“There is a labor shortage in our industry,” said Phil Stroud, vice president of people services at Tip Top Poultry, Inc. in May 2017 at USPOULTRY’s Poultry Processor Workshop in Myrtle Beach, South Carolina. Even with a fear of deportation for some there are 854,000 fewer unemployed, but the competition for workers is fierce, Stroud explained.
Stroud shared the challenges Tip Top Poultry has faced and how the company changed its tactics when it comes to recruiting, retention, technology and improving profits. Tip Top has been using the internet as part of their application process for less than a year. However, in that short amount of time it has required a total renovation of their human resources department. “We have to spend less time with walk ins and more time on the web and our social media accounts,” he said.
Businesses are responding to new presidency with almost a million more people employed, and companies have fewer people to choose from, Stroud explained. “I’d even take it one step further and say not only do you have fewer people to choose from but in some places you have people that just don’t want to work because they have employee insurance and government benefits,” he said.
This creates competition within the industry to find valuable employees. The shortage results in an increase in turnover, lower productivity due to constant training, increased workers compensation due to new hire injuries, and potentially other issues, Stroud explained.
Internet – changing the game in recruiting and retention
With modern technology making the internet readily available to people at almost all times, companies need to be aware of what is being said about them online. With or without money, people find a way to have phones, Stroud explained. “Ninety one percent of U.S. citizens have a mobile device with them 24/7,” he said quoting Morgan Stanley with HubSpot.
It is important to appeal to potential employees as a family oriented business and someone they should want to work for. “What good are you doing if you lose employees out the back door as fast as you bring them in the front door,” Stroud said.
“One poultry plant recently reported 50 percent of new hires came through website applications,” Stroud said. Connecting online before the potential employee makes the trip to the plant starts the relationship between the applicant and employer and may even speed up the hiring process.
Various websites offer opportunities for companies to advertise job availability.
Internet results
In a survey conducted at the Marietta, Georgia, location of Tip Top Poultry they had 1,130 job search responses online. Those responses resulted in 373 online applicants. Of those 373 applications only 208 of them represented valuable potential candidates. Only 93 of the 208 accepted the opportunity to interview with the company and spend time job shadowing. There were 58 people that showed up for that opportunity and of those 58 only 29 were hired.
“We are trying to reach them [potential candidates] as many times as possible throughout the hiring process,” Stroud said. Building a relationship with the applicant is extremely important, he added.
Tip Top even interacts with candidates through text messaging. “When a relationship was established with new hires through texting, turnover went from an average of 31 percent terminated within the first 30 days to 18 percent,” Stroud said.
Factors impacting retention
Stroud emphasized multiple times the need for a good relationship with employees. This can be done through technology or even simple things like offering a compliment to an employee about their performance, he explained. “Eighty seven percent of employees said they would work harder for an employer who would help them with personal problems,” Stroud said.
Pay, benefits, company culture, working conditions and management are all things Stroud says have an impact on employees’ decisions and loyalty. “Forty six percent of employees who leave voluntarily don’t feel valued,” Stroud explained. To keep employees that may or may not be considering leaving for any given reason, a particular Burger King was offering workers a 1,000 dollar stay on bonus.
Pay, benefits and working conditions are all factors that have an impact on employees’ decisions and loyalty.
Recipe for improved profits
When the culture supports employees and leadership embraces technology (texting/social media) and recognizes its employees’ achievements through better communication and support, retention is improved and better work is done, Stroud explained.
