operational into hrd

Operations Operations Operations manager Operations/engineering Operatons, general management Organization development Organizational development Organizational development/t&d Organizational leadership/accounting Outsourcing Partner from tax Personnel management Ph.d. Psychology Product manager and hr Program management/psychology & speech education Psychology Psychology and management Public accountant Public administration Public utilities Retail Retail management, learning & development, od Retail mgmt Rose up the ranks in banking Sa - store administrator Safety and training Sales and marketing Sales management Sales/marketing before hr Sales/strategic planning and hr School of hard knocks Science Scientist Strategy, business development Talent development Teacher Technical Technology Training Training & development Union organization Vacant Variety of business line functions, as well as hr experience Years of experience

n=795

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To what extent do each of the following describe how your organization operates?
Results Bureaucratic (hierarchical structure, tight job descriptions, top-down decision making) Low-cost operator (low wages, minimum benefits, focus on cost reduction and controls) High involvement (flat structure, participative decisions, commitment to employee development and careers) Global competitor (complex interesting work, hire best talent, low commitment to employee development and careers) Sustainable (agile design, focus on financial performance and sustainability) Little or no extent 17.7% 41.0% 11.7% 31.6% 9.4% Some extent 24.9% 27.5% 28.4% 29.3% 21.9% Moderate extent 23.3% 19.4% 28.4% 21.4% 30.5% Great extent 25.6% 9.0% 23.9% 13.2% 30.2% Very great extent 8.5% 3.1% 7.7% 4.5% 8.0%

n-values range from 732 - 742

To what extent is each of the following strategic initiatives present in your organization?
Results Building a global presence Acquisitions Customer focus Technology leadership Talent management Knowledge/intellectual capital management Sustainability Innovation Little or no extent 38.0% 41.0% 1.2% 10.0% 5.2% 7.4% 4.7% 6.5% Some extent 15.7% 21.1% 6.2% 21.3% 21.1% 22.6% 14.3% 18.0% Moderate extent 15.1% 20.2% 14.5% 30.8% 33.3% 33.4% 30.5% 31.2% Great extent 20.2% 12.8% 36.5% 24.9% 28.1% 26.5% 34.7% 28.8% Very great extent 11.0% 4.8% 41.6% 13.1% 12.3% 10.2% 15.8% 15.6%

n-values range from 743 748

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For each of the following HR roles, please estimate the percentage of time your HR function spends performing these roles.
NOTE: This question displayed two columns titled Currently and 5-7 Years Ago. Respondents were instructed that percentages should add to 100% for each column. Mean of Responses Results Maintaining Records
(Collect, track and maintain data on employees)

Median of Responses Currently 15% 10% 25% 15% 20% 5-7 Years Ago 25% 15% 30% 10% 10%

Currently 19% 15% 29% 18% 24%

5-7 Years Ago 28% 17% 31% 15% 14%

Auditing/Controlling
(Ensure compliance with internal operations, regulations, and legal and union requirements)

Providing Human Resource Services

(Assist with implementation and administration of HR practices)

Developing Human Resource Systems and Practices

(Develop new HR systems and practices)

Strategic Business Partnering

(Member of the management team; involved with strategic HR planning, organization design, and strategic change)

n-values range from 582 - 633

Which of the following best describes the relationship between the Human Resource function and the business strategy of your organization?
Results HR plays no role in business strategy. HR is involved in implementing the business strategy. HR provides input to the business strategy and helps implement it once it has been developed. HR is a full partner in developing and implementing the business strategy. n=657 All Respondents 10.8% 22.1% 39.9% 27.2%

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With respect to strategy, to what extent does the HR function

NOTE: This question was only shown to respondents who DID NOT indicate in the previous question that HR plays no role in the business strategy. Little or no extent 11.9% 13.2% 3.4% 37.5% 8.8% 6.0% 36.4% 28.7% 37.5% Some extent 33.6% 29.8% 21.4% 32.6% 28.6% 22.1% 23.7% 28.5% 32.6% Moderate extent 27.0% 27.7% 30.6% 19.8% 30.9% 27.8% 18.4% 21.6% 19.8% Great extent 22.5% 22.8% 33.0% 6.0% 24.2% 31.2% 14.4% 14.0% 6.0% Very great extent 5.1% 6.4% 11.6% 4.0% 7.6% 12.9% 7.0% 7.2% 4.0%

