SHRM Poll Hiring Practices and Attitudes Traditional vs

SHRM Poll: Hiring Practices and Attitudes: Traditional vs. Online Degree Credentials Commissioned by: August 18, 2010

Definitions v All colleges and universities discussed in this survey, whether online or traditional, are assumed to be accredited institutions. v Online degrees: The majority (80% or more) of the courses to complete degree requirements are taken online. v Traditional degrees: The majority of the courses (80% or more) to complete degree requirements are taken at a brick-and-mortar campus, with face-to-face instruction in a physical classroom. Types of accredited institutions that offer online degrees: 1) The online degree is offered by a traditional brick-and-mortar educational institution: • Public brick-and-mortar universities that also offer online education (e. g. , UMass Online, Penn State Online, Bowling Green State University, etc. ) • Private, for-profit brick-and-mortar universities that also offer online education (e. g. , University of Phoenix, Grand Canyon University, Ashford University, etc. ) • Private, not-for-profit brick-and-mortar universities that also offer online education (e. g. , Saint Leo University, Drexel University Online, Bellevue University, etc. ) 2) Only an online degree is offered, no traditional brick-and-mortar educational institution exists: • 100% distance learning universities (no physical classrooms or campuses) (e. g. , Walden University, Capella University, California Coast University, etc. ) Hiring Practices and Attitudes – Traditional vs. Online Degree Credentials| Commissioned by e. Learners. com ©SHRM 2010 2

Key Findings • • • More than one-third of organizations (34%) reported that job candidates who have obtained their degrees online were viewed as favorably as job applicants with traditional degrees (i. e. , brick-and-mortar). More than one-half of organizations (55%) indicated that if two job applicants with the same job experience were applying for a job, it would not make a difference whether the job candidate’s degree was obtained through an online or traditional (i. e. , brick-and-mortar) degree program. The higher the position in the organization, the less acceptable the online degree credentials. Four out of 10 organizations (43%) indicated that an online degree credential is acceptable for a job applicant seeking an entry-level position, but only 15% of organizations indicated that an online degree is acceptable for a job applicant seeking an executive-level position. Only 11% of organizations stated that job candidates frequently or always identified on their resumes whether their degrees were obtained through an online degree program. 79% of organizations indicated that they had hired a job applicant with an online degree in the last 12 months. Hiring Practices and Attitudes – Traditional vs. Online Degree Credentials| Commissioned by e. Learners. com ©SHRM 2010 3

How strongly do you agree or disagree with the following statements about accredited online courses and/or degree programs versus accredited traditional (i. e. , brick-and-mortar) courses and/or degree programs? Online degrees are viewed more favorably today than five years ago (n = 443) 2% Job applicants with traditional degrees are preferred by my organization to applicants with online degrees, presuming work experiences are similar (n = 442) The current economic recession has led to an increase in the number of job applicants with online university degrees (n = 430) 4% Individual courses (as opposed to online degrees) taken online are equally credible to traditional university courses (n = 433) 11% 19% 45% 36% 15% 1% 27% 59% 24% 63% 13% 3% Online degree programs are equally credible to traditional degree programs (n = 448) 9% Distance learning online education (no physical classrooms or campuses) (e. g. , Walden University, Capella University, California Coast University) are equally credible to online degree programs that are associated with traditional 0% universities (n = 444) Strongly disagree 68% Disagree 13% 42% 48% 10% 40% 32% 9% 7% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 110% Agree Strongly agree Hiring Practices and Attitudes – Traditional vs. Online Degree Credentials| Commissioned by e. Learners. com ©SHRM 2010 4

How strongly do you agree with the following statements about accredited online courses and/or degree programs versus accredited traditional (i. e. , brick-and-mortar) courses and/or degree programs? 2010 Compared With 2009 Online degrees are viewed more favorably today than five years ago 90 87% % Individual courses (as opposed to online degrees) taken online are equally credible to traditional university courses 68% 73% The current economic recession has led to an increase in the number of job applicants with online university degrees 59% 72% Job applicants with traditional degrees are preferred by my organization to applicants with online degrees, presuming work experiences are similar 63% 60% Online degree programs are equally credible to traditional degree programs 47% 49% Distance learning online education (no physical classrooms or campuses) (e. g. , Walden University, Capella University, California Coast University) are equally credible to online degree programs that are associated with traditional universities* 39% 0% 2010 10% 20% 30% 40% 50% 60% 70% 80% 90% 2009 Note: Figure represents “agree” and “strongly agree” responses. *This option was not available in 2009. Hiring Practices and Attitudes – Traditional vs. Online Degree Credentials| Commissioned by e. Learners. com ©SHRM 2010 5

