1. © FMI Corporation 2009 MANAGEMENT CONSULTING Developing Future Talent: Hiring, Developing and Keeping “High Potentials” Ron Magnus

2. What FMI is Seeing in the Marketplace  Increased Competition  Out of Town Contractors  Lower Bid Prices  Less Work  Lowered Employee Engagement  Lack of Motivation and Morale  Labor Shortages

3. Labor Shortages¹  Results of the Recession  Unemployment will permanently be higher  6.5 – 7.5% after the recession  AEC labor shortages in the next 3-4 years  Predicted 2012 deficit: 1.5 million workers  Displaced workers likely to move to new industries  More difficult to recruit back to AEC  Highest risk: young professionals & recent grads  Widening talent gap  Higher need for specialized workers ¹The Next Big Threat… And It’s Probably Not What You’re Expecting. FMI Corporation. 2010

5. Table Discussion  Group Discussion  Where is the talent?  How attractive is your industry?  What makes top performers stay or go?  On Your Own  How attractive is your organization?  Who are the right employees for you?  How can you retain your star talent?

6. Defining “Star” Talent  Who you are  Personality  Work Style  Values & Beliefs  Goals  What you are capable of  Performance vs. Potential  What you know  Skills  Experiences  Education  What you have done  Successful projects  Diverse experiences

7. Finding the Right Talent  Get serious about recruiting  Find the right pools to fish in  Differentiate yourself in the marketplace  Become an employer of choice

8. Get Serious About Recruiting  Over-communicate recruiting needs and status  Get the word out – networks and advertising  Build a powerful website  Create a consistent process to “wow” recruits  Build relationships with talent pools  Treat recruiting as a strategic imperative  Define the role of leaders in recruiting talent

9. Attracting Experienced Talent  Provide hefty referral incentives  Get involved in your community  Win external recognition  Define and live your culture  Become an employer of choice

10. Table Discussion  What are some reasons that high potentials have left your organization?  What could you have done differently to retain them?  What recruiting efforts can you change to attract and retain more high potentials?

11. Table Discussion  List the following retention drivers in order of personal importance:  Exciting Work & Challenge  Career Growth, Learning & Development  Working with Great People & Relationships  Fair Pay  Supportive Management/Great Boss  Would this be the same order for your employees?  Why/Why Not?

12. Retention Drivers by Age Exciting Work & Challenge Career Growth, Learning & Development Working with Great People & Relationships Fair Pay Supportive Management/Great Boss

13. Top 10 Reasons Why High Potentials Leave 1.Boss Relationship 2.Better Opportunity 3.Personal/Family 4.Job Security 5.Compensation 6.Leadership 7.Quality of Life 8.Values Conflict 9.Recognition 10.Stock Ownership Hornberger Management Co.– 2002 FMI Contractor’s Management Journal Feb 03

15. Challenging Work Experience What would you do differently?

16. © FMI Corporation 2008

17. Identifying Talent  Choosing the people you want to develop  Knowledge  Education  Experience  Organizational Knowledge  Skills  Business and Management  Personal Attributes  Personality  Attitude  Energy  Learner

18. Questions to Consider  Have you identified your high potentials?  What are you doing to develop your high potentials?  What can you do differently to speed up their development?  What efforts have you made toward improving retention?

19.  Essential Factors High Potentials Look for in Employers 1. Purpose 2. Culture 3. Opportunity 4. Brand © FMI Corporation 2009 Retaining Talent ¹Harvard Business Review, November 2008 Purpose CultureBrand Opportunity

20. Factors High Potentials Look For  Purpose  Corporate citizenship  Committed to their employees  Guiding mission and values from the organization  Sense of belonging and contribution to the organization  Culture  Authenticity of the organization and its leaders  Meritocracy through talent- based promotion  Connection with leadership and co-workers  Talent-Centricity and diversification © FMI Corporation 2009 ¹Harvard Business Review, November 2008

21. Factors High Potentials Look For  Opportunity  Challenging work environment and tasks  Accelerated career track  Continual training and development  Competitive pay  Brand  Known for organizational excellence  Leader in the industry  Inspirational leadership  Reputation in the industry © FMI Corporation 2009 ¹Harvard Business Review, November 2008

22. Action Plan  What are 2 – 3 key items you will do differently to attract and retain high potentials?  How will you prepare for future challenges in your industry?

23. © FMI Corporation 2009 FMI is the nation's largest provider of... Management Consulting and Investment Banking to the worldwide construction industry. Founded in 1953 by Dr. Emol Fails, FMI delivers innovative, customized solutions to contractors; construction materials producers; manufacturers and suppliers of building materials and construction equipment; facility owners, managers, and developers; engineers and architects; surety companies; and industry trade associations.

24. Founded in 1953 by Dr. Emol A. Fails, FMI provides management consulting and investment banking for the worldwide construction industry. FMI delivers innovative, customized solutions to contractors; construction materials producers; manufacturers and suppliers of building materials and construction equipment; facility owners, managers and developers; engineers and architects; surety companies; and industry trade associations. FMI’s experienced professionals assist businesses with strategic planning, leader and organizational development, business development, research, mergers and acquisitions, peer groups, private equity placement, project execution, and training. ABOUT FMI © FMI Corporation 2009