Results Help identify or design strategy options Help decide among the best strategy options Help plan the implementation of strategy Help identify new business opportunities Assess the organizations readiness to implement strategies Help design the organization structure to implement strategy Assess possible merger, acquisition or divestiture strategies Work with the corporate board on business strategy Help identify new business opportunities

n-values range from 525 - 530

To what extent does each of the following describe the way your HR organization currently operates?
Results Administrative processing is centralized in shared services units Transactional HR work is outsourced Centers of excellence provide specialized expertise Decentralized HR generalists support business units People rotate within HR People rotate into HR Little or no extent 13.8% 50.6% 31.8% 34.4% 51.2% 66.7% Some extent 18.8% 26.1% 23.7% 16.0% 20.2% 20.4% Moderate extent 22.4% 12.8% 18.9% 14.9% 17.7% 9.2% Great extent 30.4% 7.5% 17.2% 21.5% 8.9% 3.0% Very great extent 14.6% 3.0% 8.4% 13.2% 2.0% 0.7%

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People rotate out of HR to other functions HR practices vary across business units Some transactional activities that used to be done by HR are done by employees on a selfservice basis HR advice is available on-line for managers and employees There is a low HR/employee ratio There is a data-based talent strategy There is a human capital strategy that is integrated with the business strategy Provides analytic support for business decision-making Provides HR data to support change management Drives change management Makes rigorous data-based decisions about human capital management Uses social networks for recruiting

64.5% 36.8% 24.3% 33.1% 22.3% 34.8% 25.2% 17.0% 13.8% 21.7% 29.0% 28.2%

22.4% 32.0% 33.2% 26.5% 24.6% 30.8% 27.7% 32.1% 25.8% 23.4% 29.7% 34.2%

8.9% 19.5% 23.5% 21.8% 24.3% 22.4% 23.8% 27.6% 30.3% 27.4% 22.3% 19.5%

4.0% 10.0% 15.3% 13.0% 19.8% 9.2% 16.3% 17.8% 23.8% 20.9% 15.5% 12.7%

0.2% 1.7% 3.7% 5.7% 9.0% 2.8% 7.0% 5.5% 6.2% 6.5% 3.5% 5.3%

n-values range from 595 - 601

How has the amount of attention to the following HR activities in your organization changed over the past 5-7 years as a proportion of overall Human Resource activity and emphasis?
Results Human capital forecasting and planning Compensation Benefits Organization development Organization design Training and education Significantly decreased 1.4% 1.1% 1.8% 2.1% 2.1% 2.3% Decreased 5.7% 7.9% 7.1% 9.5% 10.3% 12.6% Stayed the same 35.3% 37.0% 38.8% 30.9% 39.5% 33.6% Increased 48.7% 45.2% 44.7% 47.8% 39.3% 40.7% Significantly increased 8.9% 8.9% 7.7% 9.7% 8.7% 10.7%

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Management development Union relations HR Information Systems Performance appraisals Recruitment Selection Career planning Legal affairs Employee assistance Competency / talent assessment HR metrics and analysis Executive compensation

2.9% 16.8% 2.5% 1.6% 2.3% 2.3% 3.9% 3.0% 3.4% 3.2% 2.0% 2.8%

9.9% 8.3% 6.1% 6.1% 9.3% 8.2% 10.9% 9.5% 10.0% 7.1% 7.0% 6.8%

32.3% 58.0% 33.3% 37.8% 37.4% 41.6% 51.0% 56.4% 57.6% 39.5% 38.5% 47.3%

43.5% 13.1% 47.2% 44.2% 39.4% 39.5% 29.9% 25.4% 25.0% 41.3% 42.4% 32.6%

11.5% 3.7% 10.9% 10.3% 11.6% 8.4% 4.3% 5.7% 4.1% 8.9% 10.2% 10.5%

n-values range from 541 - 562

Have any of the activities listed below been partially or completely outsourced?
Results Human capital forecasting and planning Compensation Benefits Organization development Organization design Training and education Management development Union relations HR Information Systems Performance appraisals Not at all 95.2% 79.8% 47.5% 86.1% 90.9% 52.0% 66.2% 90.7% 64.5% 89.4% Partially 4.3% 18.4% 45.6% 12.9% 8.4% 46.3% 32.4% 7.8% 30.8% 9.5% Completely 0.5% 1.8% 6.9% 1.1% 0.7% 1.8% 1.4% 1.5% 4.6% 1.1%

