Kugler / Presentation

The most trusted and reliable recruiting firm in the agriculture industry © 2015 Ag 1 Source

Becoming a Destination Employer

Mike Smith, President/CEOMike Koenecke – DEI Program Lead

Presented February 11, 2015


Your Questions -

How to Hire in this employment environment? How do we retain? Where do we find? All levels (hourly, applicators, sales, management)


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


UnemploymentDistribution

Source—Bureau of Labor Statistics, Local Area Unemployment Statistics - http://www.bls.gov/lau/maps/twmcort.pdf

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


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 – Wall Street Journal

The Education Component


U.S. Employment Trend - 10 Years

- Labor Force Statistics from the Current Population Survey – Employment Level- 25yrs and older www.bls.gov


The Declining Unemployment Impact


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)


Compensation Trends - Agronomy/Seed


The Current Ag Talent Perfect Storm

Ag Background Applicants

Total Labor Supply

Aggressive Competitors Retirements Turnover


Your choices in the available pool

1. Hire someone with potential and train them2. Hire someone doing similar work today - Passive3. Recruit before you need – bench strength4. Hire those at about time to exit the work force-PT, seasonal5. Improve your Retention6. Relocate someone in from some other area7. Hire the Unemployed - Active


Make your workplace more attractiveA Three Legged Stool

Hiring Retention Engagement


This is what it looks like Current employees refer to you as the best place to work The marketplace sees your organization as a great place to establish a career Future employees see your company as the ultimate career destination

Retention is high/Turnover is low Strong internal/external brand image Exceptional communication & marketing Of the people, by the people, for the people Talent comes to you looking for an opportunity

Here is how you get it done


Destination Employer

Continuous Recruiting + Onboarding= HiringContinuous Recruiting + Employer Branding/Communication = Engagement

Onboarding + Employer Branding/Communication = Retention

The Whole Is Greater Than The Sum Of Its Parts


Interactive Questions – Getting started

Would you say that finding employees is the #1 problem in your business?

YesNo

44%56%


Hiring


Assess for SuccessTurn it upside down

1. Talent to do the work2. Motivation to do the work3. Performance Trend – Topgrading / Performance Profile4. Team Leadership – ability to persuade, motivate, and cooperate5. Problem solving6. Planning Management and Organization7. Cultural fit8. Character - Values and goals9. Potential10. Relevant past accomplishments


Define Your Target Despite what many managers think, most candidates that we can find are

not just waiting on the sidelines for someone to hire and put in the game. The best candidates are already

employed Your traditional HR system of post and wait will not work Where will you find the “best”


Concept to Incorporate Active/Passive Strategy


Concept to Incorporate – Objective Measurement

Validated objective measurement tools Quantify ones “Emotional Aptitude” Look beyond Ag Transferable skill sets Sizing up one proven “Track Record”

Increase Predictability Up to 92%


Interactive Questions - HiringOnce you begin receiving applications or referrals, how long does it take to complete your hiring process on average?

Less than 3 weeks3-6 weeksMore than 6 weeks

30%

48%22%


Recruiting


Common Recruiting ChallengesYou must make yourself known

Website does not convey Employer Value Proposition Cumbersome application/interview process Management disengaged with the entire

recruiting/hiring/onboarding cycle Where will I find candidates? Do they currently exist in my market?


Steps to Improve Your Odds Establish a clear understanding of the role Enhance your assessment process Promote career challenges and opportunities Stop selling and start recruiting Can you identify an internal trainer – then go target those with

potential and train them in your system CAUTION – Deal with the Boomer v. Millennial differences Agree on “must haves” vs. “nice to haves” Determine the performance objectives A failure to plan, is a plan to fail


What Is Your Value Proposition?Promote Challenges and Opportunities

Why would they want to work for your organization? What challenges and opportunities lie ahead Paint a clear picture of the future Make the conversation about career move – not compensation

Career Decisions are weighted in this order - COBS 1. The quality of the Job2. The quality of the Hiring Manger3. The quality of the Team4. The quality of the company5. The package


The Offer - Anticipate Their Thoughts

The Value of a new position must hold some level of Improvement in quality of life AND an Advancement of their Career

See the position through the “candidate’s eyes” – there is safety (lower risk premium) in not making a change – (Prospect Booklet)

Limit the impact of the Cons where possible Help your candidate see the total Value – The Future at your organization


Interactive Questions - RecruitingDo you have a company ambassador?YesNo

Do you have an employee referral program?YesNo

Hires from referrals (known and trusted) perform better on the job than hires from any other source. Referred workers have a higher retention rate and are up to 30% less likely to quit their jobs.

