Better benefits, higher compensation, and recognition programs are the top strategies produce and floral employers use to compete for talent. This study documents emerging industry trends and developments in human resource management including salary reviews, practices, management performance schemes, benefits and salary packages, recruitment practices, retirement trends and branding practices.
Salary Increases vs. Budgeted Salary Increases
A large majority (88%) of respondent companies indicated salaries increased during the last 12 months from July 2014 to July 2015. The predominant average increase received by employees for 2014-2015 was 2.6% to 3.0% (22.73%). The projection for salary increases in produce and floral companies is very positive for 2016. 50% of respondent companies anticipate “yes, some staff” are likely to receive increases; another 38% indicated “yes, all staff.”
Compensation Market Studies
48% of respondent companies performed a compensation market study in the last year. Another 28% had never performed a study, and 14% were unsure. Companies were asked for the type of salary data sources they utilized when benchmarking salaries. 50% of companies reported they use free survey data, 36% use local data and 32% use nationwide data. 36% of companies also reported benchmarking salaries by their own estimation (word of mouth, industry knowledge, and new hires).
Workforce Changes & Turnover
Over the next two years, 54% of respondent companies believed workforce size would increase, a similar projection to the 2015 data results of the U.S. Agribusiness HR Review™. 62.96% cited growth strategy as the source of this anticipated increase, natural growth (55.56%), while 44% of respondents stated that their workforce would stay the same.
To keep employees challenged and productive in their roles 82% of respondents have a bonus system in place. 36% of companies reported between 91% - 100% of employees received a bonus in the last financial year.
Skilled Seasonal Staff
24% of companies employed skilled seasonal staff, typically from 3 to 6 months of the year. Another 33% utilize the seasonal staff for 6 to 12 months.
40% of respondent companies already use social networks or social media to support recruitment efforts. Of the companies utilizing social media, 90% use LinkedIn, another 70% use Facebook.
Competitive Employer Tactics
In order to compete with other employers for talent, better benefits (56%) and higher compensation (40%) were the top two strategies, followed by recognition programs (38%).
Reaching Prospective Applicants
The top 3 methods for reaching prospective candidates were: Employee Referrals and Networks (80%), General Online Job Boards (50%), and Industry-Specific Job Boards (e.g.: AgCareers.com) (48%).
48% of respondent companies plan to do more graduate recruitment in the next 1 to 5 years for their company (primarily driven by the competition for talent and career progression/succession planning). Another 52% do not plan to do more graduate recruitment.
50% of respondent companies measured employee satisfaction/engagement, increasing over 8% from 2015. 48% used both internal surveys and external surveys and 32% utilized management reviews. Of the respondent companies measuring employee satisfaction, 72% conducted reviews annually, and 24% conducted reviews every two years (increase of more than 15% than in 2015). Another 4% conducted reviews every 3 years.
Training & Development
When asked how their company determines training expenditure amounts, 74% of respondent companies reported allocating on an “as needed” basis. Most employers use orientation/induction (58%) and cross training (56%), for staff development and training. A notable 48% provided certificate courses, another 42% provided financial assistance for external study/tuition reimbursement.