Surviving the Storm


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Surviving the Storm

  1. 1. Surviving the Storm: Recruitment and Retention Strategies for Businesses of Every Size Sponsors
  2. 2. Surviving the Storm: Recruitment and Retention Strategies for Businesses of Every Size Moderator: Speaker: Paul Schrimpf Group Editor CropLife Media Group Mark Waschek Recruiting Consultant – Partner Ag 1 Source Mark Esfeld Recruiting Consultant – Partner Ag 1 Source Sponsors
  3. 3. Today’s Forecast The Employment Situation The impact of Geography, Education & Retirement Weatherproofing Understand and Reduce Turnover Recruiting Talented Employees Sponsors
  4. 4. 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
  5. 5. Sponsors
  6. 6. First Year Eligible for Full Retirement Sponsors
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  8. 8. Changes in Overall Employment In 5 years, the overall U.S. employment is expected to increase by about 12 million. Source – Georgetown Univ. Sponsors
  9. 9. 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
  10. 10. Education in Agriculture Sponsors
  11. 11. 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
  12. 12. 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
  13. 13. 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
  14. 14. 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
  15. 15. The Perfect Storm Ag Background Applicants Sponsors Total Labor Supply Aggressive Competitors Retirements Turnover
  16. 16. 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
  17. 17. 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
  18. 18. The Eye Of The Storm Employee Turnover Sponsors
  19. 19. Employee Turnover It’s not about the money! Sponsors
  20. 20. 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
  21. 21. Take Your Cues From Why Employees Leave Numbers taken from research provided by the Saratoga Institute – research from 1996-2004 { Sponsors Lack of Respect Lack of leadership Favoritism Poor employee relations Incompetence Lack of Technical Skills } 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%
  22. 22. 2012 Ag Retail Job Satisfaction 20% 35% Very Satisfied Neither Satisfied or Unsatisfied Negative 45% Survey conducted June 2012 by Ag1Source. More information can be found in the September, October, and November 2012 issues Sponsors
  23. 23. Communication is Key to Retention Is your employer providing you with enough resources to learn the business? 100% Does your Employer share enough info so you understand the direction? 100% 71% 72% 50% 28% 0% 50% 29% 0% Yes Sponsors No Yes No Job Satisfaction 100% 80% 60% 40% 20% 0% 35% Negative
  24. 24. 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
  25. 25. Employees want knowledge so they can be better! 6 Steps to knowledge transfer 1. 2. 3. 4. 5. 6. Determine what knowledge needs to be transferred Assign knowledge to who needs it Build a delivery timeline Make each goal measurable Make sure the plan is simple to execute Make knowledge transfer a piece of the companies culture Sponsors The most trusted and
  26. 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 Sponsors
  27. 27. 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
  28. 28. 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
  29. 29. People are hired for what they can do, and are fired for who they are Sponsors
  30. 30. 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 Sponsors • After last spring 27% of respondents would be highly likely to recommend their employer to a friend looking for a job The most trusted and
  31. 31. The Passive vs. Active Difference Most candidates that apply to jobs on their own are “Active” applicants – 17% on average of the work force Active Passive - 83% Active - 17% Passive Explorers - 40% Active Tiptoers - 15% Explorers Super Passive - 28% Super Passive Active - 17% Tip-toer’s Sponsors “Explorers” and “Tip-toer’s” (55%) of potential candidates that will listen to a compelling opportunity, one that could substantially improve their career.
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  33. 33. 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! FUTURE PRESENT Performance Profile What do the best do? Build team Improve process Complete project Short term component of a career move – DOING not HAVING Lead with EVP  DOING  Having Sponsors PAST Job Description Skills Experience Academics Industry Competencies Responsibilities
  34. 34. 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
  35. 35. Become a Destination Employer 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. Sponsors
  36. 36. 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
  37. 37. Learn more in articles written for CropLife, by Mark Waschek and Mark Esfeld Sponsors
  38. 38. Questions? Sponsors