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Results Recruitment Selection Career planning Legal affairs Employee assistance Competency/talent assessment HR metrics and analysis Executive compensation

Not at all 63.7% 84.1% 93.4% 54.5% 43.8% 83.0% 88.8% 79.6% n-values range from 539 - 564

Partially 35.1% 15.4% 6.3% 37.9% 31.7% 16.1% 10.3% 18.4%

Completely 1.2% 0.5% 0.4% 7.7% 24.6% 0.9% 0.9% 2.0%

Do you have a multiple-process HR outsourcing (HRBPO) contract?

Results Yes No, but seriously considering No, not seriously considering Unknown n=565 All Respondents 7.1% 4.6% 65.5% 22.8%

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Overall, how satisfied are you with your HRBPO (Human Resources Business Process Outsourcing) relationship?
NOTE: This question was only shown if the respondent indicated the presence of a multiple-process HR outsourcing (HRBPO) contract. All Respondents 2.9% 8.8% 14.7% 23.5% 32.4% 14.7% 2.9% n=34

Results Very dissatisfied Dissatisfied Somewhat dissatisfied Neither satisfied or dissatisfied Somewhat satisfied Satisfied Very satisfied

In general, how effective do you think the following approaches to HR outsourcing are?
Results No outsourcing Very limited: only a few transactional services (e.g. payroll) Moderate outsourcing to a single vendor Moderate outsourcing to multiple vendors Substantial outsourcing to a single vendor Substantial outsourcing to multiple vendors Very ineffective 19.3% 5.8% 7.8% 7.2% 13.4% 17.5% Ineffective 29.2% 16.2% 15.2% 16.5% 27.4% 24.2% Neither 37.2% 23.5% 32.9% 34.9% 36.2% 35.9% Effective 11.2% 46.6% 41.8% 36.2% 21.8% 18.8% Very effective 3.1% 7.8% 2.2% 5.2% 1.1% 3.7%

n-values range from 536 - 545

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What is the one statement that best describes the current state of your HR Information System (HRIS)?
Results We have a completely integrated HR Information Technology System. Most processes are information technology based but not fully integrated. Some HR processes are information technology based. There is little information technology present in the HR function. There is no information technology present. n=556 All Respondents 11.7% 38.1% 35.8% 11.0% 3.4%

To what extent do you consider your HRIS to

NOTE: This question was only shown to respondents who DID NOT indicate in the previous question that there is no information technology present within his/her organization. Little or no extent 10.2% 20.0% 13.2% 18.0% 28.5% 16.9% 38.1% 32.7% 40.3% 39.1% 52.3% Some extent 27.0% 27.4% 27.9% 26.6% 26.3% 26.7% 23.5% 28.0% 24.9% 26.9% 21.0% Moderate extent 37.2% 34.2% 32.0% 27.0% 26.5% 26.5% 22.1% 21.1% 20.0% 17.9% 16.1% Great extent 22.1% 16.2% 22.4% 22.5% 14.9% 23.8% 13.4% 14.6% 12.7% 12.8% 8.6% Very great extent 3.5% 2.2% 4.5% 5.9% 3.7% 6.1% 3.0% 3.6% 2.2% 3.3% 2.0%

Results Be effective Satisfy your employees Improve HR services Reduce HR transaction costs Provide new strategic information Speed up HR processes Reduce the number of employees in HR Integrate HR processes (e.g. training, compensation) Measure HRs impact on the business Improve on human capital decisions of managers outside HR Create knowledge networks

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Results Build social networks that help work get done

