Ag 1 source - EMC presentation
- 1. Recruitment, Retention and Succession Strategies for Employers Mike Smith - President – Ag 1 Source Presented November 9, 2013 to: Equipment Manufacturer’s Conference The most trusted and reliable recruiting firm in the agriculture industry © 2013 Ag 1 Source
- 2. Succession Planning can happen once… • Hiring, Retention, and Onboarding program is solid • CORE mission of the company is clear and communicated • The employee Bench Strength is strong – are a Destination Employer • Created clear objectives for each position – gates of success • Brand image not only attracts but retains the right employees • Internal and External communications (Marketing) is effective and 360 degrees The most trusted and reliable recruiting firm in the agriculture industry © 2013 Ag 1 Source
- 3. What has changed in Agriculture? • The consolidation in Ag Business and farm level economics from 1986-2005 pushed many people out of Ag—We probably won’t get them back • Very limited supply in rural areas • The graduation rate of Ag degrees for Ag jobs has been decreasing at 3% per year • 50% of the agriculture employee base will retire in the next 10 years--Baby Boomers The most trusted and reliable recruiting firm in the agriculture industry © 2013 Ag 1 Source
- 4. Unemployment Distribution Source—Bureau of Labor Statistics, Local Area Unemployment Statistics - http://www.bls.gov/lau/maps/twmcort.pdf 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 – Georgetown Univ. 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. U.S. Employment Trend - 10 Yrs. © 2013 Ag 1 Source Labor Force Statistics from the Current Population Survey – Employment Level- 25yrs and older www.bls.gov
- 8. The Education Component Question – Do we have an unemployment problem… or, do we have an education problem in the U.S.? Reference – Bureau of Labor Statistics The most trusted and reliable recruiting firm in the agriculture industry © 2013 Ag 1 Source
- 9. 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
- 10. 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
- 11. Today’s Younger Employees • Fewer Have Direct Agricultural Backgrounds. (UC Davis Claims Less Than 5% In The College Of Ag Have Ag Backgrounds.) • • • • Since 2005, more Ag Background Students Are Returning Back To Their “Baby Boomer” Parents’ or Grandparents’ Operations. Student Population Is Now Almost 60% Female - 40% Male: Complete Reversal From 5 Years Ago. Gap in mid-career employees – about 35-50 in age Fewer are married – commitments? The most trusted and reliable recruiting firm in the agriculture industry
- 12. The Current Ag Talent Perfect Storm Ag Background Applicants Total Labor Supply Aggressive Competitors Retirements Turnover The most trusted and reliable recruiting firm in the agriculture industry
- 13. Compensation Trends $110,000.00 Midpoint Salaries by Year $100,000.00 Midpoint of Seed DSM Positions Midpoint of Agronomy Retail Positions $90,000.00 Midpoint for Seed Retail $80,000.00 Midpoint for Bioscience, Nutrition & Chemical $70,000.00 $60,000.00 $50,000.00 $40,000.00 2005 2006 2007 2008 2009 2010 2011 2012 Notes **393 pieces of data were used for Seed DSM **624 pieces of data were used for Agronomy Retail **31 pieces of data were used for Seed Retail **177 pieces of data were used for The most trusted and reliable recruiting firm in the agriculture industry © 2013 Ag 1 Source
- 14. Compensation Trends $160,000.00 $140,000.00 $120,000.00 $100,000.00 Midpoint of GM/ Sales Mgr Positions $80,000.00 $60,000.00 Midpoint of Parts/Service Positions $40,000.00 Midpoint of Sales Positions $20,000.00 $0.00 2008 2009 2010 2011 2012 2013 The most trusted and reliable recruiting firm in the agriculture industry © 2013 Ag 1 Source
- 15. Situation Summary Employers – If you are looking for a mid-career – B.S. degree of higher, experienced, and located in the Heartland of the country – You may already have a problem! If you thought you were dealing from a surplus situation – think again. Decision time – Where to start… The most trusted and reliable recruiting firm in the agriculture industry © 2013 Ag 1 Source
- 16. Retention is Key to Succession – First… Build your Bench Strength - Steps: 1. 2. 3. 4. 5. 6. 7. 8. Solid Definition of your target Reducing Current Turnover Internal Communication Define your company’s Employee Value Proposition Look at Performance & Behavioral vs. Skills Streamline the hiring process Find Flexibility “Destination Employer” characteristics The most trusted and reliable recruiting firm in the agriculture industry © 2013 Ag 1 Source
- 17. Your Talent Pool • Where are you going to find your replacements? • Don’t use a Talent Surplus process (weeding out the weak) in the midst of a Talent Scarcity. • 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
