Texas Agricultural Cooperative Council Presentation

Recruitment and Retention Strategies for Businesses
of every size
Mike Smith - President – Ag 1 Source
Presenting to
The most trusted and reliable recruiting firm in the agriculture industry © 2013 Ag 1 Source
Texas Agricultural Cooperative Council

Today’s Forecast
The U.S. Un-Employment Situation
Geographics
Education
Retirements
Weatherproofing
Reduce Turnover
Relocation and Training programs
Succession 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
Unemployment
Distribution
© 2013 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.

In 5 years, the
overall U.S.
employment is
expected to
increase by about
12 million.
• Source – Wall Street Journal Online

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

Employment Trend - 10 Yrs.
Labor Force Statistics from the Current Population Survey –
Employment Level- 25yrs and older www.bls.gov© 2013 Ag 1 Source

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

Ag 1 Source current search mix
© 2013 Ag 1 Source

In 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 groups
Workers Aged 55 To 64 will nearly double as a
percent of the work force from 2000 To 2020.
(According to BLS)

Today’s Younger 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.

Retention Remedies
Start by:
1. Reducing Current Turnover
2. Look at Performance vs. Skills
3. Flexibility
a. Trainer or Mentor
b. Encourage education
c. 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

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 Say They Leave
Numbers 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 Respect
Lack of leadership
Favoritism
Poor employee relations
Incompetence
Lack of Technical Skills
{
© 2013 Ag 1 Source

The common denominators to turnover
1. The need for TRUST. Expecting the company to deliver on it’s
promises, be honest in communications, and compensate fairly
2. The need to have HOPE. Believing that you will grow, develop
skills, and have opportunity of increased responsibility or career
progress leading to higher pay
3. The need to feel sense of WORTH. If you do your best, work
hard, you will be recognized for you contributions
4. The need to feel 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
Bottom-line solution: Communication with your employees!

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
• As Recruiters in the industry – It is much easier for
us to create a positive Employee Value Proposition
for those companies with the LOWEST turnover!

Lack of Respect
Lack of leadership
Favoritism
Poor employee relations
Incompetence
Lack of Technical Skills
{
© Ag 1 Source
Communication is Key to Retention

Employees Need Answers
Communicate these answers to them -
• 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?

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

Growth&Impact
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

The Early-bird Source Strategy
Change in Growth, Impact, and Satisfaction Over Time
Growth&Impact
Time
Explorers Tiptoers Searchers Networkers Hunters &
Posters
Super Passive
28%
40% 15% 9% 8%
Early-birds Leftovers
Career Move Better Job Good Job
83% 17%
Diminishing
Job Returns
Lateral Any Job
Key Points
Target Early-birds
Ask, “How long have you been looking?”2011 LinkedIn Survey of 4,550
fully-employed professionals
ActivePassive

Passive - 83%
Active - 17%
Passive
Active
Explorers - 40%
Tiptoers - 15%
Super Passive - 28%
Active - 17%
Explorers
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

Your Talent Pool
• Don’t use a Talent Surplus process (weeding out the
weak) where a talent surplus does not exist.
• Yes or No?
– Is there a shortage of top talent for your critical positions?
– Are you still positioning traditional job descriptions that
emphasize skills and experience?
– Would you like to see more top performers for these
positions (pool is too small)?

Talent Surplus
vs.
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 Future
It’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
-Low Turnover
-Better Incentives or Benefits -COL differences
-Succession Plans
$____
$____
$____
$____
$____
$____
$____
$____
$____
$____
$____
$____
$____
© 2013 Ag 1 Source

Hire by Performance vs. Skills (2)
• It’s more about “Attitude” vs. “Altitude” (the “want to/will do”
vs. the “can do”)
• A resume tells what a person has done in their career, but
performance based recruiting tells us how they did their
“what”
• Companies want to hire employees that will:
– Get it done – Solve problems – Get along with other employees
• 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?”

Hire with your Head, by Lou Adler
• Performance Based Hiring
• Choose first based on the ability to do the job
• Define Success, Not Skills
• Decide if you like the person after you have
determined performance potential
• Then sell them on your Value Proposition

Hire by Behavior vs. Skills
• When studying your best __________ -what traits do they
have? This is really what we look for in an interview
• Focus
• Detail
• Discipline
• Mechanical Aptitude
• Sense of Urgency
• Dedication
• Timeliness
• Dependability
• Adaptability
Question – How many of these traits are found on the
resume?