Little or no extent 61.1%

Some extent 17.7%

Moderate extent 14.5%

Great extent 5.3%

Very great extent 1.4%

n-values range from 507 - 511

Does your organization currently

Yes, have now 18.8% 29.6% 18.8% 32.7% 35.7% 21.7% 34.7% 11.8% 14.2% Not currently being considered 31.1% 24.7% 39.1% 28.8% 24.2% 32.6% 37.1% 50.9% 43.8%

Results Measure the business impact of HR programs and processes? Collect metrics that measure the cost of HR programs and processes? Have the capability to conduct cost-benefit analyses (also called utility analyses) of HR programs? Use HR dashboards or scorecards? Measure the financial efficiency of HR operations (e.g. cost-per-hire, time-to-fill, training costs)? Measure the specific effects of HR programs (such as, learning from training, motivation from rewards, validity of tests, etc.)? Benchmark analytics/measures against data from outside organizations (e.g. Saratoga, Mercer, Hewitt, etc.)? Measure the quality of the talent decisions made by non-HR leaders? Measure the business impact of high versus low performance in jobs?

Being built 17.1% 18.6% 14.8% 18.6% 17.1% 15.1% 10.5% 10.5% 11.1%

Planning for 33.0% 27.1% 27.3% 19.9% 22.9% 30.7% 17.7% 26.7% 30.9%

n-values range from 527 - 532

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What describes the way you measure the following HR programs and activities? (Select all that apply)
Efficiency
(The resources used by the program, such as cost per hire)

Effectiveness
(The changes produced by the program, such as learning from training)

Impact
(The business or strategic value produced by the program)

Results Compensation Benefits Organization development Organization design Training/education Leader development and succession HR information systems Performance management Career planning Diversity Employee assistance Staffing Social and knowledge networks 41.6% 51.4% 22.5% 25.5% 31.6% 22.0% 50.6% 27.8% 19.0% 21.4% 39.6% 47.8% 28.6% n=490

35.9% 34.1% 41.6% 35.7% 53.1% 44.5% 32.2% 49.0% 41.0% 35.5% 32.0% 39.4% 27.6%

39.0% 32.2% 36.5% 32.9% 36.3% 41.8% 20.8% 34.3% 26.3% 29.2% 20.0% 29.4% 19.6%

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How effective are the information, measurement, and analysis systems of your organization when it comes to the following?
Results Connecting human capital practices to organizational performance Identifying where talent has the greatest potential for strategic impact Predicting the effects of HR programs before implementation Pinpointing HR programs that should be discontinued Supporting organizational change efforts Assessing and improving the HR department operations Contributing to decisions about business strategy and human capital management Using logical principles that clearly connect talent to organizational success Using advanced data analysis and statistics Providing high-quality (complete, timely, accessible) talent measurements Motivating users to take appropriate action Very ineffective 14.3% 12.4% 15.2% 15.5% 10.7% 9.2% 10.5% 12.6% 20.3% 17.4% 14.1% Ineffective 27.9% 23.6% 27.3% 27.5% 14.7% 16.7% 20.4% 22.8% 29.4% 33.4% 25.9% Somewhat effective 45.8% 40.8% 43.2% 38.4% 42.6% 43.7% 37.8% 40.6% 36.4% 34.1% 43.9% Effective 10.7% 20.7% 13.2% 17.7% 25.4% 26.8% 26.5% 22.1% 11.8% 13.7% 13.6% Very effective 1.4% 2.5% 1.1% 0.9% 6.6% 3.7% 4.8% 1.8% 2.1% 1.4% 2.5%

n-values range from 437 - 444

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To what extent are these statements true about your organization?

