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Surviving The Storm: Recruitment and Retention
      Strategies for Businesses of Every Size
                 Mark Waschek




               The most trusted and reliable recruiting firm in the agriculture industry   © Ag 1 Source
Today’s Forecast

The Employment Situation
  The impact of Geography, Education
            & Retirement

    Weatherproofing
   Understand and Reduce Turnover
    Recruiting Talented Employees


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


                The most trusted and reliable recruiting firm in the agriculture industry   © Ag 1 Source
The most trusted and reliable recruiting firm in the agriculture industry   © Ag 1 Source
First Year Eligible for Full Retirement




           The most trusted and reliable recruiting firm in the agriculture industry   © Ag 1 Source
Source—Bureau of Labor Statistics, Local Area Unemployment Statistics - http://www.bls.gov/lau/maps/twmcort.pdf
                   The most trusted and reliable recruiting firm in the agriculture industry             © Ag 1 Source
Changes in Overall Employment
  In 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   © Ag 1 Source
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




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




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


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

Ag Background   Total Labor            Aggressive
  Applicants      Supply              Competitors             Retirements              Turnover




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

                       The most trusted and reliable recruiting firm in the agriculture industry   © Ag 1 Source
The Eye Of The
    Storm
Employee Turnover

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




It’s not about the money!

     The most trusted and reliable recruiting firm in the agriculture industry   © 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
Take Your Cues From Why Employees Leave
Numbers taken from research provided by the Saratoga Institute – research from 1996-2004
                                                                                                       Supervisor - 32%
                                                                                                       Limited Growth - 16%




                                                 {
                                                        Lack of Respect                                Compensation - 12%



                                                                               }
                                                        Lack of leadership
                                                        Favoritism                                     Unchallenged - 10%
                                                        Poor employee relations
                                                        Incompetence                                   Work hours - 6%
                                                        Lack of Technical Skills
                                                                                                       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   © Ag 1 Source
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?

                    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
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……

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

                   The most trusted and reliable recruiting firm in the agriculture industry   © Ag 1 Source
People are hired for what they
 can do, and are fired for who
           they are


         The most trusted and reliable recruiting firm in the agriculture industry   © Ag 1 Source
The Passive vs. Active Difference
                                                                                                                                      Passive - 83%
       Most candidates that
                                                                                                  Active
       apply to jobs on their own
       are “Active” applicants –                                                                                                      Active - 17%
       17% on average of the
       work force

Explorers - 40%
                                          Active
                                                                                                               Passive
Tiptoers - 15%
                                                         Explorers
Super Passive - 28%                Super Passive
                                                                                                             “Explorers” and “Tip-toer’s”
                                                                                                             - (55%) of potential
Active - 17%                                                                                                 candidates that will listen
                                                   Tip-toer’s                                                to a compelling
                                                                                                             opportunity, one that could
  Source: 2011 Linkedin Survey of 4550 fully employed professionals
                                                                                                             substantially improve their
                                                                                                             career.
                                                   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   © Ag 1 Source
Convert a Career into Words

    What’s the EVP?
    Why would a top, fully-
     employed person take
                                                 PRESENT
        this position?
   Impact, Growth, Company             Performance Profile
                                      What do the best do?
   Long term component of
     a career move – the
                                            Build team                                    PAST
                                         Improve process
          becoming!                     Complete project                             Job Description
                                    Short term component of                                Skills
                                     a career move – DOING                              Experience
       FUTURE                              not HAVING                                   Academics
                                                                                         Industry
                                                                                       Competencies

Lead with EVP  DOING  Having
                                                                                      Responsibilities


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


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




                The most trusted and reliable recruiting firm in the agriculture industry   © Ag 1 Source
Learn more in
articles written
for CropLife, by
Mark Waschek
Questions?




www.ag1source.com
The most trusted and reliable recruiting firm in the agriculture industry   © Ag 1 Source

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Mark waschek west central presentation