Remedies: Find Flexibility (3)
Consider less Education or less Experience required and:
• Add a Trainer or Mentor
• Partner with an Educational institution
Adding a Relocation program
• Risk vs. rewards – Big risk in relo – key is acclimation to the
community for the entire family!
55+ age group
• Very important part of succession planning
• Possible seasonal employment group

Remedies: Become a Destination Employer (4)
IA Retailer
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.

Destination Employer examples – Retailer -IL
• Developing a system to drive personal development and retention
– Create an understanding for existing employees of what is required in current role, before they will be
considered for promotion
– Re-write job descriptions to include “minimum required experience”
– Implement plan to assist hiring managers to use this as a tool to create training plans for those who want to
move up in the company
• Create an image to be a “Destination Employer” for their market area
– Train young employees to be ambassadors of the company
– Implement a recruiting plan that will send the ambassadors to FFA chapters, vo-tech career
fairs, etc
– Create strategies to leverage scholarship program for improved image and recruiting
– Develop marketing strategies (brochure, website, etc) that will provide career opportunity
information
• Improved hiring process
– Consistent interview methods across the company
– Reduce time from referral to hire
– Train hiring managers on proper interview techniques
– Create resources to improve interview experience for both hiring manger and candidate

Destination Employer examples – IL cont.
• Students tell others – Key to the Brand Building of the business
• “Indentured servant” – not necessarily top of class
– Work for the business on the weekends, going to Vo-tech
– Summer work program and student loan guarantees
• Getting in front of students in high school is critical
– Seeking the non-4 year college student
– Wants to be the agricultural destination for hourly employees
– Part of performance evaluation includes community involvement – Brand Builder
• 75% of an HR Manager’s time is spent trying to find the hourly employees
• Your customer’s image of your business is represented more frequently by
your hourly employees vs. your salaried…
• The best Sales people may not necessarily have that 4 year college degree
• This creates a future pathway for an entry level employee

Destination Employer examples-Ag Tech/ Parts Management
Tuition Assistance Program
• JD Dealership group based in SW Nebraska (Company) - is offering tuition assistance to qualified
individuals to attend the John Deere Company partnership college programs including Southeast
Community College in Milford, NE and Garden City Community College in Garden City, KS, for
vocational instruction relating to agricultural service technician training or parts department
management training.
• Company will advance all or a portion of the quarterly, full-time tuition, books, fees, together with
customary cost for room and board and curriculum related tools, for the stated academic year.
• This advance is subject to the terms and conditions stated in the Company Tuition Assistance
Contract and also includes the following requirements:
1. Approval by Company Management team.
2. Acceptance to the above mentioned community colleges.
3. Student must maintain a cumulative GPA of 3.0 or higher.
4. Work experience will be completed at one of the Company dealership locations. Student will
earn a competitive wage during this time.
5. Company provides required student uniforms for the college program.
6. Upon successful graduation from the program, student agrees to accept an offer of
employment from Company on an “at will” basis.
Company is a growth-oriented multi-store John Deere Dealership with 11 locations in Western
Kansas, Western Nebraska, Eastern Colorado

Destination Employer examples - Deere
• Engaging mature workers
– Provides them with opportunities to recreate their jobs or lead special projects
– After retiring, can be rehired as contingent workers. Less then 10% of retirees use this service
• Knowledge Management
– Uses mentoring and coaching most often
• Leadership Development Activities
– Talent reviews are conducted on a monthly basis with the senior office.
– Brokers talent across the organization to provide star performers with development
assignments
• Benefit Plans
– Does not have a formal phased retirement program
– Has a part-time employment program that provides different benefits based on hours
worked. Some features benefit part-time workers and some disadvantage them
– Created a new retirement program in 1997. Under the highest average pay pension plan, a
part-time employee would continue to earn full service credit, but the part-time pay would
not likely be included in the calculation

Remedies: Streamlining (5)
• 47% of all offers lost to competitors - Career Builder 2013
• Pre-planned interview process
• Ready to go office setup – spatial visualization
• Know and demonstrate your company’s cultural appearance
• Know your company’s Employee Value Proposition

Retaining Employees After You Hire
Them--Onboarding
1. The First Day Is Critical.
2. Send Welcome Letter Or Card Prior To Their Arrival.
3. Put Yourself In Their Shoes.
4. Introduce The New Employee To Others.
5. Make Sure Lunch Arrangements Are Made.
6. Provide Meaningful Orientation.
7. Keep Them Up To Date Through Training.
8. New Employees Make Their First Impression In Minutes As To
Whether They Made The Right Choice Of Going To Work For You.

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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