Results We excel at competing for and with talent where it matters most to our strategic success Business leaders decisions that depend upon or affect human capital (e.g. layoffs, rewards, etc.) are as rigorous, logical and strategically relevant as their decisions about resources such as money, technology, and customers HR leaders have a good understanding about where and why human capital makes the biggest difference in their business Business leaders have a good understanding about where and why human capital makes the biggest difference in their business HR systems educate business leaders about their talent decisions HR adds value by insuring compliance with rules, laws, and guidelines HR adds value by delivering high-quality professional practices and services HR adds value by improving talent decisions inside and outside the HR function Little or no extent Some extent Moderate extent Great extent Very great extent

13.3%

26.5%

33.5%

21.7%

5.0%

14.9%

27.4%

28.9%

21.7%

7.0%

8.3%

21.2%

24.5%

37.2%

8.8%

9.6%

24.8%

32.7%

27.6%

5.3%

30.4%

28.0%

29.1%

10.4%

2.2%

6.2%

14.1%

31.2%

34.7%

13.8%

8.3%

14.0%

31.1%

34.4%

12.3%

10.9%

18.8%

27.3%

31.7%

11.3%

n-values range from 451 - 457

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To what extent do business leaders understand and use sound principles when making decisions about
Results Motivation Development and learning Culture Organization design Business strategy Finance Marketing Little or no extent 11.5% 8.2% 12.4% 11.3% 6.4% 4.4% 9.9% Some extent 32.5% 29.0% 25.4% 30.6% 14.1% 10.8% 20.9% Moderate extent 35.2% 38.7% 30.0% 36.8% 30.7% 28.0% 32.2% Great extent 17.9% 20.4% 24.9% 18.4% 34.4% 37.7% 28.6% Very great extent 2.9% 3.8% 7.3% 2.9% 14.3% 19.2% 8.4%

n-values range from 451 - 454

To what extent does your corporations Board call on HR for help with the following?
Results Executive compensation Addressing strategic readiness Executive succession Change consulting Developing Board effectiveness/corporate governance Risk assessment Information about the condition or capability of the workforce Board compensation Little or no extent 23.2% 26.6% 25.1% 28.3% 44.7% 27.0% 17.7% 48.3% Some extent 15.6% 24.3% 14.8% 24.9% 21.0% 30.3% 20.6% 14.1% Moderate extent 16.0% 29.3% 21.5% 22.5% 21.2% 24.3% 26.4% 14.7% Great extent 24.3% 15.3% 24.4% 18.7% 9.3% 15.3% 25.5% 16.1% Very great extent 20.9% 4.5% 14.3% 5.6% 3.8% 3.1% 9.8% 6.8%

n-values range from 441 - 449

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How satisfied are you with the skills and knowledge of your organizations current HR/managerial staff in each of these areas?
Results Team skills HR technical skills Business understanding Interpersonal skills Cross-functional experience Consultation skills Leadership/management Global understanding Organization design Strategic planning Information technology Change management Metrics development Data analysis and mining Process execution and analysis Very dissatisfied Dissatisfied 3.4% 4.2% 4.5% 2.5% 4.0% 5.4% 5.6% 10.6% 6.3% 7.2% 6.5% 8.1% 11.2% 11.5% 7.5% 11.9% 10.5% 13.8% 9.4% 25.3% 17.6% 15.8% 20.0% 19.0% 23.2% 22.9% 18.8% 27.1% 30.0% 20.1% Neutral 27.5% 20.5% 27.6% 18.3% 33.9% 28.1% 24.9% 41.9% 38.1% 31.5% 33.6% 30.9% 34.5% 31.3% 31.4% Satisfied 47.0% 49.6% 43.7% 50.1% 31.2% 37.5% 41.4% 22.1% 32.3% 32.2% 30.7% 34.8% 23.5% 23.2% 34.4% Very satisfied 10.3% 15.2% 10.5% 19.7% 5.6% 11.4% 12.2% 5.4% 4.3% 5.9% 6.3% 7.4% 3.6% 4.1% 6.6%

n-values range from 442 - 449

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What percentage of your company-wide professional/managerial HR staff possesses the necessary skill set for success in todays business environment?
Results 0% 1-20% 21-40% 41-60% 61-80% 81-99% 100% n=455 All Respondents 1.8% 13.0% 16.7% 22.0% 26.4% 13.0% 7.3%

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NOTE: The responses for the next two questions are displayed in a single table below.

On a scale of 1 to 10, how well is the HR organization meeting needs in the following areas?
NOTE: Respondents were asked to rate the following activities from 1 to 10 where 1 = Not meeting needs and 10 = All needs are met.

