NC Pork Conference...Market Research Reports Articles/Resources University Partners Program Training & Consulting Media Advertising Careers Awareness Campaign Eric Spell, AgCareers.com

NC Pork ConferenceNC Pork ConferenceFebruary 21, 2008February 21, 2008

Eric Spell, AgCareers.com


AgCareers.com is the leading online career site and human resource service provider for agriculture, food, natural resources and biotechnology.

• There are more than 36,000 new usersthat visit AgCareers.com each month

• More than 641 people set-up an account on AgCareers.com each month

• Each day there are more than 8,000 jobviews on AgCareers.com

• AgCareers.com has over 1,300,000 pageviews a month

• Employers post more than 1,500 jobseach month

• More than 4,500 applications are sent to jobs through AgCareers.com


Beyond the Job Board

Educational Workshops/Conferences and Training

Market Research Reports

Articles/Resources

University Partners Program

Training & Consulting Media Advertising

Careers Awareness Campaign


Farms.com™ Family

• AgCareers.com is one of 8 business units within the Farms.com Family of Companies

• Farms.com receives more than 2 million page views per month

• AgCareers.com receives traffic from Farms.com as well as the other business unit’s websites


Overview

• Industry feedback on recruitment

• Thoughts from job seekers

• A review of the following issues– Skilled Labor—how large is the scope?– Industry brand and turnover– College recruiting—are we focused in the right areas?– Compensation Data


Beyond the Job Board

• A web-based confidential compensation survey specializing in agribusiness jobs

• Provides client’s access to run reports benchmarking cash and benefits information (compensation) relevant to their business

• Survey tool to benchmark best practices in

human resource practices within the agribusiness industry in a confidential manner – such as staff training efforts, seasonal workers, salary increases, performance reviews, etc.


• “Consider the 20 companies that made the Hewitt Associates’

2005 list of great places for great leaders -- All but 2 have

beaten the Standard and Poor’s 500-stock index companies’ --

156% total return to shareholders over the past decade”

• “---because talent is growing far scarcer. According to

consultant RHR International Co., the country’s 500 biggest

companies anticipate losing half their senior management in

the next 5-6 years. As the 77 million US baby boomers begin

to retire, Generation X, now 24-40 years old, makes a paltry

successor, with 46 million people.”


Swine Industry Talent Survey Overview

• Short, online survey – consisting of 10 questions

• Distributed via e-mail and over the web

• 230 responses

6%

22%

3%

4%

13%

4%

48%

0% 10% 20% 30% 40% 50% 60%

Western Canada

Central Canada

International

Northeast US

Southeast US

Midwest US

Western US

Demographics


Seasoned professional,

31%

Experienced

professional, 49%

Young professional,

19%

Blank, 1%Senior professional, 1%

Industry Experience

Guide:

Young professional – 18 to 30 years

Experienced professional – 31 to 45 years

Seasoned professional – 46 to 60 years

Seasoned professional – 61+ years

Industry RoleFarm Ow ner, 17%

Farm Manager, 16%

Production Manager,

15%Senior Executive, 20%

Admininstrative, 28%

Blank, 5%


32%

23%

6%

3%

18%

18%

0% 5% 10% 15% 20% 25% 30% 35%

Blank

Nothing

Offer increased compensation

Focus on people that want to live in rural America

Increase relocation packages

Highlight advantages of rural living

As an employer, what are you doing to recruit young and experienced professionals to rural areas?


As an employer, how well do you feel universities are promoting career opportunities in the swine industry?

Very well, 4%

Okay, 39%

Not well at all, 54%

Blank, 3%


As an employer, you should be aware of the increased Hispanic population, not only within our country but within the swine industry workforce. Considering this, what is your organization doing to prepare Hispanic leadership?

10%

6%

9%

43%

28%

4%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Blank

We do not plan to focus on diversity

Recruit at schools with Hispanic population

Provide leadership training

We do not see a need

Nothing yet


As an industry professional, how do you feel high school and college students view career opportunities in the swine industry?

28%

40%

7%

14%

10%

1%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Blank

Easy place to get a job

Good place to start

Good with many opportunities

Not appealing – no opportunities for growth

As production opportunities only


Where do you feel industry employers need to focus - considering the "war on talent" that may intensify in the next 2 years?

