Texas Agricultural Cooperative Council Presentation
- 1. Recruitment and Retention Strategies for Businesses of every size Mike Smith - President – Ag 1 Source Presenting to The most trusted and reliable recruiting firm in the agriculture industry © 2013 Ag 1 Source Texas Agricultural Cooperative Council
- 2. Today’s Forecast The U.S. Un-Employment Situation Geographics Education Retirements Weatherproofing Reduce Turnover Relocation and Training programs Succession Programs The most trusted and reliable recruiting firm in the agriculture industry © 2013 Ag 1 Source
- 3. The most trusted and reliable recruiting firm in the agriculture industry Source—Bureau of Labor Statistics, Local Area Unemployment Statistics - http://www.bls.gov/lau/maps/twmcort.pdf Unemployment Distribution © 2013 Ag 1 Source
- 4. Changes in Overall Employment In 5 years, the overall U.S. employment is expected to increase by about 12 million. • Source – Georgetown Univ. The most trusted and reliable recruiting firm in the agriculture industry © 2013 Ag 1 Source
- 5. Changes in Overall Employment In 5 years, the overall U.S. employment is expected to increase by about 12 million. • Source – Wall Street Journal Online The most trusted and reliable recruiting firm in the agriculture industry © 2013 Ag 1 Source
- 6. The Education Component • The U.S. Demand for college educated is outpacing supply at a rate of 300,000 per year. • By 2018, the postsecondary system will have produced 3 million fewer college graduates than demanded by the labor market – – Source – Georgetown University Projections of Jobs and Education Requirements – From 2010 to 2015 - Agriculture needs 54,400 new college graduates each year / Supply – 53,500 – Source - Purdue/USDA publication Employment Opportunities for College Graduates – Goecker, Smith, Goetz 2010 The most trusted and reliable recruiting firm in the agriculture industry © 2013 Ag 1 Source
- 7. Employment Trend - 10 Yrs. Labor Force Statistics from the Current Population Survey – Employment Level- 25yrs and older www.bls.gov© 2013 Ag 1 Source
- 8. The most trusted and reliable recruiting firm in the agriculture industry Reference – Bureau of Labor Statistics Question – Do we have an unemployment problem… or, do we have an education problem in the U.S.? The Education Component © 2013 Ag 1 Source
- 9. The most trusted and reliable recruiting firm in the agriculture industry Ag 1 Source current search mix © 2013 Ag 1 Source
- 10. Changes in Overall Employment In 5 years, the U.S. demand for some level of college educated will exceed 2/3 of overall employment. • Source – Georgetown Univ. The most trusted and reliable recruiting firm in the agriculture industry © 2013 Ag 1 Source
- 11. U.S. Employment age groups Workers Aged 55 To 64 will nearly double as a percent of the work force from 2000 To 2020. (According to BLS) The most trusted and reliable recruiting firm in the agriculture industry © 2013 Ag 1 Source
- 12. Today’s Younger Employees • Fewer Have Agricultural Backgrounds. (UC Davis Claims Less Than 5% In The College Of Ag Have Ag Backgrounds.) • More Ag Background Students Are Returning Back To Their “Baby Boomer” Parents’ or Grandparents’ Operations. • Student Population Is Now About 60% Female And 40% Male. Complete Reversal From 5 Years Ago. The most trusted and reliable recruiting firm in the agriculture industry
- 13. Retention Remedies Start by: 1. Reducing Current Turnover 2. Look at Performance vs. Skills 3. Flexibility a. Trainer or Mentor b. Encourage education c. 55+ age group 4. Become a “Destination Employer” 5. Streamline the hiring process The most trusted and reliable recruiting firm in the agriculture industry © 2013 Ag 1 Source
- 14. It’s not about the money! To Reduce Turnover – Look at Why Employees Leave a Company The most trusted and reliable recruiting firm in the agriculture industry © 2013 Ag 1 Source
- 15. Perception vs. Reality • 89% of managers believe employees leave for more money • 11% believe they leave for other reasons • 12% of employees leave for more money • 88% of employees leave for reasons other than money Saratoga Institute 2003 The most trusted and reliable recruiting firm in the agriculture industry © Ag 1 Source
- 16. Take Your Cues From Why Employees Say They Leave Numbers taken from research provided by the Saratoga Institute – research from 1996-2004 Supervisor - 32% Limited Growth - 16% Compensation - 12% Unchallenged - 10% Work hours - 6% Unavoidable reasons - 5% Lack of recognition - 4% Poor conditions - 3% Training - 3% Poor Senior Leadership - 2% Discrimination - 1% Harassment - 1% Benefits - 1% Coworkers attitude - 1% } The most trusted and reliable recruiting firm in the agriculture industry Lack of Respect Lack of leadership Favoritism Poor employee relations Incompetence Lack of Technical Skills { © 2013 Ag 1 Source
