Kalmbach / Presentation from Ag1Source

The most trusted and reliable recruiting firm in the agriculture industry © 2015 Ag 1 Source
Becoming a
Destination Employer
Mike Smith, President/CEO
Ron Hayden, Great Lakes Region Livestock / Feeds
Recruiting Consultant
Presented March 5, 2015

Your Questions -
 How to Hire in this employment environment?
 How do we retain?
 Where do we find?
 All levels (hourly, delivery, office, 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

Unemployment
Distribution
Source—Bureau of Labor Statistics, Local Area Unemployment Statistics - 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 groups
Workers Aged 55 To 64 will nearly double as a percent of the work force
from 2000 To 2020. (According to BLS)

The Current Ag Talent Perfect Storm
Ag Background
Applicants
Total Labor
Supply
Aggressive
Competitors Retirements Turnover

Compensation Trends – Feed Industry

Your choices in the available pool
1. Hire someone with potential and train them
2. Hire someone doing similar work today - Passive
3. Recruit before you need – bench strength
4. Hire those at about time to exit the work force-PT, seasonal
5. Improve your Retention
6. Relocate someone in from some other area
7. Hire the Unemployed - Active

Make your workplace more attractive
A 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
The Whole Is Greater Than The Sum Of Its Parts

Hiring

Assess for Success
From Jim Collins – author of Good to Great ---
“The old adage ‘People are you most important asset is wrong.
People are not you most important asset. The right people are.
Whether someone is the ‘right person’ has more to do with
character and innate capabilities (strengths) than with
specific knowledge, background, or skills.”

Assess for Success
“Most managers hire for skills, knowledge, and background. Then they fire
for behavior” Bruce M. Hubby
1. Talent to do the work
2. Motivation to do the work
3. Performance Trend – Topgrading / Performance Profile
4. Team Leadership – Ability to persuade, motivate, and cooperate
5. Problem solving
6. Planning Management and Organization
7. Cultural fit
8. Character - Values and goals
9. Potential
10. Relevant past accomplishments

#1 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 for Passives
 Where will you find the “best”?

Concept to Incorporate Active/Passive
Strategy
Most candidates that apply to
jobs on their own are “Active”
applicants – 17% on average of
the workforce
“Explorers” and “Tip-toer’s” – (55%) of
potential candidates that will listen to a
compelling opportunity, one that could
substantially improve their career

Concept to Incorporate – Objective
Measurement
 Validated objective measurement
tools
 Quantify ones “Emotional Aptitude”
 Look beyond one industry
 Transferable skill sets
 Sizing up one proven “Track Record”
Increase Predictability
Up to 92%

Recruiting

Common Recruiting Challenges
You must make yourself known
 Website does not convey Employer Value Proposition
 Cumbersome application/interview process
 Management disengaged with the entire
recruiting/hiring/onboarding cycle
 No one is “pro-actively” looking
 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 vs. compensation
 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 vs. skills
 A failure to plan, is a plan to fail

What Is Your Value Proposition?
Why would they want to work for your organization?
 Promote Challenges and Opportunities
 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 Job
2. The quality of the Hiring Manger
3. The quality of the Team
4. The quality of the company
5. 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

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 (resources):
1.Pre-hire process
2.First day experience
3.Onboarding includes – Initial and long term goals
4.Internal Communications
5.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 1. Formal, but fun
 Onboarding leads to goals setting, development

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 - Sample

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

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.”

Lack of Respect
Lack of leadership
Favoritism
Poor employee relations
Incompetence
Lack of Technical Skills
Lack of Respect
Lack of leadership
Favoritism
Poor employee relations
Incompetence
Lack of Technical Skills
{
Why is the candidate looking?

Continuous Recruiting = Retention
Growth&Impact
Time
Source: 2011 LinkedIn Survey of
4,550 fully-employed professionals
Passive Candidate Active Candidate

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

Engagement

Engagement – is Personal
Forbes 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
“In exchange for money, employees show up. In exchange for
helping meet their personal goals, they put forth effort.”

Encourage
Network
Goals
Acknowledge
Gratitude
Evaluate
Mentor
Ethical
Negotiate
Teach
got your 6
Allow connections
Make them measurable
Recognize them
Say thank you – See next slide
measure
pass on your experience
Have consistent standards
When you must do
more with less
Responsibility
“Engagement is Personal”

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.
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?

 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 performance
Provide 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 Boomers
Current age: mid 50s – late 60s
•Focused on the
process
•Clearly defined
Onboarding map
•Extend Onboarding
Beyond 6 months
•Level of Respect
Gen X
Current age: mid 30s – early 50s
•Focused on learning
(Entrepreneurial)
•Mentor Program
•Objectives &
Timelines in
Onboarding
•Work/Life Balance
Gen Y
Current age: under 32
•Focused on social
•Enable Contribution
•Link Onboarding to
Learning
•Flexibility/Buddy
system/Networking

Takeaways – Best Practices
1. Define your target – where are those that I will hire?
2. Promote – Align customer and employee brands
3. Do a great job of assessing
4. Proper Onboarding - Essential
5. Spend time Re-Recruiting for Retention and Promotion
6. Communicate to improve your Employee Engagement –
create the environment where your employees recruit
your future employees

www.ag1source.com/kalmbach-presentation
www.ag1source.com/destination-employer
Resources

Interactive Questions - Final
Do you believe that you would want to become a Destination Employer?
Yes
No
Do you believe that you are a Destination Employer now?
Yes
No
92%
8%
32%
68%

Questions?
www.ag1source.com
If you would like to talk directly with us –
Mike Smith: mikesmith@ag1source.com or 1.620.327.2205
Ron Hayden: ronhayden@ag1source.com or 1.620.327.0316

Kalmbach / Presentation from Ag1Source

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