ARA Presentation

Surviving the Storm: Recruitment and Retention Strategies for Businesses of every size

Mike SmithPresident – Ag 1 Source

The most trusted and reliable recruiting firm in the agriculture industry© 2013 Ag 1 Source

Today’s ForecastThe U.S. Un-Employment Situation

GeographicsEducation

Retirements

WeatherproofingReduce Turnover

Relocation and Training programsSuccession Programs


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

http://www.bls.gov/lau/maps/twmcort.pdf

http://www.bls.gov/lau/maps/twmcort.pdf

Changes in Overall EmploymentIn 5 years, the

overall U.S. employment is

expected to increase by about

12 million.• Source – Georgetown Univ.


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



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.


U.S. Employment age groupsWorkers Aged 55 To 64 will nearly double as a percent of the work force from 2010 To 2020.

(According to BLS)


Situation SummaryEmployers – If you are looking for a mid-career – B.S. degree of higher, experienced with key skill requirements, 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

Weatherproofing RemediesStart by:

1. Reducing Current Turnover2. Look at Performance vs. Skills3. Flexibility

a. Trainer or Mentorb. Encourage educationc. 55+ age group

4. Become a “Destination Employer”5. Streamline the hiring process


It’s not about the money!

To Reduce Turnover – Look at Why Employees Leave a

Company


Take Your Cues From Why Employees Say They 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

{

© 2013 Ag 1 Source


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

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



Passive - 83%

Active - 17%

Passive

Active

Explorers - 40%

Tiptoers - 15%

Super Passive - 28%

Active - 17%

Explor-ers

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


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


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 Value Proposition


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-High number of senior mgrs. -Unknowns cause concern-Better Incentives or Benefits -COL differences-Succession Plans

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© 2013 Ag 1 Source

The Ag 1 Source Difference• A Professional resource with broad connections in the

Industry– Hire a professional just like you hire a CPA

• Focus on Passives – – Passives are IN the market vs. ON the market

• Focus on the Value Proposition - The Value of a new position must hold some level of Improvement in standard of living AND an Advancement of their Career

– in short – A Good Match


Remedies: Find FlexibilityConsider less Education required and:• Add a Trainer or Mentor• Partner with an Educational institutionAdding a Relocation program• Risk vs. rewards55+ age group• Very important part of succession planning• Possible seasonal employment group


Remedies: 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.


Remedies: Streamlining

• 47% of all offers lost to competitors - Career Builder 2013

• Pre-planned interview process• Ready to go office setup• Know and demonstrate your company’s cultural appearance• Know your company’s Employee Value Proposition


Ag 1 Source provides value – 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?”

• It’s more about “Attitude” vs. “Altitude”• 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


Ag 1 Source provides value – Sell the EVP• Candidates must see the Full value• The picture of the Future is very important• Less Bias• Easier to see from the outside• Can discuss the EVP confidentially• Will start with multiple candidate opportunities and invest

TIME where the EVP is received well


Summary – the winners


“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

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