- 18. Do you source Active or Passive? -- Target • (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
- 19. The Job DescriptionGone -days of lines of people applying • Millennial Candidates do not like – – Minimum Job Requirements - Limit requirements to 7 • Turn job descriptions into Career Statements – Explain your Company Value Proposition – Display your excitement about your company’s future • • • • Work and Life Balance Show your technology Be clear about the job’s objectives – quantitatively Show their potential path The most trusted and reliable recruiting firm in the agriculture industry © 2013 Ag 1 Source
- 20. An Employee’s Contribution Growth & Impact Early-birds • Over Time, an employee’s contribution begins to peak and then falls off • Somewhere before the Peak, a Candidate Turns from being Passive to 15% 9% 8% an Active Job Seeker • This curve starts over with increased responsibility; i.e. a promotion Passive Candidate Active Candidate 28% Source: 2011 LinkedIn Survey of 4,550 fully-employed professionals Time The most trusted and reliable recruiting firm in the agriculture industry © 2013 Ag 1 Source
- 21. Candidate Decision Process 28% Super Passive Major Life Change 40% 15% 9% 8% Explorers Tiptoers Searchers Networkers Hunters & Posters Career Move Better Job Good Job Lateral Any Job Passive Active High Job Value Proposition Low Job Value Proposition Job Value Proposition Low Urgency High Urgency Urgency 2011 LinkedIn Survey of 4,550 fully-employed professionals The most trusted and reliable recruiting firm in the agriculture industry
- 22. The Passive vs. Active Difference Most candidates that apply to jobs on their own are “Active” applicants – 17% on average of the work force Passive - 83% Active Active - 17% Explorers - 40% Active Tiptoers - 15% Super Passive 28% Active - 17% Passive Explorers Super Passive Tiptoers “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 most trusted and reliable recruiting firm in the agriculture industry © 2013 Ag 1 Source
- 23. Performance vs. Skills----Talent Scarcity vs. Surplus 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 It’s about the Job It’s all about the Future The most trusted and reliable recruiting firm in the agriculture industry © 2013 Ag 1 Source
- 24. 2. To Reduce Turnover Look at Why Employees Leave a Company It’s not about the money! The most trusted and reliable recruiting firm in the agriculture industry © 2013 Ag 1 Source
- 25. 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
- 26. 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 The most trusted and reliable recruiting firm in the agriculture industry © Ag 1 Source
- 27. Take Your Cues From Why Employees Say They Leave Numbers taken from research provided by the Saratoga Institute – research from 1996-2004 Supervisor - 33% Limited Growth - 17% { Lack of Respect Lack of leadership Favoritism Poor employee relations Incompetence Lack of Technical Skills } Compensation - 13% 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 © 2013 Ag 1 Source
- 28. 3. Communications– The common denominators to turnover 1. The need for TRUST. 2. The need to have HOPE. 3. The need to feel sense of WORTH. If you do your best, work hard, you Expecting the company to deliver on it’s promises, be honest in communications, and compensate fairly Believing that you will grow, develop skills, and have opportunity of increased responsibility or career progress leading to higher pay 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 The most trusted and reliable recruiting firm in the agriculture industry
- 29. Communication is Key to Retention Is your employer providing you with enough resources to learn the business? 100% 80% { Does your Employer share enough info so Lack of Respect Lack of leadership you understand the Favoritism direction? Poor employee relations Incompetence Lack of Technical Skills 100% 80% 72% 60% 100% 80% 71% 60% 40% 28% Job Satisfaction 60% 40% 29% 40% 20% 20% 20% 0% 0% 35% 0% Yes No Yes No The most trusted and reliable recruiting firm in the agriculture industry Negative © Ag 1 Source
- 30. Solution: Employees Need Answers Employees constantly evaluate their status as it relates to their long term goals – their FUTURE • How am I doing? • Where are we going as a company? • How are we getting there? • How do you expect me to contribute? • What is my career path? • How will I get the skills necessary to keep on path? If internal communication is strong-these are answered The most trusted and reliable recruiting firm in the agriculture industry © Ag 1 Source