- 17. The common denominators to turnover 1. The need for TRUST. Expecting the company to deliver on it’s promises, be honest in communications, and compensate fairly 2. The need to have HOPE. Believing that you will grow, develop skills, and have opportunity of increased responsibility or career progress leading to higher pay 3. The need to feel sense of WORTH. If you do your best, work hard, you will be recognized for you contributions 4. The need to feel COMPETENT. You will be matched to your job, use your talents, be challenged, receive training, see the results of your work, and obtain regular feedback on your performance Bottom-line solution: Communication with your employees! The most trusted and reliable recruiting firm in the agriculture industry
- 18. The Cost Of Turnover • Average US cost of losing an employee is equal to their annual salary • A company with 20% turnover, 100 employees, and an average salary of $40,000 has an annual loss of $800,000 due to just employee turnover • As Recruiters in the industry – It is much easier for us to create a positive Employee Value Proposition for those companies with the LOWEST turnover! The most trusted and reliable recruiting firm in the agriculture industry © Ag 1 Source
- 19. The most trusted and reliable recruiting firm in the agriculture industry Lack of Respect Lack of leadership Favoritism Poor employee relations Incompetence Lack of Technical Skills { © Ag 1 Source Communication is Key to Retention
- 20. Employees Need Answers Communicate these answers to them - • Where are we going as a company? • How are we getting there? • How do you expect me to contribute? • How am I doing? • What is my career path? • How will I get the skills necessary to keep me on that path? The most trusted and reliable recruiting firm in the agriculture industry © Ag 1 Source
- 21. Do you source Active or Passive? • (Active Seekers) a.k.a. “Job Changers” – They will keep the job if the future aligns with their future aspirations – From Career Builder 2013 Hiring Survey – “Nearly 35% of people begin preparing for their next job within weeks of starting a new one” • (Passive Seekers) a.k.a. “Career Changers” – The key is in the value of the Future - It aligns and they joined for the right reasons The most trusted and reliable recruiting firm in the agriculture industry © 2013 Ag 1 Source
- 22. The most trusted and reliable recruiting firm in the agriculture industry Growth&Impact Time 28% • Over Time, an employee’s contribution begins to peak and then falls off • Somewhere before the Peak, a Candidate Turns from being Passive to an Active Job Seeker • This curve starts over with increased responsibility; i.e. a promotion 15% 9% 8% Early-birds Source: 2011 LinkedIn Survey of 4,550 fully-employed professionals An Employee’s Contribution Passive Candidate Active Candidate © 2013 Ag 1 Source
- 23. The Early-bird Source Strategy Change in Growth, Impact, and Satisfaction Over Time The most trusted and reliable recruiting firm in the agriculture industry Growth&Impact Time Explorers Tiptoers Searchers Networkers Hunters & Posters Super Passive 28% 40% 15% 9% 8% Early-birds Leftovers Career Move Better Job Good Job 83% 17% Diminishing Job Returns Lateral Any Job Key Points Target Early-birds Ask, “How long have you been looking?”2011 LinkedIn Survey of 4,550 fully-employed professionals ActivePassive
- 24. The most trusted and reliable recruiting firm in the agriculture industry Passive - 83% Active - 17% Passive Active Explorers - 40% Tiptoers - 15% Super Passive - 28% Active - 17% Explorers Tip-toer’s Super Passive Active Most candidates that apply to jobs on their own are “Active” applicants – 17% on average of the work force “Explorers” and “Tip-toer’s” - (55%) of potential candidates that will listen to a compelling opportunity, one that could substantially improve their career. Source: 2011 Linkedin Survey of 4550 fully employed professionals The Passive vs. Active Difference © 2013 Ag 1 Source
- 25. Your Talent Pool • Don’t use a Talent Surplus process (weeding out the weak) where a talent surplus does not exist. • Yes or No? – Is there a shortage of top talent for your critical positions? – Are you still positioning traditional job descriptions that emphasize skills and experience? – Would you like to see more top performers for these positions (pool is too small)? The most trusted and reliable recruiting firm in the agriculture industry © 2013 Ag 1 Source
- 26. The most trusted and reliable recruiting firm in the agriculture industry Talent Surplus vs. Talent Scarcity Assumption: excess supply of talent (employer brand?) 83% Passive and Best Actives To Attract & Hire the Best • Convert job descriptions into careers-Future • Focus on impact, opportunity & challenge • Conduct exploratory conversations • Full engagement of hiring managers • Integrated with performance-management • Close on career move, not compensation To Attract the 17% Needy Active Candidates • Advertise job descriptions • Target those looking for lateral transfers • Find as many as possible • Weed out the weak • Screen on skills, $$ • Overvalue 1st Impressions • Random, biased and/or narrow interviewing • Close on compensation Performance vs. Skills----Talent Scarcity vs. Surplus It’s all about the Future It’s about the Job © 2013 Ag 1 Source
- 27. The most trusted and reliable recruiting firm in the agriculture industry © 2013 Ag 1 Source I wonder if this company can provide me the growth opportunities I seek? I wonder if this candidate will give me the Return on Investment I seek?
