Sponsors

Surviving the Storm: Recruitment and Retention Strategies for Businesses of Every Size

Sponsors

Surviving the Storm: Recruitment and Retention Strategies

for Businesses of Every Size

Moderator: Speaker:Paul SchrimpfGroup EditorCropLife Media Grouppaul@croplife.com

Mark WaschekRecruiting Consultant – PartnerAg 1 Sourcemarkwaschek@ag1source.com

Mark EsfeldRecruiting Consultant – PartnerAg 1 Sourcemarkesfeld@ag1source.com

Sponsors

Today’s Forecast

The Employment SituationThe impact of Geography, Education

& Retirement

WeatherproofingUnderstand and Reduce Turnover

Recruiting Talented Employees

Sponsors

Why Worry About The Storm?

• People are your most important asset – Ultimately, your customer will figure out where the best people are working

• Your ability to Hire and retain employees IS your competitive advantage in the future

Sponsors

Sponsors

First Year Eligible for Full Retirement

Sponsors

Sponsors

Changes in Overall Employment

In 5 years, the overall U.S.

employment is expected to

increase by about 12 million.

Source – Georgetown Univ.

Sponsors

The Education Component

• The 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

Sponsors

Education in Agriculture

Sponsors

USDA/Purdue Sales and Business Degree Predictions

24,000 Annual Openings 20,188 Ag and Allied graduates to fill those

positions We are 3,822 graduates every year short of

filling all of the open sales and business related positions which will compound the problem year after year

Sponsors

Employment Trends• 50% of the agriculture employee base will retire in the

next 10 years--Baby Boomers• The graduation rate of Ag degrees for Ag jobs is

decreasing at 3% per year• The consolidation in Ag Business and farm level

economics from 1996-2005 have pushed many people out of Ag—We probably won’t get them back

Source—Farm Credit Administration and 2005 USDA data.

Sponsors

Impact of Employment Trends

Hiring the really smart farm kid with the right personality may no longer be an option

“Rock Star” mentality Rural population and farm family decline Competing with other ag companies Compensation is trending up faster than the

general economy

Sponsors

Our Future 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.

Sponsors

The Perfect Storm

Ag Background Applicants

Total Labor Supply

Aggressive Competitors Retirements Turnover

Sponsors

If you are looking for a mid-career, college educated, experienced individual with skill requirements, and located in the Heartland of the country

A MAJOR STORM IS HEADED YOUR WAY

Sponsors

Weatherproof Your Organization• As Talent Becomes More Scarce, All Ag Businesses

Will Have To Become More Focused On:– Reducing Turnover– Streamline Hiring Process– Hire based on Performance vs. Skills– Flexibility

• Trainer or mentor• Enable/ Encourage Education• 55+ age group

– Becoming a Destination Employer

Sponsors

The Eye Of The Storm

Employee Turnover

Sponsors

Employee Turnover

It’s not about the money!

Sponsors

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

Sponsors

Take Your Cues From Why Employees LeaveNumbers 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%

}Lack of RespectLack of leadershipFavoritismPoor employee relationsIncompetenceLack of Technical Skills{

Sponsors

20%

45%

35%

2012 Ag Retail Job Satisfaction

Very SatisfiedNeither Satisfied or Unsatis-fiedNegative

Survey conducted June 2012 by Ag1Source. More information can be found in the September, October, and November 2012 issues of CropLife

Sponsors

Yes No0%

20%40%60%80%

100%72%

28%

Is your employer pro-viding you with enough resources to learn the

business?

Yes No0%

20%40%60%80%

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

Sponsors

Employees Need Answers

• 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?

Sponsors The most trusted and reliable recruiting firm in the agriculture industry

Employees want knowledge so they can be better!

6 Steps to knowledge transfer1. Determine what knowledge needs to be transferred

2. Assign knowledge to who needs it

3. Build a delivery timeline

4. Make each goal measurable

5. Make sure the plan is simple to execute

6. Make knowledge transfer a piece of the companies culture

Sponsors

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

Sponsors

A Failure To Plan Is A Plan To Fail

You know that you need to hire,

but most importantly,

You must know what you are

looking for……

Sponsors

Study Your Best Performers

• Identify the traits that make your high performers—HIGH PERFORMERS

• Identify the core personality type of top performers• Performance Profile – What is your definition of success?

Can they do what you expect in 3, 12, and 36 months?• Is it really the job experience that you need or is it the right

Behavioral traits?

Sponsors

People are hired for what they can do, and are fired for who

they are

Sponsors The most trusted and reliable recruiting firm in the agriculture industry

Great Employees Are Great Recruiters!

• After last spring 31% of agronomy employees were NOT looking to make a change and were happy with their employer

• After last spring 27% of respondents would be highly likely to recommend their employer to a friend looking for a job

Sponsors

The Passive vs. Active Difference

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.

Sponsors

Sponsors

Convert a Career into Words

What’s the EVP?Why would a top, fully-employed

person take this position?Impact, Growth, Company

Long term component of a career move – the becoming!

Performance ProfileWhat do the best do?

Build teamImprove processComplete project

Short term component of a career move – DOING not

HAVING

Job DescriptionSkills

ExperienceAcademics

IndustryCompetencies

Responsibilities

FUTURE

PRESENT

PAST

Lead with EVP DOING Having

Sponsors

Career Movers seek 30% value improvement. Seeking to find Passives that are willing to listen to the EVP.

There is value in: (positive or negative)• Career track or a future that aligns better for their goals• More challenging or engaging work duties• Compensation (rarely more than 15%)• Benefits• Better supervisor• Geography• Better hours• And more…How about a family atmosphere?

Sponsors

Become a Destination EmployerExample 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.

Sponsors

The Key To A Weatherproofing Strategy

- People will forget what you said, will forget what you did, but people will never forget how you made them feel – Maya Angelou

Sponsors

Learn more in articles written for CropLife, by Mark Waschek and Mark Esfeld

Sponsors

Questions?