- 31. 4. Interview to Win – The EVP • Remember – Top candidates don’t need your job • Create a culture where interviews are treated as recruitment opportunities • Management team is fully engaged • Job descriptions are Career Opportunities vs. a boring list of what you “have” to do • Focus on Impact, Opportunity, and Challenge • Communicate, communicate, communicate • Improve your recruiting and you will increase your retention The most trusted and reliable recruiting firm in the agriculture industry © 2013 Ag 1 Source
- 32. 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? The most trusted and reliable recruiting firm in the agriculture industry © 2013 Ag 1 Source
- 33. The Employee Value Proposition Career movers 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 -Better Supervisor Examples of Cons $____ -Strong Growth potential -Compensation up by 15% -More Challenging opportunity -High number of senior mgrs. -Better Incentives or Benefits -Succession Plans $____ $____ $____ $____ $____ -Relocation cost -Averse to change -Family / community -Intra company dynamics -Unknowns cause concern -COL differences $____ $____ $____ $____ $____ $____ $____ The most trusted and reliable recruiting firm in the agriculture industry © 2013 Ag 1 Source
- 34. Anticipate Their Thoughts • The Value of a new position must hold some level of Improvement in standard of living AND an Advancement of their Career • See the position through the “candidate’s eyes” – – there is safety (lower risk premium) in no change • Limit the impact of the Cons where possible • Help your candidate see the total Value – You’ll pay more where the risk premium must be higher • Show the Path The most trusted and reliable recruiting firm in the agriculture industry © 2013 Ag 1 Source
- 35. 5. Hire by Performance vs. Skills • 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?” – becomes the Performance Profile • It’s more about “Attitude” vs. “Altitude”- Behavioral characteristics: initiative-drive-dedication-conformity • A resume tells what a person has done in their career, but performance based recruiting tells us how they did their “what” • The Proof is in the numbers The most trusted and reliable recruiting firm in the agriculture industry © 2013 Ag 1 Source
- 36. 6. Streamlining your Process Recruiting Process Interview Process 1. Know who you are looking for 2. Focus on performance 3. Agree on “must haves” vs “nice to haves” 4. Resume describes the “what” and where, so focus on the “how” 5. Define the expectations (Performance Profile) of the role (1 month, 3 months, 1 year, 5 years) – what is considered success? 1. Define your process before you start the search 2. Who will be involved 3. Defined timeline 4. Set candidate expectations 5. Ready to go office setup (spatial visualization) 6. Know and demonstrate your company’s EVP (noncompensation factors) • 47% of all offers lost to competitors The most trusted and reliable recruiting firm in the agriculture industry © 2013 Ag 1 Source
- 37. 7. Find Flexibility Consider less Education or less Experience required and: • Add a Trainer or Mentor • Partner with Educational institutions Reconsider your Relocation program • Risk vs. rewards 55+ age group • The only demographic group that is growing • 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
- 38. 8. Become a Destination Employer IA Retailer example Example of an existing business • Reduced Turnover – Low turnover is much more attractive to candidates9% • 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
- 39. Destination Employer - Example Tuition Assistance Program • Tuition, books, fees, room and board and curriculum • Subject to : 1. Approval by Company Management 2. Acceptance to the college. 3. maintain a cumulative GPA of 3.0 or higher. 4. Work experience at one of the Company dealership locations competitive wage 5. Company provides uniforms for the college program. 6. Upon successful graduation, student agrees to accept an offer of employment from Company on an “at will” basis. Company is a multi-store John Deere Dealership with 11 locations The most trusted and reliable recruiting firm in the agriculture industry
- 40. Summary – the winners 1. Focus on your brand – it carries the image of your EVP and your ability to attract talent 2. Treat hiring as a business practice 3. Create a rewards strategy that attracts and retains 4. Make onboarding a personal process 5. Communication is the key to retention “People are your most important asset – Ultimately your customer will figure out where the best people are working…” The most trusted and reliable recruiting firm in the agriculture industry © 2013 Ag 1 Source
- 41. Questions? www.ag1source.com/emc The most trusted and reliable recruiting firm in the agriculture industry © 2013 Ag 1 Source