Five Human Resource Issues for the Next Five Years

2008 Land O'Lakes Feedlot Seminars

Don Tyler; Tyler & Associates

Today’s discussion will focus on five of the major Human Resource issues that Feedlot managers and owners will have to contend with in the next five years and beyond.  These are certainly not the only issues, but these are the five that may not get the attention that they will need from managers and owners to stay competitive.

 The five issues are:

1.)      Access to Labor

2.)      Accountability and Behavior Issues

3.)      Competitive Wages and Benefits

4.)      Local Competition

5.)      Employees with NO Experience or Work Background

 A Summary of Each Issue:

 1. Access to Labor:

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  Greater availability of foreign labor, but must understand “red tape” and restrictions—Good employees are available from many parts of the world and are willing to travel here, but the restrictions may be a challenge for some producers.

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 Local reputation is increasingly more important—Word gets around.  If an operation has a reputation for lacking concern for their employees, being on the low-end of the local pay scale, or having a “difficult” atmosphere to work in, it will be challenging for that operation to attract the best employees.

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 Need multiple resources for contacts and applicants.

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 Keep majority of turnover in introductory positions.

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 Travel expenses—As gas prices go up and other travel expenses inflate, our “local” labor pool will shrink. 

2. Accountability and Behavioral Issues:

People entering the workforce may not have our values, our work ethic, or our motivation.  As a result we have to have to be much clearer about our expectations, not just for their duties, but for their attitude, behaviors and social interactions.  Here are some essential strategies:

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 Develop documentation to support expectations: i.e. Job Descriptions, Employee Policy Handbooks, Operating Procedures, Performance Reviews, Job Application Forms (with itemization of skills), etc.

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Establish clear processes and guidelines for communications: i.e. Staff Meetings, Written Communications, Documentation of Activities, Separating Family and Business, etc.

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 Production targets are essential.

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 Must have clear expectations and up-to-date employee policies:

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Example:  Personal Technology--
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Limits for use of cell phones for text messaging and entertainment.

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Internet access and use of I-Pods.

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Feel these are “rights” not benefits.

The best operations also:

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Provide opportunities to develop personal skills in relationships and finances.

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Develop production skills, management skills and communication skills.

 3. Competitive Wages and Benefits:

To stay competitive, our business needs to know what the competition is paying, what it takes to hire the employees we need, and how to keep the good, experienced employees that we already have.

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For introductory positions—must be competitive with local opportunities that offer the same pay and compensation.

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 For mid-level positions—must be competitive with similar positions and levels of experience available locally.

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 For top level management—must be competitive with regional/national opportunities.

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 Trend is toward more individual options for benefits, such as “shared” medical coverage, a variety of investment plans, etc.

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 Unique compensation for long-term employees that are “maxed out” on salary.

4. Local Competition: 

Each local area is different and has different challenges when it comes to competition for labor.  Here are some of the current—and very near-future—issues that could affect your business:

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Local Manufacturing/Industry—Some local areas are seeing a resurgence in local manufacturing and light industry.

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Ethanol Plants—New plants are going up all over the country and will be highly competitive for some of the skill-sets that are hard to find—mechanical skills, management skills, trucking, operators, etc.

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 Small Business / Service Industry—No sector of our economy has grown as much as small businesses.  You may have several in your local area that you don’t even know are direct competition for your labor pool.

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Aging local population—In some areas, the local workforce is rapidly nearing retirement age, and is certainly reaching an age that is no longer interested in working in the weather every day.  These employees are not being replaced with their children or grandchildren—at least not at this point in time.

5. NO experience or work background:

For many years, most industries have had to deal with new employees that have absolutely no work experience.  Agriculture is realizing this same challenge due to few employees having agricultural experience.  In many cases, we are hiring people for their first real job, and their view of the workplace may be very different than ours!

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New to the workforce.

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No agricultural experience whatsoever.

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Producer’s lack of experience in training—It is hard to do a good job of training when we learned our skills through “osmosis”…..

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Safety issues due to lack of experience, time/extra cost of training, may not stay long, turnover increases.

Solutions?

            The best way to combat these challenges is to plan ahead, and develop specific strategies for our current and future labor force as a part of our overall business plan.

Strategic Plan for Labor:

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Need to develop overall strategic plan for Employee Management.

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Must be willing to develop social atmosphere in the workplace that is accepting of different cultures and backgrounds.

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Emphasize personal development of all employees.

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Establish company culture and atmosphere that limits liability.

Summary:

1.)      Labor will continue to be a limiting factor for employers who do not have an overall Strategic Plan for their labor needs.

2.)      Behavioral issues will become a limiting factor for employers who lack accountability and documentation.

3.)      Becoming the “Employer of Choice” in a local area will require creativity, personal attention and a unique approach.

 

 “The successful Feedlot of the future will be planning

a way to overcome tomorrow’s challenges—

 

While their neighbors and competitors are complaining

about how bad it is now…….”

 

Follow up information:

Website:  www.dontyler.com    E-mail:  don@dontyler.com       Phone: 765-523-3259

Materials available:

 “The Complete Guide To Managing Agricultural Employees ©”

    (200 page printed reference manual)

“Introduction To Communications ©”  (Audio Series)

“Becoming The Advisor Of Choice ©”  (Audio Series)