On a scale of 1 to 10, how important is it that the HR organization does well in the following areas?
NOTE: Respondents were asked to rate the following activities from 1 to 10 where 1 = Not at all important and 10 = Very important/critical. Mean of Responses How How well important HR org is it is that meeting HR org needs does well 7.48 5.91 6.55 6.33 5.66 5.67 5.72 5.83 6.87 5.81 5.71 6.59 8.66 7.76 8.43 8.43 6.66 7.43 7.07 7.88 8.01 8.19 7.04 8.56 Median of Responses How How well important HR org is it is that meeting HR org needs does well 8.00 6.00 7.00 7.00 6.00 6.00 6.00 6.00 7.00 6.00 6.00 7.00 9.00 8.00 9.00 9.00 7.00 8.00 8.00 8.00 9.00 9.00 8.00 9.00

Results Providing HR services Providing change consulting services Being a business partner Improving decisions about human capital Managing outsourcing Operating HR centers of excellence Operating HR shared service units Helping to develop business strategies Being an employee advocate Analyzing HR and business metrics Working with the corporate Board Overall performance

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The Future of HR

How has the recession affected the following in your organization?

Results Power and status of HR function Strategic role of HR function Commitment to talent development Focus on performance management Quality of talent management decisions Use of contract employees Use of temporary employees Use of HR analytics and metrics Quality of employees in HR function Attractiveness of your companys brand as an employer Effectiveness of HR function Willingness to try innovative HR practices Use of short term HR system fixes Commitment to treating people right Percent of its time HR spends on administration Focus on HR practices that have shown tangible results Significantly decreased 2.8% 2.6% 4.9% 1.6% 2.3% 4.2% 5.1% 2.1% 2.6% 1.9% 1.4% 3.3% 2.6% 3.3% 1.2% 1.6% Decreased 12.1% 11.4% 16.1% 8.6% 11.7% 17.4% 17.6% 7.2% 4.9% 11.7% 8.8% 13.7% 12.6% 8.4% 18.8% 5.2% Stayed the same 58.2% 47.1% 40.1% 38.4% 47.0% 52.2% 48.5% 59.3% 63.0% 47.8% 54.9% 45.8% 63.1% 57.2% 59.8% 61.1% Increased 23.7% 32.9% 32.2% 42.1% 33.6% 23.2% 25.8% 26.7% 25.1% 32.2% 31.9% 34.4% 19.9% 25.3% 17.9% 30.0% Significantly increased 3.2% 6.0% 6.8% 9.3% 5.4% 3.0% 3.0% 4.7% 4.4% 6.5% 3.0% 2.8% 1.9% 5.8% 2.3% 2.1%

n-values range from 427 - 431

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Preliminary Results

Preliminary Results

Demographics
Primary industry*
Results Aerospace & Defense Agriculture Automotive & Transport Banking Beverages Business Services Charitable Organizations Chemicals Computer Hardware Computer Services Computer Software Construction Consumer Products Manufacturers Consumer Services Cultural Institutions Education Electronics Energy & Utilities Environmental Services & Equipment Financial Services Food Government Health Care Industrial Manufacturing Insurance Leisure Media Membership Organizations Metals & Mining Pharmaceuticals Real Estate Retail Security Products & Services Telecommunications Equipment All Respondents 2.6% 0.5% 1.5% 2.1% 0.1% 10.0% 1.2% 1.4% 0.6% 0.7% 3.0% 2.0% 3.0% 0.6% 0.1% 7.3% 1.1% 3.1% 0.6% 7.7% 2.4% 5.6% 7.8% 5.3% 4.8% 0.6% 1.0% 1.6% 0.6% 2.1% 0.5% 3.2% 0.5% 0.1%

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Telecommunications Services Transportation Services Other n=807

1.9% 2.1% 10.5%

Size of workforce throughout the world*

Results 1 - 24 employees 25 - 49 employees 50 - 99 employees 100 - 249 employees 250 - 499 employees 500 - 999 employees 1,000 - 4,999 employees 5,000 - 9,999 employees 10,000 - 19,999 employees 20,000 - 49,999 employees 50,000 - 99,999 employees More than 100,000 employees n=807 All Respondents 9.5% 3.5% 3.8% 8.7% 7.8% 7.9% 21.4% 9.2% 7.2% 9.3% 5.0% 6.7%

