The Ukraine: Gaining the Competitive Edge
by Michele Payn-Knoper
You know that feeling of frustration you get every time you have a position open? How tough it is to find someone who is willing to learn your business and can work with farmers? Then if you’re fortunate enough to find a few good applicants, you have to worry about the technical requirements of the job. As soon as you get that new hire trained to really connect with your customers, a ‘better opportunity’ comes along and they’re gone. An ongoing headache, right?
Today most businesses, particularly in agriculture, cite finding and keeping good employees as their top challenge. Not only are fewer people willing to put in the long hours, a decreasing percentage of the population has any connection to farming. Concerns with integrity, reliability, and communication skills make it even more complicated in the 21st century.
You might be surprised to learn that these are the same types of people issues faced by your counterparts in the Ukraine. Last month we talked about the contrasting scenarios of Ukrainian agriculture; the huge range of farm sizes, 36-50% interest rates loans, and reliance on in-store customer visits. All of these factors make it critical that retailers either find or develop top-notch people. If employees don’t fit that mold, the consequence is money left on the table.
Tough to deal with on American terms, but even worse in a new market economy. Ukrainian ag retailers have only been in business a few years. Even those affiliated with major nationals (e.g. Greenworld, an Aventis/Bayer chain) have to face infrastructure challenges of bad debt and a cash-only economy. Few services (e.g. soil testing) are sold and customers only purchase their products on an as-needed basis, so every customer interaction becomes critical.
Consider this; prior to the collapse of the Soviet Union in 1991, the only agricultural experience in the Ukraine was found on a collective farm. Even those working on the farms rarely had any concept of the ‘big picture’ operation. The few Ukrainians who talked about communism with me said it was designed to create “utopia – where everybody is equal.” This meant farm productivity wasn’t an issue and each person was expected to focus only on their specific task.
As a result, few job seekers have any connection to the land or familiarity with food production. Compounding the situation, faculty at universities and technical schools rarely have hands-on farming experience. The result is an employee pool with little understanding of practical agricultural production, even if they’ve pursued a post-secondary education. Needless to say, ag retailers in the Ukraine are very frustrated by the lack of qualified people for both entry level and degreed positions.
If you understand this struggle, it becomes easier to comprehend why the owners/managers feel as though they have to personally make the sales calls or rely on one employee that’s been with them since the beginning. The owner/manager can get stretched too thin since they’re also worrying about the future, inventory (a major issue in a cash only economy), profitability, and the myriad of other responsibilities that come with running a business.
Reality check: a business will only gain a long-term competitive advantage with customers through its’ people. If you want to get ahead of your competition, your employees have to be a big part of that! Training employees to interact with customers is critical – whether it’s in customer relations, selling, marketing, or technical services. It’s a principle that applies around the world; the owner or manager simply can’t be on the front line in all areas without losing effectiveness.
Training your people is essential, particularly if you want to avoid the headaches of searching for employees again. Employees who have been trained effectively not only add to the bottom line – they take ownership. Whether it’s a custom applicator or salesman, ownership results in a loyal employee who solves problems and commits to providing quality service to customers. In other words, that person gives you a competitive edge!
It can be tough to find quality training programs relevant to ag retailers. The Citizens’ Network for Foreign Affairs (CNFA) program I worked with was created specifically for this niche in the Ukraine. Based upon needs identified by the retailers, it’s a training program that focuses on sales skills, marketing, financial management, and inventory. Several partners, such as Monsanto and Syngenta, are involved with the project and will help promote the delivery by professional trainers. The goal is to provide the retailers with more training and people resources to strengthen the agricultural economy in the country.
The void of agricultural experience in the Ukrainian employee pool will be resolved as the agricultural infrastructure is developed in a market economy. Ag retailers have also taken matters into their own hands and are involving themselves in the education of potential employees. Some retailers are guest lecturing at the universities, developing comprehensive internship programs focusing on the basics of farming, and tapping into expert assistance from more developed countries – all in the name of finding and keeping good people.
As recruiting employees becomes more problematic for U.S. agribusinesses, you can learn from the Ukrainian situation. Should you consider how you can provide more industry expertise to educators, offer programs for interns to develop hands-on understanding of farming, or find more ways get more people interested in agriculture? American agriculturists are fortunate to have organizations like FFA, Farm Bureau, and 4-H developing student interest in agricultural careers. Why not work with them to be sure you don’t find a void in the employee pool like retailers in the Ukraine?
Perhaps through sharing resources and experiences from around the world, ag retailers will be one step further in discovering a cure for that headache of finding and keeping good people.
Michele empowers organizations to develop solutions for a changing marketplace. A professional speaker and consultant, she travelled in the Ukraine for three weeks as a part of a Citizens Network for Foreign Affairs project. Contact her today for more information or receive Michele's free monthly "Connections" e-newsletter filled with tips for connecting your cause by e-mailing newsletter@mpk.info. Go to www.mpk.info or call 765.427.4426 for more information.
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