40%60%

45%55%


Onboarding


Onboarding Must not forget the importance onboarding has in communicating

the value to other new recruits The experience will be told to many outside of the company

Certainly within their circle of friends and social media 5 elements as per the white paper (handout):

1.Pre-hire process2.First day experience3.Onboarding includes – Initial and long term goals4.Internal Communications5.It’s all about the Future

They will tell others about their experience –The question is - what will they tell others?


Onboarding – More than orientation

Focus on Compliance, Clarification, Culture, and Connection Pre-scheduled one on one time with supervisor throughout first 100

days Alignment - everyone understands new employee's role/responsibility

and expectations BEFORE they arrive Mentors in entry level roles especially Well defined day one. Formal, but fun


Onboarding – What you do Before day 1 Celebrate arrival of new employee 100 day action plan Communicate with new employee - They understand how they can

have impact, planned out for a full year 100 - 200 - 300 day goal success (supervisor/mentor) Continued communication prior to start Encourage learning between acceptance and start date Regular feedback


Test Your Hiring and Onboarding

After a few weeks to a month of training, Zappos management offers every new employee the opportunity to walk out the door

Offer includes:Wages you have earned during trainingA check for $3,000

2-3% accept, which is far less expensive than keeping those potentially bad hires


1st day, 1st week, 1st month

30-180 days 6-12 months

Communication(what to do)

Training(how to do)

Mentoring(why you do)

Overall 9 block style Onboarding Program - Exercise


COMMUNICATION – THE WHAT

1st day, 1st week, 1st month 30-180 days 6-12 months

Alignment with what the job is all about and who all they will be interacting with

Clarity in what is expected from this employee and how to measure progress toward those goals

What the future holds and how to get there as it relates to this employee

• Mostly about Orientation in this time frame

• Ex. Explain company organizational chart and protocol for reporting and permissions

• Ex. Establish and review with employee clarity in job performance objectives including target date

• Ex. Begin discussions on promotional timelines or sales achievement goals that would lead to promotion potential


TRAINING – THE HOW


Mostly orientation Introductions to new equipment, systems, and procedures as employee is given new responsibilities

Training is less frequent and more targeted to advancement to new skills

• Ex. Computer /IT orientation, software basics on programs not familiar with

• Informing where resources are and how to get them

• Ex. Enroll in future classes surrounding advance program training

• Ex. Establish Monthly Peer meetings / Discussion Groups

• Ex. Schedule Leadership Development reviews and training as applicable


MENTORING – THE WHY


Meeting with key leadership – Talk about philosophies, historical, and most importantly-What the Future holds

Focus on the Why your company does what they do – what makes you different

Focus on the long term vision-The Carrot

• Ex. Establish 15 minute beginning of day & 30 minute end of day meeting with mentor

• Ex. Weekly PAR (Progress, Analysis, Review) meetings with mentor to identify progress towards goals

• Ex. Coaching to performance – Continue PAR focusing on metrics of performance


Interactive Questions - OnboardingDo you have a great first day program?YesNo

Does your onboarding program include steps beyond 100 days?YesNo

68% percentage of new hires decide whether to stay within the first 6 months - Aberdeen Group

35% percentage of new hires that begin looking for their next job within 2 weeks - source Career Builder - 2013

25%75%

18%82%


Retention


Quotes - Employees that have begun to look or have left…

“I can handle the pressure…I can handle the early mornings…I can handle the relatively low pay…What I can’t handle is the lack of communication on when I’m supposed to work.”

“I need higher pay, more home time with family, an opportunity for advancement, and authority to request help or clean up issues.”

“I needed more training and responsibility. My employer did not trust me to handle customers directly. I needed higher pay and benefits.”


Continuous Recruiting = Retention

Gro

wth

& Im

pact

Time

Source: 2011 LinkedIn Survey of 4,550 fully-employed professionals

Passive Candidate Active Candidate


Lack of RespectLack of leadershipFavoritismPoor employee relationsIncompetenceLack of Technical Skills

Lack of RespectLack of leadershipFavoritismPoor employee relationsIncompetenceLack of Technical Skills

{Why is the candidate looking?