How strongly do you agree with the following statements about accredited online courses and/or degree programs versus accredited traditional (i. e. , brick-and-mortar) courses and/or degree programs? Comparison by Organization’s Operations and Union Status • The current economic recession has led to an increase in the number of job applicants with online university degrees (by operations): Organizations with U. S. -based operations were more likely than organizations with multinational operations to agree that the current economic recession has led to an increase in the number of job applicants with online university degrees. • Online degree programs are equally credible to traditional degree programs (by union status): Organizations with unionized employees (53%) were more likely than non-unionized (39%) organizations to agree that online degree programs are equally credible to traditional degree programs. Hiring Practices and Attitudes – Traditional vs. Online Degree Credentials| Commissioned by e. Learners. com ©SHRM 2010 6

Are job candidates who have obtained their degrees online viewed more favorably or less favorably than job applicants with traditional degrees (i. e. , brick-and-mortar)? 50% 49% 40% 34% 30% 20% 16% 10% 0% 0% Less favorably As favorably More favorably Not sure Note: n = 446. Percentages do not total 100% due to rounding. Hiring Practices and Attitudes – Traditional vs. Online Degree Credentials| Commissioned by e. Learners. com ©SHRM 2010 7

In your experience, how often do job applicants identify on their resumes whether their degrees are obtained through an online degree program? 47% 50% 45% 40% 27% 30% 22% 21% 20% 17% 8% 10% 2% 1% 0% Never Seldom Occasionally 2009 Frequently Always 2010 Note: “Not sure” responses were excluded from this analysis. Hiring Practices and Attitudes – Traditional vs. Online Degree Credentials| Commissioned by e. Learners. com ©SHRM 2010 8

Generally speaking, as an HR professional, how do you assess whether a university degree identified on a job applicant’s resume has been acquired through an online degree program? Certain university names are easily identified as offering online degrees (e. g. , University of Phoenix, Kaplan University, Everest University, Capella University) 64% It cannot be determined by looking at the job applicant’s resume 15% The applicant openly identifies it as such on the resume 9% The institution is located in a different region than where the applicant resided during the period that the degree was obtained 3% The university name is checked against a pre-established list of universities that offer online degrees 2% Other 6% 0% 10% 20% 30% 40% 50% 60% Note: n = 423. Percentages do not total 100% due to rounding. Hiring Practices and Attitudes – Traditional vs. Online Degree Credentials| Commissioned by e. Learners. com ©SHRM 2010 70% 9

Generally speaking, how acceptable is an online degree credential for a job applicant seeking… 3% An entry-level position (e. g. , assistant, coordinator)? (n = 434) 15% A mid-career level position (e. g. , analyst, specialist)? (n = 431) 43% 9% A management-level position (e. g. , director, manager, supervisor)? (n = 431) 35% 33% 24% An executive level position (e. g. , CEO, CFO, etc. )? (n = 430) 37% 42% 0% 40% 20% 28% 40% 23% 60% 15% 19% 15% 80% 100% Not at all acceptable Somewhat acceptable Acceptable It does not make a difference whether the degree was obtained online or traditionally Note: Percentages may not total 100% due to rounding. Hiring Practices and Attitudes – Traditional vs. Online Degree Credentials| Commissioned by e. Learners. com ©SHRM 2010 10

If two job applicants with the same job experience were applying for the same job at your organization, what type of educational credential, if any, would tip the balance in one candidate’s favor? It does not make a difference whether the degree was obtained through an online or traditional (i. e. , brick-and-mortar) degree program 55% Educational credentials that include a degree from an accredited traditional (i. e. , brick-and-mortar) degree program Educational credentials that include a degree from an accredited online degree program 46% 0% 0% 10% 20% 30% 40% 50% Note: n = 376. Percentages do not total 100% due to rounding. Hiring Practices and Attitudes – Traditional vs. Online Degree Credentials| Commissioned by e. Learners. com ©SHRM 2010 60% 11

