Industry Talent Needs Assessment Survey Results

1. Industry Talent Needs AssessmentSurvey Results Mike Kopczynski Senior Survey Analyst MRA – The Management Association 262.696.3332 Mike.Kopczynski@mranet.org February 28, 2017

2. Hello and Welcome! • Today’s objectives • Share key findings of custom industry survey • Provide insight regarding current labor challenge • Survey’s focus - quantify industry talent needs • Hiring practices • Types of positions in high demand and most difficult to fill • Need for food safety training and at what levels • Industry specific training needs and preferred delivery options 1

3. Approach/Methodology • Online survey • Collaborative effort - FaB Wisconsin Talent Committee and MRA • Participants: 54 food and beverage manufacturers with operations in Wisconsin • 85%: Food, beverage, or ingredients artisan, processor or manufacturer • 7%: Food or beverage industry equipment or packaging manufacturer • 6%: Food or beverage distributors • 2%: Foodservice While survey participation skews toward equipment/distributor companies, there is not much difference in responses overall; opportunities and challenges among all are similar. • Survey data collected September 19 – November 2, 2016. 2

4. Participating Companies 3

5. Workforce Composition • High school education most common • Limited number with technical college experience or college degrees • Benefit: Attract entry-level workers • Cost: Costly to educate/train/develop existing staff Q. Please provide a rough estimate of the education level of the talent/workforce your company employs in Wisconsin. High school education or less Skilled: (technical college/apprenticeship) Bachelor’s degree or higher 4

6. Hiring Practices • Industry talent challenge • Many factors contribute to current status: • Shortage of workers with adequate skills • Industry expansion in Wisconsin (market competition, high demand) • General lack of interest in industry as a viable career option • Lack of curriculum in trades at high schools or earlier levels • Rise in baby boomer retirements. Q. In the last few years, has it become more or less difficult to hire talent/workforce in your industry? More difficult 70% No change 24% Less difficult 6% 5

7. Hiring Practices • Current methods reported to address labor challenge: • Increase starting wages/salaries • Provide opportunities for continuing training/development • Fill jobs with existing staff who may not have the job skills though have potential to learn/grow • Provide apprenticeship programs • Provide paid/unpaid high school internships • Define clear competency models and role-based skill requirements • (Re)-Engage with local, technical/community, specialty and other academic schools and institutions 6

8. Hiring Issues Revealed • The food and beverage industry reports some difficulty in hiring Difficult Equipment/machine mechanics, technicians Maintenance technicians Production line/machine operators Sanitation supervisors, managers Ease in Hiring Production line supervisors, managers Welders Sales, Marketing supervisors, managers QA/QC technicians Warehouse supervisors, managers Engineer supervisors, managers Raw Materials Specialist Mechanical/Maintenance Quality/Science/Safety/Regulations Office Staff Production Operations Easy Low High Demand 7

9. Training, Development & Delivery Preferences • Training and development options offered to workforce (87% of those surveyed) • Food Safety • Leadership Development • Skill and/or role specific • Interest in offering customized training (81% of those surveyed) • Shorter duration training (1-2 day seminars, 1-2 week boot camps) , location and preferences: • Industry designed training facility • On-site (at your company) • Online • Other: blended approach instructor led sessions 8

10. Food Safety Training • Industry is largely compliant with “basic” food safety training and food defense • Larger companies, more so than smaller companies, more involved in food safety training in other areas such as FSMA regulations, HACCP certifications, etc. • Overall, appears to be large variances in training when viewed by job position to achieve regulatory standards. 9

11. Final Thoughts • Wisconsin food and beverage manufacturers face significant challenges in hiring workforce talent • Strong workforce is built on more than new hires • Continuous employee development that enhances knowledge, skills, and employee engagement are critical to stable workforce • As food and beverage industry grows in Wisconsin, so too must training focus of organizations • While both traditional and non-traditional training options have high appeal, organizations need to find the right training programs and methods that fit their organization and culture • Partnering with educators - a great first step 10

12. Questions? Please feel free to reach out anytime: mike.kopczynski@mranet.org; 262.696.3332 Thank you for attending today! 11

13. About MRA • Not-for-profit employers’ association established in 1901 • Serving 4,000+ employers throughout Wisconsin, Minnesota, Illinois, and Iowa and locations where their work takes us • MRA is in the business of connecting people strategies to business strategies. We value the privilege to be your partner; let us know what we can do to offer further insight • www.mranet.org or call 800.488.4845 12