Geographic structure*
Results Global (high level of global integration) Multinational (national / regional operations act independently) National (operations in one country only) n=807 All Respondents 27.8% 21.7% 50.6%

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Preliminary Results

Preliminary Results

Job level*
Results Board Member / Chairperson CEO / President Partner / Owner C-level executive EVP / SVP VP Director Manager Supervisor Individual Contributor Other n=807 All Respondents 0.2% 5.7% 4.8% 4.3% 6.8% 14.1% 28.1% 22.2% 2.6% 7.4% 3.6%

Department/function*
Results Accounting / Finance Administrative Consulting / Advisory Customer Service / Account Management Engineering Executive / Owner Facilities Management General Management Human Resources Information Technology Legal Market Research Marketing / Advertising Operations / Production Planning Product Development / Design Public Relations / Communications All Respondents 1.4% 2.0% 4.1% 0.4% 0.6% 4.3% 0.1% 3.8% 64.6% 1.1% 0.4% 0.1% 0.9% 2.2% 0.6% 0.2% 0.2%

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Results Quality Control Research & Development (Product related) Sales / Business Development Training Other n=807

All Respondents 0.1% 0.4% 2.0% 7.9% 2.5%

Please indicate your organization's performance in the following areas:*

Results Compared with the past five years, your revenue growth is Compared with the past five years, your market share is... Compared with the past five years, your profitability is... Compared with the past five years, your customer satisfaction is...
Not applicable At an alltime low Significantly worse About the same Significantly better At an alltime high

6.3% 9.3% 10.3% 3.3%

3.8% 1.4% 3.2% 0.4% n=807

19.3% 6.7% 16.6% 3.1%

37.4% 47.5% 37.8% 53.7%

27.1% 31.0% 27.3% 33.7%

5.9% 4.2% 4.8% 5.8%

Generally speaking, how would you gauge your organizations performance?

Note: This question only shown if the previous question was answered with at least two (2) Not applicable. All Respondents 1.5% 15.4% 32.3% 44.6% 6.2%

Results We're in bad shape We perform at below-average levels We're about average for our industry We're better than average We're in great shape n=65

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Preliminary Results

Preliminary Results

Organization type
Results Conglomerate Government Private Public n=410 All Respondents 2.9% 8.8% 56.6% 31.7%

Total revenue for the entire organization worldwide (in US Dollars)

Note: This question was not required. All Respondents 11.6% 1.5% 6.6% 5.1% 11.9% 8.1% 10.7% 8.1% 9.3% 7.2% 7.5% 12.5% n=335

Results $0 - $0.99 million $1 - $1.99 million $2 - $4.99 million $5 - $9.99 million $10 - $49.99 million $50 - $99.99 million $100 - $499.99 million $500 - $999.99 million $1 - $1.99 billion $2 - $4.99 billion $5 - $9.99 billion $10+ billion

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Location of company headquarters

Results United States Canada Argentina Australia Belgium Brazil Bulgaria China, People's Republic of Denmark Egypt Finland France Germany Ghana Greece Hong Kong India Indonesia Ireland Israel Italy Japan Jordan All Respondents 64.2% 11.5% 0.5% 1.0% 0.8% 0.3% 0.3% 0.5% 0.5% 0.8% 0.5% 0.5% 0.5% 0.3% 0.3% 0.3% 2.6% 0.8% 0.3% 0.3% 0.3% 1.5% 0.5% Results Korea, Republic of Kuwait Malaysia Mauritius Mexico New Zealand Nigeria Norway Palestinian State Poland Portugal Qatar, State of Romania Russian Federation Saudi Arabia Singapore South Africa Sweden Switzerland, Cantons of Trinidad and Tobago United Arab Emirates United Kingdom All Respondents 0.3% 0.3% 0.5% 0.3% 0.3% 0.8% 0.5% 0.8% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 0.8% 1.0% 0.5% 0.3% 1.3% 0.3% 0.5% 1.5% 0.3%

n=391

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