15%

8%

54%

23%

Hispanic recruitment/training

Other parts of the world(Europe/Asia)

Improve image of industry

Explore technology to reducehuman labor


As an industry, we need to consider how we are going to retain young and experienced professionals within our industry -- Rate the following: where 1 is most important

1. Offer improved benefits – such as time off, better health insurance, improved retirement plans, education assistance opportunities, etc.

2. Offer more training and development opportunities for employees

3. Raise wages

4. Focus on enhancing the culture of the working environment

5. Offer more stock options/ownership

6. Nothing---just accept the fact that staff turnover at farm level is alwaysgoing to be high


As an industry, we need to also consider how we are going to retain general farm labor - Rate the following: where 1 is most important

1. Offer improved benefits - such as time off, better health insurance, improved retirement plans, education assistance opportunities, etc.

2. Raise wages

3. Offer more training and development opportunities for employees

4. Focus on enhancing the culture of the working environment

5. Offer more stock options/ownership

6. Nothing---just accept the fact that staff turnover at farm level is alwaysgoing to be high


Take into consideration the above-mentioned recruiting efforts/factors; rate the following in order of the challenge itproposes to your organization -- 1 being the most challenging and 6 being the least.

1. Recruit young and experienced professionals to rural areas

2. High school and college student views of career opportunities in the swine industry

3. Retaining young and experienced professionals within our industry

4. Universities promoting career opportunities in the swine industry

5. Retaining general farm labor

6. Preparing for Hispanic leadership


A Fresh Look at

Today’s Candidates


Highly Encouraged

22%

Encouraged

37%

Neutral

25%

Discouraged

14%

Highly Discouraged

2%

How encouraged are you about the future of agriculture?

Source: Student Perspective Study (2006)

• In another study – 70% of respondents said they were encouraged, 18% were neutral and 7% were discouraged. Source: WAX Attendee Survey (2006)

• This survey also asked participants if they would encourage a student to pursue a career in agriculture – 78% said yes, 13% said maybe and 4% said no. Source: WAX Attendee Survey (2006)


• The Student Perspective Study found that students do have a pretty realistic view, 40% of students think they’ll make between $30,000 and $40,000.

Source: Student Perspective Study (2006)12%

21%

19%

25%

5%

5%

4%

2%

5%

0% 10% 20% 30%

$25-30,000

$30-35,000

$35-40,000

$40-45,000

$45-50,000

$50-55,000

$55-60,000

$60-65,000

$65-70,000

What are your salary expectations for your first job?

Source: Student Perspective Study (2006)


Review and Critique of

Recruiting Practices




On-Campus Recruiting

and Internships


Talent Pool On Campus

• There are 72 land grant universities that offer an agriculture program

NCSU PurdueIowaState

Illinois Clemson MissouriK-State

How many graduates accepted a position

60% 72% 81% 63% 75% 89% 71%

How many entered the swine industry N/A 4% 2% 1% 2% 8% 1%


Talent Pool On Campus• There are approximately 450 public 2-year colleges that offer some form of degree or certificate in an agriculture related field.

• This is out of a total of 991 public community colleges

Of those:• 313 offer a certificate of less than 2 years duration.• 369 offer a 2 year associate degree• 19 offer a certificate of greater than 2 years.• Plus there are 8 programs that offer Applied Associates of Science degrees at 4 year schools.

From the American Association of Community Colleges


Internships are HOT!


What is an Internship?

An internship is…”A carefully monitored work or volunteer experience, in which an individual has intentional learning goals and reflects actively on what he or she is learning throughout the experience.”

Source: The National Society for Experiential Education


Benefits of internship programs• Inexpensive, skilled labor

• Fresh ideas and perspectives

• Increases organization’s visibility and reputation on campus (if done right)

• Proven, cost-effective way to recruit and evaluate potential employees

• Can be adapted as a program to each student or supervisor, in order to meet current goals/needs


Students Want• Meaningful, applicable skills/experience

• To build their resume of experiences

• Enhanced networking circle of contacts

• $$ (to make some money)

• To see if this is what they want to do for their future, and to try something new

• Freedom to be creative and unique, and to use their skills and knowledge


Recruiting Professionals


Recruitment Strategies & Tactics have changed

• Fewer and fewer organizations and candidates use traditional approaches to recruitment

• Media placement is losing effectiveness although still expensive.

• It is no longer true that if you advertise, “they will come.”

• Companies are pro-active rather than re-active – increase in targeted recruitment and ‘head-hunting’; ‘recruiting’ at the secondary school level.

