After conducting eight district meetings and two regional workshops in Iowa and Nebraska, it has become evident that workforce development remains a major challenge for our members. The tight labor market, combined with competition for workers from manufacturers, has made it increasingly difficult. We have observed billboards and online marketing messages promoting, “Monday-Friday work week; no weekends,” which have proven to be enticing for both new workers entering the workforce and existing employees seeking work-life balance.
Meanwhile, farmers find themselves in the fields whenever the window of opportunity presents itself, and dealers must respond to their customers’ demands. During these times, weather, untimely equipment failures, or even “Murphy’s Law” tend to become prevalent challenges.
The question arises: How can equipment dealers, who require employees available on weekends, compete against local employers advertising a work-life balance with free weekends and no mandatory overtime? It is no accident that these employers promote flexible work environment options. They are well aware that this attracts talent in the tight labor market to their organizations, and dealerships have even lost quality employees to them.
The labor market of the 1980s, where individuals were desperate to find work and willing to put in any hours, is a thing of the past. Welcome to 2023, where the opposite holds true. Employers are now struggling to find applicants, let alone those who are motivated to work long hours. If equipment dealers cling to the mindset of the 1980s, attracting and retaining new employees will prove to be nearly impossible.
Examining demographic data and facts in Iowa and Nebraska, we find that the pool of available workers is very small. Based on 2020 census data, here is a closer look:
Iowa and Nebraska have populations of 3.1 million and nearly 2 million, respectively.
36 percent of the population is 50+ years old, while 13 percent are under the age of 12, meaning 49 percent of the entire population is nearing retirement age or too young to enter the workforce. This significantly reduces the total workforce to 1.5 million in Iowa and 1 million in Nebraska.
Less than one-third of the population in both states resides in rural areas. Considering the total workforce, this leaves us with 500,000 individuals in Iowa and 333,000 in Nebraska. It is important to note that these figures include those who are currently employed, with an unemployment rate ranging from 2 to 2.7 percent.
48 percent of high school students will pursue a four-year degree after graduation, leaving even fewer available candidates.
The implications are twofold. Firstly, for rural areas, the pool of potential new entrants interested in a diesel technician career is very small. Secondly, the problem will worsen as fewer rural students and workers choose to remain in rural areas, gravitating toward urban settings. For dealerships stuck in the mindset of the 1980s, the outlook appears bleak unless they embrace a new paradigm.
Dealers must ask themselves, “Why would an existing worker choose my dealership, where weekend work is mandated, when it is the very thing they do not want to do?”
In simple terms, if there are any available candidates, the likelihood of them selecting your dealership is very small if you continue to adhere to a 1980s mindset. It is evident that a new paradigm is required.
Take a moment to look in the mirror and ask yourself these inward-facing questions: “Am I part of the problem? Am I holding onto past practices ingrained in me by my father, my grandfather, and so on? What do I need to change? How can I become more appealing to attract and retain workers? What will set our dealership apart from other employers?”
Many of these questions were discussed at our recent workshops dedicated to workforce development. Attendees brainstormed ideas to address these challenges, and plenty of good ideas surfaced. Undoubtedly, some of these ideas could work for you. We will be sharing some of these valuable insights with you.
Each workshop included a session with community college students serving as panelists, allowing attendees to ask questions. The students’ answers were eye-opening for the participants. While some students were adamant about Monday-Friday hours only, others were completely fine with Saturday work during peak seasons.
However, a common theme emerged among all the students: culture. A healthy culture built on genuine appreciation, a place where they can fit in, and an environment that offers flexibility and understanding is what appeals to them. That’s where they want to work.
If your dealership embodies such characteristics, then you are the type of employer these candidates are seeking. Now, the question is, how do you convey your story? One student shared an insightful nugget: “Instead of sending the human resources recruiter to talk to me with their professional-looking pamphlets, I want to talk to the “A” technician to see what it’s really like to work there.” This fresh perspective calls for a new way of thinking and a new paradigm.
Perhaps it’s time to adopt new approaches and explore the insights uncovered at our workforce development workshops. Better yet, plan to attend one in the future. What do you have to lose?