SMARTalent

Things to Think About

• Why do SMMs have a hard time finding and keeping employees?

• What should they be doing – internally – to manage their workforce talent?

• How can we help them manage their workforce without the process becoming burdensome to them?

• How can we ensure that the MEP focus on growth, automation and innovation is connected to and supported by SMMs’ workforce choices?

SMARTalentEX: Recruitment and retention is a critical problem for SMMs, states the MEP survey.

This problem is complex, but can be simplified by demonstrating how workforce decisions and business goals are connected at a deeper level than just hiring “warm bodies”.

The costs of employee turnover can be staggering, ranging anywhere from 1/2 to 5 times an employee's annual wages dependent upon his or her position. If you have a turnover rate of 25% and employ 40 employees each earning $25,000 annually, the costs of turning over 10 of these employees over the course of a year will be at least $125,000.

SMARTalent

MEP began conceptualizing a technology tool

in 2012. This tool will enable SMMs to look at

business targets and compare them to

workforce investments and practices, and see

if they have “gaps” between the what they

need to be successful and what they have. It

will stimulate their thinking and provide data

about the larger picture of hiring, retaining,

training, talent management and succession

as aligned to their business goals/targets.

Business Drivers

Diagnostic Questions

Scoring Logic

Visual Output

Actions

SMARTalentIn using the diagnostic, SMMs will know more about their:• Alignment between business

targets, business practices and talent management practices.

• Gaps will be inferred by virtue of gathering data and either: 1) comparing their data to benchmark data or 2) comparing their business goals to their workforce investments and analyzing what the problems are that keep them from being more competitive.

MEP Centers will help SMMs prioritize actions toward improvements in practices and processes.

326130 $610 $468 $92 $518 $106 23% 6% 38% $28 $5,842,689326199 $333 $249 $76 $333 $37 15% 8% 33% $19 $12,249,543326291 $405 $312 $88 $426 $33 11% 4% 41% $14,206,314326140 $519 $412 $79 $496 $13 8% 6% 23% $16,962,73831-33 $602 $859 $34 $3,908 $42 7% 3% 96% $7,926,766,783

NAICS Title < 500 Employees> 500 Employees

326130Laminated plastics plate, sheet (except packaging), and

208 21

326140Polystyrene foam product manufacturing

288 26

326199 All other plastics product 5,340 301

326291Rubber product manufacturing for mechanical use

367 32

311 Food manufacturing 20,137 536321 Wood product

manufacturing 12,422 175

331 Primary metal manufacturing 3,480 293

31-33 36,039 1,004

ACME Manufacturing Co. & Industry Profile

$362$212$279$399$560

Number of Large & Small Companies

Mean Hourly Wage / NAICSValue Add / Employee

Total US Market per NAICS($1,000)

Direct Cost / Employee /

NAICSIndustry Total

Employees / NAICS

Benchmark & Comparison Indicators

Lowest Revenue / Employee

Lowest Earnings Margin per Employee

Highest Revenue / Employee

US Wide

NAICS Code

Revenue / Production Employee

Revenue / Employee

Earnings / Employee

Earnings Margin / Employee

(%)

Highest Earnings Margin per Employee

$160$89

$102$118$178

Direct Costs / Employee

My Industry at a Glance

Manufacturing Benchmarking IndicatorsBy Region, State or County

SMARTalentSMMs that analyze their workforce investments in ways similar to their other business investments (process control, inventory management, product development, finance and accounting) will find that their use of diagnostics for talent management will provide them with:

• Greater Productivity: Employees’ skills will become better aligned to the skills needed by the company, resulting in greater effectiveness and efficiency in their operations. • Better Trained Employees: As skill needs and requirements become standardized, and employers gain more and better access to training customized to those requirements, employees will be better-trained in industry-specific skills aligned to business goals.• Reduced Turnover: With a focus on workforce development as a system, employees will be better matched with their job descriptions, and with access to training and career ladders, and they will be more inclined to stay where there are opportunities for advancement.• Better Pool of Job Applicants: As more community or regional resources are devoted to training people in the appropriate skills needed for the company and industry, the pipeline of qualified applicants will expand to support business growth. • Cost Offsets: As productivity goes up, turnover goes down, processes become more efficient, and barriers to productivity are reduced. With a workforce system in place, workforce investments are optimized and risks reduced.

SMARTalent

SMARTalent helps CEOs understand their current practices and gaps; the modules manage and implement talent planning decisions as they align to business goals. SMARTalent is a knowledge management and process implementation tool.