- 28. The Value Proposition The most trusted and reliable recruiting firm in the agriculture industry Candidates will join a company when – the value of the overall opportunity outweighs the cost of staying with their current career position – as much as 30% value total Examples of Pros Examples of Cons -Better Supervisor -Relocation cost -Strong Growth potential -Averse to change -Compensation up by 15% -Family / community -More Challenging opportunity -Intra company dynamics -Low Turnover -Better Incentives or Benefits -COL differences -Succession Plans $____ $____ $____ $____ $____ $____ $____ $____ $____ $____ $____ $____ $____ © 2013 Ag 1 Source
- 29. Hire by Performance vs. Skills (2) • It’s more about “Attitude” vs. “Altitude” (the “want to/will do” vs. the “can do”) • A resume tells what a person has done in their career, but performance based recruiting tells us how they did their “what” • Companies want to hire employees that will: – Get it done – Solve problems – Get along with other employees • Performance question – “Imagine 1-3 years from now and you are happy with your new employee – What did your new employee accomplish (quantifiably) during this time that made you happy?” The most trusted and reliable recruiting firm in the agriculture industry © 2013 Ag 1 Source
- 30. Hire with your Head, by Lou Adler • Performance Based Hiring • Choose first based on the ability to do the job • Define Success, Not Skills • Decide if you like the person after you have determined performance potential • Then sell them on your Value Proposition The most trusted and reliable recruiting firm in the agriculture industry
- 31. Hire by Behavior vs. Skills • When studying your best __________ -what traits do they have? This is really what we look for in an interview • Focus • Detail • Discipline • Mechanical Aptitude • Sense of Urgency • Dedication • Timeliness • Dependability • Adaptability Question – How many of these traits are found on the resume? The most trusted and reliable recruiting firm in the agriculture industry
- 32. Remedies: Find Flexibility (3) Consider less Education or less Experience required and: • Add a Trainer or Mentor • Partner with an Educational institution Adding a Relocation program • Risk vs. rewards – Big risk in relo – key is acclimation to the community for the entire family! 55+ age group • Very important part of succession planning • Possible seasonal employment group The most trusted and reliable recruiting firm in the agriculture industry © 2013 Ag 1 Source
- 33. Remedies: Become a Destination Employer (4) IA Retailer Example of an existing business - • Reduced Turnover – Low turnover is much more attractive to candidates- 9% • Brand Building - Utilize colleges, trade schools, and the community to find well-qualified candidates & build brand reputation • Internships – Challenging internships with the hope of bringing them on as FT employees • Recruiting Services – Make sure the recruiters they use focus on screening candidates against both position description and company culture • Company Culture – create culture where everyone is bringing in talent to fuel the organization • Of most importance – Led by a leader who embraces constant internal recruiting. The most trusted and reliable recruiting firm in the agriculture industry © 2013 Ag 1 Source
- 34. Destination Employer examples – Retailer -IL • Developing a system to drive personal development and retention – Create an understanding for existing employees of what is required in current role, before they will be considered for promotion – Re-write job descriptions to include “minimum required experience” – Implement plan to assist hiring managers to use this as a tool to create training plans for those who want to move up in the company • Create an image to be a “Destination Employer” for their market area – Train young employees to be ambassadors of the company – Implement a recruiting plan that will send the ambassadors to FFA chapters, vo-tech career fairs, etc – Create strategies to leverage scholarship program for improved image and recruiting – Develop marketing strategies (brochure, website, etc) that will provide career opportunity information • Improved hiring process – Consistent interview methods across the company – Reduce time from referral to hire – Train hiring managers on proper interview techniques – Create resources to improve interview experience for both hiring manger and candidate The most trusted and reliable recruiting firm in the agriculture industry