Your employees are the image of the company. They represent the company 24 hours a day, 7 days a week.

I don’t care what your employees say to you in their review, I want to know what they are saying to friends every Friday night!!


Retention Periodic Career discussions Create “Toolbox” time Re-recruiting interviews Highest degree of retention are people that are referred Work/Life balance Understand generational motivators Recognition/reward systems Competitive overall compensation


Interactive Questions - RetentionWhat is your annual turnover percentage? (how many employees you must hire to replace those that left divided by your overall headcount)

Less than 10%10-20%More than 20%

Key Question: How many of your employees are nearing retirement? How does this affect your retention %?Some attrition is natural – focus on the rest of your employees

67%

23%10%


Engagement


EngagementForbes article – Sept, 2013: “I Hate My Job”

Recent study – only 29% of workforce fully engaged Highly engaged employees 2X more likely to be top performers Key factor – an employee’s relationship with their supervisor

Best Companies for engagement DHL - recognition SAP - articulating the why Southwest Airlines – Living the Brand



Engagement

Mel Gibson & Helen Hunt©2000 by Paramount Pictures

“whatwomenwant”


Engagement


Engagement"The way your employees feel is the way your customers will feel. And if your employees don't feel valued, neither will your customers.“

-Sybil F. Stershic – Marketing and Organizational Advisor – American Marketing Assn.

Engagement is a 2 Way interaction - Engaged employees will emulate their leaderEmployees are energized around the organization’s CORE mission-the

WHY you existEmployees must know why their job is important to the

success of the company Ownership of activities and decision making


Interactive Questions - Engagement

How high of a percentage of fully engaged employees do you believe that you have?

Less than 30%30-50%More than 50%

Gallup Organization – 70% of employees surveyed are disengaged or actively

7%36%

57%


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?

Implementation - How the employee sees it


Set the tone. Effective and enthusiastic communication is crucial to building a common purpose

Check your vision. Energize your project team around a shared vision. Not just tasks: champion the WHY and paint a clear picture

Got trust? Trust will be shattered with sudden change directions or

broken promises. Listen up! Communication involves both talking and listening. Questions engage the brain more than statements.

Communicate, Communicate, Communicate


Improving Internal Communication

Employees want to know…how their role fits with the goals of the company – Clarity

Was the last time that you talked to your employee, their annual review?

The measurement of good communication is that you don’t have to call your employee to learn what they accomplished during the week

It needs to be a 2 way street


Expecting the company to deliver on it’s promises, be honest in communications, and compensate fairly -

The need for TRUST

Lead by example

The need for HOPE Believing that you will grow, develop skills, and have opportunity of increased

responsibility or career progress leading to higher pay -Show the path

The need for WORTH If you do your best, work hard, you will be recognized for you contributions

Recognize and coach

The need for 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 performanceProvide training

Management Actions - Employee Needs

One size does not fit all

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

Baby BoomersCurrent age: mid 50s – late 60s

•Focused on the process•Clearly defined Onboarding map•Extend Onboarding Beyond 6 months•Level of Respect

Gen XCurrent age: mid 30s – early 50s

•Focused on learning (Entrepreneurial)•Mentor Program•Objectives & Timelines in Onboarding•Work/Life Balance

Gen YCurrent age: under 32

•Focused on social•Enable Contribution•Link Onboarding to Learning•Flexibility/Buddy system/Networking


Interactive Questions - Communication

What percentage of your workforce meets with a supervisor weekly in a work review to discuss progress toward goals?

Less than 50%50 – 80%More than 80%

82%8%

10%


Resourceswww.ag1source.com/kuglerpresentation

Becoming a Destination Employer checklist Slideshare of this PowerPoint presentation Handouts

Onboarding example White Paper


Being A Destination Employer


Being A Destination Employer


Interactive Questions - Final

Do you believe that you would want to become a Destination Employer?YesNo

Do you believe that you are a Destination Employer now?YesNo

92%8%

32%

68%


Questions?

www.ag1source.com

If you would like to talk directly with us –

Mike Smith: [email protected] or 1.620.327.2205

Mike Koenecke: [email protected] or 1.620.327.0320

Date post:	14-Aug-2015
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