SMARTalent

Job Occupations

Company Profile

Industry Benchmark

Data

Company Info & Stats

Company data compared with:- Industry benchmark dataCompany data compared with:- Industry benchmark data- Workforce data (benchmark data)

Company WF & TM

Company Organizational

Practices

Company data compared with:- Industry benchmark data- Workforce data (benchmark data)- Organizational data (benchmark)

Company Strategic Direction

Company data compared with:- Industry benchmark data- Workforce data (benchmark data)- Organizational data (benchmark)- Potential WF needs

Company data compared with:- Industry benchmark data- Workforce data (benchmark data)- Organizational data (benchmark)- Potential workforce needs- Workforce gaps to be corrected

SMARTalentData gathering

Gathers data on client’s business goals/targets and common operational practices Gathers data on client’s workforce/talent management operational practices

Strategic alignmentProvides relevant key information and knowledge about the workforce to support the strategic direction of the businessTakes client’s business goals and practices data and talent management data and provides feedback in the form of gaps between the twoDisplays talent gaps to analyze potential solutions and maximize operational success

Ask SMARTalent Clients can ask SMARTalent questions related to WF challenges - SMARTalent provides insight, relevant good practices, industry benchmarks, comparisons and relevant key performance indicators (KPIs)Centers can suggest cost effective way to close and manage apparent talent gaps to help businesses become more competitive

SMARTalent

SMARTalent Module 2 Input & Outputs

❶ With These Inputs …

1. Company Profile 2. Bus Practices Data 3. Workforce Data

4. Strategic Plan Data5. Current WF Talent

Profile3

❷ …

Get

These

Output

s

1. Industry Specific Wages, KPI’s, Benchmarks and Averages

2. Industry Specific Business Situation Analysis (note: this is from Hoovers)

3. Relevant Examples of WF/TM Good Practices

4. Suggested Occupations, KSAs, Competencies, Job Profiles, Training Requirements

5. WF/TM Business Practices Assessment Results and Comparisons

6. Industry Specific KPI Comparisons 1 2

7. List WF and Talent Gaps

8. Cost / Benefit Input Comparisons for Gap Closing Approaches

Max Knowledge OutputMin Data Input

326130 $610 $468 $92 $518 $106 23% 6% 38% $28 $5,842,689

326199 $333 $249 $76 $333 $37 15% 8% 33% $19 $12,249,543

326291 $405 $312 $88 $426 $33 11% 4% 41% $14,206,314326140 $519 $412 $79 $496 $13 8% 6% 23% $16,962,73831-33 $602 $859 $34 $3,908 $42 7% 3% 96% ###########

NAICS Title < 500 Employees> 500 Employees

326130Laminated plastics plate, sheet (except packaging), and shape manufacturing

208 21

326140 Polystyrene foam product manufacturing 288 26

326199 All other plastics product manufacturing 5,340 301

326291Rubber product manufacturing for mechanical use

367 32

311 Food manufacturing 20,137 536

321 Wood product manufacturing 12,422 175

331 Primary metal manufacturing 3,480 293

31-33 36,039 1,004

US Wide

NAICS Code

Revenue / Production Employee

($1,000)

Revenue / Employee

($1,000)

Direct Costs / Employee($1,000)

My Industry at a Glance

ACME Manufacturing Co. & Industry Profile

Mean Hourly Wage / NAICS

Value Add / Employee

($1,000)

Total US Market

per NAICS($1,000)

Direct Cost / Employee /

NAICSIndustry Total

Employees / NAICS

Lowest Revenue / Employee($1,000)

Lowest Earnings

Margin per Employee

Highest Revenue / Employee

($1,000)

Earnings / Employee

($1,000)

Earnings Margin / Employee

(%)

Highest Earnings Margin per Employee

$560

Number of Large & Small Companies

$178

$362

$212

$279$399

Benchmark & Comparison Indicators

$160

$89

$102$118

Benchmarks by Region, State and County

Max Knowledge OutputMin Data Input

Worse

8

Which Areas of Your Business’s Performance Would You Most Like to Improve Over the Next Year?

(Please rank from 1 - 10)

How Would You Rate Your Business’s Performance This Year In Comparison To Last Year In The Better Same

Overall profitability

Process efficiency

Sustainability processes Sales/revenues

Market expansionTechnology adoption

Ability to retain critical employees

Employee satisfaction

Customer satisfaction

Quality of products/services

9

6

5

7

6

2

110

3

4

3

2

Disconnects Between Goals, Stated Priorities and Actual Practice

Industry Median Wage

(2012)ACME Median

Wage

Projected Job Openings (2014 - 18) Avg Age Retire

$31,878.00 $28,630 19000 3% $18,100 -5% 62.40

Workforce Planning and Analysis

Recruitment Module

Strategic Planning Module

Talent Management Module

Succession Module SMARTalent Completed

Oct2012

completed

June2013

Oct2013

completed

June2014

Roll-out

completed

completed

Roll-Out2014

To selected

centers

To selected

centers

SystemRoll-out

Timeline For SMARTalent Completion And Roll-out