When evaluating the educational credentials of job applicants, how favorably or unfavorably do you view the degrees obtained from each of the following types of online educational institutions viewed compared with degrees obtained through a traditional degree program? 2% Public, brick-and-mortar university that also offers online education (e. g. , UMass Online, Penn State Online, Bowling Green State University, etc. ) (n = 412) 7% Private, not-for-profit brick-and-mortar university that also offers online education (e. g. , Saint Leo University, Drexel University Online, Bellevue University, etc. ) (n = 409) Private, for-profit brick-and-mortar university that also offers online education (e. g. , University of Phoenix, Grand Canyon University, Ashford University, etc. ) (n = 412) 100% distance learning university (no physical classrooms or campuses) (e. g. , Walden University, Capella University, California Coast University, etc. ) (n = 411) Somewhat unfavorable 17% 18% 3% 14% 6% 58% 21% 20% 16% 51% 17% 0% Very unfavorable 57% 41% 40% Just as favorable - neither more nor less favorable 60% Somewhat favorable 9% 14% 9% 34% 6% 2% 80% 100% Very favorable Note: Percentages may not total 100% due to rounding. Hiring Practices and Attitudes – Traditional vs. Online Degree Credentials| Commissioned by e. Learners. com ©SHRM 2010 12

If job applicants with the same job experience and same level of education were applying for the same job at your organization, what type of educational credential, if any, would tip the balance in one candidate’s favor? Applicant with an associate’s degree Applicant A: The only educational credential is an online degree (e. g. , online associate’s degree in criminal justice) 1% Applicant B: The only educational credential is a traditional degree (e. g. , an associate’s degree in criminal justice from a brick-and-mortar institution) 36% It does not make a difference whether the degree was obtained online or traditionally (i. e. , brick and mortar) 64% 0% 10% 20% 30% 40% 50% 60% 70% Note: n = 404. Percentages do not total 100% due to rounding. Hiring Practices and Attitudes – Traditional vs. Online Degree Credentials| Commissioned by e. Learners. com ©SHRM 2010 13

If job applicants with the same job experience and same level of education were applying for the same job at your organization, what type of educational credential, if any, would tip the balance in one candidate’s favor? Applicant with an undergraduate degree Applicant A: The only educational credential is an online degree (e. g. , an online bachelor’s degree in information technology) 0% Applicant B: The only educational credential is a traditional degree (e. g. , a bachelor’s degree in information technology from a brick-and-mortar institution) 52% It does not make a difference whether the degree was obtained online or traditionally (i. e. , brick-andmortar) 48% 0% 10% 20% 30% 40% 50% Note: n = 402. Percentages may not total 100% due to rounding. Hiring Practices and Attitudes – Traditional vs. Online Degree Credentials| Commissioned by e. Learners. com ©SHRM 2010 60% 14

If job applicants with the same job experience and same level of education were applying for the same job at your organization, what type of educational credential, if any, would tip the balance in one candidate’s favor? Applicant with an undergraduate and a master’s degree Applicant A: Both educational credentials are online degrees (e. g. , an online bachelor’s degree in liberal arts and an online 0% master’s degree in education) Applicant B: Both educational credentials are traditional degrees (e. g. , a bachelor’s degree in liberal arts and a master’s degree in education from a brick-and-mortar institution) 41% Applicant C: An undergraduate degree is an online degree, and a master’s degree is a traditional degree 5% Applicant D: An undergraduate degree is a traditional degree, and a master’s degree is an online degree 15% It does not make a difference whether the degree was obtained through an online or traditional (i. e. , brick-and-mortar) degree program 39% 0% 10% 20% 30% 40% Hiring Practices and Attitudes – Traditional vs. Online Degree Credentials| Commissioned by e. Learners. com ©SHRM 2010 50% 15

Generally speaking, how strongly do you agree or disagree with the following statements about accredited online degree programs and accredited traditional degree programs? Strongly Disagree Agree Graduates of online degree programs have greater self-discipline than students who graduated from traditional degree programs (n = 281) Graduates of traditional degree programs have greater self-discipline than students who graduated from online degree programs (n = 272) Graduates of traditional degree programs communicate more effectively than students who graduated from online degree programs (n = 272) Graduates of online degree programs communicate more effectively than students who graduated from traditional degree programs (n = 287) Graduates of online degree programs have better time management skills than students who graduated from traditional degree programs (n = 269) Graduates of traditional degree programs have better time management skills than students who graduated from online degree programs (n = 252) Online education is easier than traditional, face-to-face education (n = 317) 6% 59% 21% 14% 3% 67% 24% 6% 2% 41% 42% 14% 15% 73% 8% 4% 7% 64% 19% 10% 4% 66% 24% 5% 12% 48% 31% 10% Traditional, face-to-face education is easier than online education (n = 322) 13% 69% 17% 2% Online education is lower in quality than traditional, face-to-face education (n = 312) 13% 44% 35% 9% Traditional, face-to-face education is lower in quality than online education (n = 337) 25% 72% 2% 1% 4% 62% 27% 7% 8% 70% 15% 7% 11% 51% 35% 4% Graduates of traditional degree programs are motivated than students who graduated from online degree programs. (n = 273) Graduates of online degree programs are motivated than students who graduated from traditional degree programs (n = 272) Even if an online degree credential is from a reputable institution with name recognition, if it was earned online, it will be considered less credible (n = 327) Note: Percentages may not total 100% due to rounding. “Not sure” responses were excluded from this analysis. Hiring Practices and Attitudes – Traditional vs. Online Degree Credentials| Commissioned by e. Learners. com ©SHRM 2010 16

