Grow Your Own: Talent Development for the Modern Manufacturer Russ Gaylor, OMEP Rusty Cochran, A.R.E. Manufacturing Michael Hanson, Hardwood Industries

Manufacturers face huge challenges finding and retaining skilled labor Problem Slide: Manufacturers typically have far fewer resources to attract labor, develop talent, pay competitively, waste time training ineffectively, or to lose highly skilled and invested talent out the door. ACTION - After reading this quote do a hand vote (How many of you believe this statement?) 5 if you believe it strongly and 1 if you don’t believe it at all. Manufacturers have far fewer resources to attract labor, develop talent, pay competitively, train effectively, and often lose talent to competitors

Smart Talent helps companies achieve business results Solution Slide: Smart Talent is an approach the focuses on helping companies become learning organizations. While there are many different elements that make up a Learning Organization we are going to focus on just three of them today.

This session highlights 3 keys to building a Learning Culture Structure your hiring process to attract new talent Develop your workforce systematically Build a performance based pay system The move towards a culture of learning frequently begins with: Structure your hiring process to attract new talent Develop your workforce systematically Build a performance based pay system We are going to spend the our time in this session focusing on these three

Learning Culture Self Assessment ACTIVITY – Learning Culture Assessment On your tables we have a Learning Culture Self Assessment we would like you to take the next 5-10 minutes completing. This will give you an idea of where you perceive your company to be in regards to a successful Learning Culture.

Structure your hiring process to attract new talent Key Point #1 Structure your hiring process to attract new talent: Expand the labor pool you target by broadening your search. Optimize your hiring process ACTION – Introduce Rusty from ARE

A.R.E. Manufacturing implements standardized hiring process ‘Temp-to-hire’ process: let someone else do the filtering for us Use prescreen testing: shop math, mechanical reasoning, and tape measure reading Use a standardized set of interview questions

Interviewed by Temp Agency A.R.E.‘s BIG challenge was getting more applicants through the temp agency 73 18 28 2 9 Tested Interviewed by Temp Agency Hired as Temp Hired as A.R.E. Employee Interviewed by A.R.E.

A.R.E. missed out on potential applicants by a rigid 80% testing criteria

A.R.E. broadens their talent pool by lowering test criteria 73 26 40 6 13 Tested Interviewed by Temp Agency Hired as Temp Hired as A.R.E. Employee Interviewed by A.R.E.

Structure your hiring process to attract new talent Key Point #1 - REPEATED Structure your hiring process to attract new talent: Expand the labor pool you target by broadening your search. Optimize your hiring process Q & A

Develop your workforce systematically Training “pain points” Use of Team-based Structured OJT Define skills needed Creation of Development Paths Attract, engage, reward Building Company Career Ladders Benefits: Repeatability & predictability of the training process Shorter learning curves & faster time to contribution Clear performance expectations Increased company & personal accountability Greater employee engagement Easier to attract, manage, engage talent More robust succession planning Moves towards a culture of learning Key Point #2 Develop your workforce systematically: Use a Structured OJT to make training repeatable, and predictable. Stack Job Modules in order of (what employees need to know first, then second, etc..) to create Development Paths. Link Development Paths into Career Ladders

Hardwood Industries slashes order processing training by 83% Q & A

Hardwood Industries

A.R.E. Manufacturing Q & A

Develop your workforce systematically Training “pain points” Use of Team-based Structured OJT Define skills needed Creation of Development Paths Attract, engage, reward Building Company Career Ladders Benefits: Repeatability & predictability of the training process Shorter learning curves & faster time to contribution Clear performance expectations Increased company & personal accountability Greater employee engagement Easier to attract, manage, engage talent More robust succession planning Moves towards a culture of learning Key Point #2 Develop your workforce systematically: Use a Structured OJT to make training repeatable, and predictable. Stack Job Modules in order of (what employees need to know first, then second, etc..) to create Development Paths. Link Development Paths into Career Ladders TRANSITION - Once you have your Development and Career Ladders built, it’s time to overlay a pay structure on to it.

Performance by application Build a performance based pay system Skill & knowledge acquisition Performance by application of skills Promote from within Key Point #3 Build a Performance Based Pay System: Link Career Ladders to specific Development Paths to create growth opportunities for employees. Use a performance based pay system to reward employees for skill acquisition and sustained performance. Create a talent pipeline to “promote from within”

A.R.E. Manufacturing

Performance by application Build a performance based pay system Skill & knowledge acquisition Performance by application of skills Promote from within Key Point #3 Build a Performance Based Pay System: Link Career Ladders to specific Development Paths to create growth opportunities for employees. Use a performance based pay system to reward employees for skill acquisition and sustained performance. Create a talent pipeline to “promote from within”

Learning Culture Self Assessment ACTIVITY – Learning Culture Assessment Take out the Learning Self- Assessment you did earlier. Keeping in mind the experiences you have heard from ARE and Hardwood Industries take 5 – 10 minutes discussing at your table the challenges or “key takeaways” your company faces in the areas we discussed here today. Debrief – If time allows have EACH table give 1 or 2 key takeaways. Final Q & A

Smart Talent Workshops REMINDER - At each table is a Sign-up sheets for Smart Talent Workshops that focuses on the elements we discussed today. We have one coming up soon in Bend but we are also planning others. If you are interested in attending one of those session please use the sign up sheet to do so. 1 on each table REMINDER - OTC Survey – Also at your table is an OTC Survey. It would be very helpful to us as we are very interested in your feedback if you would complete that before you leave this session and drop it off in the box as you leave. THANK YOU Drop off in box on your way out

This session highlights 3 keys to building a Learning Culture Structure your hiring process to attract new talent Develop your workforce systematically Build a performance based pay system The move begins with: Structure your hiring process to attract new talent Develop your workforce systematically Build a performance based pay system THE ASK - Can you do that?

A Culture of Learning is not a few single steps but a journey, you just have to start! Call to Action Attracting talent requires businesses to be proactive, looking at it not as a requirement but as an opportunity.  Retaining that talent requires a long term view, creating paths for development and growth. Use your Learning Culture Assessment to build an action plan to address your areas of potential improvement.  Schedule a Smart Talent Workshop that will teach you the process of Structured OJT, Creation of Development Paths and linking Career Ladders..

THANK YOU