• Focus is now on both how to attract AND retain.


What employees are looking for has changed.

• Labor supply can ‘shop’ – they can pick and chose the best opportunities.

• Younger generation job-seekers value

-Reputation of the company/organization

-Degree of independence and autonomy in the job

-Opportunities for contribution

-Opportunities for training and development

-Fair Salary & Benefits


Effective Recruitment Tactics• Understand the marketplace

• Know the size and availability of your labor pool

• If small, where is the largest labor pool?

• Can you train people into jobs?

• Are your wages and working conditions competitive?

• Do qualified candidates exist?

• Is Immigration a good option? Non-traditional sources of talent?


A look at Employer Branding“Like any brand, your employer brand is about perception. It involves

basic product-marketing strategies; however, in this case, your product

is people - the employment experience - and employees and

candidates are your customers. A strong employment brand can guide

the total employment experience as it unfolds within your company.

Why is that important? Because your employer brand - and your ability

to deliver your brand promise - optimize recruitment ease and

investment as it fosters employee productivity, engagement, loyalty,

and retention”

Source: Shaker Advertising


Experienced staff/supervisors/managers

1. Internal referral system

2. Niche job boards

3. Industry publication

4. Trade show/networking

• “Do what you can to be the employer of choice”


Entry level staff or hourly labor

• Referral system

– Use email to get word out about openings.

– Use recent hires

– Local news media

– Newspaper, radio, ISP

• Organize evening career fair—advertise in paper

• Open houses/tours


Skilled Labor Crunch!

• Demand is high:– Maintenance

– Truck Drivers

– Agronomy

– Mechanics

– Mill/elevator skilled labor


Turnover is an Issue!

Swine Production

Turnover rate 20%+

Source: 2007 Ag HR Review Report


Cost of Turnover• Number of terminations = 10

• Cost to hire/onboard non-exempt = $4,000 (conservatively speaking)

• Approx cost = $40,000 (this does not factor in reduction in overall system performance)

• If we lost 5 less people within the next 6 months = would save $20,000

-- What would you gain in productivity?


Compensation Data

Farm Livestock Worker (Alternate Titles: Farm Technician, Production Technician, Herd Tech, Herdsperson, Breeding Assistant, Farrowing Assistant)

Region: South (1167 employees)

LQ $18,720

Median $21,313

UQ $22,874

Avg $20,937


Compensation Data

Sow Farm Supervisor (Breeding Supervisor, Farrowing Supervisor, Head of Department, Team Lead, Senior Farm Technician, Department Manager)

Region: South (438 employees)

LQ $25,275

Median $27,717

UQ $29,535

Avg $26,761


We Compete for Talent2007

Feedmill Manager – Swine Production(18 employers)

LQ $58,715

Median $63,300

UQ 69,887.50

Avg $65,163.75

2008


LQ $54,860

Median $65,542

UQ $70,018

Avg $66,196


We Compete for Talent

2007

Plant/Terminal Manager – Commodity-Biofuel (13 employers)

LQ $95,000

Median $109,646

UQ $125,004

Avg $108,122

2008

Plant/Terminal Manager – Commodity – Biofuel (13 employers)

LQ $107,858

Median $113,000

UQ $123,000

Avg $114,559


We Compete for Talent2008


LQ $54,860

Median $65,542

UQ $70,018

Avg $66,196

2008

Plant/Terminal Manager – Commodity – Biofuel (13 employers)

LQ $107,858

Median $113,000

UQ $123,000

Avg $114,559

A difference of = $48,363


The job satisfaction factors listed below are the top ten cited by employees

• Employee Rating Results:

– Full appreciation of work done

– Feeling of being in on things

– Sympathetic help on personal problems

– Job security

– Good wages

– Interesting work

– Promotion and growth

– Personal loyalty to employees

– Good working conditions

– Tactful discipline

People don't leave jobs, they

leave managers!


In Summary• Decide what commitment level you’re going to make

regarding recruiting talent

• Realize that talented people are going to have more options

• Choose your tactic for recruiting wisely

• Make the on-boarding process enjoyable

• Should NC Pork producers collaborate on an Industry Career Awareness Initiative?

Documents

NC Pork Conference...Market Research Reports Articles/Resources University Partners Program Training & Consulting Media Advertising Careers Awareness Campaign Eric Spell, AgCareers.com