In the last 12 months, has a job applicant with an online degree applied for a position at your organization? No, 22% Yes, 78% Note: n = 254. “Not sure” responses were excluded from this analysis. Hiring Practices and Attitudes – Traditional vs. Online Degree Credentials| Commissioned by e. Learners. com ©SHRM 2010 17

In the last 12 months, did your organization hire a job applicant with an online degree? No, 21% Yes, 79% Note: n = 151. “Not sure” responses were excluded from this analysis. Only organizations where a job applicant with an online degree applied for a position in the last 12 months were included in this analysis. Hiring Practices and Attitudes – Traditional vs. Online Degree Credentials| Commissioned by e. Learners. com ©SHRM 2010 18

Demographics: Organization Industry Manufacturing—other 14% Health care, social assistance (e. g. , nursing homes, EAP providers) 11% Services—professional, scientific, technical, legal, engineering 11% Educational services/education 7% Financial services (e. g. , banking) 6% Other services (e. g. , nonprofit, church/religious organizations) 5% Government/public administration—federal, state/local, tribal 4% Retail/wholesale trade 4% Manufacturing—auto/auto-related 4% Note: n = 379. Percentages do not total 100% due to rounding. Hiring Practices and Attitudes – Traditional vs. Online Degree Credentials| Commissioned by e. Learners. com ©SHRM 2010 19

Demographics: Organization Industry (continued) Industry Insurance 3% Construction, mining, oil and gas 3% High-tech 3% Consulting 3% Services—accommodation, food and drinking places 3% Arts, entertainment, recreation 3% Telecommunications 2% Transportation, warehousing (e. g. , distribution) 2% Biotech 2% Publishing, broadcasting, other media 2% Real estate, rental, leasing 2% Utilities 1% Association—professional/trade 1% Pharmaceutical 1% Other 4% Note: n = 379. Percentages do not total 100% due to rounding. Hiring Practices and Attitudes – Traditional vs. Online Degree Credentials| Commissioned by e. Learners. com ©SHRM 2010 20

Demographics: Organization Sector Privately owned for-profit organization 50% Publicly owned for-profit organization 25% Nonprofit organization 15% Government sector 6% Other 4% 0% 10% 20% 30% 40% 50% 60% Note: n = 377 Hiring Practices and Attitudes – Traditional vs. Online Degree Credentials| Commissioned by e. Learners. com ©SHRM 2010 21

Demographics: Organization Staff Size 50% 40% 29% 30% 28% 23% 20% 11% 9% 10% 0% 1 to 99 employees 100 to 499 employees 500 to 2499 employees 2500 to 24999 employees 25000 or more employees Note: n = 249 Hiring Practices and Attitudes – Traditional vs. Online Degree Credentials| Commissioned by e. Learners. com ©SHRM 2010 22

Demographics: Other Does organization have U. S. -based operations (business units) only or does it operate multinationally? U. S. -based operations 70% Multinational operations 30% Note: n = 378 Is organization a single-unit company or a multiunit company? Single-unit company: Companies in which the location and the company are one and the same. 30% Multi-unit company: Companies that have more than one location. 70% Note: n = 384 18% of organizations indicated that employees at their work location were unionized. Note: n = 374 Are HR policies and practices determined by the multi-unit corporate headquarters, by each work location or both? Multi-unit headquarters determines HR policies and practices 46% Each work location determines HR policies and practices 5% A combination of both the work location and the multi-unit headquarters determine HR policies and practices 49% Note: n = 281 Hiring Practices and Attitudes – Traditional vs. Online Degree Credentials| Commissioned by e. Learners. com ©SHRM 2010 23

SHRM Poll: Hiring Practices and Attitudes: Traditional vs. Online Degree Credentials Methodology • • Response rate = 17% Sample comprised of 449 randomly selected HR professionals from SHRM’s membership Margin of error is +/- 5% Survey fielded July 27–August 6, 2010 For more poll findings, visit: www. shrm. org/surveys Follow us on Twitter: http: //twitter. com/SHRM_Research Hiring Practices and Attitudes – Traditional vs. Online Degree Credentials| Commissioned by e. Learners. com ©SHRM 2010 24