  • 1. Surviving The Storm: Recruitment and Retention Strategies for Businesses of Every Size Mark Waschek The most trusted and reliable recruiting firm in the agriculture industry © Ag 1 Source
  • 2. Today’s Forecast The Employment Situation The impact of Geography, Education & Retirement Weatherproofing Understand and Reduce Turnover Recruiting Talented Employees The most trusted and reliable recruiting firm in the agriculture industry © Ag 1 Source
  • 3. 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 The most trusted and reliable recruiting firm in the agriculture industry © Ag 1 Source
  • 4. The most trusted and reliable recruiting firm in the agriculture industry © Ag 1 Source
  • 5. First Year Eligible for Full Retirement The most trusted and reliable recruiting firm in the agriculture industry © Ag 1 Source
  • 6. Source—Bureau of Labor Statistics, Local Area Unemployment Statistics - http://www.bls.gov/lau/maps/twmcort.pdf The most trusted and reliable recruiting firm in the agriculture industry © Ag 1 Source
  • 7. Changes in Overall Employment In 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 © Ag 1 Source
  • 8. 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 The most trusted and reliable recruiting firm in the agriculture industry © Ag 1 Source
  • 9. Education in Agriculture The most trusted and reliable recruiting firm in the agriculture industry © Ag 1 Source
  • 10. 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. The most trusted and reliable recruiting firm in the agriculture industry © Ag 1 Source
  • 11. The Perfect Storm Ag Background Total Labor Aggressive Applicants Supply Competitors Retirements Turnover The most trusted and reliable recruiting firm in the agriculture industry © Ag 1 Source
  • 12. 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 The most trusted and reliable recruiting firm in the agriculture industry © Ag 1 Source
  • 13. 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 The most trusted and reliable recruiting firm in the agriculture industry © Ag 1 Source
  • 14. The Eye Of The Storm Employee Turnover The most trusted and reliable recruiting firm in the agriculture industry © Ag 1 Source
  • 15. Employee Turnover It’s not about the money! The most trusted and reliable recruiting firm in the agriculture industry © Ag 1 Source
  • 16. 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
  • 17. Take Your Cues From Why Employees Leave Numbers taken from research provided by the Saratoga Institute – research from 1996-2004 Supervisor - 32% Limited Growth - 16% { Lack of Respect Compensation - 12% } Lack of leadership Favoritism Unchallenged - 10% Poor employee relations Incompetence Work hours - 6% Lack of Technical Skills 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 © Ag 1 Source
  • 18. 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? The most trusted and reliable recruiting firm in the agriculture industry © Ag 1 Source
  • 19. 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
  • 20. 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…… The most trusted and reliable recruiting firm in the agriculture industry © Ag 1 Source
  • 21. 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? The most trusted and reliable recruiting firm in the agriculture industry © Ag 1 Source
  • 22. People are hired for what they can do, and are fired for who they are The most trusted and reliable recruiting firm in the agriculture industry © Ag 1 Source
  • 23. The Passive vs. Active Difference Passive - 83% Most candidates that Active apply to jobs on their own are “Active” applicants – Active - 17% 17% on average of the work force Explorers - 40% Active Passive Tiptoers - 15% Explorers Super Passive - 28% Super Passive “Explorers” and “Tip-toer’s” - (55%) of potential Active - 17% candidates that will listen Tip-toer’s to a compelling opportunity, one that could Source: 2011 Linkedin Survey of 4550 fully employed professionals substantially improve their career. The most trusted and reliable recruiting firm in the agriculture industry © 2013 Ag 1 Source
  • 24. The most trusted and reliable recruiting firm in the agriculture industry © Ag 1 Source
  • 25. Convert a Career into Words What’s the EVP? Why would a top, fully- employed person take PRESENT this position? Impact, Growth, Company Performance Profile What do the best do? Long term component of a career move – the Build team PAST Improve process becoming! Complete project Job Description Short term component of Skills a career move – DOING Experience FUTURE not HAVING Academics Industry Competencies Lead with EVP  DOING  Having Responsibilities The most trusted and reliable recruiting firm in the agriculture industry © Ag 1 Source
  • 26. 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? The most trusted and reliable recruiting firm in the agriculture industry © Ag 1 Source
  • 27. 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. The most trusted and reliable recruiting firm in the agriculture industry © 2013 Ag 1 Source
  • 28. The Key To 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 The most trusted and reliable recruiting firm in the agriculture industry © Ag 1 Source
  • 29. Learn more in articles written for CropLife, by Mark Waschek
  • 30. Questions? www.ag1source.com The most trusted and reliable recruiting firm in the agriculture industry © Ag 1 Source