- 35. Destination Employer examples – IL cont. • Students tell others – Key to the Brand Building of the business • “Indentured servant” – not necessarily top of class – Work for the business on the weekends, going to Vo-tech – Summer work program and student loan guarantees • Getting in front of students in high school is critical – Seeking the non-4 year college student – Wants to be the agricultural destination for hourly employees – Part of performance evaluation includes community involvement – Brand Builder • 75% of an HR Manager’s time is spent trying to find the hourly employees • Your customer’s image of your business is represented more frequently by your hourly employees vs. your salaried… • The best Sales people may not necessarily have that 4 year college degree • This creates a future pathway for an entry level employee The most trusted and reliable recruiting firm in the agriculture industry
- 36. Destination Employer examples-Ag Tech/ Parts Management Tuition Assistance Program • JD Dealership group based in SW Nebraska (Company) - is offering tuition assistance to qualified individuals to attend the John Deere Company partnership college programs including Southeast Community College in Milford, NE and Garden City Community College in Garden City, KS, for vocational instruction relating to agricultural service technician training or parts department management training. • Company will advance all or a portion of the quarterly, full-time tuition, books, fees, together with customary cost for room and board and curriculum related tools, for the stated academic year. • This advance is subject to the terms and conditions stated in the Company Tuition Assistance Contract and also includes the following requirements: 1. Approval by Company Management team. 2. Acceptance to the above mentioned community colleges. 3. Student must maintain a cumulative GPA of 3.0 or higher. 4. Work experience will be completed at one of the Company dealership locations. Student will earn a competitive wage during this time. 5. Company provides required student uniforms for the college program. 6. Upon successful graduation from the program, student agrees to accept an offer of employment from Company on an “at will” basis. Company is a growth-oriented multi-store John Deere Dealership with 11 locations in Western Kansas, Western Nebraska, Eastern Colorado The most trusted and reliable recruiting firm in the agriculture industry
- 37. Destination Employer examples - Deere • Engaging mature workers – Provides them with opportunities to recreate their jobs or lead special projects – After retiring, can be rehired as contingent workers. Less then 10% of retirees use this service • Knowledge Management – Uses mentoring and coaching most often • Leadership Development Activities – Talent reviews are conducted on a monthly basis with the senior office. – Brokers talent across the organization to provide star performers with development assignments • Benefit Plans – Does not have a formal phased retirement program – Has a part-time employment program that provides different benefits based on hours worked. Some features benefit part-time workers and some disadvantage them – Created a new retirement program in 1997. Under the highest average pay pension plan, a part-time employee would continue to earn full service credit, but the part-time pay would not likely be included in the calculation The most trusted and reliable recruiting firm in the agriculture industry
- 38. Remedies: Streamlining (5) • 47% of all offers lost to competitors - Career Builder 2013 • Pre-planned interview process • Ready to go office setup – spatial visualization • Know and demonstrate your company’s cultural appearance • Know your company’s Employee Value Proposition The most trusted and reliable recruiting firm in the agriculture industry © 2013 Ag 1 Source
- 39. Retaining Employees After You Hire Them--Onboarding 1. The First Day Is Critical. 2. Send Welcome Letter Or Card Prior To Their Arrival. 3. Put Yourself In Their Shoes. 4. Introduce The New Employee To Others. 5. Make Sure Lunch Arrangements Are Made. 6. Provide Meaningful Orientation. 7. Keep Them Up To Date Through Training. 8. New Employees Make Their First Impression In Minutes As To Whether They Made The Right Choice Of Going To Work For You. The most trusted and reliable recruiting firm in the agriculture industry
- 40. Summary – the winners The most trusted and reliable recruiting firm in the agriculture industry “People are your most important asset – Ultimately your customer will figure out where the best people are working…” “People will forget what you said, will forget what you did, but people will never forget how you made them feel” – Dr. Maya Angelou “Getting and keeping your good people IS your competitive advantage” © 2013 Ag 1 Source
- 41. Questions? The most trusted and reliable recruiting firm in the agriculture industry www.ag1source.com/tacc-presentation © 2013 Ag 1 Source