ag 1 source-fwaa
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Recruiting and Retention Strategies for Businesses of Every Size
Mike Smith - President – Ag 1 SourcePresented December 10, 2013 to:
FWAA Conference - Pasco
The most trusted and reliable recruiting firm in the agriculture industry© 2013 Ag 1 Source
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
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
UnemploymentDistribution
© 2013 Ag 1 Source
Changes in Overall EmploymentIn 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
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
Labor Force Statistics from the Current Population Survey – Employment Level- 25yrs and older www.bls.gov© 2013 Ag 1 Source
U.S. Employment Trend - 10 Yrs.
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
Changes in Overall EmploymentIn 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
U.S. Employment age groupsWorkers 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
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
The Current Ag Talent Perfect Storm
The most trusted and reliable recruiting firm in the agriculture industry
Ag Background Applicants
Total Labor Supply
Aggressive Competitors Retirements Turnover
Compensation Trends - Agronomy/Seed
The most trusted and reliable recruiting firm in the agriculture industry
© 2013 Ag 1 Source
2005 2006 2007 2008 2009 2010 2011 2012 2013$40,000.00
$50,000.00
$60,000.00
$70,000.00
$80,000.00
$90,000.00
$100,000.00
$110,000.00 Midpoint Salaries by Year Midpoint of Seed DSM Positions
Midpoint of Agronomy Retail Positions
Midpoint for Seed Retail
Midpoint for Bio-science, Nutrition & Chemical
Notes**393 pieces of data were used for Seed DSM **624 pieces of data were used for Agron-omy Retail**31 pieces of data were used for Seed Re-tail**177 pieces of data were used for Bio-science & Nutrition
Compensation Trends - Equipment
The most trusted and reliable recruiting firm in the agriculture industry
© 2013 Ag 1 Source
2008 2009 2010 2011 2012 2013$0.00
$20,000.00
$40,000.00
$60,000.00
$80,000.00
$100,000.00
$120,000.00
$140,000.00
$160,000.00
Midpoint of GM/ Sales Mgr Positions
Midpoint of Parts/Service Posi-tions
Midpoint of Sales Positions
Situation SummaryEmployers – If you are looking for a mid-career – B.S. degree of higher, experienced, and located close by – 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
Retention is Key to Succession – First… Build your Bench Strength - Steps:
1. Solid Definition of your target2. Reducing Current Turnover3. Internal Communication4. Define your company’s Employee Value Proposition5. Look at Performance & Behavioral vs. Skills6. Streamline the hiring process7. Find Flexibility 8. “Destination Employer” characteristics
The most trusted and reliable recruiting firm in the agriculture industry© 2013 Ag 1 Source
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
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
The Job Description-Gone -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
The most trusted and reliable recruiting firm in the agriculture industry
Gro
wth
& Im
pact
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
Candidate Decision Process
The most trusted and reliable recruiting firm in the agriculture industry
Urgency
Explorers Tiptoers Searchers Networkers Hunters & Posters
Super Passive
28% 40% 15% 9% 8%
Career Move Better Job Good Job Lateral Any Job
2011 LinkedIn Survey of 4,550 fully-employed professionals
Major Life Change
Low Urgency High Urgency
Job Value PropositionLow Job Value PropositionHigh Job Value Proposition
Passive Active
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%
Explor-ers
Tiptoers
Super Passive
Active
Source: 2011 Linkedin Survey of 4550 fully employed professionals
The Passive vs. Active Difference
© 2013 Ag 1 Source
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.
The most trusted and reliable recruiting firm in the agriculture industry
Talent Surplusvs.
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 FutureIt’s about the Job
© 2013 Ag 1 Source
It’s not about the money!
2. 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
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
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
Take Your Cues From Why Employees Say They LeaveNumbers taken from research provided by the Saratoga Institute – research from 1996-2004
Supervisor - 33%
Limited Growth - 17%
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
Lack of RespectLack of leadershipFavoritismPoor employee relationsIncompetenceLack of Technical Skills
{
© 2013 Ag 1 Source
3. Communications– 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
The most trusted and reliable recruiting firm in the agriculture industry
The most trusted and reliable recruiting firm in the agriculture industry
Lack of RespectLack of leadershipFavoritismPoor employee relationsIncompetenceLack of Technical Skills
{
© Ag 1 Source
Yes No0%
10%20%30%40%50%60%70%80%90%
100%
72%
28%
Is your employer pro-viding you with enough resources to learn the
business?
Yes No0%
10%20%30%40%50%60%70%80%90%
100%
71%
29%
Does your Employer share enough info so you understand the
direction?
Negative0%
20%
40%
60%
80%
100%
35%
Job Satisfaction
Communication is Key to Retention
Solution: Employees Need AnswersEmployees 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
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
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?
The Employee Value Proposition
The most trusted and reliable recruiting firm in the agriculture industry
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 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-High number of senior mgrs. -Unknowns cause concern-Better Incentives or Benefits -COL differences-Succession Plans
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© 2013 Ag 1 Source
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 PathThe most trusted and reliable recruiting firm in the agriculture industry© 2013 Ag 1 Source
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 numbersThe most trusted and reliable recruiting firm in the agriculture industry© 2013 Ag 1 Source
6. Streamlining your ProcessRecruiting Process1. Know who you are looking for2. Focus on performance3. 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?
Interview Process1. Define your process before you
start the search2. Who will be involved3. Defined timeline4. Set candidate expectations5. Ready to go office setup (spatial
visualization)6. Know and demonstrate your
company’s EVP (non-compensation factors)
• 47% of all offers lost to competitors
The most trusted and reliable recruiting firm in the agriculture industry© 2013 Ag 1 Source
7. Find FlexibilityConsider less Education or less Experience required and:• Add a Trainer or Mentor• Partner with Educational institutionsReconsider your Relocation program• Risk vs. rewards55+ 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
8. Becoming a Destination Employer
The Whole Is Greater Than The Sum Of Its Parts
Onboarding + Recruiting = HiringCommunication + Recruiting = EngagementOnboarding + Communication = Retention
The most trusted and reliable recruiting firm in the agriculture industry© Ag 1 Source
Destination EmployerRetailer examplesExample 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.• Tuition Assistance Program – Targeting students 2 or more years prior to hiring
The most trusted and reliable recruiting firm in the agriculture industry© 2013 Ag 1 Source
Summary – the winners
The most trusted and reliable recruiting firm in the agriculture industry
1. Focus on your brand – it carries the image of your EVP and your ability to attract talent
2. Treat hiring as a business practice3. Create a rewards strategy that attracts and retains4. Make onboarding a personal process5. Communication is the key to retention
“People are your most important asset – Ultimately your customer will figure out where the best people are working…”
© 2013 Ag 1 Source
Questions?
The most trusted and reliable recruiting firm in the agriculture industry
www.ag1source.com/fwaa
© 2013 Ag 1 Source